SOURCE: Wall Street News Alert

January 19, 2006 09:49 ET

Hot Stock Alert: PYDS Becomes Debt Free, Has Highest Transaction Processing Quarter and Will Report a Profitable 4th Quarter!

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Wall Street Capital Funding.

WESTON, FL -- (MARKET WIRE) -- January 19, 2006 -- Wall Street News Alert's "stocks to watch" this morning are: Payment Data Systems Inc. (OTC BB: PYDS), Bank of America Corporation (NYSE: BAC), Washington Mutual (NYSE: WM) and Jefferies Group, Inc. (NYSE: JEF).

Payment Data Systems, Inc. (OTC BB: PYDS) should be a target of aggressive investors and day traders this morning! Yesterday after the stock markets closed, the company issued a press release announcing that credit card transactions processed in the fourth quarter were the company's highest for any quarter to date, the company is debt free and that the company will report a profitable 4th quarter.

The impressive news should get the attention of investors! According to the press release, both the transaction and dollar value volumes for December are PDS' highest for any month to date. December's numbers better November's, our previous highest month, and are 184% higher than transactions processed and 114% higher than dollars processed in December 2004.

Transaction and dollar volumes for the fourth quarter were even more exciting. The fourth quarter transactions were 343% higher than transactions processed and 215% higher than dollars processed in the same quarter from the previous year.

Continue to watch this company! In December the Company paid off its outstanding debt balance and is now debt free. The debt was paid using cash to prevent share dilution. PDS will report a profitable quarter when we release the results from the fourth quarter.

Investors should continue to monitor the progress of Payment Data Systems! Michael Long, Chairman and CEO of Payment Data Systems, Inc, said "We continue to be highly motivated by the progress of the company throughout the 2005 calendar year and the tremendous momentum and opportunity that is being carried into 2006. Very soon, we will be releasing a recap of the 2005 year and more details on the strategic plans for '06."

Prior to the latest press release, the stock closed yesterday at Ten cents a share.

For an in-depth profile of Payment Data Systems, visit http://www.thenewssvc.com/PYDS011806.html

In case you are not familiar with the company: Payment Data Systems is an integrated payment solutions provider to merchants and billers. The company provides 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 in the market for card issuance, payment acceptance or bill payment solutions PDS has a solution. The company is also the owner of the electronic bill payment portal, http://www.billx.com, which has the ability to transmit payments to thousands of national billers.

In addition, the company 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 http://www.carmencard.com/.

Stocks showing interesting activity yesterday at the close of the regular trading day were: Bank of America Corporation (NYSE: BAC) down 0.2% on 10.9 million shares traded, Washington Mutual (NYSE: WM) down 0.3% on 3.6 million shares traded and Jefferies Group, Inc. (NYSE: JEF) up 6.5% on 2 million shares traded.

Commentary:

"On Wednesday, Oil neared $67 dollars per barrel as riots continue in Nigeria and Iran continues to threaten with nuclear news. Any negative news from any major oil producing nation now seems to trigger movements in the energy sector," stated Sonja Rudd in Wall Street News Alert's daily commentary continued at: http://www.WallStreetNewsAlert.com.

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