SOURCE: Trustcash

March 12, 2008 12:15 ET

Trustcash Holdings, Inc. Releases Part Two of Its Chairman's Letter to Its Shareholders and Shareholders of Paivis, Corp.

"The Market Opportunity for Trustcash and Paivis Is Massive"

NEW YORK, NY--(Marketwire - March 12, 2008) - TRUSTCASH HOLDINGS, INC. ("TRUSTCASH") (OTCBB: TCHH) today released part two of a letter from its Chairman, Dennis Shafer, to its shareholders and the shareholders of PAIVIS, CORP. ("PAIVIS") (PINKSHEETS: PAVC).

Dear Trustcash and Paivis Shareholders:

The market opportunity for a combined Trustcash and Paivis organization is massive and we plan to aggressively to take advantage of it to build value for our shareholders.

As I have stated previously, we plan to position our products in four of the fastest growing markets related to the payment processing industry. The information below shows how significant the opportunity is for the planned Trustcash/Paivis combination.

1. Cash-based Consumer Market

Although credit card volume continues to expand, a new market has surfaced underneath the credit 'umbrella'... a market of some 100 million U.S. consumers who are either unable to use credit cards, or prefer cash transactions. This market growth is driven by:

--  Some 20 million undocumented immigrants, growing at the rate of
    500,000 per year, who do not have traditional banking relationships and
    culturally prefer cash transactions (Source: www.imigrationcounters.com,
    Bear Stearns: http://www.bearstearns.com/bscportal/pdfs/underground.pdf)
    
--  50 million consumers within 5% of their credit limit and paying an
    average interest on credit cards of 14.5% (Source: American Consumer Credit
    Counseling)
    
--  2 million personal bankruptcies annually, without access to credit
    cards (Source: www.uscourts.gov)
    
--  25 million young Americans with discretionary income of $375 billion,
    and only 25% have access to a credit card (Source: Federal Reserve)
    
--  50 million adults who are unwilling to use their credit card online
    for fear of identity theft
    

Evidence of the dynamics of this market are the fact that transactions for debit cards in the United States surged three times faster than those for credit cards from 2005 to 2007 (Source: Tower Group). Phone payment cards also evolved as a specific solution to the needs of the cash-based economy, especially immigrants communicating with families in their home countries. This cash-based economy is the core of the Trustcash and Paivis customer base and will be our focus as we grow.

2. Stored Value Cards

Stored Value Cards are one of the most dynamic and fastest growing products in the financial industry. Payroll cards, government benefit cards, prepaid debit cards, gift cards, and telephone cards are examples of stored value cards. According to Federal Reserve estimates, more than 2,000 stored value programs are available. There are approximately 20 million users and that figure is expected to more than double to 49 million by 2008 (Source: Federal Reserve Bank of New York). Closed Loop (fixed value, non-reloadable) stored value cards alone were used to make over $171 billion in transactions in 2006, and experts put this industry in the introductory or early growth stage of the product life cycle.

3. Wireless Telecommunications

The historical rapid growth and evolution of the cell phone industry is entering a new era of growth driven by the transformation of the cell phone into a portable internet device and multi-purpose communications tool. The cell phone industry is responding by introducing a variety of new models and services, while internet providers also continue to broaden their capabilities for mobile applications including the rapidly growing social networking market. All of this is driving rapid growth in minutes utilized and revenue generated by wireless consumers. In addition, consumers are becoming familiar with using a phone as an electronic device, so they are ready to adopt mobile phones as a means to process payments.

4. Internet

As the Internet evolves to 'Web 2.0' with expansion beyond traditional e-Commerce into a variety of social networking, music, and other experiential applications, opportunities for new revenue streams are growing exponentially. This new growth, combined with an annual e-Commerce business exceeding well over $100 billion (according to InternetRetailer.com), continues to represent one of the greatest opportunities in consumer retailing and marketing, yet most of the cash-based consumer market is effectively locked out of Internet purchases.

Trustcash and its planned merger partners are early growth stage enterprises. Consolidating our operations at this stage provides a unique value proposition: the integration of four companies within the prepaid space, with similar transaction processing and common administrative functions immediately creates opportunities for cross-marketing, achieves distribution scale and opens the opportunity for cost reduction and increasing cash flow through operational consolidation.

Completing this merger and consolidation at this time positions us as a leader in the early growth stages of our markets. Companies who increase scale and achieve strong positions early in market growth traditionally generate above average returns to investors. That is why we believe that this merger is in the best interests of our shareholders and the Paivis shareholders, and may offer significant benefits to investors as our markets grow over the next 5 to 10 years.

Sincerely,
Dennis Shafer
Chairman
Trustcash Holdings, Inc.

Other parts of the Trustcash Chairman's letter to shareholders will be issued in further press releases.

About Trustcash

Through its Trustcash brand and website www.trustcash.com, the Company is a pioneer of anonymous payment systems for the internet. It developed a business based on the sale of a stored value card (both virtual and physical) that can be used by consumers to make secure and anonymous purchases on the internet without disclosing their credit card or personal information. Trustcash provides to its customers the "Trustcash™" payment card, which is sold in denominations ranging from $10 to $200 online through any of over 500 websites. Trustcash's non-reloadable, virtual Trustcash card is the only "stored value card" that can be purchased where no personal data is stored or available, providing a unique level of both security and privacy to the purchaser.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 (the "PSLRA") provides a "safe harbor" for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements.

Statements contained herein that are not based on historical fact , as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "could" and other similar expressions, constitute forward-looking statements under the PSLRA. TRUSTCASH and PAIVIS intend that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking statements are based on current assumptions but involve known and unknown risks and uncertainties that may cause TRUSTCASH and PAIVIS actual results, performance or achievements to differ materially from current expectations. These risks include economic, competitive, governmental, technological and other factors discussed in TRUSTCASH and PAIVIS annual, quarterly and other periodic public filings on record with the Securities and Exchange Commission which can be viewed free of charge on its website at http://www.sec.gov.

Contact Information

  • Contact:
    Trustcash
    Investor Relations
    Charles Moskowitz
    212-755-4884