American Merchant Data Services Establishes New Bank and Petroleum/ISO Divisions with Senior Management Team Additions.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Feb. 17, 2004

American Merchant Data Services, Inc. (OTC:AMDS) is pleased to announce the addition of Ms. Christy Hunt and Mr. Brian M. Cruzen to the AMDS Senior Management Team.

Ms. Christy Hunt will join AMDS as Director of Bank and Association Marketing. Christie served on a variety of increasingly responsible bankcard marketing positions at Concord EFS (CE/NYSE); including National Assistant Sales Manager of the EFS Grocery Division; Concord's largest market segment. Following this assignment, Christy was promoted to Manager of Member Relations for Concord's various associations, including 48 wholesale and state associations and 80 cash register dealers.

In her position with AMDS, she will be working with Bert Adcock and Bill Lucado, President of First Management Corp. in AMDS's joint venture with First Management Corporation marketing to agent banks. AMDS plans to capitalize on First Management's extensive contact base and established banking relationships.

Mr. Brian M. Cruzen will head the newly formed Petroleum and ISO Division. Brian was a Senior Manager at Concord EFS and former VP of Petroleum Card Services.

Brian is an experienced professional skilled in the ever changing elements of the Payment Processing arena. During his term at Concord EFS, Brian held a Sr. Management position in the Independent Sales Organization (ISO) Division of that company. In that capacity, he developed and maintained close relationships with Senior Executives in the industry. After several years with Concord EFS, Brian accepted a senior executive position with PCS, Inc. He managed and coordinated the daily operations and ISO division while creating new relationships and opportunities to increase overall revenue.

Bert Adcock, President of AMDS stated, "It is an honor to add Christy and Brian to our family at AMDS. Their experience and proven talents will be the nucleus for the growth of our new Bank and Petroleum/ISO divisions." Bert Adcock continued to state, "As with any investment, the proper diversification is crucial. As we continue our commitment to add shareholder value, we will employ a business model, diversifying our revenue stream across various sectors and expanding our commercial presence into new profitable market segments. American Merchant Data Services is very proud to reaffirm we have maintained our growth while still maintaining our debt free and cash flow positive status. We have also consistently provided 30% revenue growth, month to month, since inception. We anticipate continued growth through 2004 and anticipate achieving fully reporting status and a move to a higher exchange early in the second 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). 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.