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PRESS RELEASE

Year 2007 / Monday October 1, 9:30 am ET

FreeStar Technology Corporation Processes $2.3 Billion in Transaction Value

Reports Record Sales of $3.78 Million

DUBLIN, Ireland, Oct. 1, 2007 (PRIME NEWSWIRE) -- FreeStar Technology Corp. (OTC Bulletin Board: FSRT - News) said today the Company has achieved record revenues for the fiscal year ended June 30, 2007. Revenue for the year ended June 30, 2007 was $3,780,000, which is an increase of 80% over the revenue of $2,097,749 for the prior year ended June 30, 2006. The Company processed a total of 19,443,999 transactions during the year, an increase of 1,589,839 or 8.9% compared to 17,854,160 transactions processed during the prior year. For the first time, FreeStar's financial statements disclosed revenue by category: transaction processing and related services were $1,945,512; consulting services provided by the Company's subsidiary Project Life Cycle Partners, Ltd. were $1,349,363; and hardware sales and related revenue were $484,860. During the prior year ended June 30, 2006, all of FreeStar's revenue of $2,097,749 was attributable to transaction processing and related services.

Paul Egan, FreeStar's Chief Executive Officer, said, ''Once again, we are proud to report FreeStar's continued growth in sales and transaction volume. We believe the market is our best spokesperson, and the message from the market is clear: FreeStar's products and services are very well received. During the year ended June 30, 2007, we continued to grow our core transaction processing business, and also successfully implemented our strategy of providing separate but complementary services offerings. It is important to note that during the prior year, our transaction processing revenue included approximately $319,000 of customization and installation services provided to our customers; there was no such revenue during the current year. Revenue from pure transaction processing was $1,945,512 during the current year, and $1,759,384 during the prior year, an increase of 10.5%. On a volume basis, transaction processing increased by 8.9% over the prior year.''

Paul Egan continued, ''We believe we will continue to report increased sales in the coming quarters. We are not only continuing to increase our core client base, but we also expect revenue contributions from Monex, CUP (China Union Pay), Swedish EMV certifications and Global Refunds, each of which could significantly impact our revenue streams.''

FreeStar reported a net loss of $16,207,533 for the year ended June 30, 2007, an increase of 16.5% compared to a net loss of $13,999,773 during the prior year. Ciaran Egan, FreeStar's Chief Financial Officer, commented that, ''Approximately $9.9 million of our net loss is attributable to non-cash charges, such as the value of stock options and shares issued to consultants and employees. In order to succeed in this very highly competitive industry, we have to attract top-quality talent, and we believe that by utilizing our financial resources in this fashion we achieve that goal while conserving our cash.''

SOURCE: FreeStar Technology Corporation.