Payment Data Systems, Inc. Completes $950,000 Sale and
Secures Profitability for Q4
- Adds to Cash In Current Quarter and to Recurring Revenue
In Future Quarters -
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San Antonio, TX
Dec. 6, 2005 Payment Data Systems, Inc. (NASDAQ OTCBB:
PYDS) an integrated electronic payments solutions provider,
announced today that it closed the transaction to sell the
domain name and trademark of billx.com to Freedom Financial
Network, LLC (FFN) of San Mateo California. In conjunction
with the close of the sale, we received cash of $950,000 and
executed an agreement to build a private labeled bill
payment site for FFN and provide related online payment
processing services for an initial term of three years.
Michael Long, Chairman and CEO of PDS, said, “We are very
pleased to be able to close this transaction with Freedom
Financial Network. The underlying agreements validate the
viability of our strategy of private labeling and creates a
cash position that significantly enhances our financial
profile and opens up new opportunities for PDS.” Long added,
“We look forward to a long and mutually beneficial
relationship with Freedom. They are clearly executing a
vision for growth and we are pleased to be able to play a
part in that.
Andrew Housser, Co-CEO of Freedom Financial Network, said
“We are very excited about the acquisition of billx.com and
see this as a key step in enhancing our brand and profile in
the consumer debt management industry. In addition we look
forward to entering the fast growing bill payment space by
partnering with one of the leading players in the industry.”
About Payment Data Systems, Inc.
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Payment Data Systems is an integrated payment solutions
provider to merchants and billers. We provide an
extensive set of tailored products to deliver
world-class payment acceptance, processing, and
risk/fraud management. Payment Data has solutions for
merchants, billers, banks, service bureaus and card
issuers. Whether you are in the market for card
issuance, payment acceptance or bill payment solutions
we have a solution for you. Payment Data is the owner
of the electronic bill payment portal, http://www.billx.com.
billx.com has the ability to transmit payments to
thousands of national billers.
Payment Data is also the exclusive license holder of
the rights to market the Carmen Electra gift and prepaid
cards. To receive updates on the Carmen Electra card
program sign-up at www.carmencard.com
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About Freedom Financial Network, LLC.
Freedom Financial Network, LLC (www.freedomfinancialnetwork.com)
provides consumer debt resolution services through its
Freedom Debt Relief and Freedom Tax Relief divisions. The
company works for the consumer, negotiating with creditors
to lower principal balances due that routinely result in
savings of half the amount owed. Based in San Mateo, Calif.,
Freedom Financial Network serves more than 4,000 clients
nationwide and manages more than $120 million in consumer
debt, offering an alternative to bankruptcy, credit
counseling, and debt consolidation.
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Payment Data Systems, Inc.
Michael Long
Chairman and CEO
phone: 210-249-4040
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FORWARD-LOOKING STATEMENTS DISCLAIMER Except for the historical
information contained herein, the matters discussed in this release
include certain forward-looking statements, which are intended to be
covered by safe harbors. Those statements include, but may not be
limited to, all statements regarding our and management's intent,
belief and expectations, such as statements concerning our future and
our operating and growth strategy. Investors are cautioned that all
forward-looking statements involve risks and uncertainties including,
without limitation, the factors detailed from time to time in our
filings with the Securities and Exchange Commission. One or more of
these factors have affected, and in the future could affect, our
businesses and financial results in the future and could cause actual
results to differ materially from plans and projections. We believe
that the assumptions underlying the forward-looking statements
included in this release will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements
included herein, the inclusion of such information should not be
regarded as a representation by us or any other person that our
objectives and plans will be achieved. All forward-looking statements
made in this release are based on information presently available to
our management. We assume no obligation to update any forward-looking
statements, except as required by law.
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