FreeStar Technology Corp. Secures $10 Million Financing

FreeStar Technology Corp. Secures $10 Million Financing

May 02, 2006

    SHANGHAI, China, May 2 /Xinhua-PRNewswire/ -- FreeStar
Technology Corp. (OTC Bulletin Board: FSRT), an
international card payments processor and technology
company, announced at the end of April that it has signed a
private placement agreement to secure $10 million in
financing from Svensk Kredit och Finans AB, based in
Stockholm, Sweden.  Svensk Kredit och Finans AB is a
privately owned and independent venture firm investing in
companies with high quality products and services with
exceptional growth potential.  Svensk Kredit och Finans AB
targets companies with growth opportunities in the
Scandinavian markets where its owners see opportunities to
support this growth with its extensive Scandinavian
business network.  

    The agreement provides for the purchase of 25 million
newly issued shares of restricted common stock at a
weighted-average price of $0.40 per share, and two-year
warrants to purchase an additional 25 million shares at
strike prices ranging from $1.50 to $3.00.  

    Magnus Erneving, CEO of Svensk Kredit och Finans AB,
said, "We have identified a number of opportunities
for Rahaxi-Freestar in the European and Scandinavian market
where we can assist.  We consider our involvement with
Freestar a long-term investment."

    Paul Egan, chief executive officer of FreeStar
Technology Corp., said, "Our ability to access the
financial markets in this fashion indicates the confidence
which the financial community has in FreeStar's future. 
This $10 million financing, combined with the $9.2 million
financing which we completed in March, further strengthens
our balance sheet and provides us with the resources we
need in order to execute our business plan.  In addition,
our revenue base continues to grow.  Freestar's
international expansion strategy includes forming strategic
business relationships with strong influential partners
within the local financial target markets we are pursuing. 
We are therefore looking forward to the mutual opportunities
with Standardbolag AB, through its ownership in Svensk
Kredit och Finans AB.  We are very excited about the value
which we believe we are building for FreeStar
shareholders."

    For information about Standardbolag AB please visit
www.standardbolagen.se .

    About Freestar Technology Corp.
    FreeStar Technology Corp. is a payment processing
company.  Its wholly owned subsidiary Rahaxi Processing
Oy., based in Helsinki, has developed and operates a robust
Northern European BASE24 credit card processing platform. 
Rahaxi currently processes in excess of 1.8 million card
payments per month for such companies as Finnair, Ikea and
Stockman.  Freestar is based in Dublin, Ireland, and
maintains satellite offices in Santo Domingo, Dominican
Republic; Helsinki, Finland; and Geneva, Switzerland.  For
more information, please visit http://www.freestartech.com
.

    Forward Looking Statements: 
    Certain statements in this news release may contain
forward-looking information within the meaning of Rule 175
under the Securities Act of 1933 and Rule 3b-6 under the
Securities Exchange Act of 1934, and are subject to the
safe harbor created by those rules.  When used in this
press release, the words "expects,"
"anticipates," "believes,"
"plans," "will" and similar expressions
are intended to identify forward-looking statements.  These
are statements that relate to future periods and include,
but are not limited to, statements regarding our adequacy
of cash, expectations regarding net losses and cash flow,
statements regarding our growth, our need for future
financing, our dependence on personnel, and our operating
expenses.  All statements, other than statements of fact,
included in this release, including, without limitation,
statements regarding potential future plans and objectives
of the companies, are forward-looking statements that
involve risks and uncertainties.  Forward-looking
statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from
those projected.  These risks and uncertainties include,
but are not limited to, those discussed above as well as
risks set forth above under "Factors That May Affect
Our Results."  These forward-looking statements speak
only as of the date hereof.  There can be no assurance that
such statements will prove to be accurate and actual results
and future events could differ materially from those
anticipated in such statements.  Technical complications
that may arise could prevent the prompt implementation of
any strategically significant plan(s) outlined above.  The
companies caution that these forward-looking statements are
further qualified by other factors including, but not
limited to, those set forth in FreeStar's Form 10-KSB
filing and other filings with the U.S. Securities and
Exchange Commission (available at http://www.sec.gov ). 
FreeStar undertakes no obligation to publicly update or
revise any statements in this release, whether as a result
of new information, future events, or otherwise.

    For more information, please contact:
 
    FreeStar Technology Corporation
     Paul Egan
     Tel:   [phone]
     Email: [e-mail]

    or

    Investor Relations:
     Stern & Co.
     Arun Chakraborty
     Tel:   [phone] 
     Email: [e-mail]

SOURCE  FreeStar Technology Corp.