AMDS Signs Two Year Agreement with FDIC Approved Bank of Bartlett, Inc., 17th Largest Bank in Tennessee.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Oct. 21, 2003

American Merchant Data Services, Inc. (OTC-PK: AMDS) announced today the signing of a two year agreement with Bank of Bartlett, Inc. This agreement will provide approximately 50 new credit card merchants for AMDS within the first month with several hundred going forward. Harold W. Byrd, Vice Chairman of Bank of Bartlett, has chosen AMDS also a Bartlett Company based on their aggressive expansion and attention to customer satisfaction.

AMDS will be providing multiple services for the bank. These services will include the processing of, Prepaid Master Cards, Payroll Cards, Credit Card processing, Check Verification and Guarantee as well as Gift and Loyalty Card programs. All of these services meet the growing demand of their personal and commercial banking customers.

Bank of Bartlett, Inc is headquartered in Bartlett, Tennessee. They are currently the 6th largest bank in the Memphis market, 17th largest bank in Tennessee as well as the 5th largest mortgage company. Both the FDIC and state banking officials have stated they are a strong and stable lending institution. As a result of their standing, they have received good marks.

Bert Adcock, President of AMDS states "We are proud to be providing services for a growing, bank such as Bank of Bartlett. Bank of Bartlett was the first lending institution we aggressively pursued because of their commitment to customer service and the quality of their banking staff. We anticipate our relationship with Bank of Bartlett going beyond our two year agreement. The first 50 credit card merchant accounts should be up and running by the middle of November."

Mr. Adcock further stated "As mentioned in previous press releases, our Company business model is based on residual revenue. We are debt free and are continuing to close accounts at a record pace. We anticipate our move to the Bulletin Board Exchange by the end of the first quarter of 2004."

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.

For more information, please contact Investor Relations at 973-351-3868 for Stephen Taylor or visit our website at www.amds.us.

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.