BioPay Files Biometrics Patent Suit Against Pay By Touch in the U.S. District Court for the District of Delaware

Herndon, VA — January 24, 2005

Biometric payments leader BioPay, LLC today announced that it has filed suit against Solidus Networks, Inc. dba Pay By Touch, and Indivos Corporation in the U.S. District Court for the District of Delaware. BioPay's lawsuit, filed January 18, 2005, involves patents on the use of biometric technology in point-of-sale transactions. BioPay asks the court to declare patents held by Pay By Touch to be invalid and also asks the court to declare that BioPay has not infringed on Pay By Touch's patents.

BioPay took this legal action in response to unfair business practices intended to mislead the industry regarding ownership of biometric technology. "I have serious concerns that Pay By Touch is telling prospective customers that they own a monopoly on biometric financial transactions," said Tim Robinson, president of BioPay. "This simply is not true, and we are asking the court to rule that BioPay does not infringe on Pay By Touch's patents. Their attempt to stifle the market by claiming to control patents on processes they do not own is an attempt to position themselves as the sole-source provider in the marketplace. This is not good for competition, not good for merchants and is not going to happen." BioPay believes that this, in turn, will enable merchants to choose among biometric transaction systems based on cost, service, innovation and convenience to customers.

BioPay is the leader and innovator in biometrically initiated payment processing. BioPay currently processes payments for many types of merchants including grocery stores, convenience stores, gas stations, general retail, restaurants and offers features such as cash back for retailers and customer-controlled tip function for restaurants.

BioPay's biometric technology for check cashing and payments has been used to complete more than 13 million transactions worth more than $4 billion. More than 1.5 million consumers are enrolled in BioPay's Paycheck Secure service, making it the most widely used retail biometric system in the nation. BioPay has 29 patents pending covering its innovative technology.

About BioPay, LLC

Since 1999, BioPay has been providing smart, secure methods for processing financial transactions. Its Paycheck Secure systems help businesses substantially reduce fraud and give consumers a convenient method for cashing checks. BioPay's payment service offers merchants a low-cost form of customer payment and gives consumers a secure, fast and convenient way to pay for purchases. BioPay's patent-pending systems for merchants, banks and financial service organizations have been implemented across the nation. BioPay's value to consumers and merchants has created the nation's largest commercial electronic biometric database. For more information on BioPay and its market-leading products please visit www.biopay.com.