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PRESS RELEASE

Year 2005 / Monday November 14, 6:00 am ET

FreeStar Technology Reports Revenue Rises 20% in Fiscal Year, Ended June 30, 2005

Processes 15.4 Million Transactions with a Dollar Amount of $1.7 Billion

DUBLIN, Ireland, Nov. 14 /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 fiscal year ended June 30, 2005. Revenue rose more than 20% to $1,602,779 in the period from $1,333,826 in the comparable period of 2004.

FreeStar Technology President and CEO Paul Egan explained that a higher volume of transactions at wholly owned subsidiary Rahaxi Processing Oy., based in Helsinki, Finland, were responsible for the revenue gains. Rahaxi Processing's transaction volume climbed more than 18%. The subsidiary processed more than 15.4 million transactions during the fiscal year, up from slightly more than 13 million transactions processed during the year earlier period.

"We are very pleased with our progress," said Egan. "Processing $1.7 billion in worth of transactions is a substantial achievement. We believe we are on track in establishing Rahaxi as a solid player in the cross-border transaction processing industry. We are rolling out our products in our target markets. We are one of the few companies with a product line nearly fully compliant with the upcoming EMV regulatory changes in the transaction processing industry, which should enable us to continue our growth in the coming months."

Chief Technology Officer Angel Pacheco added that after 18 months of technology and business development, the company now has a recognized payment processing platform, providing partners and customers with a wide range of payment and technical solutions from transaction processing and software development to point of sales devices and integrated payment system components.

"In alliances with customers such as Global Refund and vendors such as Hypercom," he said, "Rahaxi Processing has developed unique and complex products that will ensure its ever-growing presence in the payment industry."

The Company reported a net loss of $22,102,463, or $0.00 per share, in the fiscal year, ended June 30, an increase of $15,767,190, or approximately 249% from the prior year.

"We want to be sure our investors understand that more than $20 million of this loss consists of non-cash expenses, Chief Financial Officer Ciaran Egan, said.

These non-cash items include stock grants, options, warrants and other intangibles with a fair value of approximately $15,843,000 issued to officers, directors and consultants. It also includes warrants and options, valued at approximately $647,000, issued to Xinhua Financial of China in recognition of its contribution in developing the Chinese market for FreeStar Technology's products as well as approximately $1,032,000 in non-cash costs pursuant to a legal settlement."

"We believe the proper use of non-cash currency enables FreeStar Technology to achieve several key objectives, including providing a long-term incentive compensation plan for officers and consultants; cementing our key business alliances; and conserving cash. We also took a charge of $2,590,000 for stock certificates issued in connection with terminated acquisitions that were subsequently cancelled, but as yet remain unrecovered," said Ciaran Egan.

At June 30, 2005, the company had approximately $632,000 in cash, an increase of approximately $431,000 over the prior year.

ABOUT FREESTAR TECHNOLOGY CORPORATION

FreeStar Technology Corporation is a payment processing company. Its wholly owned subsidiary Rahaxi Processing Oy., based in Helsinki, is a robust Northern European BASE24 credit card processing platform. Rahaxi currently processes in excess of 1 million card payments per month for such companies 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), electronic cash or smart cards. The company, based in Dublin, maintains satellite offices in Helsinki, Santo Domingo, Dominican Republic, and Geneva. For more information, please visit FreeStar's websites at http://www.freestartech.com, http://www.rahaxi.com.

SOURCE: FreeStar Technology Corporation.