Chex Services Signs Bank Agreement to Issue Stored Value Cards.

Business Editors

ENGLEWOOD, Colo. & PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)--Aug. 12, 2002

Equitex, Inc. (Nasdaq:EQTX) announced today that its wholly owned subsidiary, Chex Services, Inc. ("Chex") has executed an agreement with a banking institution to issue stored value cards. Under the terms of the agreement, Chex services will primarily function as an independent marketing agent.

The initial focus of the "Fastfunds" stored value card will be Chex clients utilizing check cashing and other cash access services at its 32 full-service Financial Service Center locations in casinos and other gaming establishments throughout the United States. In addition, the Company plans to use these stored value cards in support of its recently announced agreement with Paymaster Jamaica Limited.

Stored value cards, which can be purchased by anyone without a credit check or intrusive personal information, allow a customer to place funds on the card in varying amounts at any time that can be accessed at ATM's, through point-of-sale transactions wherever debit cards are accepted or at partner customer service outlets. They also provide a fast, easy and cost effective means of transferring funds to anyone, anywhere in the world.

Stored value cards offer a convenient alternative to customers who choose not to utilize traditional bank accounts due to language barriers, fear or mistrust of the banking system. Once money is loaded onto a card, customers have immediate access to their funds wherever the card is accepted. If a customer wishes to transfer funds to family or friends either nationally or internationally, they may purchase a second card that is sent to the recipient, which may be used to access the transferred funds for a minimal fee. Often these transfer fees are significantly lower than those charged by traditional money transfer services.

Equitex, Inc. is a holding company operating through its wholly owned subsidiaries Nova Financial Systems and Key Financial Systems of Clearwater, Florida and Chex Services of Minnetonka, Minnesota. Nova and Key design, market and service credit card products. Chex Services provides comprehensive cash access services to casinos and other gaming facilities.

The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward- looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, factors detailed in Equitex's Securities and Exchange Commission filings; completion of due diligence, shareholder approval, regulatory approvals and certain other pre-closing conditions for all incomplete merger or acquisition transactions; economic downturns affecting the operations of Equitex, its subsidiaries or companies proposed for merger or acquisition; the termination of previously announced acquisitions; delays or the inability to obtain regulatory approvals for previously announced acquisitions; the inability to initiate or complete any contemplated restructuring, offering, acquisition, disposition or other transaction; the inability of the Company to develop or market a stored value card; adverse financial performance by Equitex or any of its subsidiaries; failure to obtain or maintain regulatory approval for products and services offered by Equitex or its subsidiaries; the inability to obtain a new issuing bank for Key/Nova's secured credit card or to obtain such a bank on a timely basis; the inability to collect amounts due to Equitex from Net First National Bank; adverse equity market conditions and declines in the value of Equitex common stock; and the unavailability of financing to complete management's plans and objectives. The forward-looking statements contained in this press release speak only as of the date hereof and Equitex disclaims any intent or obligation to update these forward-looking statements.