DEERFIELD BEACH, Fla., April 18, 2005 (PRIMEZONE) -- Interactive Brand Development, Inc. (Pink Sheets:IBDI) announced today that its subsidiary, Internet Billing Company LLC ("iBill"), is making a payment of $41.6 million to all former and current clients for transactions processed up to February 28, 2005. The payment is comprised of $21.6 million in cash and $20 million in term notes (the "iBill Payout").
On September 16, 2005, the processing contract between iBill and First Data Merchant Services expired and was not renewed, as part of First Data's national exit from processing credit card transactions for adult content. As contractually permitted, First Data withheld the release of certain funds. iBill and First Data entered into a settlement agreement that provided for the scheduled release of these funds.
The iBill Payout is a structured settlement wherein all participating merchants will receive full payment on funds owed through a combination of cash and term note payment. The cash portion will be paid immediately subject to clients entering into agreements verifying their balances. The cash component being wire transferred directly from the third party processors to webmasters.
"iBill is a pioneer in the online payment industry with a 10 year track record of reliability and innovation," said Gary Spaniak, Jr. "As part of our January 2005 acquisition of iBill, we clearly saw a significant opportunity to further the iBill brand for many years to come and, based on these payments, we see this objective being fulfilled."
Steve Markley, CEO of Interactive Brand Development commented, "Since IBDI acquired iBill, deliberate corrective measures have been implemented in combination with the engagement of Corporate Revitalization Partners. We are very encouraged by the developments."
In addition, U.S. domestic transactions using the Gkard have been current since Interactive Brand Development took over iBill beginning with the February 15th 2005 payment cycle. iBill continues to successfully offer the Gkard prepaid solution to customers that are referred to its website and to www.gkbill.com.
About Interactive Brand Development, Inc.
Interactive Brand Development, Inc. (IBDI) is a new media company that owns interests in online and offline media properties. IBDI processes online credit card payments and manages consumer databases through its wholly owned subsidiary; Internet Billing Company LLC IBDI also owns a 34.7% interest in Penthouse Media Group (PMG), publisher of Penthouse Magazine, a brand-driven global entertainment business founded in 1965 by Robert C. Guccione. PMG's flagship PENTHOUSE(tm) brand is one of the most recognized consumer brands in the world and is widely identified with premium entertainment for adult audiences. PMG is operated by affiliates of Marc Bell Capital Partners, LLC.
This release contains statements relating to future results of the Company that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of various risks and uncertainties.