CardAssure Completes Beta Development; Announces Commercial Pilot

CardAssure, Inc., a wireless security and authentication company based in Wilton, New Hampshire, announced today the successful completion of the beta version of its flagship product, CardAssure, and its plans to deploy its authentication payment system in commercial pilot programs. CardAssure provides authentication and non-repudiation products to enable mobile, Internet, and other electronic payment systems.

CardAssure Completes Beta Development;
Announces Commercial Pilot

FOR IMMEDIATE RELEASE

Wilton, New Hampshire-September 26, 2002. CardAssure, Inc., a wireless security and authentication company based in Wilton, New Hampshire, announced today the successful completion of the beta version of its flagship product, CardAssure, and its plans to deploy its authentication payment system in commercial pilot programs. CardAssure provides authentication and non-repudiation products to enable mobile, Internet, and other electronic payment systems.

Commenting on the news, company Co-Founder and President Jeff Stutzman stated: We are very excited by the rapid completion of the beta product. This will enable us to test-drive the technology with several merchants, and address the development of enterprise integration solutions to enable the global deployment of this unique authentication capability to combat fraud in the global payments industry."

The Company plans to team with a major player in the entertainment industry in the first commercial pilot for the CardAssure payment system, according to Co-Founder and CFO Jim McKee. We are pleased to be able to announce a pilot so early in our cycle," noted McKee. We also expect to have several other national brands piloting our beta product in the near future."

McKee further explained the financial rationale for merchants use of the CardAssure technology: With several billion dollars lost to credit card fraud each year, our product will create new revenue flows by enabling widespread business and consumer acceptance of all new secure wireless payment systems using smart cards, stored-value cards, debit and credit cards, as well as PDAs and cell-phones incorporating these cards."

The CardAssure business model continues to gain wide acceptance among major players serving the financial payments industry, according to the Companys third co-founder, Tim Platt. We are achieving steady progress toward our goal of creating alliances with to create, build, market and integrate end-to-end solutions to make m-payments a reality," said Platt. Business alliances with key merchant, financial and software partners is essential to consumer acceptance of effective and reliable wireless payment systems," according to Platt, who is also a principal of AreteCapital Group, an investment bank working closely with CardAssure on business and financial strategy.

With the deployment of the initial pilot program, Platt and McKee plan to begin active discussions with targeted venture capital firms to raise approximately $3 million in the Companys Series A round.

CardAssures mission is to replace cash and checks with its payment systems as the most widely used consumer currency on the planet.

Contact:
Tim Platt, EVP Business Alliances
603-625-0234
tplatt@cardassure.com

CardAssure is a trademark of CardAssure, Inc., for which federal registration is pending.