LODI, Calif., Dec. 14, 2004 (PRIMEZONE) -- PayStar Corporation (Pink Sheets:PYST), one of the nation's growing providers of stored value debit cards, bank debit card loading centers and kiosks, announced today along with Strategic partner Worldwide Communications Group (WCG) a new approved stored-value "Rents Payment" program for HUD housing authorities (HA's). Under this program PayStar's GLOBALCash division will furnish WCG with its stored value cards to be used for payment of rents and utilities throughout the 3,000 plus HA's across the nation.
Louis Simpson, CEO of WCG stated, "By utilizing the Rents Card each participating HA will eliminate the inherent problems and related expenses associated with handling cash payments from housing residents, many of whom do not qualify for traditional credit or checking accounts." In addition, Mr. Simpson stated, "HA's will gain electronic tracking and reporting of payments at each property management company operating under the HA's control. We have already had housing authorities in over 20 cities commit to implementing this new stored-value 'Rents Card' program to all their residents, representing over 250,000 new stored-value cards being issued in early 2005."
Mr. Simpson continued, "With over 3,000 HA's across the country, this initial roll-out by PayStar will have only scratched the surface of the potential of this program. We fully expect the 'Rents Card' program to erupt once these initial cities get online and the word spreads. PayStar's GLOBALCash sales should exceed one million cards to residents by third quarter 2005."
William D. Yotty, Chairman and CEO, PayStar Corporation, said "We are delighted and pleased about this new project with WCG. We have been able to assemble all the elements needed for this exciting project. GLOBALCash now has systems in place for immediate rollout. Although this is a multi-year marketing campaign, PayStar will begin to receive immediate revenues generated through the 'Rents Card' program. In 2005 this opportunity represents over $10,000,000 in revenues and significant long term revenue increases during 2006 and beyond."
About Worldwide
Worldwide Communication Group, Inc. was founded in 1995 as a commercial telecommunication corporation. WCG was appointed as the Implementation Director for the Telecommunication & Information Assistance Program to implement the Community Technology Network Project (CTNP) (www.ctnpusa.com). WCG's commercial telecommunication service bureau provides digital technology communication services to individuals and families that would otherwise not have such services due to the lack of a checking account or major credit card accessibility.
About PayStar
PayStar Corporation (www.paystar.com) provides its distributors and clients with a suite of prepaid, stored value products, national bank load center locations and Kiosk marketing and management. PayStar's GLOBALCash, Inc. (www.globalcash.us) distributes prepaid ATM debit and stored value cards that can be used just like regular credit cards. Prepaid ATM debit cards can be used everywhere major credit cards are accepted (stores, restaurants, theaters) and online. PayStar is a partner in a prepaid ATM debit card program for a national government project that will enable millions of underserved and subsidized housing individual's access to prepaid ATM debit cards. PayStar's corporate and distributor sales, as well as mergers and acquisitions, will continue to drive growth.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of known and unknown risks and uncertainties that may cause the company's actual results or outcome to be materially different from those anticipated and discussed herein. These include the company's historic lack of profitability, end user customer acceptance and actual demand, which may differ significantly from expectations, the need for the company to manage its growth, the need to raise funds for operations and other risks within the regulation of the industry.