2007'02.01.Thu
Freestar Technology Reports Revenue Rises 19% In Third Quarter Of 2006, Ended March 31

PR
May 26, 2006

Transactions Processed Climbs 18% to 4.07 Million
Highlights of Third Quarter, Ended March 31 -- Revenue rose more than 19% to $494,296 from third-quarter 2005 -- Transactions processed climbed 18% to 4.07 million from 3.45 million a year ago Highlights of Nine Months, Ended March 31 -- Revenue increased more than 39% to $1.67 million from $1.20 million in the same period a year ago -- Transactions processed advanced more than 15% to 13.3 million from 11.5 million in the prior nine-month period SHANGHAI, China, May 26, /Xinhua-PRNewswire/ -- FreeStar Technology Corp. (OTC Bulletin Board: FSRT), an international card payments processor and technology company, reported earlier this week its financial results for the third quarter of its 2006 fiscal year, ended March 31, 2006. Revenue in the period rose more than 19% to $494,296 from $412,778 in the comparable period of fiscal 2005. The company explained that the revenue gains reflect an increase in fees obtained from development and consulting services as well as processing fees generated by the company's subsidiary Rahaxi Processing Oy. The number of transactions processed increased 18% to 4.07 million during the quarter from 3.45 million during the comparable period of the prior year. Net loss for the period narrowed 65% to $2,216,696, or $0.01 per share from $6,413,501 or $0.08 per share a year ago. FreeStar Technology President and CEO Paul Egan said, "We are pleased to report another quarter of steady progress in operations and in executing our business strategy. Operationally, sales and volume continue to grow, and we reduced our quarterly losses by 65% compared to the comparable quarter of last year." "Strategically," he added, "we strengthened our balance sheet significantly during the quarter. Moreover, we achieved a significant technological advance, when Rahaxi Processing obtained EMV-Certification for its Rahaxi-OTM(TM) software." "To maintain our strong technological advantages, we invested 29% more in product development in the quarter, spending $457,000 on software development and acquisition, up from $326,000 during the comparable quarter of the prior year," he said. For the nine months, ended March 31, 2006, revenue increased more than 39% to $1.67 million from $1.20 million reported for the nine months ended March 31, 2005. The number of transactions processed gained more than 15% to 13.3 million from 11.5 million recorded in the nine months ended March 31, 2005. Egan said, "We are excited about the coming fiscal year, believing that we are very well positioned to continue to execute our business plan." Other significant developments during the quarter: -- The Company agreed to terms for $9.2 million in financing with a group of European investors; -- The Company signed a private placement agreement to secure $10 million in financing from Svensk Kredit och Finans AB, based in Stockholm, Sweden; and -- The company's Rahaxi Processing Subsidiary achieved EMV-Certification for its Rahaxi-OTI(TM) (Open Terminal Interface) Middleware Solution. 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 1.35 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 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. 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. 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 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: Investor Relations: Arun Chakraborty Stern & Co. Tel: +1-212-888-0044 Email: achakrab@sternco.com Paul Egan FreeStar Technology Corporation Tel: +1-809-368-2001 Email: pegan@freestartech.com SOURCE Freestar Technology Corp.
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