PaymentNet Attracts CFO
and Marketing Vice President

Pleasanton, CA. - October 6, 1998 - PaymentNet (www.paymentnet.com), announced today the hire of two key executives to help round out the management team that will advance the company’s position in the rapidly growing marketplace for Internet-based transaction processing services.

Joseph Girata joins PaymentNet as Chief Financial Officer, and Bob Murphy joins as vice president, business development and marketing.

Girata comes to PaymentNet from Connect, Inc., where he was also CFO. He has served in similar capacities at several leading technology firms, including Wind River Systems, Walker Interactive Systems, Data Design Associates, Atlantic Financial, and Signetics Corporation. While at the financial helm, Girata has guided several companies through Initial Public Offerings (IPOs), secondary public and private financings and expansions into international markets.

Murphy joins PaymentNet from Verifone, where he held positions in international business management and marketing, and as general manager and director, integrated payment system and channel management. Prior to Verifone, Murphy held product management and marketing positions at American Telephone and Electronics, and at GTE Systems. He brings key channel development, financial industry, business development and international experience to PaymentNet.

Bruce Hendrix, PaymentNet chairman and CEO, said, "We’re pleased to have attracted the high level of talent and experience that Bob Murphy and Joe Girata bring to their respective disciplines. Their contributions will be crucial as PaymentNet extends its lead in the market for automated transaction processing services over the Internet."

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 PaymentNet Service has been deployed across a wide range of merchant customers with excellent results, and has proved its value to key payment processing, banking, ISP/distribution and technology partners. It represents a powerful alternative for merchants who have been disappointed by slow, cumbersome, inefficient and costly Internet-based payment processing solutions that have their architectural and feature origins in the "pioneering" era of Internet payment technologies.

The PaymentNet system is based on a client/server architecture implemented as a virtual private payment network over the Internet, 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.

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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PaymentNet is a trademark of PaymentNet, Inc. All other trademarks are property of their respective owners.

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