Smartpay Increases Shareholding In Retail Radio.

Smartpay Increases Shareholding In Retail Radio.

Auckland, 23 October 2007 - New Zealand's electronic product distribution and payments processing provider SmartPay Ltd (NZX: SPY) announced today that it has agreed to acquire a further 33 percent of leading digital signage and sensory media company Retail Radio.

SmartPay already has a 33 percent shareholding in Retail Radio Limited ( www.retailradio.co.nz ) and will invoke an option to acquire a further 33 percent to take their holding to 66 percent and majority ownership.

The Retail Radio system owns their own Intellectual Property and provides a music and advertising service with innovative and creative in-store advertising, brand messaging, point of decision marketing and the technical delivery of commercial In-Store Radio to increase sales in the merchant's environment.

Linc Burgess, Chief Executive of SmartPay, says that acquiring a further 33 percent of Retail Radio allowed under the current agreement, makes strategic sense given the additional value to be gained from becoming the controlling shareholder and integrating Retail Radio into the SmartPay business structure.

"The integration of Retail Radio will provide an additional service Smartpay can offer its current customer base and also allow SmartPay products to be offered to the Retail Radio customer base," says Burgess.

Burgess also says that in the future Smartpay is looking to add further services to the same customer base and to provide a full Integrated Merchant Services Package with integrated billing and service provision as a "one stop shop."

"We are actively looking for products, services and acquisitions that will support SmartPay's drive into the merchant services space, and we expect to be able to make further announcement in regards to this in the near future."

"As SmartPay continues to expand it product range, we will be able to offer an increasing number of services focused on merchants and their needs."

Separate to the current agreement, SmartPay and Retail Radio have also agreed to enter into discussions for the purchase of the remaining 33 percent of Retail Radio to allow SmartPay to have a 100 percent ownership of the company.
Retail Radio has recently completed a successful digital signage trial with the Paper Plus mega store at the Sylvia Park shopping complex in Mt Wellington Auckland, and is also in discussions with a number of prospective Australian distributors and partners.

About SmartPay Limited

SmartPay (NZX: SPY) is a leading electronic product distribution and integrated merchant services provider, comprising a number of strategically aligned and integrated businesses.

As a listed company SmartPay provides a range of well-known New Zealand product vendors and retailers with everything they need to conduct successful electronic commerce.

SmartPay offers a range of services that extends to all forms of electronic commerce and is made available end to end, on our wholly owned network. Carriage, Content and Currency, these three things define Electronic Commerce and the core capabilities of SmartPay.

These products include:

* Mobile top-up
* Calling cards (vouchers / cards / recharge)
* Gift cards and loyalty systems
* Prepayment cards
* Secure internet payments (vouchers / cards)
* EFTPOS equipment sales and rental
* Bill Payment solutions
* Mobile phone based payments
* Secure Payment Gateway (ETSL certified)
* Unattended payment kiosks
* In-store audio visual promotional system
* WiFi Hotzonesl retail chains and route/convenience store owners and operators.

For more information please see our website - www.smartpay.co.nz

ENDS

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