Company ends outsourcing agreement, returning about 80 full-time employees;

anticipates restructuring charge of approximately $.07 EPS, reaffirms

                              full-year outlook

NORTH CANTON, Ohio, May 17 /PRNewswire-FirstCall/ -- As part of the company's effort to reorganize its global information technology (IT) operation, Diebold, Incorporated (NYSE: DBD) will take over implementation and support responsibilities for its Oracle global enterprise resource planning (ERP) system as well as other IT-related functions, effective June 1, 2006. This decision ends the company's previous IT outsourcing agreement with a third-party provider, DC Outsourcing ITO L.P., an affiliate of Deloitte Consulting LLP.

The previous agreement, developed nearly four years ago, called for DC Outsourcing to deliver various IT-related services to Diebold over a seven- year period, including deployment and implementation of the Oracle ERP system across the company. Diebold will now manage its global IT operations through its own in-house organization. This decision is designed to provide the company with more control and flexibility over its IT operations as well as the ability to accelerate its remaining ERP deployment.

As a result of ending its IT outsourcing agreement, Diebold will incur a termination fee that will result in a restructuring charge of approximately $.07 per share in the second quarter 2006. The termination of this contract also provides for a release of certain claims on behalf of both parties. Diebold reiterates its full-year earnings guidance, disclosed in its 2006 first quarter earnings release, in the range of $1.68 to $1.83 per share, excluding restructuring expenses now in the range of $.57 to $.62 per share.

This strategy will bring back to Diebold approximately 80 IT employees from DC Outsourcing, the majority of whom were employed by Diebold prior to the original outsourcing agreement. Also, as previously announced on Feb. 7, 2006, Diebold made several leadership appointments and operational changes within its global organization, including enterprise applications, Oracle implementation, global information management, business intelligence and information security. These operational changes will provide the structure necessary to achieve maximum value out of the new IT organization.

"I am pleased to announce that we have taken another important step toward returning our company to a more acceptable level of long-term profitability. Regaining direct control of our IT operations and ERP implementation will allow us to expedite the process of realizing the long-term benefits of an enterprise-wide information system," said Thomas W. Swidarski, Diebold president and chief executive officer. "This strategic decision is critical to achieving the operational improvement targets we have set as well as positioning us to be more flexible and responsive in meeting the needs of our customers. We are very excited to bring these experts back to Diebold, and to add the expertise of the DC Outsourcing associates who have worked for Diebold during these past years."

Diebold, Incorporated is a global leader in providing integrated self- service delivery and security systems and services. Diebold employs more than 14,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA. Diebold reported revenue of $2.6 billion in 2005 and is publicly traded on the New York Stock Exchange under the symbol "DBD." For more information, visit the company's Web site at www.diebold.com.

SOURCE: Diebold Incorporated

CONTACT: Media, Mike Jacobsen, +1-330-490-3796, or jacobsm1@diebold.com,
or Investors, John Kristoff, +1-330-490-5900, or kristoj@diebold.com, both of
Diebold, Incorporated
Web site: http://www.diebold.com