American Merchant Data Service headed by former Concord EFS - CE-NYSE - Management Launch Credit Card and Check Transaction Competitor.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 4, 2003

AMDS reports record 45% increase in New Accounts and 54% increase

in New Contracts for August, 2003.

American Merchant Data Service, Inc. (Pink Sheets:AMDS) is pleased to announce that AMDS has exceeded its August 2003 New Account and New Contract objectives and set new Company records. American Merchant Data Service (AMDS) facilitates the real-time management of American business's credit card and check transactions. Through partnerships and alliances with America's most well respected financial institutions, AMDS enables merchants to accept any type of electronic payment easily and securely. Allowing AMDS's highly trained customer service staff to do what they do best, supporting their clients sales of goods and services to consumers and businesses. Mr. Bert Adcock, President of AMDS stated, "American Merchant is projecting a further increase in contracts for September 2003. It's going to be another record month for AMDS with New Contracts projected to exceed our record month of August 2003 by 32%." Further Mr. Adcock stated, "AMDS will pursue an aggressive plan to grow American Merchant Data Service through regional acquisition as we build the Company internally through record sales. We have good solid Company's staffed by quality senior management on our target list, and we have hired an Investment Banking group to assist us with this segment of our growth plan."

Mr. Bert Adcock - President and Co-Chairman of the Board AMDS
Mr. Bert Adcock is the President of AMDS.  Mr. Adcock, former Director
of Customer Service, Concord EFS (NYSE:CE), with CE for over six
years, created the Corporate Accounts Division of CE, where he was
personally responsible for the signing of corporate accounts
(merchants with 40 - 2,200 locations).

Mr. Don Latourette - CEO, CFO and Co-Chairman of the Board
Mr. Don Latourette is the Chief Executive Officer and Chief Financial
Officer of AMDS.

Mr. James (Jim) Darby - COO and Director
Mr. Jim Darby is the Chief Operating Officer of AMDS.  Mr. Darby,
former Director of Operations, Concord EFS (CE-NYSE), before
retirement in February 2000 had been with CE for over 15 years,
monitoring all internal transactions Concord/EFS NB (National Bank).

Mrs. Angie Browder - Executive Vice President
Mrs. Angie Browder is Executive Vice President of Corporate Accounts.
Angie was the top inside sales representative at Concord EFS (CE-NYSE)
and has brought her skills and knowledge to AMDS in developing the
Corporate Accounts Division.

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). 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. Bert Adcock, President of American Merchant stated, " Our plans are to establish a national presence through regional expansion and the acquisition of localized ISO's. AMDS will look for well managed firms with exceptional management teams to add to our talent base. American Merchant Data Services will grow through acquisitions and increasing our current market share with a goal of qualifying for a listing on NASDAQ Small Cap."

For more information please contact Investor Relations at 973-351-3868 for Stephen Taylor.

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.