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Direct Response Financial Services Focuses on Delivering Pre-Paid Credit Cards for Latino Market

Direct Response Financial Services Focuses on Delivering Pre-Paid Credit Cards for Latino Market

Published 09-28-04

Submitted by Direct Response Financial Services, Inc.

LOS ANGELES - Direct Response Financial Services, Inc. (OTCBB:DRFL), an innovator of payment card systems, today announced that it has restructured its business operations to focus on and pursue a market opportunity to serve the needs of the un-banked and under-banked Latino population in the United States.

Latinos are the largest and fastest growing ethnic group in the U.S. currently composing over 14% of the population. Studies have shown that roughly half of this population does not have credit cards. The Pelorus Group projects that the number of pre-paid debit cards issued will grow from 6.3 million in 2002 to 38.7 million in 2007. The major customers for these cards will be the non-banked or under-banked segment of the population. It is estimated that the dollar volume for all convenience and debit cards will grow from $38B in 2002 to $80B in 2007.

In an effort to meet this market demand, Direct Response Financial Services has designed and is in the process of launching a debit card program specifically tailored to meet the unique needs of Latinos. The debit card is a cost-efficient payment solution, can be loaded with funds through a network of conveniently located ATM-like loading terminals, and requires documentation that Latinos either already have or is easily obtainable through their respective consulates.

Direct Response Financial Services has invested its resources to build a proprietary network of partnerships with media outlets and Hispanic marketers to advertise and distribute the cards as well as leading financial institutions and transactions processors that will manage back-end functions. Additionally, the Company is in final negotiations with providers of loading terminals located in retail outlets where card holders can load their accounts and strategically located retail food and convenience store chains where loading terminals are available to customers.

"In the near term we are preparing to launch our Personal Advantage Media Prepaid MasterCard® Card program, which is tailor-made for the Latino market in the United States. We have made significant time and resource investments to bring our unique business model to fruition. We believe our solution will contribute to making life a little more comfortable for a large segment of the Latino population. We have designed our operations to deliver pre-paid debit cards in a very cost-efficient manner, making it more accessible to our customers and creating an attractive revenue model for our company," stated Direct Response Financial Services CEO, Mr. Ted Kozub.

About Direct Response Financial Services, Inc.
Direct Response Financial Services, Inc. is a provider of payment card systems including a variety of branded and co-branded stored value cards (i.e., pre-paid debit cards). The Company has agreements with leading financial institutions such as MasterCard, Chase Manhattan Bank, and Optimum Pay USA, Inc. The Company's main focus is to develop and market payment solutions for un-banked and under-banked Latinos, the largest and fastest growing population in the United States. For more information on the Company please visit www.drfs.net.

Statements that are not historical facts are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, government regulation, managing and maintaining growth, and the effect of adverse publicity, litigation, competition and other factors that may be identified from time to time in the Company's public announcements.

Direct Response Financial Services, Inc.

Direct Response Financial Services, Inc.

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