PAYNOVA GAINS SEK 14 MILLION THROUGH TO 6 SUBSCRIPTION OPTION AND REPORTS ALMOST 200 % VOLUME GROWTH DURING FOURTH QUARTER

Paynova stands to gain SEK 14 million by exercising the TO 6 subscription option. During the fourth quarter the company has also strengthened its cash flow by increasing transaction volumes by almost 200 per cent compared with the third quarter. The board has therefore decided that the Annual General Meeting’s authority concerning new share issues with preferential rights should not be exercised.

Share subscription via TO 6 subscription option

The new subscription means that the number of outstanding shares will increase by 1,770,440 to a total of 24,155,255 shares, and that Paynova will gain SEK 14,163,520. The share capital will increase by SEK 177,044 to SEK 2,415,525.

The number of shares with subscription rights at a subscription rate of SEK 8 was 1,787,990. Demand for option rights was significantly greater than the assets. A smaller number of those with options, with ownership corresponding to 17,550 option rights, did not exercise their option to subscribe or transfer for subscription before the end of the registration period on 31 December. The degree of utilisation in terms of share subscription via TO 6 was thus 99 per cent.

Continued strong volume development improved cash flow

Paynova’s transaction volumes strengthened considerably during the fourth quarter. In total, volumes increased by almost 200 per cent to around SEK 90 million compared with around SEK 30 million during the third quarter, contributing to a steady improvement of the company’s operating cash flow. During the fourth quarter implementations and tests have been carried out to such an extent that the groundwork is laid for continued strong volume growth during the first quarter of 2006. The number of registered wallets/accounts grew to around 410,000.

“With our financing secured we can now focus fully on operational activities. This leaves us well equipped to deal with the growing international demand for our services,” says Paynova CEO Lars Ekstedt.

Financing plan secured

Against the background of the capital input via TO 6 and the company’s operational development, the board has decided not to exercise its authority to implement a new share issue with preferential rights during January 2006.

For further information, please contact:

Lars Ekstedt, CEO

Telephone: + 46(0)8-517 100 37

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 8 languages with 7 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 an agreement with more than 900 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