SOURCE: Trustcash Holdings, Inc.

March 14, 2008 08:15 ET

Trustcash Holdings, Inc. Releases the Third Segment of Its Chairman's Letter to Its Shareholders and Shareholders of Paivis, Corp.

"Merger and Integration to Produce a Solid Foundation for Generating Earnings"

NEW YORK, NY--(Marketwire - March 14, 2008) - TRUSTCASH HOLDINGS, INC. ("TRUSTCASH") (OTCBB: TCHH) today released the third segment 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:

Recently Trustcash and Paivis announced a plan to commence working together for future integration purposes, etc. This forward thinking of both management teams shows a commitment to not only closing the merger but prepping for the building of a solid foundation to support growth towards the ultimate goal of generating earnings for our soon to be combined shareholder base.

The following provides more detail and insight into the opportunity before us in combining with Paivis and their pending acquisitions.

Merger Opportunities

Operational Efficiencies

The integration of four companies with a common market, similar transaction processing technology, and common administrative functions immediately creates an opportunity for cost reduction and improved cash flow through operational consolidation.

We believe a combined revenue base of $73 million can be generated with less than half the current operational expenses, potentially resulting in an immediate gain of 50% in net operating income.

Scale economies can also support enhanced customer service and competitive pricing...both key success factors in the debit card and phone card industries.

Technology Enhancements

Combining the information systems technologies of four companies, all involved in high volume consumer payment transactions, provides an opportunity to develop a leading edge technology platform. This technology platform can be used to provide superior customer service, support new mobile and prepaid card applications, and provide an infrastructure for 'bolt-on' acquisitions of similar businesses in a fragmented market.

Expand Distribution

All the products of the merged company can be sold through similar retail outlets. Consolidating sales and distribution efforts across potentially tens of thousands of retailers results in a national network of stored value cards available to a cash-based market. In addition, the power of the Trustcash web site (www.trustcash.com) can be used to generate additional traffic to these retail outlets.

Each merger partner can also distribute its products through all partners in the merger: Trustcash cards can be purchased through mobile cards owned by any Paivis phone card holder, and phone cards can be purchased using Trustcash virtual cash cards obtained through any Trustcash web site partner or retail location.

Build Brands

The Trustcash brand is synonymous with security and privacy...both important benefits to a cash-based market, and a key competitive benefit in the phone card industry which has a history of consumer abuse. This brand can be used in conjunction with Paivis brands to create a greater market presence as well as cross-marketing each brand and its products to the other offerings. Joint POS marketing, media advertising, internet advertising, and word-of-mouth in a common market of immigrants and credit-restricted consumers will reinforce the impact of the merged company.

Expand Markets

As a combined market and user base grows, the merged company will be in a position to rapidly expand its franchise to young adults and other cash-based consumer markets. In addition, a combined user base of over 100,000 consumers will further attract additional retailers, both physical and web based. The Trustcash web site will become a portal and a central location for a cash-based market to look for goods and services, while phone cards can be used to co-market all products and also to pay for Trustcash cards. This will ultimately provide an opportunity for the Trustcash card to expand to a multipurpose debit card for in-store purchases, and a general purpose gift card.

Acquisitions

The stored value card market is very fragmented with some 2,000 different programs and providers. As Trustcash and its associated brands become the leader in the cash-based market, additional acquisitions will be targeted to expand the franchise into payroll cards, government payments, bill payments, money transfers, and other payment transactions.

Summary Facts

--  $100 billion plus e-Commerce market
--  $171 billion closed-loop stored value card market
--  $6 billion phone card market (according to an Atlantic-ACM report)
--  Common cash-based market of 100 million consumers
--  $73 million combined revenue
--  100,000 users
--  Potential of over 70,000 retail outlets
--  Common transaction processing and administrative functions
--  Consolidated powerhouse in a fragmented market
--  Integrating four of the leading growth industries: stored value cards,
    wireless services, Internet and e-Commerce, and cash-based payment
    transactions
    

In summary, we believe we are clearly headed towards a closing of a transaction that has the potential to be a major value provider for our shareholders.

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

  • Trustcash
    Investor Relations
    Charles Moskowitz
    212-755-4884