Wednesday December 20, 4:00 pm Eastern
Time
Press Release
PayStar Announces Acquisition
of Prepaid E-Commerce Provider, PAIDCard.Net And 2001 Revenue Estimates
LODI, Calif.--(BUSINESS WIRE)--Dec.
20, 2000--PayStar Communications Corporation (OTCBB:PYST - news), a Nevada
Corporation, announced today that it has completed its acquisition of the
PAIDCard.net, a Prepaid Anonymous Internet Debit Card platform.
PAIDCard is a safe, secure, and easy
to use solution for on-line purchasing that will benefit both the consumer
and the e-commerce merchant.
``This addition to PayStar's Internet
and Prepaid Services Divisions allows PayStar to continue to distinguish
itself from other e-commerce providers,'' stated W. D. Yotty, CEO of PayStar.
``PayStar's nearly 8000 retail clients can now offer a prepaid internet
access and e-commerce solution to the financially credit-challenged consumer
who previously was unable to access the new economy. What we have here
today brings e-commerce capability to millions of Americans for the first
time!''
The PAIDCard advantage is its ability
to alleviate the burden of chargebacks from on-line merchants, while providing
anonymity to the on-line consumer. Fraud is substantially reduced with
this method of payment, thus greatly lowering merchant fees and driving
additional revenue to participating e-commerce sites.
PAIDCard will be sold direct to consumers
through PayStar's internet website, retail stores and linked affiliated
websites. This mix of brick and mortar as well as on-line access will allow
purchases of PayStar's PAIDCard by cash or credit card. This technology
allows consumers to make secure anonymous purchases over the internet or
by telephone without the use of a credit card.
``This acquisition continues PayStar's
rapid expansion which has allowed PayStar to grow at over 250% in 2000.
We expect to finish the year with revenues of approximately $12 million,''
added Yotty. ``We are looking forward to continued growth in all eight
market segments next year with PayStar's projected annual 2001 revenues
exceeding $50 million. Recent marketing agreements and great success in
PayStar's cashless ATM and Prepaid Services Divisions has allowed for a
70% reduction in short-term debt, greatly enhancing our 4Q Financial Report.''
About PayStar
PayStar Communications Corporation,
the premier distributor of telecom and financial services to retail merchants,
currently owns and operates eight fully integrated divisions throughout
the United States. These divisions consist of a host of Prepaid Services,
Internet Kiosks, the ownership, operation, and management of Cashless ATM
and wireless bankcard machines, private pay telephones, long distance voice
and data services, as well as multi-media advertising. PayStar is the location
service provider (LSP) to retail merchants nationwide.
This news release contains forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements involve a number of known and unknown risks
and uncertainties that may cause the company's actual results or outcomes
to be materially different from those anticipated and discussed herein.
These include the company's historic lack of profitability, end-use customers'
acceptance and actual demand, which may differ significantly from expectations,
the need for the company to manage its growth, the need to raise funds
for operations, and other risks with the regulation of the telecommunications
industry.
For more information, call PayStar
at 888/769-7827 or visit their website at www.paystar.com.
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Contact:
PayStar
Communications Corporation
Harry T.
Martin, 209/339-0483
hmartin@paystar.com
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