McCloy said Diebold's withdrawal is appropriate since the company did not meet the letter of the new law.

"It looks to me that the process may be working after all," said McCloy, who reacted angrily earlier this month when Diebold filed a lawsuit in North Carolina asking that the company be exempted from the code-escrow requirements of the new law. That lawsuit was dismissed in court.

McCloy said she is comfortable with Election Systems & Software as the sole remaining vendor for e-voting systems in North Carolina because the company has "contended all along that they could comply with the law."

"They at least have said, 'Yes, we can do it,'" McCloy said. "They've never opposed the Verified Voting law in North Carolina."

Matt Zimmerman, staff attorney at the EFF, said Diebold had to pull out because it couldn't comply with the requirements of the new state e-voting law.