LOS ANGELES, Kalifornia - May 2, 2009 - In a nondescript manufacturing plant on a quiet San Fernando cul-de-sac, a khaki-green machine the size of a buffet table sucks in bright pink ribbon and spits out one of the hottest features in theme parks.

Here, Precision Dynamics Corp., a company that began making plastic hospital wristbands out of a Burbank garage more than 50 years ago, has become the nation's top producer of a new microchip-enhanced wristband for amusement parks, concerts, resorts and gyms.

The wristbands use the same technology as electronic tollbooths, security key cards and the newest U.S. passports. But at Precision Dynamics, this sophisticated electronic know-how has found its niche at theme parks, where the high-tech wristbands act as high-security admission passes, cashless debit cards, hotel room keys and a form of identification to reunite lost children with parents.

In the last year alone, Precision Dynamics' wristbands came on line at Great Wolf Resorts' newest water park in Concord, N.C.; at the Schlitterbahn Water Park in Galveston, Texas; and at Water World, one of the nation's largest water parks, near Denver, Colo. In total, more than 50 theme parks across the country strap the wristbands on visitors.

Company leaders envision a future when they can expand the technology for use in border security and hospital identification, among other purposes.

"All sorts of things can be done with this technology," said Walter Mosher Jr., a founder of the privately held company and a member of the board of directors.

Because cashless spending is more convenient, industry reports suggest that visitors who use the wristbands spend as much as 25% more at resorts and parks.

"Our guests appreciate the convenience of it all," said Jennifer Beranek, a spokeswoman for Great Wolf Resorts. Precision Dynamics wristbands are used at seven of its 12 water parks nationwide.