MEDIA RELEASE London 31 October 2007

VideoKall wins IAMTN World Payments Award for Excellence in Innovation 2007

VideoKall Inc, a closely held California start-up with offshore R&D facilities in the UK and Canada burst onto the International Money Transfer technology scene Monday --- winning the coveted IAMTN World Payments Award for Excellence in Innovation, 2007. At the IAMTN conference in the Dorchester Hotel London, rt Hon. Lord Lamont of Lerwick, former Chancellor of Exchequer, presented VideoKall with the award in front of an audience of over 300 international representatives from companies including Western Union, Moneygram and other leaders in the money transfer field.
The VideoKall service will provide public video payphones in shopping malls in several US states where Mexican, Filipino and Indian migrant workers are frequent visitors. The service will include video payphones in shopping malls in several cities in Mexico, The Philippines and India. In the US, the company will also provide, cash loaders which dispense SMART cards for cash, and in the overseas malls cash dispensers which deliver local currency, when users insert SMART cards, loaded with value transferred during a VideoKall.

The IAMTN Award was presented in recognition of VideoKall's new service, soothing the emotional barriers absence has created between migrant workers and their loved ones back home. The VideoKall technology now makes it possible for migrant workers and their relatives to have 'virtual reunions' through public video payphones in shopping malls, while at the same time, also providing SMART Card to SMART Card international electronic money transfer.

Lady Olga Maitland, CEO of IAMTN, said "I recognized from the outset that VideoKall was a technology which could really change the way in which people sent remittances. I predict that much as YouTube popularized video messaging, VideoKall will make video remittance transfers a popular alternative for many migrant workers. VideoKall stood out amongst the bids for the prize because of its humane and caring approach to its customers."

Vince Waterson, Chairman of VideoKall welcomed the award and said "I wish to pay tribute to IAMTN for their vision in creating this new award for excellence in innovation in money transfer services. As a start up company surrounded by 800 pound gorillas, you can only imagine how difficult it is for VideoKall to get recognition in the marketplace, and so today, IAMTN has placed us on a pedestal for the world to see."

VideoKall has been working in stealth mode for some time with strategic partners on a video payphone-based Electronic Fund Transfer service called VideoKall for personal use and for migrant workers who have no bank accounts. VideoKall will uniquely provide migrant workers in the US with a state-of-the-art electronic fund transfer service which allows both sender and recipient to see and talk to each other on a video payphone before, during and after the money transfer. The system is designed for simplicity, and does not require the participants to have institutional identification or disclose their name. The company's web site www.videokall.com will contain a list of the locations and phone numbers of all the public video payphones in the network.

VideoKall, Inc. is a software/hardware design and development company with skills in telecommunications system integration. The company is working on the development of the new VideoKall network with two strategic partners - Aethra and ITC Systems. Aethra (www.aethra.com) which is based in Ancona, Italy, manufactures the video payphone adapted by VideoKall to provide EFT services, and ITC Systems, (www.itcsystems.com) a Toronto company, specializes in SMART card technology and associated billing systems.

On the day after winning the IAMTN award, in the regal setting of the classic pre-war design grand ballroom of the Dorchester hotel an audience of international money transfer managers were treated Tuesday to a vignette portraying the changing face of migrant remittance technology.

Against a backdrop of walls paneled in black Spanish glass and blue and dusty pink mirror the newly minted VideoKall technology showed its paces for the very first time in front of an international gathering. Two video payphones and a SMART Card dispensing machine attended by two girls graced the stage. They demonstrated the technology by purchasing SMART cards from the dispensing machine. One girl playing the role of a migrant worker in the US loaded the SMART card with $100, then made a video call to the other payphone where the ?Asian relative' girl answered the call, followed by face to face video chat with the caller, and then inserted a blank SMART card.

The technology breakthrough moment occurred seconds later when the 'migrant worker' keyed in on the video payphone the amount of $100 and at the press of a button $100 was transferred from the SMART card in one video payphone to the other where the 'Asian relative' retrieved the SMART card, and then inserted it in a Point of Sale machine to show the funds had been received.

Eric Kihlstrom who gave the VideoKall presentation at the event spoke about how this new technology will help defeat money laundering, a hot topic at the conference. He outlined features of the VideoKall system including unusual SMART card usage pattern detection, video monitoring and biometric access control which when combined will provide authorities with real time access to the network and a tool to prevent money laundering.

Dave Sturgess, CTO of VideoKall who oversaw the London demonstration said "We have demonstrated an operational system today which worked very well indeed and we are now ready to deploy a pilot network early next year."

VideoKall CEO, Charles Nahabedian, said "The Company is exploring various options to fund the investment required to roll out an initial 500 public video payphone network with 50% of the phones located in selected US shopping malls and the balance 250 phones installed in malls in the Philippines, India and Mexico".

VideoKall is also in the process of identifying a suitable International Money Transfer Agent organization to handle the back office elements including settlements which are an essential part of the service.

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