Press Release

Year 2006 / Wednesday May 17, 5:30 am ET

FreeStar Technology Corp.'s Rahaxi Processing Oy's OTI Software To Be Marketed By Tietotisma Oy To Its Merchant Clients

Major Finnish Software Provider Will Market Rahaxi Processing's Secure Payment Interface to Retailers and Hospitality Providers

DUBLIN, Ireland, May 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 signed a marketing agreement with Tietotisma Oy.

Under the terms of the agreement, Tietotisma is to market Rahaxi-OTI™ (Open Terminal Interface), an in-house developed and managed middleware solution, to its retail and hospitality provider client base.

Tietotisma, located in the Turku region in Finland, is well known for its commercial and technical expertise.

Paul Egan, chief executive officer of FreeStar Technology Corp., said, "Tietotisma's choice of OTI as the product for its client base is a significant endorsement of OTI's superior product features, especially its flexibility and its ability to be integrated into a variety of complex POS environments and platforms to satisfy specific customer needs."

Ms. Tiina Sjolund, managing director, Tietotisma Oy, said, "As an end-to- end POS software house, we at Tietotisma Oy are interested in products and services that are easily integrated into our own systems, we believe we found such products and services at Rahaxi Processing. We also think that Rahaxi Processing has the expertise and knowledge to adapt easily to new standards in the fast changing card payments processing industry."

Rahaxi-OTI, Egan explained, is a turnkey solution for POS software providers and makes it easy for them to join merchants to the payment framework through a clear and reliable interface.

Rahaxi-OTI 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 1.8 million card payments per month for such companies as Finnair, Ikea and Stockman. FreeStar is focused on exploiting a first-to- market advantage for its Enhanced Transactional Secure Software, which is a software package that empowers consumers to consummate e-commerce transactions with a high level of security using credit, debit, ATM (with PIN) or smart cards. 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 Tietotisma Oy

Tietotisma Oy is a Finnish IT company that manufactures and sells application software for companies to effectively manage their core business functions. The company's primary products include Tisma Business, a data system that contains the tools that are needed in both financial and materials management, and Tisma Booking, designed specially for sport institutes and folk high schools. The company is located in Laitila and Espoo, both in Finland. Tietotisma has customers in Finland as well as other countries including Sweden. For more information, please visit http://www.tietotisma.fi/

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
or
Carl M. Hessel
Tel: +41 22 8180 280
or
Investor Relations:
Stern & Co.
Arun Chakraborty
Tel: 212-888-0044
E-mail: achakrab@sternco.com

Source: FreeStar Technology Corporation