* * * PAYSTAR (OTCBB: PYST) * * *

  Editors Note:

Another gainer for StockUpTicks!!!! Those of you who have chosen to get involved with our last few featured companies appear to be on a roll. Despite the mercurial nature of the stock market, two of our recent profiles featured by your favorite newsletter have traded WAY UP following our publication and remain as such today (see graphics).

The company also offers a great pre-paid Internet feature for individuals who’d rather not commit to $25 a month recurring charges. It’s also a handy tool for travelers who can’t take their cable and DSL connections with them on the road.  Think the ever popular phone card but for the Internet. Sound interesting? It is and a full feature is available below.

* * * ABOUT PAYSTAR * * *

PayStar GlobalCash – supplying prepaid ATM and MasterCard products and services
PayStar InfoStations – providing custom Internet enabled Kiosks with revenue based content controlled through its Gold Sprocket software solution
PayStar SHS – provides custom telephony switch solutions through its custom software integration and revolutionary Switch Condo hardware applications

PayStar’s global strategy centers on expanding its market share in these three areas, with fastest growth being directed toward the Internet Kiosk and Prepaid ATM markets.  The company has a solid background in the Internet Kiosk business with its on-going relationship with Choice Brand Hotels, and with prepaid ATM cards with its Alliance Partnership in the CTNP project which the government’s Department of Housing & Urban Development (HUD) sponsors.
 

* * * TUESDAY'S NEWS FROM PAYSTAR * * *

October 01, 2002 15:25

LODI, Calif.--(BUSINESS WIRE)--Oct. 1, 2002--PayStar Corporation (OTC BB:PYST), the nation's leader in providing Prepaid ATM and Credit Card products and services, content-based Internet Kiosks and Commercial Telephony Switch services announced today its return to the OTC BB under the symbol PYST. PayStar has successfully completed all of its financial filings. 

"Over the course of 2002, PayStar's senior management has successfully executed the repositioning of the Company begun in 2001, by removing the Company from legacy telephony," stated William D. Yotty, Chairman and CEO of PayStar Corporation. "PayStar is transitioning into a Global Virtual Network (GVN), which includes next-gen financial products and services like GLOBALCash prepaid ATM cards as well as Internet enabling devices. We anticipate a stronger 4Q based partially on the launch of the First 1st-Resident prepaid ATM card to the U.S. Department of Housing and Urban Development announced earlier this month." 

Further, PayStar announces the resignation of GLOBALCash, Inc. President, William B. Sousa. Mr. Sousa leaves PayStar to pursue other personal interests. 

About PayStar 
PayStar Corporation, a premier distributor of communications and financial services, provides its customers with an array of enabling devices through PayStar's Global Virtual Network. PayStar is comprised of three fully integrated divisions: PayStar GLOBALCash, Inc. supplying prepaid ATM and MasterCard products and services, PayStar InfoStations, Inc. providing Internet-enabled kiosks and PayStar SHS, Inc. providing commercial telephony switch services. Internal sales efforts as well as mergers and acquisitions drive PayStar's success. PayStar's global strategy centers on expanding its Global Virtual Network (GVN) of thousands of locations that will utilize state-of-the-art enabling devices. 

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of known and unknown risks and uncertainties that may cause the company's actual results or outcome to be materially different from those anticipated and discussed herein. These include the company's historic lack of profitability, end user customer acceptance and actual demand, which may differ significantly from expectations, the need for the company to manage its growth, the need to raise funds for operations and other risks with the regulation of the telecommunications industry. 

For more information, call PayStar at 877-769-7827 or visit their Web site at www.paystar.com. 

