10-10-2006 FireOne to suspend US operations

The online payments provider announced that following the approval of the UIGE Act by the President of the United States, it will immediately cease to process settlement transactions originating from United States consumers that may be viewed as being related to online gambling.

The company expects the Act to be approved by the President in the immediate near term. As previously announced, upon becoming law, the Act will have a significant negative impact on the business and results of operations of FireOne, and, consequently, the company has embarked upon a restructuring of its operations and cost base. FireOne will continue to offer its multi-currency credit and debit card and FirePay electronic wallet processing to the online gambling industry originating from non-U.S. consumers and not prohibited by the Act, and will consider additional card-not-present payment processing opportunities outside of online gambling.

Elsewhere, Fairground Gaming Holdings announced that it was suspending participation by US-based customers in the company's casino and poker activities. This suspension will be implemented immediately upon President Bush signing the UIGE Act into law.

Fairground is confident that its remaining operations, which derive revenue from outside the US and comprise some 30% of the original turnover, are profitable. The company continues to monitor the situation across the rest of its operations and, given the sector upheaval, is reviewing the strategy of consolidation. In the meantime it is proceeding with appropriate caution in evaluating opportunities for further geographical diversification.