SOURCE: Payment Data Systems, Inc.

January 23, 2006 06:00 ET

Payment Data Systems Prepares for Boarding of First KUBRA Customer

Protection One Signs PDS Agreement for ACH and Merchant Services

SAN ANTONIO, TX -- (MARKET WIRE) -- January 23, 2006 -- Payment Data Systems, Inc. (OTC BB: PYDS), an integrated electronic payments solutions provider, announced today that Protection One, among the nations largest monitored security services company, has signed a new contract with PDS to provide merchant services and ACH processing for all payments flowing through KUBRA's e-billing application.

"We are pleased to see that the combined relationship of KUBRA and PDS is now delivering value to one of KUBRA's premier customers. We believe our offerings are excellent and natural extensions to the quality KUBRA systems and we see this as a confirmation of the KUBRA/PDS relationship with the expectation of this boarding to be the first of many more to come," said Mr. Louis Hoch, President and Chief Operating Officer.

The PDS-KUBRA partnership provides for both a referral agreement and incentive warrants for a three-year term, renewable thereafter.

About Payment Data Systems, Inc.

Payment Data Systems is an integrated payment solutions provider to merchants and billers. We provide an extensive set of tailored products to deliver world-class payment acceptance, processing, and risk/fraud management. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. Whether you are in the market for card issuance, payment acceptance or bill payment solutions we have a solution for you.

Payment Data is the owner of the electronic bill payment portal, http://www.billx.com, which has the ability to transmit payments to thousands of national billers.

Payment Data is also the exclusive license holder of the rights to market the Carmen Electra gift and prepaid cards. To receive updates on the Carmen Electra card program sign-up at www.carmencard.com.

For additional information, visit www.paymentdata.com. Contact Michael Long for Investor Relations information at 210.249.4040 or email at ir@paymentdata.com.

About Protection One

Protection One is one the largest providers of monitored security services in the United States. The company provides fire and/or burglar alarm systems, including installation, maintenance, and monitoring of these systems to more than one million residential and commercial subscribers. Network Multifamily, the company's wholly owned subsidiary, is the dominant monitored security provider to the multifamily housing market. Protection One's 2,300 professionals serve its customers from more than 65 branch offices and four state-of-the-art monitoring facilities.

FORWARD-LOOKING STATEMENTS DISCLAIMER

Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by safe harbors. Those statements include, but may not be limited to, all statements regarding our and management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, the factors detailed from time to time in our filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect, our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. We believe that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.

Contact Information

  • Contact:
    Michael Long
    Investor Relations information
    210.249.4040
    Email Contact