New Strategic Acquisition Further Strengthens GS Telecom Limited

Business Wire, June 16, 1999

LONDON--(BUSINESS WIRE)--June 16, 1999--

GS Telecom Limited (OTC BB:GARD) announced today that they have signed a Memorandum of Understanding with NC International Limited that gives them the exclusive option to buy the whole of the business of Authority. Authority is one of only a handful of companies in Europe that is able to provide fast, low cost, easy to use, secure debit and credit card transactions across the Internet. Authority provides real time, on-line merchant authorization for debit and credit card transactions. Authority claims to be Europe's first mass-market Electronic Commerce Solution.

The service guarantees payment for merchant's goods before despatch and provides immediate and automated transfer of cash to the merchant's bank.

The company's existing staff boasts the services of world class system developers who gained their blue chip IT skills with companies such as Oracle, Ingres, ICL and Siemens.

Authority's service provides clients with industrial strength software for both small and large businesses that is fully compatible with the soon to be implemented with SET (secure electronic transfer) standard.

The acquisition brings into the GST Group a profitable company that boasts an impressive client portfolio and an established working relationship with Barclays Merchant Services a division of Barclays Bank. The impressive, proprietary firewall technology included in the deal is just part of a substantial bank of IPR which together with the Authority brand has a substantial valuation.

Commenting on the acquisition, Paul Gregory, Managing Director of Network UK, GST's Internet service provision company said, "I see this as a significant acquisition for GST. It represents a major piece of vertical integration that further adds value to our Electronic Commerce initiatives. It places us at the forefront of service provision in the Internet business sector and gives us access to a tremendous technical resource. The Authority software is impressive and robust and the technical expertise of the people that we have acquired along with the company is not only impressive, it will also be well utilized in other areas of GST's business portfolio".

GST stated that they were in the final stages of acquisition and expected to consummate the take over by July 1, 1999.