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PRESS RELEASE

Year 2005 / Wednesday December 7, 6:00 am ET

FreeStar Technology Reports Revenue Rises 64 Percent in First Quarter of Fiscal 2006

Transaction Processing Volume Gains 16 Percent from Year-Earlier Period

DUBLIN, Ireland, Dec. 7 /PRNewswire-FirstCall/ -- FreeStar Technology Corp. (OTC Bulletin Board: FSRT - News), an international card payments processor and technology company, today reported its financial results for the first quarter of its 2006 fiscal year, ended September 30, 2005. Revenue rose more than 64% to $602,748 in the period from $365,952 in the comparable period of fiscal 2005.

The company explained that the gains reflected increases in transaction volume of its wholly owned subsidiary, Rahaxi Processing Oy. Transaction volume of payments processed rose more than 16% to 4.3 million during the quarter from slightly more than 3.7 million during the comparable period a year ago.

The Company narrowed its net loss to $937,030, or $0.01 per share, from $978,196, or $0.01 per share, for the same period of the prior year. After currency translation, the comprehensive net loss was $903,068, or $0.01 a share, compared with $964,234, or $0.01 a share, in the prior year's period.

FreeStar Technology President and CEO Paul Egan said, "We are very pleased with the solid progress we made in the period. We grew sales 64% in part by cultivating additional revenue streams. Approximately $173,000 of the revenue stemmed from product development and consulting fees.

Egan said, "We believe we can grow revenue by helping customers integrate our products into their existing systems as well as by introducing new products. Examples of new and growing customer relationships include Hypercom and Global Refunds. We intend to launch a new product in the coming twelve months for EMV transaction processing as well as growing revenue from our Internet payment gateway from point-of-sale terminals."

"It is important to note," he added, "that as we deploy our terminals through Global Refunds, we are building an installed base, which will contribute transaction processing fees as well as deployment and ongoing maintenance fees."

CFO Ciaran Egan said, "We also made significant strides in strengthening our financial position. At September 30, 2005, we had more than $1.7 million cash, up from approximately $266,000 at September 30, 2004. In addition, more than $4.1 million of current liabilities of $6.4 million will be settled with the issuance of preferred shares -- not cash. We intend to continue to strengthen the balance sheet to build a firm foundation for our operational strategy. Our goal is to enhance shareholder value."

ABOUT FREESTAR TECHNOLOGY CORPORATION

FreeStar Technology is a payment processing and technology company operating a robust Northern European BASE24 credit card processing platform based in Helsinki, Finland. FreeStar currently processes approximately 1,000,000 card payments per month for an established client base that comprises companies such as Finnair, Ikea and Stockman. FreeStar is focused on exploiting a first-to-market advantage for its Enhanced Transactional Secure Software (ETSS), which is a software package that empowers consumers to consummate e-commerce transactions with a high level of security using credit, debit, ATM (with PIN) or smart cards. The company, based in Santo Domingo, Dominican Republic, maintains satellites offices in Stockholm, Dublin, Ireland, Helsinki, Finland, and Geneva, Switzerland. For more information, please visit FreeStar Technology's websites at http://www.freestartech.com, http://www.rahaxi.com.

SOURCE: FreeStar Technology Corporation.