PAYNOVA FINALISES ACQUISITION OF GLOBAL PRODUCT MANAGEMENT IN THE USA

(NGM: PAY)

Paynova decides on new share issue to carry out previously announced acquisition of Global Product Management

The Board of Paynova, with the authorisation of the AGM on 11 May 2006, has decided to issue 767,644 new shares and 400,000 subscription options to Steven Mahana as payment for all shares in Global Product Management (“GPM”). More detailed information about Paynova’s acquisition of GPM is provided in a press release dated 4 May 2006.

The general agreement from May regarding the planned acquisition of GPM stipulates that Paynova shall pay a basic purchase sum of MUSD 1.065 in the form of new shares in Paynova and an additional purchase sum through new subscription options.

The basic purchase sum has been set at 767,644 new shares in Paynova, which corresponds to a subscription price of SEK 10.10. This settlement rate is based on the rate at the end of July when the counterparty definitively pledged to carry out the transaction through a sub-agreement. The new shares correspond to approximately 2.5 per cent of all shares in the company (calculated after full dilution), i.e. slightly more than calculated when the transaction was announced in May.

The size of the additional purchase sum is, as also previously announced, based on added transaction volume in accordance with a step model, with the maximum remuneration of 400,000 subscription options falling due when the generated monthly transaction volume exceeds around MUSD 15. At lower volumes, a reduced number fall due, down to 75,000 subscription options for a volume of between approximately MUSD 3 and 6. The measurement period for determining the transaction volumes is June – November 2006, and all subscription options now issued are being held by a third party until the step model has been finalised. A subscription option entitles the holder to subscribe to a new share in the company at the price of SEK 10.10 during the period from 1 May 2007 until 31 January 2008. As the counterparty has definitively pledged to enter into the transaction, the arrangement is based on a lower subscription rate than previously stated (which was 120 per cent of the share price), which should be seen in light of the fact that the number of options/shares in the additional purchase sum has not been increased, despite the decrease in the share price since May. Otherwise the subscription options are subject to standard market conditions.

All in all, the Board has judged it beneficial for Paynova now to carry out the acquisition of GPM based on the price conditions pledged by the counterparty at the end of July, despite the slight changes in prices and conditions.

FOR FURTHER INFORMATION CONTACT:

Lars Ekstedt, CEO

Phone: +46 (0)703-74 27 37

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 twenty 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 more secure and simpler, as well as look after transfers between family members, friends and acquaintances.

Paynova has agreements with around 1,000 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