Press Release Source: Payment Data Systems, Inc.

 

Payment Data Systems’ Nabs Carmen Electra License & Endorsement of Celebrity Prepaid Debit and Gift Cards
 

 - Company Expands into Consumer Markets -
 

San Antonio, TX Sep 07, 2005 There’s no doubt about it. With nearly 1.5 billion in circulation last year, prepaid debit cards are here to stay. Payment Data Systems, Inc. (NASDAQ OTCBB:PYDS) announced today that it has entered into an agreement with Carmen Electra that grants the company the exclusive marketing and distribution rights of Carmen Electra-branded transaction cards.

The versatile Carmen Electra is a singer, actress, dancer, and savvy businesswoman. Her current projects include being the celebrity spokesperson for Max Factor cosmetics and a role in 20th Century Fox’s Cheaper by the Dozen 2. Last year, Ms. Electra released a DVD series called “Aerobic Striptease” in which she teaches low impact total-body workout exercises; the series launched a new fitness craze. Signing an agreement with Payment Data Systems is another indication of her intuition and keen business sense.

“The Carmen Electra cards give me another way to connect with my fans while providing them the ability to enjoy the convenience of shopping or paying bills with ease -- online and offline,” said Ms. Electra. “Payment Data Systems is the perfect partner for me because of the capabilities the company already has in place.”

In an increasingly electronic world, an estimated 70 to 100 million credit-challenged consumers in the United States are turning to prepaid debit cards for online and offline transactions alike. Credit-challenged Americans include students, low income persons, and new immigrants. “Prepaid debit and gift cards enable anyone to transact online, offline, and by telephone,” said Michael Long, chairman and CEO of Payment Data Systems. “Prepaid cards are a perfect complement to billx.com, our online bill payment property. The agreement with Carmen Electra -- given her fan base and natural appeal to a significant percentage of our target consumers is a coup for us.”

PDS is currently in discussions with a number of other major celebrities who appeal to the company’s various demographic targets. “The Carmen Electra agreement is just the beginning of a series of moves in preparation for our expansion into lucrative consumer markets,” said Louis Hoch, President. “The time is right for us to leverage not only our payment processing capacity but also our billx.com property.”

About Payment Data Systems, Inc.

Payment Data Systems, Inc. is an Integrated Payments Solution Provider delivering comprehensive, cost-effective electronic billing and payment solutions. Service offerings include payment processing over the internet, at point of sale, by customer service representatives and by Interactive Voice Response. One time and recurring ACH debits and credits, electronic lockbox and return check services, and web pay acceptance of credit cards and checks round out core services. The company further enables comprehensive tracking and reporting regardless of source or channel through automated, consolidated payment receipt systems. The company also owns www.billx.com, where consumers may make electronic payments to thousands of national companies and manage their electronic funds transfers.

  • Media Contact Information for Ms. Electra:
  • JILL FRITZO
  • Jill.Fritzo@pmkhbh.com
  • PMK/HBH-New York
  • (212) 373-6142

or

  • BRIT REECE
  • British.Reece@pmkhbh.com
  • PMH/HBH-Los Angles
  • (310) 289-6200
Payment Data Systems, Inc.
Michael Long
Chairman and CEO
phone: 210-249-4040
Media Contact For Payment Data Systems, Inc.
Ms. Myrna Nickelsen
Gear Seven Communications
phone: (510) 236-8505

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