PAYNOVA COMPANY UPDATE

Paynova six months after stock-exchange quotation:

Paynova strengthens its market position with major companies and partners in Europe

In just six months, Paynova has undergone comprehensive development. Its primary aim of launching and spreading the electronic wallet among a number of e-retailers and consumers is an ongoing process. In a secondary phase, Paynova has been developed into a complete transaction processor for online payments and other transfers. Commercial agreements show that Paynova will establish itself step by step as a leading European Payment Service Provider (PSP). The transaction volume will grow much faster through the connection of major customers and partners as Paynova's range of payment services is put into place. Customers and partners such as SJ, Swebus Express, GZS/easycash, Paybox and TripleDeal are currently completing their technical implementations, and an implementation study has been successfully completed with Ryanair. Compared with simple standard solutions for smaller e-retailers, the installations at large companies take longer to implement, but the work is worth the effort. The companies make considerable cost savings through having Paynova process the majority of their online payments, and Paynova can achieve significantly larger volumes through the fact that their customers' own customers, the actual consumers, also become Paynova's customers.

The purpose of this Company Update is to clarify where Paynova stands today in relation to its position on the occasion of its stock-exchange quotation in February 2004 (see quotation prospectus at www.paynova.com) and to answer the following questions that arise:

Where does Paynova's payment service stand compared with competing payment methods, such as credit cards and COD?

How does Paynova counter competition from other electronic payment services and PSPs?

How should Paynova achieve the large transaction volumes required in order to achieve profitability?

Where does Paynova stand today and what developments await?

Paynova handles secure and cost-effective payments between purchasers and sellers of products and services on the Internet. The income model is variable. For effecting payment transactions, Paynova receives a fee in relation to the transaction volume. Paynova is a PSP (Payment Service Provider) whose operative platform comprises a transaction processor that links together card processing companies, payment service companies, banks, e-retailers and consumers with each other. The company has several payment services, including the Paynova Wallet, which is the commonest and best-known form of access to the transaction processor. A financial infrastructure has been built up to make effecting payments between consumers and retailers cheaper, simpler, faster and more secure than by traditional methods using invoices, COD, card payments or Internet banking. The fact that these new agreements have been possible can be largely ascribed to the gradual technical, functional and commercial development that Paynova's transaction processor has undergone.

The entire Paynova Company Update is enclosed.