Press Release

Year 2006 / Tuesday January 17, 6:00 am ET

FreeStar Technology Corp.'s Rahaxi Processing Oy. Signs Strategic Alliance with Point-Of-Sale Software Vendor

Tasmaprojekti Information Systems Oy. to Market Rahaxi Processing Oy.'s Online Card Payments Processing Products and Services in Finland

DUBLIN, Ireland, Jan. 17 /PRNewswire-FirstCall/ -- FreeStar Technology Corp. (OTC Bulletin Board: FSRT - News), an international card payments processor and technology company, today announced that its subsidiary Rahaxi Processing Oy., based in Helsinki, has entered into a sales and referral agreement with Tasmaprojekti Information Systems (TIS), an independent Point-Of-Sale software vendor based in Kiuruvesi, Finland.

The agreement will expand Rahaxi Processing's footprint in the Finnish market for its wide variety of international standard products and services, such as the newly developed Rahaxi-OTI(TM) (Open Terminal Interface) middleware solution.

Paul Egan, chief executive officer of FreeStar Technology Corp., said, "TIS's outstanding client base of more than 600 retailers and hospitality providers is an ideal target for expanding the introduction of Rahaxi's OTI middleware solution. As more Finnish clients enthusiastically embrace the OTI solution, we are positioned to introduce OTI into new markets."

Managing Director Antti Hanninen of Tasmaprojekti Information Systems Oy. said, "Co-operation with Rahaxi Processing Oy. helps us to grow our market share as POS software vendor. Seamless integration between Rahaxi-OTI(TM) and TIS's Kirjo-software will produce the fast and secure online card transactions that our customers desire."

Sales Director Jyrki Matikainen of Rahaxi Processing Oy. added, "Rahaxi Processing is delighted to partner with a dynamic company like TIS, which is known for providing reliable and cost-effective POS solutions to Finnish merchants. The needs of TIS's wide portfolio of clients are well matched with our variety of card payments processing products and services."

Rahaxi-OTI(TM) was developed to meet high market demand. Traditional POS vendors require companies to expand services from platform to cash register as part of the POS application logistics. The Rahaxi-OTI(TM) application is managed centrally by Rahaxi and can be remotely updated when needed.

About FreeStar Technology Corporation

FreeStar Technology Corp. is a payment processing company. Its wholly owned subsidiary Rahaxi Processing Oy., based in Helsinki, has a robust Northern European BASE24 credit card processing platform. Rahaxi currently processes in excess of 1.3 million card payments per month for such companies as Finnair, Ikea and Stockman. The company, based in Dublin, Ireland, maintains satellite offices in Santo Domingo, Dominican Republic, Helsinki and Geneva. For more information, please visit http://www.freestartech.com.

About Tasmaprojekti Information Systems Oy

Tasmaprojekti Information Systems Oy., founded in 1997, is an independent Finnish software vendor specializing in POS software solutions for the retail and hospitality sector through its own POS management system Kirjo. Kirjo is open architecture POS software that enables tight integration with other software platforms such as ERP, CRM and PDM and can be integrated with various business processes where cash transactions are needed. Tasmaprojekti Information Systems Oy. provides solutions for all merchant needs created by cash and card payments in connection with retail operations and customer service. Over 600 companies in Finland use Tasmaprojekti Information Systems Oy.'s software and software components in their own POS and cash management systems. Tasmaprojekti Information Systems Oy.'s clients include Kultakeskus Oy., the largest silver and gold items factory outlet in Scandinavia, Rovaniemi Vocational Institute and KIPA-book store chain. For more information, please visit http://www.tasmaprojekti.com

Forward Looking Statements

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. When used in this press release, the words "expects," "anticipates," "believes," "plans," "will" and similar expressions are intended to identify forward-looking statements. These are statements that relate to future periods and include, but are not limited to, statements regarding our adequacy of cash, expectations regarding net losses and cash flow, statements regarding our growth, our need for future financing, our dependence on personnel, and our operating expenses. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, those discussed above as well as risks set forth above under "Factors That May Affect Our Results." These forward-looking statements speak only as of the date hereof. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The companies caution that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in FreeStar's Form 10-KSB filing and other filings with the U.S. Securities and Exchange Commission (available at http://www.sec.gov). FreeStar undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.

For more information, please contact:

FreeStar Technology Corporation,
Paul Egan
Tel: 809-368-2001
E-mail: pegan@freestartech.com

At Rahaxi Processing Oy
Mr. Jyrki Matikainen
Sales Director
Tel: +358-40-5133-304
E-mail: jyrki.matikainen@rahaxi.com

At Tasmaprojekti Information Systems Oy.
Mr. Antti Hanninen
Managing Director
Tel. +358-440-836-134
E-mail: antti.hanninen@tasmaprojekti.com

Stern & Co.
Arun Chakraborty
Tel: 212-888-0044
E-mail: achakrab@sternco.com

Source: FreeStar Technology Corporation