Leading Merchants Standardize on PaymentNet's Internet-Based Payment Processing Service

Pleasanton, CA. - July 27, 1998) - PaymentNet, Inc. (previously Segue Systems) (www.paymentnet.com), announced today that five leading vendors have joined the rapidly growing ranks of merchants using its Internet-based single-source payment processing gateway: American Heart Association, AtYourOffice.com, Network Solutions, Inc., Value America and Virtual Vineyards.

These merchants' payment processing requirements range from core PaymentNet service attributes such as performance, reliability, accuracy and customer service to value-added features such as recurring billing support, delayed settlement, EFT/ACH processing, check processing, legacy system support, and reporting.

Value America and Virtual Vineyards are prior CyberCash customers. Network Solutions collected customers' payment information and entered it via terminal off-line prior to subscribing to PaymentNet, and the American Heart Association has used PaymentNet from the inception of its sales presence on the World Wide Web.

"Snickelways recommended PaymentNet as an ideal payment processing service to use in building a state-of-the-art commerce Web site," stated Tom Graham, President AtYourOffice.com. "From a business perspective, the cost of the PaymentNet service was far lower than alternatives we explored. From a value-added perspective, PaymentNet's back-office tools for merchant payment administration and reporting are fantastic. We are very happy with this service."

About the PaymentNet Service

The PaymentNet Service is the industry's only single-source, automated, multi-payment, secure gateway that provides real-time processing services for multiple payment media: credit cards, purchase cards, electronic checks and others. The multi-payment gateway supports critical business requirements facing Internet merchants including recurring billing, installment payments, delayed product shipment and immediate softgoods delivery.

The PaymentNet system is based on a client/server architecture and is deployed using a true thin client binary executable. PaymentNet leverages the Internet as a virtual private network between its proprietary payment processing server and individual clients dispersed on Internet and Intranet locations.

According to benchmarks conducted by PaymentNet customers, merchants using the PaymentNet service get lower cost-of-service and orders of magnitude faster processing speeds. They also get advanced services like delayed transaction settlement, secure credit card number storage, and range of highly automated account management, processing and reporting functions.

By visiting the PaymentNet Web site and subscribing to one of PaymentNet's annual volume transaction-based service plans, any merchant - large or small, ISP-hosted or self-hosted -- can quickly and cost effectively start accepting payment for products and services over the Internet.

The PaymentNet service includes back-end account management to assist merchants with their business operations. Each merchant is provided with secure, private access to a transaction management site that provides: a desktop virtual terminal, daily transaction reports, credit authorizations, delayed settlement for traditional packaged goods compliance rules with VISA and MasterCard, partial order settlement management, and overall account details.

For large merchants with sophisticated established payment processing systems, PaymentNet offers custom system integration services. For small merchants hosting their Web stores with Internet Service Providers, PaymentNet offers simplified storefront integration programs.

About  PaymentNet

PaymentNet, Inc. is a provider of highly automated, Internet-based, real-time payment processing services for merchants of all sizes and business approaches. PaymentNet is headquartered in Pleasanton, California, and can be found on the Web at www.paymentnet.com. Contact PaymentNet corporate offices at 925/225-1670.

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Contact:
Colleene Isaacs
PaymentNet, Inc.
(925) 598-1103
cisaacs@paymentnet.com

Scott Collison
PaymentNet, Inc.
(925) 598-1106
scollison@paymentnet.com