Smartpay Acquires MIPS To Expand Merchant Services

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Smartpay Acquires MIPS To Expand Merchant Services Products

Auckland, 12 November 2007 – New Zealand’s electronic product distribution and merchant services provider SmartPay Ltd (NZX: SPY) today announced that it has acquired specialist telecommunications provider Merchant IP Services Limited (MIPS www.mips.co.nz ) as part of its planned expansion to becoming a leading player in the integrated merchant services market.

The MIPS service will allow SmartPay to bundle a range of new broadband products and services specifically developed for merchants and independent sales organisations (ISO's), including ISP’s and third party resellers. This combined with the recent purchase of a further 33 percent in Retail Radio gives SmartPay unique positioning in the marketplace.

MIPS has developed a unique proprietary technology to allow older version dialup EFTPOS terminals to interface securely into a broadband/public internet network. MIPS continues to grow its market offerings by including services such as security monitoring, Wi-FI hotspot, broadband delivery capability and VoIP services.

MIPS is one of a number of acquisitions SmartPay is planning and will give the Company a distinct merchant offering and capability that can provide retailers the full spectrum of services as a single provider without the hassle and expense of managing multiple carrier and service provider relationships.

Linc Burgess, Chief Executive of SmartPay, says that the acquisition of MIPS was a natural progression as the Company positions itself as New Zealand’s largest integrated merchant services provider.

“MIPS is developing a range of specialist telecommunications services, with a focus on delivering these services to merchants. Their latest service called “IP-POS” allows existing merchants to connect their existing EFTPOS terminals to full broadband without the need to replace their EFTPOS terminal. Combining the MIPS services with the other services Smartpay provides, we can offer a merchants a “one-stop shop” and single billing for a wide range of services used by the merchant,” says Burgess.

Burgess adds “We intend to make the MIPS service available to our existing installed base of over 4,000 merchants as well as allow third parties to resell the service. Further there is opportunity in international markets for this type of product and we will investigate this over the next 12 months.”

Burgess goes on to say that SmartPay will continue to focus on the delivery of more of these services to the merchant base in New Zealand, leveraging all the opportunities made possible by broadband connectivity.

The acquisition will be subject to shareholder approval and earn-out provisions.

ENDS

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

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