CONTACT: PayStar Corporation
Carolyn Hoff, 209/339-0483, choff@paystar.com

PAYSTAR PRODUCTS BENEFIT

                                     Those ... on a budget        Seniors ... who don’t like to carry cash

         …Foreign Nationals   …Teens and students who don’t have a bank account  …People who can’t get credit

…Those people without a Social Security Number who need the flexibility and benefits of credit and ATM cards
 
 

* * * CTNP AND FIRST RESIDENT * * *

PayStar has entered into an Alliance Partnership with Worldwide Communications Group, Inc., The Department of Housing and Urban Development (HUD), NIC (New Internet Computer Company), HP (Hewlett-Packard) and Western Union Corporation (First Data) in their backing of "The Community Technology Network Project" (CTNP).

The CTNP is a project-based initiative sponsored by Worldwide Communications and its Alliance Partners. This initiative was developed in January 2002 through an innovative alliance of partners: NIC, HP, Western Union and GLOBALCash, Inc.

The CTNP involves distributing multi-technology telecommunication services and computers to the underserved, which in essence brings digital technology and lifelong learning skills to low to moderate income residents living in subsidized housing. Under the CTNP, the program will subsidize 70% of all e-mail address service costs and 50% of all the computer costs to all participants in the program. 

CTNP will provide a vehicle to initiate payment for the service through the use of a prepaid ATM and MasterCard provided by PayStar's GLOBALCash, Inc.

The CTNP project was developed to allow section 8 and other HUD recipients the ability to go on-line, complete and submit the necessary HUD documents required to maintain the recipients subsidy, without having to go to a HUD office.  To be part of the program the residents need a computer, connectivity, and a billable payment solution such as a credit card or a bank account.  To insure that all residents have a billable payment solution, every resident will be issued a “First Resident” prepaid ATM and MasterCard provided by GlobalCash.  Participants can also obtain online banking, purchasing, and other services along with other resources they will need to become more independent and active.

Because digital technology has become a source of information for many local communities throughout the country, CTNP will begin the Implementation Phase by working with the many Public Housing Authorities across the country. By mid fourth quarter 2002, Worldwide Communications, the CTNP Program Developer and Administrator, will begin to distribute these digital technology services to low to moderate income residents.

All of the services are designed to bring digital technology to the low to moderate income residents that are in desperate need of them, but do not qualify for  them. This is because the participants lack credit, a major credit card and/or an active checking account.

The First Service includes an e-mail service program called "My Resident E-mail.com", which incorporates an on-line Section 8 Annual or Interim Application process that residents are able to complete to re-certify them in the Section 8 Program. This email service program will encourage dialogue between public housing authorities and Project Based Section 8 development managers, as well as with various other state and local government programs, including the Food Stamp and Medicaid Program where residents are living in subsidized housing. This e-mail service will also allow them to communicate with each of these programs on a more frequent basis. 

The Second Service involves providing computers that are partly funded by the initiative, as far as subsidies are concerned, with the other part paid for by the residents participating in the program.  The second service provides unlimited Internet access with e-mail services to the residents who have received computers from the program.  This will allow program participants to connect to the worldwide web, use their "My Resident E-mail.com" address to complete and process On-Line Section 8 Annual or Interim Applications, as well as possibly obtain on-line banking services, along with other resources they will need to become more independent and active, allowing them to maintain continuous employment in their communities. 

The Third Service involves providing unlimited Internet Access services and all of the above mentioned services to those residents who have computers, but are unable to obtain Internet access. 

The Fourth Service is the 1st Resident Card.  This is a prepaid ATM and MasterCard provided by GlobalCash, allowing the cardholder a billable payment solution for their computer and Internet connectivity, which allows the program participant the ability to purchase other products on line or through any location that accepts ATM and MasterCard cards.
 

* * * PAYSTAR & 3200 CHOICE BRAND HOTELS * * *

On March 11, 2002, PayStar signed a strategic alliance agreement with Choice Hotels International, naming PayStar as the endorsed provider of Public Internet Access Terminals via PayStar's InfoStation Network (ISN) to more than 3,200 Choice brand hotels throughout the United States. Choice franchise brands included in the agreement are Comfort Inn, Comfort Suites, Clarion, Quality, Sleep Inn, Econo Lodge, Rodeway Inn and MainStay Suites.

