FreeStar Financials for 2nd Quarter Revenues Increase for the Six Months Period $790,724 and Increase of $129,350 Approximately 20%.

NEW YORK -- Headline of release should read FreeStar Financials for 2nd Quarter Revenues Increase for the Six Months Period $790,724 and Increase of $129,350 Approximately 20% (sted FreeStar Financials for 2nd Quarter Revenues Increase for the Six Months Period $129,350, Approximately 20%).

The corrected release reads:

FREESTAR FINANCIALS FOR 2ND QUARTER REVENUES INCREASE FOR THE SIX MONTHS PERIOD $790,724 AND INCREASE OF $129,350 APPROXIMATELY 20%

Transactions Processed 8,045,860 and Increase of 1,439,193, or 21%

FreeStar Technology Corporation (OTCBB:FSRT) today announced results for the three months and six months ended December 31, 2004. Revenues for the three months ended December 31, 2004 rose to $424,772, an increase of $63,341, or approximately 18%, from $361,431 for the three months ended December 31, 2003. Net loss increased by $81,344, or approximately 6%, to $1,350,302, or $0.02 per share, compared to the net loss of $1,268,958, or $0.02 per share, for the three months ended December 31, 2003. The year-to-year revenue improvement is due primarily to an increase in the number of transactions processed by FreeStar's wholly owned subsidiary, Rahaxi Processing Oy. During the period, Rahaxi processed

4,285,230 transactions, an increase of 1,127,946, or 33.58%, over the 3,358,284 transactions that were processed in the corresponding period in the prior year. The increased loss is due to increased sales, general and administrative costs incurred as the Company continues to build out its operating infrastructure.

Revenues for the six months ended December 31, 2004 were up by $129,350 to $790,724, an increase of approximately 20%, compared to revenues of $661,374 for the six months ended December 31, 2003. During the period, Rahaxi processed 8,045,860 transactions, an increase of 1,439,193, or 21%, over the 6,606,664 transactions that were processed during the comparable six months period in the previous year. Net loss for the six months ended December 31, 2004 was $2,328,498, an improvement of $437,388, or approximately 16%, compared to the net loss of $2,765,886 generated during the six months ended December 31, 2003.

The Company restated its net loss for the three months ended September 30, 2003 from $1,940,856 or $0.08 per share (previously reported) to $1,031,856 or $0.05 per share (as restated), a decrease of $909,000. The decrease was due to a change in the accounting for a transaction involving the sale of common stock during the three months ended September 30, 2003. For the six months ended December 31, 2003, the Company originally reported a net loss of $3,674,886, or $0.07 per share; the Company has restated the net loss for this period to $2,765,886, or $0.06 per share.

Paul Egan, CEO, commented: "We are pleased to report a revenue increase of approximately 18% for the quarter, and 20% for the six month period ended December 31, 2004. During the quarter ended December 31, 2004, we achieved continued revenue growth and continued to implement our business plan. The strategic focus on continued investment in our technical infrastructure will provide a platform to leverage and expand further into other markets, and to provide added value products to the existing client base. We believe that we are well positioned to continue to deliver improved results through the remainder of fiscal 2005."

Ciaran Egan, CFO, added, "During the quarter ended December 31, 2004, we experienced an increase in our sales general and administrative costs as we continued to build out our infrastructure in order to implement our business plan. It is important to note that for the six month period ended December 31, 2004, we were able to reduce our net loss by more than the amount of our revenue increase. We believe that our costs are under control and that much of our continued revenue growth will find its way to the bottom line. Additionally, not all of our costs are cash costs. We continue to utilize non-cash compensation where feasible in order to conserve our cash. For the three and six months ended December 31, 2004, our non-cash compensation costs were $692,526 and $1,273,192, respectively. Mr. Egan also notes that the Company's one-for-seven reverse stock split was effective Monday, November 8, and stated that "We believe this provides a capital structure more suitable to FreeStar's operational and financial status."

Please refer to the company's Form 10-QSB for further information regarding FreeStar, its operations and its financial performance for the three months and six months ended December 31, 2004.

About FreeStar Technology Corporation

FreeStar Technology is a payment processing and Technology Company with its main operations coming through its wholly owned subsidiary Rahaxi Processing OY, a robust Northern European BASE24 credit card processing platform based in Helsinki, Finland. Rahaxi Processing OY currently processes in excess of 1,000,000 card payments per month for an established client base that comprises companies such as Finnair, Ikea, and Stockman. FreeStar is focused on exploiting a first-to-market advantage for its Enhanced Transactional Secure Software (ETSS), which is a software package that empowers consumers to consummate e-commerce transactions with a high level of security using credit, debit, ATM (with PIN) or smart cards. The company, based in Santo Domingo, Dominican Republic, maintains satellites offices in Dublin, Ireland, Helsinki, Finland, and Geneva, Switzerland. For more information, please visit FreeStar Technology's websites at http://www.freestartech.com and http://www.rahaxi.com.

Forward-Looking Statements 

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The companies caution that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in FreeStar's Form 10-KSB filing and other filings with the U.S. Securities and Exchange Commission (available at http://www.sec.gov/). FreeStar undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.