Paynova´s Cooperation with CRD (Cyber Recreation District) is Being Marketed on Three Continents

In October, CRD is beginning the international marketing of the
company´s extensive development project, Cyber Recreation District.
Paynova (NGM:PAY), the chosen supplier for the project´s payment
services, has together with CRD presented the project, first at the
Virtual Worlds Conference & Expo in San Jose and currently at the
Virtual Worlds Forum Europe in London. Further marketing efforts in
South Korea and China will be planned shortly.

ONE OF THE WORLD´S GREATEST PROJECTS WITHIN VIRTUAL WORLDS

CRD is commissioned by the Chinese Government to build an
extensive virtual world & real world called Cyber Recreation District.
The District aims, among other things, to create a virtual-real
platform for e-commerce. CRD will, for example, be able to connect
manufacturers in China with companies and people from the rest of the
world. Moreover, the virtual world enables contacts to be established
between non-Chinese companies and China´s fast-growing middle class.
The first stages of the project are planned to go live during the
third quarter of 2008.

PAYNOVA CHOSEN SUPPLIER TO CRD

The strategic cooperation agreement between Paynova and CRD was
signed in December 2006. Mind Ark (the company behind the virtual
world Entropia Universe, to which Paynova is a supplier) is the first
virtual world which operates in CRD, while the payment services are
supplied by Paynova.

SHARED MARKETING EFFORTS

The cooperation between Paynova and CRD is continuing to develop.
As a next step, the implementation of Paynova´s solution is being
planned, which will enable payments with 800 million Chinese bank
cards and 30 million Chinese credit cards, both with payments in local
currency.

In parallel, CRD is following its extensive launch plan in which
the current international marketing is an important part. When CRD and
Paynova in October jointly presented the extensive project at the
industry fair Virtual Worlds Conference & Expo in San Jose, the
project attracted attention from international media. (See for example
http://www.forbes.com/feeds/ap/2007/10/14/ap4218134.html). The project
has during the latest days been presented at the Virtual Worlds Forum
Europe in London. Further marketing efforts in South Korea will be
planned in the near future.

ABOUT THE CRD PROJECT

ABOUT CRD

Cyber Recreation District (CRD) is the first economy district in
the world which combines virtual and real world. CRD is commissioned
by the Chinese Government to develop this project. There are six
support centers called Service Center, Media Center, Financial Center,
Trade Center, Game Center, Industry Park which map six virtual logic
spaces named Dotlife, Dotmedia, Dotbank, Dotmall, Dotgame, Dotbase.
These six logic virtual spaces can meet the requirement of role,
communication, competition, exchanging, distribution and searching
from virtual and real world.

CRD will celebrate its startup ceremony of Cyber Recreation
District in the Great Hall of the People during 8 November, 2007 to 11
November, 2007. A series of forums will be held to discuss the new
creative culture and virtual economy.

For additional information on CRD, see www.crd.govcn.

ABOUT PAYNOVA

Paynova offers an international, account-based, one-stop-shop for
payment services on the Internet. With Paynova as the single source,
e-retailers get a turnkey payment service for 21 international and
local payment methods in 11 languages and 8 currencies with consumer
support in a security-certified interface (PCI). Consumers can open an
online Account, a Paynova Wallet, for free, to make purchases simpler
and more secure, as well as handling fund transfers between family
members and friends. Paynova has been listed on NGM Equity since
February 2004 and carries agreements with over 1.400 e-retailers,
primarily in travel, retail and online games. For more information:
www.paynova.com