Accesspoint Announces Another Period of Record Operating Results.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Sept. 23, 2003

Accesspoint Corporation (OTCBB:ASAP) today released its operating results for the month and seven months ended July 31, 2003. In spite of mounting legal costs associated with its defense of the Bentley v. Barber shareholder derivative action, the Company earned a record $323,000 in net ordinary income for the seven months ended July 31, 2003. The period ended July 31, 2003 was aided by an increase in higher margin large volume merchant relationships brought to the Company. In addition to serving as the manager of the Company, Merchants Billing Services has proven to be the single largest source of new accounts for the year 2003. The operating results for the current period contrasts sharply with a net ordinary loss in the amount of over ($572,000) for the same period in the year 2002. The loss in July 2002 would have been even greater were it not for the recognition of a non-cash adjustment due to the forgiveness of debt. Without the adjustment for the forgiveness of debt, the loss would have been ($844,000).

The current management of Accesspoint is proud to present the results of operations for the seven months ended July 31, 2003 compared with seven months ended July 31, 2002:

Revenues for the seven months ended July 31, 2003 increased to $7,911,823 from $7,887,262 for the seven months ended July 31, 2002. The increase of $24,561, 1%, is due primarily to the increased revenues associated with its ongoing relationship with Merchants Billing Services. While the total number of merchants in the card processing portfolio has declined 15%, the increase in gross processing volume shows an increase in the quality of merchants, fewer large volume high margin merchants comprising the portfolio as opposed to the historical composition of the portfolio consisting of smaller volume low margin merchants in large numbers.

Cost of sales for the seven months ended July 31, 2003 decreased to $5,976,709 from $6,207,036 for the seven months ended July 31, 2002. The decrease of ($230,327), or (4%), is extraordinary in light of the increase in revenues. With a 1% increase in sales, coupled with a decrease in the cost of sales during the same period, the gross margin increased by $254,888 or 16%. The gross margin increase was attributed to the departure of unprofitable agent and merchant relationships, the addition of new high margin merchants and the tightening of credit terms and risk analysis that have resulted in very low chargeback losses for the seven months ended July 31, 2003.

General and administrative expenses for the seven months ended July 31, 2003 decreased to $1,612,202 from $2,252,928 for the seven months ended July 31, 2002. The decrease of $640,726, or (29%), resulted primarily from a decrease of salaries and wages, occupancy costs, and other operating efficiencies. Current management has consolidated all operations into a single sublease in central Los Angeles. With room to expand and ideally situated to the freeways and the Los Angeles airport, the facility costs the company less than half the expense of the facilities prior management leased.

Interest expense, net, for the seven months ended July 31, 2003 was $94,378, as compared to $126,006 for the seven months ended July 31, 2002. The decrease of $31,628, or (26%), resulted primarily from the Company's lower level of indebtedness and reduced borrowing costs. Since current management assumed operational control, current liabilities have been reduced by more than $1,300,000, long-term obligations reduced to zero, capitalized lease obligations reduced by $100,000 and borrowing costs have declined to under 10%.

Income from operations for the seven months ended July 31, 2003 increased to $322,913 from a loss of ($572,702) for the seven months ended July 31, 2002. The increase of $895,615, or 157% was the result in increased sales, lowered costs of sales, lowered expenses and increased profitability per transaction processed.

Net losses for the seven months ended July 31, 2003 were ($259,200), as compared to ($1,438,035) for the seven months ended July 31, 2002. The difference in loss of $1,178,835, or (82%), was primarily related to increased revenues, a reduction of salaries, operating efficiencies, lowered residual expenses, increased transaction profitability and lowered amortization and depreciation expenses.

Net loss per share improved from a loss of 6 cents per share for the period ended July 31, 2002 to a loss of 1 cent per share for the period ended July 31, 2003.

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that certain statements in this release are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors. Such uncertainties and risks include, among others, certain risks associated with the operation of the company described above. The Company's actual results could differ materially from expected results.