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Paypoint plc (PAY)

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Tuesday 15 May, 2007

Paypoint plc

Acquisition of Pay Store SRL






15 May 2007

PayPoint announces acquisition of Romanian mobile pre-pay distributor

PayPoint plc, the cash and internet payments group, announces that it
has completed the acquisition of Pay Store SRL, a leading independent
Romanian mobile pre-pay distribution company for Euro 15.5 million in
cash. There is the potential for  a price adjustment, up or down,  of
Euro 1.1  million  subject to  performance  over the  year  following
acquisition. The existing  management and other  employees are  being
retained and will be supplemented by employees from the UK and  other
local recruitment.  The  selling shareholder is  a subsidiary of  RTC
Holding BV, a large privately-owned holding company whose controlling
shareholder is Mr. Radu Octavian.
Pay Store distributes mobile air-time,  using both scratch cards  and
electronic top-ups  through an  expanding and  profitable network  of
some 4,000 convenience retailers  equipped with electronic  terminals
provided by Pay Store and a further 2,000 convenience retailers which
sell scratch cards only.  PayPoint will invest to develop a  national
branded bill payment offer.

The  acquisition   of   Pay   Store   represents   PayPoint's   first
international expansion as a listed  company, and allows PayPoint  to
export its  payment expertise  into  a high  growth economy  with  an
emerging payments market.

Dominic Taylor, Chief Executive of PayPoint, said: "I am very pleased
to announce the  acquisition of Pay  Store which provides  us with  a
foothold in  the rapidly  expanding Romanian  market.   We intend  to
extend the  existing  distribution  channels  to  take  advantage  of
migration  of  mobile  airtime  from  scratch  cards  to   electronic
top-ups.  In addition, we intend  to roll out a branded bill  payment
service for  the  97% of  householders  who pay  in  cash,  providing
convenient retail outlets  close to where  they live or  work.   This
acquisition is in accordance  with our strategy  to replicate our  UK
model in other markets and provides a sound base for future growth."



                              - Ends -




For more information please contact:

Finsbury                                    020 7251 3801
Rollo Head
Don Hunter

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