Press Release

Year 2008 / Tuesday December 9, 6:30 am ET

Rahaxi, Inc. Reports Consistent Growth in Its Core Transaction and Processing and Related Revenue

Current Quarter Profit Margins on Sales Have Increased to a Record 58%

DUBLIN, IRELAND--(MARKET WIRE)--Dec 9, 2008 -- Rahaxi, Inc. (OTC BB: RHXI.OB - News), an international card payments processor and technology company, reports For the three months ended September 30, 2008, the Company reported an increase in its core transaction processing and related revenue of approximately 16% to $564,413 during the three months ended September 30, 2008 compared to $487,723 during the comparable period of the prior year. The Company processed a total of 5,248,917 transactions during the three months ended September 30, 2008, an increase of 123,243 or approximately 2.4 % compared to 5,125,674 transactions processed during the prior year. The increase in the number of transactions processed was primarily related to the increase in the number of clients compared to the same period of the prior year.

Expectations of revenue level are set to increase throughout the next twelve months as the company continues to increase its client base and service offerings, such as China UnionPay transactions in France, EMV transaction processing, dynamic currency conversion and sales of point of sale terminals in Europe and Latin America.

For the three months ended September 30, 2008, the Company reported an increase in its core transaction processing and related revenue of approximately 16% to $564,413 during the three months ended September 30, 2008 compared to $487,723 during the comparable period of the prior year. The Company processed a total of 5,248,917 transactions during the three months ended September 30, 2008, an increase of 123,243 or approximately 2.4 % compared to 5,125,674 transactions processed during the prior year. The increase in the number of transactions processed was primarily related to the increase in the number of clients compared to the same period of the prior year.

Paul Egan, the Company's President and Chief Executive Officer, commented that, "We are pleased to report further increases in our core business, both in terms of revenue and in pure volume. The fact that we have achieved these results in the face of the headwind of the sluggish world economy speaks very well of the strength of our core business, and of the growing acceptance of our products and services." Mr. Egan continued, "We believe we are on track in the roll-out of our long term plan. Many of our development projects are now complete, and we are positioned to further enhance our business mix in the coming year, which should result in further gains in market share and overall core business revenue."

Ciaran Egan also noted that the Company's margins have dramatically improved: during the current quarter, gross profit on sales was $516,128 or a profit margin or approximately 58%, compared to a gross margin of $73,625 or approximately 5%. Ciaran Egan noted that, "During the year ended June 30, 2008, we recognized an impairment charge in the amount of $4,086,502 on our capitalized software and software licenses."

Source: Rahaxi, Inc.