• Consumer transactions processed up 27% at 178 million with strong growth in all sectors
• Operating margins^2,3 increased to 40% from 38%
• PayPoint terminal outlets have increased to over 16,000 up 16% on September 2005 and up 7% on March 2006
• Exclusive TV licensing contract live since August 2006
• Prompted consumer awareness now 60% up from 36% in the previous year⁴

David Newlands, Chairman of PayPoint, said: "Transaction volumes have continued to drive strong revenue growth and the operational gearing delivers strong profit growth to the bottom line. PayPoint’s investment in new signage and the publicity surrounding the TV Licensing win have improved consumer-prompted brand awareness to 60%, which is driving an increase in market share in all sectors. PayPoint’s retail network continues to expand, as do PayPoint's Epos relationships, in which PayPoint connects to the retailers' till systems. Investment in new communication infrastructure and expansion of our operating base in Welwyn Garden City have given us a sound base for future growth.

"Our acquisition of Metacharge will enable PayPoint to offer an internet payment solution alongside our physical payment collection network, allowing our clients a more comprehensive payment proposition. We are confident that this acquisition will provide us with further growth opportunities.”

1. Net revenue is revenue less commissions paid to retail agents and the cost of e-vouchers for mobile top-ups where PayPoint is the principal
2. Operating margins are operating profit as a percentage of net revenue
3. Net revenue and operating margins are measures which the directors believe assist with a better understanding of the underlying performance of the group. The reconciliation of net revenue to statutory amounts can be found in note 2
4. BMRB Omnibus survey October 2006

Enquiries:
PayPoint plc                             01707 600 300  
Dominic Taylor, Chief Executive
George Earle, Finance Director

Finsbury                                   020 7251 3801
Rollo Head
Don Hunter

This announcement is available on the PayPoint plc website: www.paypoint.co.uk.

About PayPoint
PayPoint is a leading branded payment collection network used, primarily, for the cash payment of bills and services and prepayments for mobile telephones and energy meters. There are over 16,000 retail outlets using PayPoint’s payment terminals.

PayPoint began trading in 1996 and initially collected payments through its network of retail agents for its founder client investors, who included British Gas, BT, BBC TV Licensing, London Electricity (now part of EDF Energy) and four water companies.

Clients include many of the UK and Ireland’s major energy, cable, mobile and fixed line telephony companies. PayPoint’s blue chip client list also extends to numerous water companies, local authorities and housing associations and a growing transport and travel base.

To see the full press release please click here.

To download the full interim results document please click here.

Please click here to download the Interim Results presentation.