NETeller Trading Again on AIM

2007 July 25

Shares in NETeller Plc. returned to trading today on the Alternative Investment Market (AIM) after the online payment processor were able to reach an agreement with the US Attorneys Office last week and the publication of their 2006 annual audited accounts.

Shares in NETeller had been suspended from trading since January 16 at the company's request following the arrests of the company's two founders, John Lefebvre and Stephen Lawrence. Both men recently pleaded guilty to conspiracy charges and face imprisonment and large fines.

Under AIM rules, NETeller was facing the prospect of being de-listed from the AIM this month if they were unable to announce the recommencement of trading on their shares, after being frozen for over six months.

Ron Martin, president and CEO of NETeller, said: "The restoration of trading in the Company's shares marks the first step in a new chapter for the Neteller Group following our resolution with the US authorities announced last week. With our vision to provide innovative payment solutions for e-commerce communities, our initial focus will be to dominate payments in our chosen online gaming markets."

It will be a long road back for the world's leading online gambling payment processor. The company has lost 54% of its revenue as a result of withdrawing from the US market, taking in only $32.7 million in the first quarter of 2007 compared to $71.8 million in the final quarter of 2006.

NETeller had 385,781 active customers prior to withdrawing from the US and Canada. The company now has only 99,575 active customers.

NETeller says it has $213.5 million in cash reserves. The USAO has fined NETeller $136 million for operating in the US, an amount the company has agreed to pay under the terms of their Deferred Prosecution Agreement.

NETeller also owes its US customers about $94 million, but repayment of those funds frozen by the USAO won't affect the company's cash reserves. The company announced that their US account holders will be able to reclaim their frozen funds by the end of the month, after which all US accounts will be closed for good.

NETeller (NLR.L) is currently trading at 63p after trading above 400p late last year prior to the passing of the UIGEA.