SOURCE: PayChest, Inc.

May 07, 2008 18:21 ET

PayChest, Inc. Acquires Worldwide Rights for Sales, Marketing, Manufacturing and Use of Patents and Trademarks for Flushaway™ Technology and Products

VANCOUVER, BC--(Marketwire - May 7, 2008) - PayChest Inc. (PINKSHEETS: PYCT), an integrator of commerce platform solutions and a strategic marketing company, today announced that the company has acquired the exclusive worldwide rights to Flushaway™, a uniquely patented range of absorbent biodegradable and flushable products. The products have been previously tested by two independent groups, namely Brunell University in the United Kingdom and Air Products Industries in North America. The product conforms to and exceeds the Biodegradeable Standard ASTM D-5988-03, as specified by the American Society for Testing Materials. (www.astm.org)

The global market for flushaway products exceeds $34 billion annually, broken down as follows:

--  Infant Diaper market     $19 billion
--  Adult diaper market      $6 billion
--  Feminine hygiene market  $9 billion
    

Other potential markets will increase the market size to be targeted.

Flushaway™ has successfully launched its feminine hygiene products into international markets through large retail chains. These include Wal*Mart, Walgreens, and K-Mart in the US; Waitrose, Boots and Sainsburys in the UK and Franklins and Big W in Australia. The company has also sold into the South African market, through Pick 'n Pay and Clicks as well as into retailers in Hong Kong.

PayChest has acquired the following exclusive global rights from today:

--  Worldwide sales & marketing rights excluding select territories where
    distribution agreements already exist
--  The right of first refusal on any existing distribution agreements
    that may lapse, terminate or be abandoned
--  Worldwide use of Flushaway™ related IP, trademarks and patents with
    exclusive use, where granted
--  Worldwide exclusive manufacturing rights to Flushaway™
--  Research agreement for joint product development
--  PayChest will continue to work with Consolidated Ecoprogress on the
    existing production and supply chain
--  The Flushaway™ operation is headquartered in Hong Kong with a
    regional office in the United Kingdom. Worldwide offices are scheduled to
    open in USA, South Africa, Vietnam, India and Brazil during this year.
    

In exchange, PayChest will provide a note payable of $5,000,000 (US) to Consolidated Ecoprogress Technology Inc. over a 4-year period, for the delivery of these contracts and further fulfill contract payment obligations to Consolidated Ecoprogress of 5% royalties on sales.

Existing sales agreements cover the following regions: Select US outlets including some US retailers, US government agencies, select airlines, Australia, South and Central Africa, Caribbean, Hong Kong, Macau, Taiwan and Guangdong province in China (no other Chinese provinces), Philippines, Middle East and North Africa

New agreements are pending within EU, Brazil, Japan, India and Vietnam at this time.

The main reasons provided by management for this acquisition are the following:

1.  This is the first step towards driving significant revenues and profit
    for PayChest and its shareholders.
2.  The Flushaway™ range of products are currently the only
    biodegradeable and flushable products commercially available worldwide.
3.  Flushaway™ is an ecofriendly green product that has possibility for
    carbon credits into the future.
4.  With a global focus on eco friendly products, responsible retailers are
    actively seeking relationships with vendors of "green" products.
5.  The Flushaway™ acceptance into big box global retailers, presents a
    unique springboard opportunity for PayChest's worldwide growth.

As a result of the inquiries posted to IR, the company reaffirms its ongoing commitment that it will not implement a reverse split and confirms PayChest's current outstanding stock position is 19.85 billion shares.

About PayChest

PayChest and its strategic partner companies are developing integrated commerce processing solutions utilizing cutting edge technologies to deliver in store, online and mobile solutions globally. These include turnkey point of sale solutions, gift and loyalty portal systems, ACH electronic systems, online and mobile payment platforms and rewards-based platforms to integrate into an existing business system.

Safe Harbor Statement

The foregoing press release contains forward-looking statements. For this purpose any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "estimate," "continue," "can" or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties and actual results may differ materially depending on a variety of factors.

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