SOURCE: 800 Commerce, Inc.

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March 24, 2015 09:00 ET

800 Commerce, Inc. Announces Letter to Shareholders and Forward Business Strategy Ahead of 10-K Annual Report Filing

LOS ANGELES, CA--(Marketwired - March 24, 2015) - 800 Commerce Inc. (OTC PINK: ETHG), a fully reporting company on the OTCBB under the symbol (ETHG) and provider of merchant processing and mobile commerce solutions, today released the following letter to its shareholders.

Dear Shareholders:

Over the past year and since we issued our dividend related to the spin-off of 800 Commerce with fully reporting trading status, we have, at times, been somewhat quiet about our plans and overall business strategy. This was a management decision, as we wanted to enter the public markets without broadcasting our proprietary technologies and pending patents to our potential competitors within the mobile commerce space. 

We also needed to fully transform our products (which we first developed and filed patents for in early 2013) from development to deployment. Our partners within the payment card industry remain as a level one service provider, are Payment Card Industry ("PCI") compliant and transact over two billion dollars in payment processing annually. Our processing partners Pay Ventures ("PV") and Card Platforms will continue to sponsor our payment processing initiatives as well as assist and guide us through future growth.

I want to personally thank our 7,000 shareholders who received a stock dividend for your commitment to 800 Commerce, which will continue to be the foundation to our success. Although we have not done so over the last several months, I realize it is vitally important to keep our shareholders apprised of our progress, and from this moment forward, 800 Commerce shall be committed to maintaining open communications with you. I am therefore pleased to provide you with the following update on 800 Commerce's sharpened vision, the rapidly expanding market we exist in, and our exciting progress with developing lasting business relationships within our merchant processing and mobile commerce sector. 

Your executive team in which we have immediate plans to add industry veterans as new members to our board of directors and advisory board, will guide our efforts towards opening new markets and delivering new mobile payment technology solutions. Through our pending patents, business strategy and additional management team we will strive to provide the networks, skills, and commitment to be successful and capitalize on opportunities through acquisition and internally by offering solutions as the mobile payments sector continues to offer expediential growth opportunities as we have seen over the last year.

Up until now, we have created or we have aligned ourselves with strategic partners and developed systems in-house which have allowed us to best manage our development process and product versions. The resulting technology, which is patent pending, will allow merchants to add mobile marketing and mobile payment capabilities to their business almost instantaneously. 

The 800 Commerce mobile platform once completed will give businesses of all sizes the capability to enhance their brand imaging through cutting edge mobile marketing initiatives while also building on behalf of the company a unique mobile database to utilize for opt-in, push marketing campaigns. We will seek to tailor our platform to optimize and enhance the mobile commerce experience between our merchants and strategic partners, and their customers as well as the mobile consumer, whether payment transactions occur through terminals placed in bricks and mortar locations or by using new virtual wallet technology for mobile e-commerce transactions.

Earlier this month, PayPal, the eBay payment unit, announced plans to acquire Paydiant, a payments startup that licenses a technology platform used by big retail chains to create their own branded mobile wallet apps. Multiple sources stated that PayPal will pay around $280 million for the Wellesley, Mass. based startup. Apple launched Apple Pay last fall; Google recently cut a deal with wireless carriers to get Google Wallet pre-loaded onto potentially millions of smartphones; and Samsung recently announced its own system, Samsung Pay. We believe 800 Commerce is in the right space at the right time.

While it was initially our plan to generate revenue from our online business directories from small monthly subscriptions through online listings, the Company consciously shifted focus to new revenue streams for 2015, monetizing on key corporate relationships, aggressively seeking acquisitions of merchant portfolios and will expand to segments of mobile markets through strategic partnerships and acquisitions. Since our inception as a public Company, we have been generating revenue pursuant to negotiated agreements with Pay Ventures, whereby the Company acquired in exchange for 500,000 shares of common stock a merchant processing portfolio through which 800 Commerce receives agent commissions. The agreements also include Pay Ventures to provide services to the Company. 

Our proposed acquisition of Battery On The Go proved not to be the right fit after further due diligence and review of financials. We sought to offer to our shareholders greater revenue recognition and larger market opportunities for the amount of equity and funding necessary to complete the transaction. As previously mentioned, we are presently negotiating and reviewing acquisition targets within the merchant processing and mobile payments space as well as seeking additional synergistic opportunities. We are looking forward to opening new markets and new verticals within the mobile payments sector as we complete our 800 Commerce platform.

