Payment Data Systems - Press Release

Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of 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. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.

Payment Data is the owner of the electronic bill payment portal, www.billx.com, which has the ability to transmit payments to thousands of national billers.

Payment Data’s intellectual property includes U.S. Patent Number 7,021,530 that relates to bill payments made with debit, prepaid and stored value cards.

For additional information, visit www.paymentdata.com. Contact Michael Long for Investor Relations information at 210.249.4040 or email at ir@paymentdata.com.



Payment Data Systems, Inc. To Hold Annual Shareholder Meeting
San Antonio, TX June 19, 2006 Payment Data Systems, Inc. (OTC BB: PYDS) an integrated electronic payments solutions provider will hold its 2006 Annual Shareholder Meeting on June 22nd at 10:00 a.m. at the Airport Hilton Hotel in San Antonio, Texas. For those not able to attend the meeting, the presentations will be posted to the Payment Data website soon after the meeting. These presentations may be viewed at www.paymentdata.com.
About Payment Data Systems, Inc. Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of 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. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments. Payment Data is the owner of the electronic bill payment portal, www.billx.com, which has the ability to transmit payments to thousands of national billers. Payment Data’s intellectual property includes U.S. Patent Number 7,021,530 that relates to bill payments made with debit, prepaid and stored value cards. For additional information, visit www.paymentdata.com. Contact Michael Long for Investor Relations information at 210.249.4040 or email at ir@paymentdata.com.
Payment Data Systems, Inc. Michael Long Chairman and CEO email: michael.long@paymentdata.com phone: 210-249-4040
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.