SmartPay Expands Telecommunications Business

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SmartPay Expands Telecommunications Business With Acquisition

Auckland, 16 March 2009 – Merchant services provider SmartPay Ltd (NZX: SPY) announced today that it has entered into an agreement to purchase the business of telecommunications provider All Talk Communications Limited.

All Talk sells a broad range of telecommunications products, including discounted toll services, ISP services, broadband connectivity and line rentals to a number of commercial enterprises including call centres and other SMEs. The acquisition will add more customers to SmartPay’s Telecommunications division and assist in the ongoing expansion and usage of SmartPay’s VOIP products as well as providing access to All Talk’s product suite.

Ian Bailey, Managing Director of SmartPay says “All Talk, whilst a small provider, has a growing base of customers and the vendors are committed to assisting us in further growing All Talk’s customer numbers. We intend to expand on All Talk’s current supplier and customer relationships to identify which SmartPay products will fit those customers.”

All Talk is cashflow positive and profitable, which will immediately add value to SmartPay’s revenues and bottom line.

As recently announced, SmartPay has been cashflow positive at an operational level for the last two months and based on current forecasts this is expected to continue.

Payment for All Talk will be in cash and includes a deferred settlement component.

“SmartPay recently completed a rights issue to raise $3.7M and also has confirmed solid funding lines from a third party financier, so we can comfortably manage this within our current cash resources,” says Bailey.

“We continue to identify suitable acquisitions and/or products where we can add value in markets we already participate in and know well.”

ENDS

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