Acquisition

PayPoint plc

          Acquisition of internet payment service provider

1 November 2006

PayPoint plc, a leading branded payment collection network, announces
that  it  has  completed  the  acquisition  of  Metacharge  Ltd.,  an
independent internet  payment service  provider  ("PSP") for  a  cash
consideration of  £8.4m.  The selling  shareholders  are a  group  of
private investors, including management.

Metacharge processes  real-time payment  transactions for  goods  and
services over the internet, by  telephone, email, fax and  mail-order
and is growing  rapidly. It  services some  500 merchants,  primarily
based in the UK.

Metacharge is currently profitable, and  is expected to be  accretive
to PayPoint's earnings,  from the  end of  the first  year after  the
acquisition.

Dominic Taylor, Chief Executive of PayPoint, said: "This  acquisition
represents a significant step forward  in our strategy of  broadening
PayPoint's payment channels. It reflects the increasing importance of
the internet as a payment channel for consumer payments and leverages
our proven  skills  in  managing  both  merchants  and  transactions.
Offering an internet payment solution alongside our physical  payment
collection  network  will   enable  us  to   offer  clients  a   more
comprehensive payment solution."


About PayPoint

PayPoint is  a  leading payment  collection  network of  over  15,000
outlets used, primarily, for the  cash payment of bills and  services
and prepayments for mobile telephones and energy meters.

PayPoint began  trading  in  1996 and  initially  collected  payments
through  its  network  of  retail  agents  for  its  founder   client
investors, who included  British Gas,  BT, BBC  TV Licensing,  London
Electricity (now part of EDF Energy) and four water companies.

It now  has  more than  800  clients including  many  of the  UK  and
Ireland's major  energy,  cable,  mobile  and  fixed  line  telephony
companies. Its blue chip client  list also extends to numerous  water
companies, local authorities and  housing associations and a  growing
transport and travel base.

PayPoint listed on the London Stock Exchange in September 2004.

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