LODI, Calif., Jan. 4, 2005 (PRIMEZONE) -- PayStar Corporation (Pink Sheets:PYST), one of the nation's growing providers of stored value debit cards, bank loading centers for prepaid ATM debit cards and kiosks marketing and management, announced today the signing of a binding LOI to spin-off (divestiture) its InfoStations kiosk division. In a collective offer from Now, Right Now, LLC (NRN, PYST strategic kiosk partner) and KNG Funding, with a multi-million dollar financing commitment for up to 2000 kiosk installations in 2005, PYST has begun due-diligence on the spin-off and analysis of the two companies combined proffer. The new company would be publicly traded and would be named INFOSTAR Systems, Inc. Upon successful conclusion, PayStar shareholders would receive a yet to be determined stock dividend and PayStar Corporation would retain an equity position in the new company.
William D. Yotty, CEO and Chairman of PayStar, stated: "This divestiture of PayStar's InfoStations kiosk division has been under consideration for some time now; the new company has commitments for nearly 2000 kiosk deployments in excellent retail environments. PayStar Corporation will retain considerable equity in INFOSTAR Systems Inc. and our shareholders will boost their stock portfolios by the stock dividend PYST intends to tender upon the successful closing of this transaction."
Now Right Now, LLC's (NRN), CEO, Charlie Castro commented, "This bringing together of PayStar's kiosk division, NRN's nationwide kiosk location deployment contracts and adequate funding from KNG Investors will create one of the nation's largest kiosk companies." Mr. Castro added, "The first year sales and management revenues of INFOSTAR Systems, Inc. are expected to exceed $20,000,000."
PayStar is anticipating completion of this spin-off by the end of Q1, with INFOSTAR Systems Inc. shares trading on the OTC market by mid year.
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.