Press Release

BankServ Acquires P2P, Mobile-to-Mobile Phone Payments Business
 
San Francisco, Calif., Sept. 5, 2006 – As part of its strategy to enter the growing field of electronic person-to-person payments, BankServ announced today that it has acquired Magex Managed Payments Platform, a division of financial technology developer Magex Holdings Ltd. The Magex Managed Payments Platform division is the producer of P2P systems that let consumers exchange money over the Internet or using their mobile phones.

As a result of the deal, BankServ gained a new client in Zopa, an online lending exchange with more than 90,000 members in the United Kingdom. Zopa's marketplace allows members to lend money to or borrow from each other directly in a secure online environment.

Magex's Mobile Payments product, also acquired by BankServ in the deal, is a next-generation system that lets mobile phone customers send and receive money by pressing a few buttons on their phone pads. The product is currently being used by Zafa Ltd. of Saudi Arabia as part of a comprehensive electronic payments network in that country, and BankServ is looking to adapt the same technology for use with mobile phones in the United States.

“The P2P payments business has a very promising future, so it's a very exciting area for our company to enter,” said David F. Kvederis, BankServ's president and CEO. “As evidenced by the success of companies like PayPal and Amazon.com, electronic payments are becoming increasingly accepted as an important and convenient tool by the general public.”

For BankServ, the acquisition represents one more addition to an electronic payments suite that already includes wire transfers, Web payments, remote check deposit, foreign-currency exchange, and international SWIFT messaging. It also gives the company access to the BACS network for ACH payments in the United Kingdom as a complement to its similar standing with the National Automated Clearing House Association (NACHA) in the U.S.

“We believe that with the acquisition of Magex Managed Payments Platform, BankServ has strengthened both its product line and its international presence,” Kvederis said. “By melding a promising new technology with our significant expertise in the financial industry, we'll make sure consumers can look forward to some helpful ways to move money electronically.”

About BankServ

Since its inception in 1996, BankServ has been dedicated to developing new technology to move money quickly and safely over electronic networks. BankServ is a leading global provider of secure Fed wire transfer, SWIFT, Check 21 and ACH payment solutions for banks, governments and businesses.

From a single location in San Francisco, BankServ has become one of the fastest growing companies in America. In 2003 and 2004, BankServ was listed in the Inc. 500 fastest growing private companies in the U.S. and in the Deloitte and Touche Fast 500 as one of the fastest growing public or private technology companies. More information about privately held BankServ can be found at www.bankserv.com.

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