Trading Statement

PayPoint PLC
05 September 2005



                                  PayPoint plc
                                Trading Statement

The directors of PayPoint plc are pleased to announce that profits before tax
are running ahead of expectations.

Strong growth in transaction volumes for prepaid energy, bill payment and mobile
top-ups, particularly those carried out on retailers' own till systems, have
resulted in better than expected turnover growth. Going forward, mobile top-up
growth is expected to slow down.

Gross margins have declined as predicted, largely as a result of the growth in
Irish mobile top-up revenues, where PayPoint is principal in the transaction
with the consumer and therefore includes the full value of the top-up in
turnover and the cost in cost of sales.

The migration of mobile top-up transactions from PayPoint terminals to certain
multiple retailers' own till systems has now started, but one multiple retailer
has not completed the software development necessary for the change to take
place, although this is expected during the second half of the year. Mobile
top-ups on retailers' own till systems produce lower revenues for PayPoint. The
impact of this migration and other factors such as depreciation, will tend to
make the split of the first half and second half profits more evenly balanced
than last year.

Operating margins (earnings before interest and taxes expressed as a percentage
of revenue) have increased despite the additional cost of strengthening the
management team for future growth.



Enquiries

Finsbury
Rollo Head
Don Hunter
020 7251 3801


About PayPoint

PayPoint is a leading branded payment collection network used, primarily, for
the cash payment of bills and services and prepayments for mobile telephones and
energy meters. There are over 13,000 retail outlets using PayPoint's payment
terminals.

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 500 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.





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