Rahaxi Appoints TNS as Data Communications Provider

    Business Editors/Technology Writers

    RESTON, Va.--(BUSINESS WIRE)--Jan. 14, 2005--FreeStar Technology Corporation (OTCBB:FRST), a leading processor of electronic transactions, today announced a three-year contract between wholly owned subsidiary Rahaxi Processing Oy (Rahaxi) and Transaction Network Services AB (TNS), a subsidiary of TNS, Inc (NYSE:TNS).
    TNS will provide Rahaxi with high-speed, cross-border data communications delivering transactions from 5,000 point-of-sale terminals in retail outlets across Finland and Sweden.
    Drawing on its global network, TNS will route debit, credit, smartcard and wireless transactions between Rahaxi's payment processing engine in Helsinki and leading acquirers and issuers.
    Rahaxi provides merchants, terminal providers and banks with electronic payments processing services capturing transactions from merchants and routing them to financial institutions. Supporting up to 1,000 retailers in Northern Europe, the company has strategic relationships with many leading Finnish banks.
    The contract supports Rahaxi's strategy of investing in technology to ensure the secure and fast transfer of data for its customers, where speed and reliability are critical to staying ahead in the competitive retail market.
    Paul Egan, CEO, FreeStar commented: "By employing TNS' sophisticated and specialized network, Rahaxi can optimize its communication infrastructure. The result is a stronger acquiring environment and better service to customers. Data is transferred using the fastest real-time transport in the financial services industry.
    "Allegiance to TNS will reduce end-to-end transaction times by as much as 10 seconds for PSTN and five seconds for ISDN. Leveraging TNS' global presence and infrastructure in 13 countries worldwide, Rahaxi has the capability to acquire and route transactions anywhere in Asia, Australasia, Europe and South America."
    TNS' network replaces a dedicated leased-line solution. With 70 points-of-presence worldwide, it gives wholly-managed connectivity, enabling Rahaxi to focus on transactions processing. The network is monitored 24 hours per day, 365 days per year from operating centers in the UK and US.
    Anders Wannberg, country manager for TNS, Sweden, commented: "The agreement with FreeStar is the first step in replicating TNS' success elsewhere in Europe, Japan and Asia-Pacific. It reflects the confidence of FreeStar in what TNS has to offer."

    About Transaction Network Services

    Transaction Network Services is one of the leading providers of business-critical, cost-effective data communications services for transaction-oriented applications. TNS provides rapid, reliable and secure transaction delivery platforms that enable transaction authorization and processing across several vertical markets and trading communities.
    Since its inception in 1990, TNS has designed and implemented multiple data networks, each designed specifically for the transport of transaction-oriented data. TNS' networks support a variety of widely accepted communications protocols and are designed to be scalable and accessible by multiple methods. TNS' network technologies have been deployed in the United States and internationally, and TNS' networks have become preferred networks servicing the trading community, wireless and wireline carriers, and the card processing and dial-up automated teller machine markets. For further information about TNS' transaction solutions, please refer to www.tns-international.com

    About FreeStar Technology Corporation

    FreeStar Technology is a payment processing and technology company operating a robust Northern European BASE24 credit card processing platform based in Helsinki, Finland. FreeStar currently processes approximately 1,000,000 card payments per month for an established client base that comprises companies such as Finnair, Ikea and Stockman. FreeStar is focused on exploiting a first-to-market advantage for its Enhanced Transactional Secure Software (ETSS), which is a software package that empowers consumers to consummate e-commerce transactions with a high level of security using credit, debit, ATM (with PIN) or smart cards. The company, based in Santo Domingo, Dominican Republic, maintains satellites offices in Dublin, Ireland, Helsinki, Finland, and Geneva, Switzerland. For more information, please visit FreeStar Technology's websites at http://www.freestartech.com and 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. 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. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The companies caution that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in FreeStar's Form 10-KSB filing, TNS' Form S-1 filing and other filings by the companies with the U.S. Securities and Exchange Commission (available at www.sec.gov). FreeStar and TNS undertake no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.

--30--JM/ph*

CONTACT: Transaction Network Services Anders Wannberg, +46 8717 9880 or Jo Moorwood, +44 0114 292 0177 or Jane Humphreys +44 0113 242 1155 or Mike Murphy 703-453-8550 or FreeStar Technology Corporation Paul Egan, 809-503-5911 or Bryan Earl Kerola, +358 (0) 9 4789 0430 be.kerola@rahaxi.com

KEYWORD: VIRGINIA FINLAND INTERNATIONAL EUROPE INDUSTRY KEYWORD: HARDWARE SOFTWARE NETWORKING INTERNET E-COMMERCE PRODUCT MARKETING AGREEMENTS SOURCE: Transaction Network Services

Copyright Business Wire 2005