Interim Management Statement

PayPoint plc Interim Management Statement 16 August 2007 The board is pleased to report on events, transactions and trading since last year end. Over the period, a number of key contracts have been renewed and good progress made on a number of business initiatives to expand our product offering. Material events and transactions As noted in our annual report, since the end of our last financial year on 25 March 2007 PayPoint acquired Pay Store SRL. Pay Store is a leading Romanian mobile top-up supplier selling both electronic top-ups and scratch cards through over 6,000 retail outlets, 4,000 of which have electronic terminals. The consideration for the company was ¤16 million with the potential for a further ¤1 million payable or recoverable subject to performance post-acquisition. Terminal sites (excluding Romania) have increased by over 1,000 since the year end. We have renewed contracts with Spar and extended our retail coverage with new contracts for multiples and independent retailers. Five regional transport companies signed contracts with PayPoint, all of which are exclusive. Contracts have been concluded with the Light Agency (Shop Scan Save electronic vouchers), with Coinstar for gift cards and with several prepay debit card providers. Western Union money transfer volumes have continued to grow and we now have more than 500 agents. Performance[1] for the period from 26 March to 29 July 2007[2]and financial position1 as at 29 July 2007[3] Bill and general payment transaction volume was 95 million (up 28%). The BBC TV Licence contract, which was exclusive from 1 August 2006, contributed strongly to this growth. Mobile volume was 48 million (up 12 %), mainly as a result of the increase in terminals sites. ATM volume was 5 million (up 20 %), mainly as a result of the increase in ATMs to 1,979 at 29 July 2007. The reorganisation and restructuring of the newly acquired internet payment and Romanian businesses are proceeding according to plan. Earnings to date are in line with market expectations. After the payment of the consideration for Pay Store of £10 million and the final dividend of £6 million, net cash at 29 July was £15 million (including client cash of £7 million). Enquiries Finsbury 020 7251 3801 Don Hunter ABOUT PAYPOINT PayPoint is the leading cash and internet payments company in the UK and Ireland, handling in excess of £5 billion in over 400 million transactions annually for more than 5,000 clients and merchants. The company operates with several significant payment streams: § The PayPoint branded retail network numbers over 18,500 terminals located in local shops (including Co-op, Spar, Costcutter, Sainsburys Local, One Stop, Londis and thousands of independents) in all parts of the UK and Ireland. Terminals handle gas and electricity meter prepayments, cash bill payments, mobile phone top-ups, transport tickets, London Congestion Charges, BBC TV licences and a wide variety of other payment types for all of the leading utilities, telecommunications suppliers and many consumer service companies. This network is used by consumers, free of charge, over 7 million times a week. The network has 97.3% population cover on a 1 mile urban or 5 miles rural measure; § Additional multiple retailer connections into the electronic till systems of nearly 4,000 outlets including BP, Somerfield and Superdrug for mobile top-ups and selected payments from the PayPoint range; § The PayPoint ATM network has 1,979 'LINK' branded machines across the UK, also typically in convenience stores; § PayPoint Internet Payment Services (PPIPS), trading as Metacharge and SECPay, provides secure credit and debit card payments for over 4,000 web merchants linking into all the major UK acquiring banks; and § PayPoint International has recently acquired a Romanian mobile top-up operator to which a bill payment service will be added, emulating the UK branded retail network. PayPoint International also operates Irish bill payment and top-up services. PayPoint floated on the London Stock Exchange in September 2004. The company's market capitalisation at 25 March 2007 was £464 million. PayPoint has been awarded the Queen's Award for Enterprise and is widely recognised for its leadership in prepayment systems, smart technology and consumer service. [1] PayPoint's auditors have not been requested to review the performance or financial position [2] Comparative data is given for the similar period last year ( i.e. 27 March to 30 July 2006) [3] Comparative data is given as at 30 July 2006 ---END OF MESSAGE---

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