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PRESS RELEASE

Year 2005 / Wednesday February 16, 11:57 am ET

FreeStar Financials for 2nd Quarter Revenues Increase for the six months period $790,724 and increase of $129,350 approximately 20%

Transactions Processed 8,045,860 and Increase of 1,439,193, or 21 %

New York--(BUSINESS WIRE)--February 16, 2005-- FreeStar Technology Corporation (OTCBB: FSRT - News) today announced results for the three months and six months ended December 31, 2004.Revenues for the three months ended December 31, 2004 rose to $424,772, an increase of $63,341, or approximately 18%, from $361,431 for the three months ended December 31, 2003. Net loss increased by $81,344, or approximately 6%, to $1,350,302, or $0.02 per share, compared to the net loss of $1,268,958, or $0.02 per share, for the three months ended December 31, 2003. The year-to-year revenue improvement is due primarily to an increase in the number of transactions processed by FreeStar's wholly owned subsidiary, Rahaxi Processing Oy. During the period, Rahaxi processed 4,285,230 transactions, an increase of 1,127,946, or 33.58%, over the 3,358,284 transactions that were processed in the corresponding period in the prior year. The increased loss is due to increased sales, general and administrative costs incurred as the Company continues to build out its operating infrastructure.

Revenues for the six months ended December 31, 2004 were up by $129,350 to $790,724, an increase of approximately 20%, compared to revenues of $661,374 for the six months ended December 31, 2003. During the period, Rahaxi processed 8,045,860 transactions, an increase of 1,439,193, or 21 %, over the 6,606,664 transactions that were processed during the comparable six months period in the previous year. Net loss for the six months ended December 31, 2004 was $2,328,498, an improvement of $437,388, or approximately 16%, compared to the net loss of $2,765,886 generated during the six months ended December 31, 2003.

The Company restated its net loss for the three months ended September 30, 2003 from $1,940,856 or $0.08 per share (previously reported) to $1,031,856 or $0.05 per share (as restated), a decrease of $909,000. The decrease was due to a change in the accounting for a transaction involving the sale of common stock during the three months ended September 30, 2003. For the six months ended December 31, 2003, the Company originally reported a net loss of $3,674,886, or $0.07 per share; the Company has restated the net loss for this period to $2,765,886, or $0.06 per share.

Paul Egan, CEO, commented: "We are pleased to report a revenue increase of approximately 18% for the quarter, and 20% for the six month period ended December 31, 2004. During the quarter ended December 31, 2004, we achieved continued revenue growth and continued to implement our business plan. The strategic focus on continued investment in our technical infrastructure will provide a platform to leverage and expand further into other markets, and to provide added value products to the existing client base. We believe that we are well positioned to continue to deliver improved results through the remainder of fiscal 2005."

Ciaran Egan, CFO, added, "During the quarter ended December 31, 2004, we experienced an increase in our sales general and administrative costs as we continued build out our infrastructure in order to implement our business plan. It is important to note that for the six month period ended December 31, 2004, we were able to reduce our net loss by more than the amount of our revenue increase. We believe that our costs are under control and that much of our continued revenue growth will find its way to the bottom line. Additionally, not all of our costs are cash costs. We continue to utilize non-cash compensation where feasible in order to conserve our cash. For the three and six months ended December 31, 2004, our non-cash compensation costs were $692,526 and $1,273,192, respectively. Mr. Egan also notes that the Company's

Please refer to the company's Form 10-QSB for further information regarding FreeStar, its operations and its financial performance for the three months and six months ended December 31, 2004.

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.