SOURCE: Payment Data Systems, Inc.

March 03, 2006 16:01 ET

Payment Data Systems, Inc. and Symmetrex, Inc. Sign Strategic Agreement

SAN ANTONIO, TX -- (MARKET WIRE) -- March 3, 2006 -- Payment Data Systems, Inc. (OTC BB: PYDS), an integrated electronic payments solutions provider, announced today that it has entered into an agreement with Symmetrex, Inc, a leading financial transaction processing company to launch a series of prepaid debit cards.

As specified in this new agreement, Payment Data (PDS) will add Symmetrex as a supported card processor and will support access to the Symmetrex platform through PDS' debit card processing platform, applications and API services.

Louis Hoch, PDS' President and COO, said, "It is strategic for PDS and PDS' customers to have processor independency in our debit card applications and services. The addition of Symmetrex to our group of supported processors provides our customers access to another leading debit card processor and provides flexibility for our customers' card programs that can not be obtained through single processor dependant applications and services."

PDS will implement the Carmen Electra card program with Symmetrex processing services as the backend. PDS will also implement a large, unnamed, private labeled ATM card deal with Symmetrex as well.

Michael Long, PDS' Chairman and CEO, said, "We are very pleased to secure this strategic agreement with Symmetrex. We view them as clearly the leader in the prepaid transaction processing arena. The value added philosophy of Symmetrex meshes ideally with ours, and that value extends into our current and future customers."

Gil Hooper, Senior Vice President of Symmetrex, stated, "Payment Data Systems is uniquely qualified to assume a leadership position in the prepaid debit card industry due to their history in transaction processing and consumer bill payments. We are pleased to have PDS as a partner."

About Payment Data Systems, Inc.

Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of 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. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.

Payment Data is the owner of the electronic bill payment portal, 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 Symmetrex

Symmetrex, Inc. is a global financial payments and prepaid debit card processing company with operation centers in Maitland, Florida, and Salt Lake City, Utah. Symmetrex is focused exclusively on providing card issuance and payment processing services for applications such as payroll, personal spending, employer incentive, gift and health savings accounts. The Symmetrex team has delivered its prepaid debit card processing solutions to companies worldwide and has built some of the largest card programs in the industry.

Symmetrex's product, i24Bank, is a total processing solution providing turnkey services to potential Financial Product Issuers, Merchant Acquirers, Merchant Products and Services companies. Symmetrex highly scalable transaction processing system and reporting tools provide flexibility, expandability, security and dependability to the debit, credit, e-commerce and prepaid card world. On the Net: Symmetrex, Inc. site: http://www.symmetrex.com/.

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 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.

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