Rahaxi Inc.

November 03, 2011 13:57 ET

Rahaxi Inc. Provides Update to its Shareholders on Current Operations.

Highlights Include Significant Cost Reductions and Increased Sales

HELSINKI, FINLAND--(Marketwire - Nov. 3, 2011) - Despite the challenging economic conditions of the last several years, Rahaxi Inc. (PINK SHEETS:RHXI) has during the course of 2010 and 2011 continued to focus on its efforts on growing its business and building a company that would enhance value to our shareholders. We have done this by implementing an aggressive strategic plan that has streamlined the company which management believes will greatly improve productivity and increase competitiveness. We have successfully been able to reduce costs and increase sales by improving the efficiency and effectiveness of our key business operations.

As a result of the plan implementation, Rahaxi Oy based in Helsinki, Finland has been able to significantly reduce its cost base whilst at the same time continuing to provide its loyal customer base with quality products and services. With the reduction in costs primarily related to technical infrastructure and labor, Rahaxi Oy is significantly closer to achieving its goal of becoming a self generating business entity in the no to distant future. Rahaxi Oy's unaudited revenue for fiscal 2010 and 2011 was pretty much in line with the $3,024,342 reported (audited) for 2009.However unaudited losses of approximately $190,000 for 2011 shows a significant improvement on the reported losses of $1,605,584 for fiscal 2009.

Freestar Dominicana based in Santo Domingo, Dominican Republic is a point of sale distributor and software application provider to processors and banks in the Dominican Republic and Haiti. It has also recently launched its telecommunication platform which provides transactions processing services to various telecommunication companies both locally in the Dominican Republic and internationally. The Company is now one of the largest processors and distributors providing electronic Recharge and Prepaid pin Mobile services to merchants and sub distributors in Dominican Republic and internationally.

The Company has also entered into various strategic relationships to ensure its continued growth in the Latin American prepaid Mobile market. Freestar Dominicana's unaudited revenue for 2011 and 2010 was $6,338,192 and $685,479 respectively. This compares favourably against the $389,129 reported for fiscal 2009.

Rahaxi Inc is working diligently to produce its consolidated financial statements for 2010 and 2011. It is expected that 2011 consolidated sales revenue from its combined business entities including PLC Partners, Dublin will exceed $10,000,000 for the first time. At this time Rahaxi Inc is not able to provide an exact date as to when it will file its consolidated financial statements but will provide shareholders with an update as soon as it is in a position to do so.

About Rahaxi Inc.

Rahaxi Inc. provides mission-critical solutions to the financial industry worldwide. Working with merchants and acquirers in more than twenty countries, its product suite has empowered partners to focus on their core competencies, while its innovative driven approach has enabled them to benefit from first to market advantage and realize their true potential. Rahaxi Inc. has adopted a partnership strategy for growth. Its partners are market leaders in their respective industries. Its subsidiaries, Rahaxi Processing Oy., Finland, FreeStar Dominicana S.A. Dominican Republic and PLC Partners, Dublin continue to develop and implement first class products and solutions that enhance the service level its partners can offer their customers. For more information, please visit http://www.rahaxi.com.

Forward-Looking Statements

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. When used in this press release, the words "expects," "anticipates," "believes," "plans," "will" and similar expressions are intended to identify forward-looking statements. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Rahaxi cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in all of Rahaxi's previous Form 10-K filings and other filings with the U.S. Securities and Exchange Commission (available at www.sec.gov). Rahaxi undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise. The summary financial information contained herein is qualified in its entirety by reference to the information contained in all of Rahaxi's previous Form 10-K filings.

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