AMDS'S Growth Potential is Strengthened by Negotiating Consulting Agreement With Former Senior Officer of Major Electronic Debit and Credit Card Processing Company.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Jan. 13, 2004

American Merchant Data Services, Inc. (OTC-PK: AMDS) is pleased to announce that the company has entered into a consulting agreement with First Management Corporation (FMC), headed by William (Bill) E. Lucado. FMC will assist AMDS by providing the following services: compliance and corporate governance advice and business planning advice. Consulting plans also include creating and implementing an agent bank program and providing payment industry strategic and technical advice.

First Management Corporation (FMC) has provided consulting services for over 25 years in the following areas: bank management, strategic and business planning, corporate governance and compliance, and corporate finance. Current clients include multi-bank regional holding companies and community banks, an insurance company and other financial services companies. Prior projects have included multi-national banks and corporations, as well as domestic and foreign governmental entities.

One of the key benefits of the First Management Corporation relationship is its President William (Bill) E. Lucado. Mr. Lucado will personally oversee the AMDS rollout. William E. (Bill) Lucado is an experienced professional manager with over thirty years of senior corporate management and consulting experience. He is the former President of EFS Federal Savings Bank, which was a wholly owned subsidiary of Concord. In addition he has previously held positions with Exxon, DeLoitte & Touche, and other major firms. Mr. Lucado has headed consulting projects in Europe, Latin America and the Middle East as well as in the United States. In the compliance area, Mr. Lucado holds a Certified Risk Professional designation. Mr. Lucado has held several corporate director positions, and has chaired audit and compliance committees. Mr. Lucado's obvious rich background and experiences will benefit AMDS'S market position immediately.

Mr. Lucado's focus will be to work with AMDS'S management to develop strategic plans to capitalize on growth opportunities in the marketplace today (including an agent bank program) and guiding AMDS in improving its internal infrastructure to be a first rate corporate governance program. This project will be a long-term program and will be consistent with the requirements for a newly rapid growing firm. It will include maintaining compliance with overall corporate governance standards, SEC regulations, processor contracts, etc.

Bert Adcock, President of AMDS, states "This is an exciting time for our company. Due to our rapid growth rate, expansion into new territories and near term plan to move to a different exchange, we feel it is necessary to develop a compliance and corporate governance program. As most people are aware, compliance is one of the most important aspects of managing a company's risk, following various corporate and industry guidelines is vital for long term success." Bert Adcock further stated, "Bill Lucado has a solid track record and is very well respected in the industry. It is my pleasure to secure Bill's counsel which will add value to our company and our shareholders."

About American Merchant Data Services Inc.:

American Merchant Data Service (AMDS) is a "value added" independent sales organization (ISO) engaged in the commercial electronic processing industry. AMDS manages their client's electronic transactions, including debit, credit, check verification, and electronic benefits transactions (EBT) Prepaid Master Card, Gift and Loyalty. AMDS, through its platform provider First Data, the largest credit card processor in the world, handles on a real-time basis their merchant's transactions, accounting, charge backs, and assistance with customer service, allowing AMDS to maintain low overheads and high margins, and focus on expanding its growing customer base.

About First Management Corporation

First Management Corporation is a Tennessee corporation providing services to banks, bank holding companies and corporations. Examples of current and recent projects include the following; compliance assistance and recruiting a CEO for a national bank, strategic planning and corporate finance assistance to a transportation services firm, a series of projects for a Nashville based multiple bank holding company, strategic planning services for a Sacrament based health insurance company, fixed asset financing assistance for a Tennessee Agri-Business and bank and branch acquisition services.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by American Merchant Data Services Inc. (AMDS) may differ materially from these statements due to a number of factors. AMDS assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.