FreeStar’s Next Generation Application to Permit Universal Use With All Desktop and Laptop Computers

NEW YORK, Aug. 5 /PRNewswire-FirstCall/–FreeStar Technologies, Inc. (OTC Bulletin Board: FSTI), a company providing one of the world’s first live and operational debit and ATM with PIN-authenticated payment technology on the Internet, today announced its next generation ePayPad card swipe terminal is undergoing final confirmation testing and is expected to be on track for financial, electronic and security certification and subsequent global release within 14-30 days.

The new generation of ePayPad features an ISO7816-1/2/3 compatible smart card interface and supports CPU-based cards with T=0 and T=1 protocol, as well as an RS-232 or USB interface to a personal computer with a simple command structure. Unlike the former version of the ePayPad which was designed with a serial port PC interface that is typically not available on today’s popular laptop computers, the new ePayPad will permit universal use on all desktop and laptop computers. In the manufacturing process, many of the same components purchased to produce the former version of ePayPad will be redirected to the manufacturing of the new unit, thus permitting FreeStar to utilize a large portion of its current parts inventories in the new deployment.

“With the advent of wireless, mobile Internet technology, it became clear to us that ePayPad needed to be redesigned to provide on-the-go Internet users with a secure payment device that was compatible with USB-ported computers. Now that we are in the final stretch of our redevelopment effort, we look forward to capitalizing on the tremendous excitement our PaySafeNow system is garnering in the United States and abroad–with particular interest stemming from the global gaming industry.”

About FreeStar Technologies, Inc.

With corporate headquarters in New York City, and continental headquarters in Santo Domingo, Dominican Republic and Dublin, Ireland, FreeStar Technologies is focused on exploiting a first-to-market advantage for enabling PIN-authenticated ATM and debit card transactions on the Internet.

FreeStar Technologies’ Enhanced Transactional Secure Software (“ETSS”) is a proprietary software package that empowers consumers to consummate secure e-commerce transactions on the Internet using credit, debit, ATM (with PIN) or smart cards. The ETSS system, marketed worldwide as PaySafeNow, integrates a consumer-side card-swipe terminal (ePayPad) with a back-end host-processing center. It encrypts sensitive financial data at the consumer’s personal computer, using powerful DES encryption and algorithms. It sends an authorization number to the e-commerce merchant, rather than the consumer’s credit card information, to provide a maximum level of security. The Company plans to link several large, established smart card systems together on an ETSS-based standard to achieve economies of scale and enhance market penetration for this secure e-commerce payment system. For more information, please visit the Company’s Web site at http://www.freestartech.com.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

For more information, please contact:

AT FREESTAR TECHNOLOGIES, INC. Cynthia Aadal, Director of Strategic Sales and Business Development 646-728-2358 or via email at caadal@freestartech.com

OR FOR FINANCIAL AND MEDIA RELATIONS Stephanie Noiseux, Elite Financial Communications Group 407-585-1080 or via email at steph@efcg.net