American Merchant Data Services, Inc.: Pre-Holiday Sales And New Merchant Accounts Spur 4th Consecutive Month Of Record Residual Revenue Growth.

Business Editors

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

American Merchant Data Services, Inc. (OTC:AMDS) reports their fourth consecutive month of record residual revenue growth. During the month of November, residual revenue rose 81%. This increase was due in part to strong pre-holiday sales from Prepaid Master Cards, Gift and Loyalty Cards, Check Verifications and the continued growth of new merchant accounts.

As consumer spending continues to increase during the holiday season, AMDS anticipates another record month of residual revenue growth. It has been cited by CNBC and CNN that the months of November and December provide the top five heaviest revenue generating days for retail stores. As indicated in the press release dated September 23rd 2003, AMDS chose to enter the BILLION dollar Electronic Gift and Loyalty Card sector in order to maintain the companies' rapid growth rate and to take advantage of the busiest holiday season of the year.

According to Retail Card Forum, "American Express estimates that retail gift card outstanding balances alone are currently $1 Billion and project they will grow to $15 Billion in the next 2-1/2 years."

Bert Adcock of AMDS states, "Transactions for holiday sales were above anticipation. We are excited about the retail gift card sector and look forward to finishing 2003 with another record month. Going into 2004, we have numerous large pending accounts which we are in negotiations to close."

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.