ECONNECT ORDERS 10,000 ECASHPAD USB TERMINALS.

eConnect (OTC Bulletin Board: ECNC) has expressed that it is pleased with quality testing progress of the eCashPad USB and has ordered an initial run of 10,000 eCashPad USB devices. First deliveries to consumers are expected to be completed within the next 30 days.

The eCashPad USB -- a proprietary hybrid magnetic stripe reader, PIN pad and "smart card" device with USB connection -- is a home terminal that enables consumers to swipe their credit card and make payments to Internet merchants accepting the eConnect Bank Eyes Only system. Under Bank Eyes Only, only the bank -- and not the merchant -- has access to the purchaser's confidential credit card data, which reduces the risk of that information being stolen on the Internet. It also reduces the chance of charge-backs and may result in discounts from merchants.

eConnect believes that easy-to-use hardware such as the eCashPad USB is the solution to safer Internet commerce for the consumer and to more efficient and cost-effective transactions for Web merchants. The company also is exploring marketing the eCashPad USB as a secure way for consumers to enter their PIN in public applications where identification is needed.

eConnect has engaged Sygenics Corporation of Montreal, a developer of advanced information management technology, to provide technical support to Web merchants to add on the merchant integration kit that enables them to receive orders from eCashPad terminals.

eConnect expects to begin generating revenues this quarter from ongoing merchant sign-up fees, purchases of the $59.95 eCashPad USB, and transaction fees to be generated by merchants receiving orders from eCashPad users.

"eConnect has begun a marketing campaign to introduce the eCashPad USB into consumers' homes in conjunction with an aggressive Web merchant sign-up program to add the Bank Eyes Only system to their Web sites. By Christmas, we are targeting a base of 50,000 eCashPad USB owners and the usage of ATM card with PIN and smart card," said Erin Lovejoy, director of sales and marketing.

About eConnect:

eConnect Inc. is focused on delivering next-generation e-payment solutions. The company develops proprietary hardware, software and transaction-processing services and believes that hardware-originated transactions are the future of Internet commerce and will benefit both the customer and the merchant.

eConnect can be found on the World Wide Web at http://www.econnectholdings.com/.

For more information, call 310/788-2850.