Clarity Payment Solutions Announces $6.4M Series B Financing and Name Change

Business Wire, Sept 5, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 5, 2002

Clarity Payment Solutions, Inc., a leading developer of payment solutions and processor of payment transactions for emerging and specialty markets, today announced that it has secured $6.4 million in its latest round of financing.

This second round of institutional funding is led by two previous investors -- Espirito Santo Tech Ventures, a subsidiary of Banco Espirito Santo, and Allfirst Financial Inc., a subsidiary of Allied Irish Banks. Clarity will use this capital investment to continue to grow and diversify its client base as well as enhance its competitive payment solutions and processing services. "As we continue to broaden the reach of our business into new markets, this latest investment allows us the opportunity to maintain a sustained and successful competitive advantage in prepaid payments," said Anil D. Aggarwal, CEO, Clarity Payment Solutions. "We are particularly pleased with the ongoing support we have received from both Espirito Santo and Allfirst, which further validates the continuing execution of our business plan and the long-term success of the Company."

The company has also changed its name from Clarity Incentive Systems, Inc. to Clarity Payment Solutions, Inc. (www.claritycard.com). "Clarity Payment Solutions better reflects the broad spectrum of innovative products and services we now offer," said Mr. Aggarwal.

"Clarity has created an enterprise application that offers a powerful payment platform to deliver payment solutions and services that address the needs of constituents in emerging and specialty markets," said J. William Murray, senior vice president, Allfirst Bank. "As both an investor in the company and a board member, Allfirst is looking forward to working closely with Clarity as it continues to build payment programs that deliver results to its clients."

"In addition to expanding nationally, Clarity has developed programs for the international marketplace," said Joaquim Rodrigues, chief executive officer, Espirito Santo Tech Ventures. "We have worked closely with Clarity to develop these solutions and we intend to continue doing so as it expands globally."

Since its inception, Clarity has grown rapidly by helping companies transform their legacy, paper-based payment processes into efficient and cost-effective electronic systems. Clarity packages its payment application, development and payment processing services into a variety of solutions targeted to specific vertical markets that include corporate incentives, consumer promotions, rebates, flexible spending account administration, insurance and teen payments. Over 120 companies, including several Fortune 100 companies, currently utilize Clarity's solutions across many and varied vertical markets.

About Clarity Payment Solutions

Clarity Payment Solutions develops electronic payment solutions and processes payment transactions for emerging and specialty markets. The Company provides solutions for companies in numerous vertical markets that include incentives, consumer promotions, healthcare, insurance, unbanked, teen payments and payroll, transforming their legacy, paper-based payment processes into efficient and cost-effective electronic systems. The Company's proprietary payment processing platform supports multiple payment vehicles such as debit, stored value, chip and private label, and incorporates Internet-enabled and other technologies that are specifically designed to provide competitive advantages within each market. Clarity Payment Solutions is based in New York City with an office in Ohio. For more information visit www.claritycard.com.

About Allfirst Financial Inc.

Allfirst Financial Inc. is a regional, diversified financial services company headquartered in Baltimore, MD, offering a full range of financial services including banking, trust, investment and insurance to retail, business and commercial customers. Its banking subsidiary, Allfirst Bank, operates 260 bank branches and 597 ATMs throughout Maryland, Pennsylvania, Washington D.C., Northern Virginia, and Delaware. Allfirst Financial Inc.'s assets were $17.3 billion as of June 30, 2002. Allfirst Financial is a wholly-owned subsidiary of Allied Irish Banks, plc.

About Banco Espirito Santo

With an asset base of over Euro 40 billion, Banco Espirito Santo is a leader in providing a diversified range of financial services to its clients including commercial banking, insurance, investment banking, stock-brokerage and asset management in Iberia and internationally. Banco Espirito Santo identifies and invests in high growth opportunity investments through its wholly-owned subsidiary, Espirito Santo Tech Ventures.