The Company accomplishments to date include:

- Negotiated the acquisition of a merchant processing portfolio in which we receive monthly residuals on these accounts.
- Signed Agreements with a PCI Level 1 certification Company. 
- Worked with the state of the art mobile platform Trumpia utilized by Fortune 500 Companies for mobile marketing, and world class mobile display advertising and shortcode services.

We are also working diligently with known experts in the space of mobile, mobile wallet, and mobile payment acceptance as we will continue to look for and seize on new opportunities to increase shareholder value by growing revenue through acquisitions, merchant processing and mobile solutions while carefully managing expenses.

We also know from public releases that PayPal, alone, has processed $14 billion in mobile payments last year; with Apple Pay partnering with major banks there is stronger acceptance and room for additional players with unique technology offerings of advanced mobile payment solutions. 

There are many "digital wallets" in the market, but the missing key point is the general acceptance of these wallets at the point of sale. For mobile commerce to truly become part of our daily interactions, 800 Commerce will seek to provide cutting edge solutions for both the consumer and merchants we serve. The 800 Commerce model for b2b transactions as well as b2c and consumer to consumer payments via a mobile wallet product is designed to deliver this compelling solution within the mobile commerce ecosystem.

According to James Brehm, with industry analyst firm Compass Intelligence, the US mobile commerce market is expected to grow from a nearly $9.7 billion market today to over $126 billion in 2018 with a compound annual growth rate of nearly 53%. It is quite evident that the mobile commerce space within the next few years appears poised for significant growth. We believe all of our hard work to date has placed us, and our shareholders, in a strong position to benefit from this emerging industry. While there remains much work to do, we are excited and optimistic as we look to the future. 
 
2015 Objectives for 800 Commerce include:
 
• Complete, market and expand nationally the company's mobile commerce platform. 
• Grow our merchant processing portfolio revenue and add new independent sales agents to help market our suite of mobile commerce services.  
• Expand our Board of Directors to include individuals who have significant knowledge within our space and create a board of advisors of experienced professionals in mobile technology, software development and commerce. We believe this will help provide the company with a wealth of experience in building a valuable mobile commerce ecosystem.  
• Bring market awareness of our company to the investment community.

Currently we believe our price per share is not reflective of the fundamentals of our business. We have always maintained fully reporting status, reported revenue, have minimal debt and built a major processing portfolio yet our stock price has been volatile due to lack of liquidity. To address these issues, we are committed to initiate an investor's outreach campaign by actively marketing and communicating our strategy through investor conferences and various mediums. This will not be a short lived or quick process, but an ongoing public relations campaign which, combined with our business initiatives, we believe we will eventually achieve our goals and create meaningful shareholder value. 

Throughout this past year, our management team has continued to work to further develop the Company's technologies, establish new relationships, and identify new industry opportunities. As CEO, my primary responsibility is to deliver shareholder value and to ensure the ongoing success of our company. Although we still have a lot of hard work ahead, we are excited about the numerous opportunities at hand that we plan on pursuing this year and over the long term. 

In addition to continuing to explore potential acquisitions and strategic partnerships to be undertaken this year, 800 Commerce's long-term vision is to continue to expand our merchant processing portfolio and complete our mobile commerce platform. 

Looking Ahead

We are optimistic about 800 Commerce's renewed success throughout 2015 and well into the future. We will diversify our market presence to allow us to further develop value-added technologies and solutions that will make 800 Commerce competitive in that marketplace. We expect these initiatives, coupled with the successful execution of our growth strategy, will drive financial and operational growth, and enhance value for our shareholders.   

We see opportunities for growth in our core business and our fiscal 2015 outlook will be enhanced as related to our business model. Overall, we feel confident in our ability to provide value both to our customers and to our shareholders over the coming year. We believe we can make a meaningful impact within the mobile commerce and processing divisions through our patent pending and disruptive technologies. 

Our team and planned new additions to the board will be committed to creating long term sustainable shareholder value as we intend to continue to work diligently towards this pursuit. On behalf of myself and the rest of the 800 Commerce team, we appreciate your confidence in us and look forward to your continued support in the years to come.

Sincerely,
B. Michael Friedman 

About 800 Commerce

800 Commerce, Inc. (www.800commerce.com) was founded for the purpose of marketing credit card processing services on behalf of merchant payment processing service providers. The Company generates revenue from the marketing of credit processing services by way of fees received from merchant payment processing service providers on whose behalf the Company brokers their processing services. In addition to marketing credit card processing services, the Company also has developed online portals and mobile applications offering directories of professional service providers.

FORWARD-LOOKING DISCLAIMER: This press release may contain certain forward-looking statements and information. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of 800 Commerce, Inc. to be materially different from the statements made herein.

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