FreeStar Technologies to Joint Venture with Gamebase International to Promote Global Sales and Marketing of PaySafeNow(TM) Solution.
* Gamebase To Assume All Development, Integration, Sales, Marketing and Financial Administration Of The Joint Venture * FreeStar To Receive 12.5% Interest In Gamebase And Up To $5.85 Million In Cash Pursuant To Option Package Granted To Gamebase; Upon Full Exercise Of Options, Gamebase To Receive 25% Interest In FreeStar * Among Many Sales Distribution Channels, Gamebase To Market PaySafeNow To 7.4 Million Registered Subscribers of Sandbox.com (http://www.sandbox.com ), The World's Largest And Oldest Fantasy Sports And Skill Game On The Internet
NEW YORK, July 24 /PRNewswire-FirstCall) -- FreeStar Technologies, Inc. (BULLETIN BOARD: FSTI) , a company providing one of the world's first live and operational debit and ATM with PIN- authenticated payment technology on the Internet, today announced that it has entered into a Memorandum Of Understanding (MOU) with Las Vegas-based Gamebase International, Inc. (GBI), a privately held company engaged in building an end-to-end solution for gaming processing that includes a private debit card system, to globally promote FreeStar's proprietary online payment solution, PaySafeNow, to the Internet gaming industry. A definitive agreement between the parties will follow a 30-day due diligence process, which is expected to be completed on or before August 31, 2002.
Gamebase is led by Robert Brazell, the founder and a Director of Overstock.com, a leading Internet destination offering consumers name-brand products at steep clearance prices. Brazell, along with a management team composed of senior executives stemming from the high technology, gaming and financial industries, is directing the creation of the world's first jurisdictionally-compliant, secure gaming system and platform for interactive gaming, which will facilitate entry and expansion by major branded casino operators to global markets. Online gambling represents a worldwide market that eMarketer reports will reach US$14.52 billion in 2006, up from US$3.81 billion this year.
Since being established in October 2001, Gamebase has succeeded in acquiring:
* 100% control of Sandbox.com, the world's largest and oldest fantasy sports and skill game on the Internet with over 7.4 million registered subscribers, representing nearly 25% of the U.S. player base; * 75% interest in CurrenC, a financial transaction processing company that has designed the premier backbone solution for processing payments on the Internet and currently boasts $3.5 billion in signed processing contracts; * equal ownership in SSPG Gaming, LLC, a joint venture between Gamebase and SSP Solutions, Inc. (Nasdaq/NM:SSPX) and a 60% interest in an affiliated contract with the Venetian Resort Hotel-Casino, one of the world's most popular casino destinations, to provide all of its interactive solutions worldwide; * a strategic alliance with Center 7, Inc., a privately-held company that delivers enterprise-management and managed-hosting services via the Internet from a world-class facility located just south of Salt Lake City, Utah; and * a strategic alliance with Storms Commerce, acknowledged global experts in online financial processing services for the e-business and e-gaming industries.
The terms of the MOU provide for Gamebase to be granted the worldwide exclusive rights to sell and market FreeStar's PaySafeNow secure, online payment solution that permits ATM with PIN-authenticated transactions to the global online and bricks and mortar gaming industry, and non-exclusive rights to other industry sectors. Effective August 1, 2002, Gamebase will assume the development, integration, sales, marketing and financial administration of the FreeStar/Gamebase joint venture.
The terms of the deal provide for the parties to equally share the gross profits on the sale of all FreeStar ePayPad payment authentication devices sold by Gamebase through its established sales and marketing channels. In addition, FreeStar has agreed to commit to making a $3.5 million investment in Gamebase in exchange for a 12.5% share ownership of the Company and its affiliates, as well as a seat on Gamebase's Board of Directors. Pursuant to an option package that is subject to certain vesting and performance-driven considerations, Gamebase will be entitled to earn a 25% non-dilutable interest in FreeStar upon full exercise. Upon all options being exercised by Gamebase, FreeStar will realize cash proceeds of $5.85 million. Lastly, Gamebase has agreed to guarantee the convertible debenture issued by FreeStar pursuant to a private placement arranged previously by vFinance.
Brazell, President and Chairman of Gamebase International, stated, "FreeStar clearly has a differentiated online payment solution that has the potential of revolutionizing the way that consumers securely purchase products and services over the Internet. Moreover, PaySafeNow clearly empowers online merchants with the ability to receive immediate, guaranteed payments without contending with credit card charge-backs and identity fraud. It is our intent to integrate the PaySafeNow online payment solution into our end-to-end gaming processing solution currently being marketed to offshore gaming enterprises through our subsidiaries, joint venture partnerships and strategic alliances. We are delighted to be working with FreeStar and look forward to perpetuating a long-standing, mutually profitable association."
Paul Egan, President and Chief Executive Officer of FreeStar, added, "We couldn't be more pleased about teaming with Gamebase. Their hands-on professional involvement with our management team will deliver FreeStar a dimension of capability and credibility that should serve to greatly enhance our value proposition. Moreover, they have the required industry influence and depth of resources to facilitate wide and rapid acceptance of PaySafeNow at a much more accelerated rate than we believed possible by going it alone. This is a milestone event in the evolution of FreeStar Technologies, and one that we have every hope of maximizing with our new valued joint venture partner."
About FreeStar Technologies, Inc.
With corporate headquarters in New York City, and continental headquarters in Santo Domingo, Dominican Republic, and Dublin, Ireland, FreeStar Technologies is focused on exploiting a first-to-market advantage for enabling ATM and debit card transactions on the Internet.
FreeStar Technologies' Enhanced Transactional Secure Software ("ETSS") is a proprietary software package that empowers consumers to consummate secure e- commerce transactions on the Internet using credit, debit, ATM (with PIN) or smart cards. The ETSS system, marketed worldwide as PaySafeNow, integrates a consumer-side card-swipe terminal (ePayPad) with a back-end host-processing center. It encrypts sensitive financial data at the consumer's personal computer, using powerful DES encryption and algorithms. It sends an authorization number to the e-commerce merchant, rather than the consumer's credit card information, to provide a maximum level of security. The Company plans to link several large, established smart card systems together on an ETSS-based standard to achieve economies of scale and enhance market penetration for this secure e-commerce payment system. For more information, please visit the Company's Web site at http://www.freestartech.com/.
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 company, 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.
FOR MORE INFORMATION, PLEASE CONTACT: AT FREESTAR TECHNOLOGIES, INC. Cynthia Aadal, Director of Strategic Sales and Business Development 646-728-2358 or via email at email@example.com OR FOR FINANCIAL AND MEDIA RELATIONS Stephanie Noiseux, Elite Financial Communications Group 407-585-1080 or via email at firstname.lastname@example.org AT GAMEBASE INTERNATIONAL, INC. Robert Orr 702-990-3560 or via email at email@example.com
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Contact: Cynthia Aadal, Director of Strategic Sales and Business Development of FreeStar Technologies, Inc., +1-646-728-2358, or firstname.lastname@example.org; or Stephanie Noiseux of Elite Financial Communications for FreeStar Technologies, Inc., +1-407-585-1080, or email@example.com; or Robert Orr of Gamebase International, Inc., +1-702-990-3560, or firstname.lastname@example.org
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|Comment:||FreeStar Technologies to Joint Venture with Gamebase International to Promote Global Sales and Marketing of PaySafeNow(TM) Solution.|
|Date:||Jul 24, 2002|
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