eConnect reports first purchases via eCashPad from consumers' home

[February 12th 2001]

eConnect has announced that recipients of the first eCashPads have begun making online purchases from their own homes.

The eCashPad, now on sale for $59.95, is a potential solution to the problem of e-commerce fraud, consisting of a "plug-and-pay" PC peripheral approximately the size of a PC mouse. By swiping an ATM card with PIN, credit card, or smart card through the eCashPad, the consumer will rout financial information directly to the financial institution that settles the online purchase and pays the merchant. The consumer's financial information is neither seen nor stored by the merchant, who is charged a flat fee per Bank Eyes Only transaction.

Ferdinand Bare, of Woodland Hills, Calif., is one of several eCashPad users who have purchased an eConnect t-shirt from the Company's. There, consumers are instructed how to install the software needed to make eCashPad purchases with a quick swipe of a MasterCard, American Express, or Discover card -- or Visa, as did Mr. Bare. Such from-home transactions began the evening of Thursday, Feb. 8.

Thomas S. Hughes, Founder, Chairman and Chief Executive of eConnect, notes that although these purchases have all been made at the Company's own Website, "We think they validate the potential of the eCashPad, and more importantly, the Bank Eyes Only system of secure e-commerce, to become a part of our everyday lives."

Mr. Hughes added, "Our next step is to develop eCashPad transactions via bank ATM card with PIN, enabling cash transactions over the Internet." It has been estimated that 25% or more of the consumer market has been effectively shut out of e-commerce because they do not use credit cards, and because online merchants do not commonly accept bank ATM cards.

eConnect is currently deploying Bank Eyes Only in the US, the Caribbean, and Europe through host processing centers owned or under development by the Company, or its affiliates, in Milwaukee, Santo Domingo, Dominican Republic, and in the area of Atherton, Ireland, respectively. eConnect further plans to expand the system internationally, through company owned-and-operated host processing centers in Hong Kong and Australia.

In addition to retail sale, the eCashPad is being distributed promotionally via the retail, gaming, financial, brokerage and interactive entertainment industries.

Links
eConnect		http://www.econnectholdings.com