Asia Payment Systems Updates Shareholders on Enhanced Growth Strategy

June 28, 2006 (Hong Kong) - Asia Payment Systems, Inc. (OTCBB: APYM) today announced that it has broadened its scope of activities in Asia, and has developed an enhanced business strategy to facilitate growth and further ensure success for the Company. According to the Company’s recently appointed President and CEO, Mr. KK Ng “The Company has restructured its growth strategy, with the focus now being on three distinct market segments that comprise the greater payments and loyalty rewards industries. In addition, we have devised a three-pronged strategy for long-term, corporate development. To summarize, Asia Payments has now effectively charted a course for rapid and continuing growth over the next five to ten years, and beyond.”

To achieve success in China, as well as elsewhere in Asia, Asia Payments intends to capitalize on its extensive knowledge of local business practices and customs, as well as its already established presence in several key regions, by developing a “Asia-wide” payments and cashless consumer purchasing infrastructure and system that will support numerous business opportunities that have recently surfaced in Asia.

Those market segments that the Company has identified as being the most synergistic to its established operations, include:

(1) The Payment Processing Business, including both the processing of payment transactions, as well as card processing or financial data processing services;

(2) The Card Business, which involves the issuance of payment cards and loyalty reward cards. Payment cards include credit, debit and other proprietary business- or industry-specific cards;

(3) The Prepaid Business, involving the distribution and sales of third party prepaid products and services. While a tremendous prepaid industry exists in China and other highly populated countries in Asia within the cellular phone market, the larger telecoms are currently seeking an electronic- or web-based alternative to the traditional scratch-off card system in place.

CEO KK Ng further commenting on today’s announcement, stated “to realize our goals, we have adopted a three-pronged strategy. Initially we intend to focus on establishing a presence within the three distinct segments of the payments and loyalty rewards industries listed above. The second prong involves the Company rapidly expanding into China and other major emerging markets in Asia. We will accomplish this expansion through joint venture arrangements within each country, utilizing our expertise and proprietary systems as much as possible as our capital contribution to the partnership. Lastly, we will continue to develop and expand on our technological support systems for the various businesses we are developing. This infrastructure expansion will be accomplished organically, as well as via strategic alliances with and/or the acquisition of existing payment and processing technology companies.”

KK Ng concluded “The demands that exists in Asia for payment services and loyalty rewards, particularly in China, are largely underserved by the current players in the markets. Asia Payments has the technology and the know-how to meet these demands, and we fully expect the payments and loyalty rewards industries alone to exceed (USD) billions of dollars annually within the next few years.

With our planned operations in China and throughout Asia, the Company is now confident that it will soon be generating substantial recurring revenues, and eventually profits. An achievement that will award the shareholders with attractive and sustainable earnings per share.”

About Asia Payment Systems, Inc.

Asia Payment Systems is a fully reporting, public company in the U.S. with principal offices in Hong Kong and business activities in China and throughout Asia focused within the payments and loyalty rewards industries. In addition, Asia Payments has set up a wholly owned foreign enterprise in Shanghai to facilitate business development in China. As a result of the Company’s 2006 InterPay acquisition, Asia Payments now owns assets and operates in multiple regions throughout Asia, with a long-term growth strategy in place calling for the development of various synergistic businesses across the continent. For more information please visit Asia Payment’s corporate website (www.asiapayinc.com).

Contacts:

K.K. Ng, President & CEO
Tel: +1-866-877-APAY
ir@asiapayinc.com
http://www.asiapayinc.com