American Merchant Data Service, Inc.
PINK SHEETS : AMDS

American Merchant Data Service, Inc.

July 13, 2005 02:52 ET

AMDS Celebrates End of Second Year in Business

MEMPHIS, TENNESSEE--(CCNMatthews - July 13, 2005) -

Year-Over-Year Results Show a 286% Increase in Fees Collected and Validation of Original Business Plan

In just two short years, American Merchant Data Service, Inc. (AMDS) (PINK SHEETS:AMDS) has grown exponentially in all year-over-year metrics. Since beginning May 2003, with just 58 active merchants and collected fees of only $5500, AMDS can now boast a portfolio of 1082 active merchants at the end of April 2005. These merchants have submitted transactions of more than $83 million and AMDS has collected fees in excess of $2.3 million, between May 2004 and April 2005. Total fees received during the entire first year of operation were just short of $600,000.

"It is important to note that these fees amount to a continuing stream of monthly income," said AMDS Founder and President Bert Adcock. "While events beyond the company's control have slowed down the recruiting of new merchants, these difficulties have had little or no affect on our monthly residuals."

These fees do not include significant equipment sales AMDS has made to numerous merchants and represent only transactions processed through the company's agreement with First Data Corp.

Even in the midst of several well-publicized personnel changes and firings within company management early in 2005, AMDS can report that April 2005 was the best month in company history, accounting for $238,557.98 in collected fees.

"These numbers show that our original business plan is certainly working. We urge our current shareholders to hold firm in their beliefs about why they originally invested in our company," Adcock said.

The company anticipates to have had the same continued growth for May, June, and July. Those numbers will be made available in the month of August.

The Founder also expects a significant reduction in the number of outstanding shares, currently around 48 million, as the company plans to cancel up to 12 million restricted shares. These shares were issued to various individuals in anticipation of certain performance-related criteria that Adcock insists were not met.

"We (the Company) absolutely have the right to cancel these restricted shares and will do so as soon as possible," he concluded.

Contact Information