SOURCE: PayChest Inc.

December 21, 2010 13:40 ET

PayChest Inc. End of Year Corporate Update

HONG KONG--(Marketwire - December 21, 2010) -  PayChest Inc. (Arizona) (PINKSHEETS: PYCT) President Peter Coorey issued the following letter to shareholders:

Dear Shareholders

I would like to share our thoughts and plans for PayChest Inc.

After an extended period at the helm Lawson Pillay left the company in October. We wish him success with future ventures. 

The new management team has been diligently working on returning the company to structural and regulatory health. I am very pleased to announce that PayChest is now fully compliant with State, Federal and Pink Sheet reporting requirements.

To achieve compliance, we have:

  • Updated statutory address information with the State of Arizona
  • Completed and filed financial information as required by Pink Sheets bringing all financial information up to date. Company filings can be found on the Pink Sheets website
  • Filed updated director and corporate information on Pink Sheets

The financial data has taken some time to unravel, and we continue to investigate and clarify matters as they were presented to the new management team.

New management intends to continue the approach of no reverse split, for the foreseeable future.

A default judgment was imposed upon the company on March 6, 2009. The judgment resulted in the petitioning party being awarded US$4 million. A third party recently secured favourable settlement terms providing PayChest a cost effective solution that will, once settled and repaid, be free of any further impediments to the commencement of operations.

Having removed the various obstacles to progress I am happy to report that the company is now taking forward steps to turn PayChest into a living, growing, cash flow business.

Management sees great opportunity in the FMCG (Fast Moving Consumer Goods) segment for the Flushaway® branded suite of products. The market for these unique products locally and internationally is extensive. With a unique product that is price competitive with major products of lesser features, we anticipate healthy market penetration. Early discussions with potential contract manufacturers, suppliers and distributors have proven positive. News releases will be disseminated as events materialize.

There is an expanded investor relations team in place, ably led by the experienced Tom Hands. Tom can be contacted at http://www.paychest.com/investors.htm.

Our sales team has added Ms Tobie Oliver and is making progress with potential future clients. http://www.paychest.com/investors.htm

Those who follow PayChest closely will notice both the PayChest and Flushaway web sites have recently been re-commissioned and updated. (www.paychest.com & www.flushaway.com)

We have test manufactured sample products; the tests successfully created product to our specifications. We have started distributing samples to shareholders, with the majority going to our potential future clients. We have received a level of acceptance that has been most encouraging. Further news on this will be furnished at the appropriate time.

Whilst there are opportunities to further develop the product to enter the growing seniors market, management plans to focus on flushable and biodegradable pads and liners until such time as this stream is perfected. Demographical data indicates this will also be a substantial future market segment as the developed worlds' population ages.

Before I joined the management team I performed some very simple research. To every potential user of the product, I explained the convenience the product afforded, the removal of the embarrassment factor, and the environmentally friendly nature of Flushaway®.

Without exception, every person I spoke to said they would use this product.

Peter Coorey
President
PayChest Inc.

About PayChest (Arizona)
PayChest, a global marketing company and developer of technology solutions and its strategic partner companies, market and distribute select products and services worldwide, which provide an increased public awareness to conserve and preserve the world's limited resources.

About the proposed dividend PayChest (Oregon)
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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