PAYNOVA PROCURES NEW IT-PROVIDER, AND REPLACES FINANCING WITH GUARANTEED SHARE ISSUE WITH PREFERENTIAL RIGHTS

The board of Paynova has decided to replace the financing that previously came from Xponse with a fully guaranteed new share issue with preferential rights for shareholders. Paynova has also initiated a process in order to procure a new IT-supplier. With these measures, Paynova is preserving the positive momentum it is now experiencing after its restructuring.

The board’s decision is motivated by the blockade put into effect by the Indian authorities against Xponse due to the ongoing investigation of Xponse’s CEO. A consequence of the blockade is that the financing and development work that Paynova has received from Xponse has stopped. The uncertainty of this matter has caused Paynova’s board to secure a financing alternative and start procurement negotiations for a new IT supplier. Thereby, the agreement with Xponse has been terminated with immediate effect.

REPLACEMENT FINANCING SECURED

The financing that was previously received from Xponse has been replaced by a new share issue with preferential rights for current shareholders, totalling MSEK 19. With this financing there is far less dilution, as the number of new shares will amount to only 2.9 million, compared to the previously planned 5.4 million. The company’s main owners, who, together represent more than 2/3 of the outstanding votes and capital in the company, have committed to voting for this newly planned share issue. Furthermore, the issue is fully guaranteed through a combination of undertakings to subscribe to shares and through an underwriting consortium. The board is planning to call an extraordinary general meeting to decide on the share issue. For more information about the new issue, please see the special press release as of February 22nd.

NEGOTIATIONS FOR NEW IT-SUPPLIER UNDERWAY

Paynova has begun a process for negotiating procurement and initiating a cooperation with new suppliers. The operation of Paynova’s system will not be affected by this, as all vital processes are run by Paynova in Stockholm. Paynova has in no way been connected to the supplier’s problems. The procurement process is estimated to have a limited effect on Paynova’s development efforts in the short term, with a time delay of approximately one month. In the long term, changing suppliers is not expected to have any effect on the company’s development.

OFFENSIVE PLAN FOR THE REMAINDER OF 2007

Paynova has recently conducted a successful restructuring that has given the company increased competitiveness together with a better cost effectiveness. Paynova is now facing a period of acceleration, in which the company is growing with existing customers, and where the pace will be increased for implementing new partnerships. The company has previously estimated that the transition to a positive monthly cash flow would occur in June. The effects of changing supplier are expected to include a postponement in addition to the “time delay,” since the IT development services will be paid in cash rather than shares as before.

Paynova’s growth efforts for 2007 and onwards will primarily occur in the online gaming and communities segments, and through the development of new and existing customers in the retail and travel segments. All in all, we now estimate that the income generated from active efforts in these segments, combined with stringent cost controls, means that 2007 will be a year when Paynova achieves a positive cash flow and a key position on the market, in order to experience robust growth and good profitability in 2008.

There is a growing need to inform the shareholders. Therefore, a number of information activities will be started and March and continue throughout the year.

Stockholm, February 22, 2007

Paynova AB (publ.)

The Board

ABOUT PAYNOVA

Paynova offers an international, account-based payment service via the Internet. With Paynova as the only counterpart, e-retailers get a payment guarantee for around 20 payment options in 10 languages with 8 currencies in a security-certified interface (PCI). Consumers can open an account, a Paynova Wallet, for free on the Internet to make purchases simpler and more secure, as well as look after transfers between family members, friends and acquaintances.

Paynova has agreements with around 1,400 e-retailers. Most are found in the following prioritised segments: travel, retailing and media/network games. The company has been listed on NGM Equity since February 2004. For more information: www.paynova.com