FDN, Inc. Announces Placement of XTRAN Machines.

Business Editors

ORLANDO, Fla.--(BUSINESS WIRE)--Jan. 19, 2001

FDN, Inc., (OTCBB:FDNI), announced today that it has reached an agreement with Key Com, Inc., which enables the placement of Key Com's XTRAN Electronic Money Transfer machines within FDNI's established distribution network, comprising approximately 35,000 locations nationwide.

The executed agreement allows for FDNI's entry into the electronic money transfer business. Moreover, Paul Matthews, President & CEO of FDNI, who closed the agreement with XTRAN stated, "This new joint venture is a home run for FDNI, Key Com and our retail outlets who will also jointly benefit from FDNI initiating an additional alliance with Key Com. Under the new alliance Key Com management will supply technology to facilitate the sale of prepaid phone cards through the same XTRAN machines, thereby increasing sales and offering alternatives to retail customers within the network." Mr. Matthews further stated, "Due to the advantages of the XTRAN machine an opportunity will be created to further increase our base of participating retailers seeking phone card sales and cash transfer services. This is consistent with the approach of FDNI to strategically expand and integrate a diversified group of telecommunications and internet services it offers within the industry."

According to FDNI management, related to the agreement, Key Com has supplied certain projected transactions per unit, which when based on FDNI's per transaction commission as well as resulting increased phone card sales, should be expected to account for approximately $2.5 million of additional profit for the year 2001.

Safe Harbor Statement: Certain statements in this news release may constitute "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from those set forth or implied by such forward-looking statements. Forward looking Statements: All statements other than statements of historical fact in this release are forward looking statements. Actual results may differ materially from those contemplated by the forward-looking statements as a result of certain factors including, but not limited to the effect of business and economic conditions; the impact of competitive products and pricing; and capacity and supply constraints or difficulties. Such statements reflect the current views of the Company with respect to future events and are subject to these and other risks and uncertainties and assumptions relating to the operations, results of operations, growth and liquidity of the Company.