Freestar Technology Expands Contract With Transaction Network Services, Adding Ten European Countries

Freestar Technology Expands Contract With Transaction Network Services, Adding Ten European Countries

February 21, 2006

    SHANGHAI, China, Feb. 21, /Xinhua-PRNewswire/ --
FreeStar Technology Corp. (OTC Bulletin Board: FSRT), an
international card payments processor and technology
company, announced in mid-February that it has expanded its
contract with Transaction Network Services (NYSE: TNS) to
manage the cross border data communications of its wholly
owned subsidiary Rahaxi Processing Oy to include names of
countries.

    Providing merchants, terminal providers and banks with
electronic payment processing services, Rahaxi Processing
captures transactions and routes them to financial
institutions, including some of the leading Finnish banks.


    As an extension to the original contract signed in
2004, TNS will support Rahaxi Processing's European
expansion initiative, launched this month with a presence
in Spain.  Rahaxi Processing plans to move into ten
European markets, including Portugal, Denmark and Turkey,
building on its established presence in Finland and
Sweden.

    TNS's global network will deliver high-speed debit,
credit, smart card and wireless transactions from terminals
to Rahaxi Processing's payment processing engine in Helsinki
and leading acquirers and issuers. 

    Now with more than 1,700 merchants across Sweden and
Finland, an increase of 700 in the last year alone, Rahaxi
Processing hopes to add 3,000 merchants in the program's
first year. 

    Paul Egan, chief executive officer of FreeStar
Technology Corp., said, "The contract satisfies the
company's long-term objective in these new markets and
supports Rahaxi Processing's investment in technology to
provide fast and secure data transfers for its customers in
the increasingly competitive retail market." 

    Angel Pacheco, chief technology officer, FreeStar
Technology, said, "TNS's worldwide presence and
flexibility is paramount during this exciting transition. 
Outsourcing to TNS saves us time and money, removing the
need to construct and maintain our own system, and allowing
us to concentrate on developing relationships in these new
markets."

    The contract is Rahaxi Processing's largest single
project.  After replacing a dedicated leased line solution
over a year ago, TNS will continue to handle transactions
via GPRS, internet protocol based and dial up terminals for
the company with 24 hour customer service 365 days a year. 

    Anders Wannberg, managing director for TNS Nordics,
said: "The expansion of our contract with Rahaxi
Processing highlights its confidence in TNS and our ability
to provide a framework for its expansion into ten additional
European countries." 

    "Moving to TNS has speeded up Rahaxi Processing's
end-to-end electronic payment processing services for its
customers," he added.  "The result is a stronger
acquiring environment and better service for customers.  We
are looking forward to supporting Rahaxi Processing in
achieving its expansion plans further into Europe." 

    About FreeStar Technology Corp.

    FreeStar Technology Corp. is a payment processing
company.  Its wholly owned subsidiary Rahaxi Processing
Oy., based in Helsinki, has a robust Northern European
BASE24 credit card processing platform.  Rahaxi currently
processes in excess of 1.3 million card payments per month
for such companies as Finnair, Ikea and Stockman.  The
company, based in Dublin, Ireland, maintains satellite
offices in Santo Domingo, Dominican Republic, Helsinki and
Geneva. For more information, please visit
http://www.freestartech.com

    About Transaction Network Services 

    Transaction Network Services is one of the leading
providers of business-critical, cost-effective data
communications services for transaction-oriented
applications.  TNS provides rapid, reliable and secure
transaction delivery platforms to enable transaction
authorisation and processing across several vertical
markets and trading communities. 

    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: 

     Paul Egan 
     FreeStar Technology Corporation 
     Tel:  [phone]

     Bryan Earl Kerola 
     Tel:  [phone]

     Arun Chakraborty
     Stern & Co.
     Tel:  [phone]

SOURCE  FreeStar Technology Corp.