News

PayStar buys eKiosk's kiosks

March 21, 2002

LODI, Calif. - PayStar Communications Corp. (OTCBB:PYST), is buying nearly 1,000 public Internet kiosks owned by eKiosk Corp. of New Lenox, Ill. The purchase also includes ActionFax fax kiosks installed in U.S. airports and airline clubrooms in the U.S., according to a company news release.

PayStar will install its Gold Sprocket software on the kiosks. The software is PayStar's pay-for-use application it purchased from San Diego-based Fun e-Business in May, along with the company's kiosk assets, according to a May news release issued by PayStar.

PayStar provides cashless ATMs, prepaid telecom services, wireless bank services, multi-media services and Internet kiosks.

Carolyn Hoff, a media spokesperson for PayStar, said that the newly purchased kiosks will be converted to PayStar's Info*Station kiosks.

PayStar Info*Station kiosks are being modified to include video games, 802.11b wireless connections, Internet browsing, e-mail, video e-mail phone services and financial services. Each device includes speakers, video camera and microphone. PayStar plans to the provide real-time video conferencing in the near future, according to the release.

PayStar, which became a public company in 1998, reported a slight decrease in revenue of $1.1 million for the first quarter of 2001 compared to $1.2 million for the first quarter of 2000, according to the company's quarterly report filed with the SEC. Fifty-one percent of the revenue was derived from coin activity, 12 percent from management fees and commissions, nine percent from long distance and 28 percent from non-coin sources, according to the quarterly report.

The company has been agressively pursuing acquisitions and inventory. In February it announced the purchase of Telad, an operator of more than 1,000 payphones in Oregon and Washington. Prior to the purchase, Telad had expanded its payphone services to include public Internet access kiosks.

Last December, PayStar acquired prepaid e-Commerce provider PAIDCard.Net

In June the Lodi, Calif.-based company announced it had signed an agreement to supply a minimum of 5,000 PayStar Info*Stations to Kiosk USA during the next two years.