Release Details

Wallingford, CT - October 7, 2004 - TransAct Technologies Incorporated (Nasdaq: TACT), a leading producer of transaction-based printers for customers worldwide, today announced that it has received a notice of allowance from the U.S. Patent and Trademark Office for the Company's pending patent application entitled "Jam Resistant Printer Bezel." The patent application covers TransAct's proprietary design for a jam resistant bezel for printers that dispense paper slips such as tickets, vouchers, or coupons. The invention is particularly useful in connection with printers used in gaming and lottery terminals that provide tickets for slot machines at racetracks and casinos.

Bart C. Shuldman, Chairman, President and CEO of TransAct Technologies, said, "Our latest jam resistant printer bezel provides gaming and lottery terminal operators with the trouble-free performance expected from TransAct's products. Our bezel design is particularly useful in those industries where paper jams for tickets, vouchers and coupons could lead to game downtime and lost revenue to our customers. TransAct has developed this cost effective solution to address this concern. We believe that our jam resistant printer bezel addresses the problem of costly paper jams by preventing them before they become an expensive problem for gaming and lottery machine operators."

The "Jam Resistant Printer Bezel" has an output slot with a front portion for outputting a paper ticket or voucher and a rear portion for receiving the printed-paper from a transport. The bezel body is mounted with a cavity between the transport and the rear portion of the output slot. A guideway is adapted to catch a leading edge of the paper exiting the transport, and guide the leading edge to the output slot. In the event the output slot is blocked, the guideway will guide at least a portion of the paper into the cavity, thereby preventing a jam.

Mr. Shuldman concluded, "Innovations like this latest one add to the strength of our expanding intellectual property portfolio, and further differentiate TransAct from the competition. We believe such innovations will help drive our continued success in the gaming and lottery industry."

About TransAct Technologies Incorporated

TransAct (Nasdaq: TACT) designs, develops, manufactures and markets transaction-based printers under the ITHACA® and MAGNETEC® names. In addition, the Company markets related consumables, spare parts and service. The Company's printers are used worldwide to provide receipts, tickets, coupons, register journals and other documents. TransAct focuses on two core markets: point-of-sale (POS) and banking, and gaming and lottery. TransAct sells its products to original equipment manufacturers, value-added resellers and selected distributors, as well as directly to end-users. The Company's product distribution spans across the Americas, Europe, the Middle East, Africa, the Caribbean Islands and the South Pacific. For further information, visit TransAct's web site located at www.transact-tech.com.

CONTACTS:
Steve DeMartino, Chief Financial Officer, 203-269-1198 Ext. 6059 or David Pasquale, 646-536-7006, or Andrew Rodriguez, 646-536-7032, both with The Ruth Group

Forward-Looking Statements:

The Company's forward-looking statements in this press release are subject to a number of risks and uncertainties. Risks and uncertainties include, but are not limited to, customer acceptance and market share gains, both domestically and internationally, in the face of substantial competition from competitors that have broader lines of products and greater financial resources; introduction of new products into the marketplace by competitors; successful product development; dependence on significant customers; dependence on third parties for sales outside the United States, including Australia and New Zealand; economic and political conditions in the United States, Australia, New Zealand, Europe and Latin America; marketplace acceptance of new products; risks associated with foreign operations; availability of third-party components at reasonable prices; and the absence of price wars or other significant pricing pressures affecting the Company's products in the United States or abroad. Actual results may differ materially from those discussed in, or implied by, the forward-looking statements. The forward-looking statements speak only as of the date of this release and the Company assumes no duty to update them to reflect new, changing or unanticipated events or circumstances.