On March 25, 2002, PayStar formed a strategic partnership with Instruments & Equipment Company (I&E) of Sparta, N.J., to produce PayStar's customized  Public Internet Access Terminals via PayStar's InfoStation Network (ISN) located in select Choice Hotel brands nationwide.
 

* * * PRE-PAID INTERNET ACCESS * * *

Prepaid Internet access could become the next high-growth prepaid retail segment since prepaid wireless. The number of wireless customers using prepaid services is expected to account for 22 percent of the total wireless population by 2003 according to the Yankee Group. The attributes that made prepaid wireless popular to a wide range of customers are evident in prepaid Internet access. 

PayStar's Prepaid Internet access will be among some of the finest providers in the business today, such as Slingshot, PICC, NetValve and VVPhone, all offering basic packages starting as low as $9.95 for 600 minutes on up to 30 Day unlimited use packages for $20.00. These are CD-ROM packages that are rechargeable and include free e-mail service. Office supply chains, truck stops and convenience stores are ideal locations to sell prepaid Internet access.
 
 

* * * SHS VOICE INTERFACE COMPONENT * * *

March 4, 2002 PayStar unveiled the PayStar SHS Voice Interface Component (VIC) affording a comprehensive framework for running Interactive Voice  Response (IVR)-based applications, among others. 

VIC offers numerous custom voice processing functions that can be integrated with  PayStar's SHS2000 Enhanced Services Platform as well as cross-platforming with other systems such as AT&T, Nortel, Siemans, etc. VIC's programming layers allow for customization, while avoiding disruption of the current operating or application software for customer functions. 

VIC is multifunctional in that  customers will no longer have to buy separate hardware systems such as voice mail, IVR, prompt recording, conferencing equipment, broadcast and so on.  VIC is based upon Intel/Dialogic Corporation's CT ADE software for fast configuration and development of new custom features, including voice  recognition, voice over IP, fax, Internet and database integration. 

VIC features  include multiple voice menus that may be nested up to 8 levels deep, up to 10,000 different voice menus each applied to different batches of pre- and post paid phone cards, variable charging of features, automatic correction of common dialing errors, it supports prepaid dial-around and much more. VIC has over 40 different voice functions and supports 99 languages.
 

* * * SELECTED FINANCIAL HIGHLIGHTS * * *

Fiscal Year End: 12-31
Industry: Telecommunications
Transfer Agent: Interwest Transfer Company
Employees (last reported count): 36

Price and Volume:
52-Week Low on 23-May-2002: $0.05 
52-Week High on 2-Oct-2001: $0.50 

Authorized Shares 09/17/2002 = 100,000,000
Outstanding 09/17/2002 = 36,121,436
Float = 25.1M

HISTORICAL BUSINESS INFORMATION: PayStar Corporation was originally incorporated under the name of Soterco, Inc. on June 16, 1977. They changed their name to Sun Source, Inc. on September 11, 1997, and again to PayStar Communications Corporation on November 10, 1998. From the date of its incorporation through October 12, 1998, the company was in the mining business and salon tanning business with intermittent times of dormancy and inactivity. On October 12, 1998, Sun Source entered into a reorganization agreement with PayStar Communications, Inc., On September 30, 1999, PayStar Corporation entered into a reorganization agreement with U.S. Cash Exchange, Inc. Since that time, the company has participated in numerous asset purchase agreements, stock-for-stock exchange agreements and acquisitions to increase its products and services.
 

* * * LINKS * * *

For a current quote and chart, Click Here
For SEC Filings on PYST, Click Here
For the company Web site, Click Here
 

* * * CONTACT * * *

PayStar Corporation 
Carolyn Hoff 
209-339-0483 
choff@paystar.com 

1110 West Kettleman Lane
Suite 48
Lodi, CA 95240

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