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eConnect Plans to Spin-Off Top Sports Subsidiary

Shares of the new company, Global Internet Cash Games Inc., (GICG), will be distributed to eConnect shareholders on a pro-rata basis upon completion of the spin-off, planned for spring, 2001.

eConnect earlier this year completed its acquisition of Top Sports S.A., a non-Internet walk-in gaming operation based in Santo Domingo, and is currently developing host processing systems in the Dominican Republic, Ireland, Hong Kong and Australia, all of which will be international gateways of eConnect's Bank Eyes Only(TM) secure online electronic payment system for transactions originated by the Company's eCashPad.

Upon activation of the Dominican Republic eConnect host, Top Sports, which already operates walk-in wagering locations, will gain an online Internet presence, to be known as Top Sports Bet.com, to be launched in October.

As part of its business plan, GICG will also be developing ``The International,'' a lottery in which consumers can use the eCashPad to initiate ATM card-with-PIN Internet cash payments. Initially, the game will be held simultaneously in the four nations with eConnect host processing systems, although the Company ultimately plans to expand ``The International'' to Asian locations beyond Hong Kong.

It is anticipated that GICG will develop additional multiple online cash games of chance and skill. GICG's service fees to gaming merchants will be 5% of each wager initiated by an eCash Pad transaction, from countries where gaming is legal and accepted. GIGC will pay eConnect Host Systems a transaction fee per eCashPad, for each eCashPad-initiated gaming transaction.

``Creating GICG follows through on our previously stated intention of fully integrating Top Sports into our core business model,'' said Thomas S. Hughes, founder, chairman and chief executive of eConnect. ``We see a large potential for global Internet cash payments by either ATM -with-PIN or smart card for gaming transactions outside the United States.''

The eCashPad, eConnect's first product, is a ``plug-and-pay'' PC peripheral, to be distributed promotionally and sold at retail, that will swipe ATM card-with-PIN as well as credit and smart cards, enabling secure e-commerce. A simple, common-sense solution to Internet security, the eCashPad guarantees the consumer that their financial card data will neither be seen nor stored at the merchant's web site.

As part of GICG's business plan, Top Sports continues to pursue and test new casino and sports book software, to be launched in the current fiscal quarter.

``The cost of developing new software was part of the reason for the disappointing 2nd-quarter results that Top Sports recently posted,'' Mr. Hughes added. ``However, we feel that in the long-run, transforming the division into a freestanding, Internet-based business will prove more rewarding for our shareholders.''

eConnect also said that it plans to eventually seek National Association of Securities Dealers Automated Quotation (NASDAQ) listing of shares of GICG, which is to be organized as a US-based corporation, doing business from its head office and other locations in Santo Domingo, The Dominican Republic. eConnect has begun the registration process for the spin-off.

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