19th Oct 2006 07:01
NETeller PLC19 October 2006 NETELLER PLC Update on US position Further to the Company's announcement on 12 October 2006, NETELLER Plc todayannounced the following update in the light of the action on 13 October 2006 byUS President George W Bush to approve and sign into law the SAFE Port Actincorporating the Unlawful Internet Gambling Enforcement Act of 2006 ("UIGEA" orthe "Act") which includes certain provisions to prohibit "unlawful internetgambling" by restricting gambling sites from accepting certain payments from USresidents. NETELLER, a company registered outside the US, will comply with the Act and itsrelated regulations as if it were subject to the Act's jurisdiction. Thisaction is intended to ensure that the Company is able to continue to operatewith the support of its principal commercial partners and to protect itsshareholders, business partners, employees and reputation. Various provisions of the Act, including the obligations of financialtransaction providers such as NETELLER, remain unclear. This uncertainty shouldbe largely resolved when the Secretary of the Treasury and the Board ofGovernors of the Federal Reserve System issue the regulations they are requiredto prescribe within 270 days. In view of the importance of these issues, NETELLER has accelerated its reviewof the Act and all other relevant laws and pertinent developments. The Companyalso continues to closely monitor the regulatory situation and is determiningwhat actions to take well before the conclusion of the 270-day rulemakingperiod. In the interim, US-resident customers are able to use the NETELLER service asnormal. The funds of US-resident customers are held in trust accounts and willbe available for withdrawal, on demand. The ability to withdraw funds willexist regardless of the customer's location or ability to transfer to any site. NETELLER customers not resident in the US are not affected at all by thelegislative changes in the US, and the Company will continue to operate itsnon-US business as normal, maintaining existing customer and merchant supportacross all the other markets it currently serves. NETELLER remains focused on developing its business in line with its statedstrategic objectives including geographical and product diversification. TheCompany continues to launch localised services within the European market, mostrecently in Sweden and Denmark, and has plans for three further launches laterthis year. As well as focusing on the gaming sector outside of the US market,the Board considers the development of additional products and services forwallet users to be integral to its diversified market strategy. We expect toshare more information on these initiatives in the coming months. The Companyis committed to maximising shareholder value both in the short and longer term,and will explore all possible strategic alternatives, including utilising itssubstantial resources, to ensure the achievement of its strategic objectives. The Company's trading update for the third quarter will be issued on Tuesday,October 31st, 2006. In the meantime, the Company will endeavour to keepshareholders informed of any material developments as and when appropriate. Enquiries: NETELLER Andrew Gilchrist, VP - Communications + 44 (0) 1293 555 726 Citigate Dewe Rogerson + 44 (0) 207 638 9571 Sarah Gestetner/Sebastian Hoyle/George Cazenove Notes to Editors The NETELLER Group With over 3 million customers in 160 countries, 3,500 merchants, and over $7billion in annual transactions, the NETELLER Group operates the largestindependent online money transfer business in the world. The Group specializesin providing innovative and instant payment services where money transfer isdifficult or risky due to identity, trust, currency exchange, or distance. Beingindependent has allowed the Group to support thousands of retailers andmerchants in many geographies and across multiple industries. The Group is quoted on the London Stock Exchange's AIM market, with a tickersymbol of NLR. NETELLER UK Limited is authorised by the Financial ServicesAuthority (FSA) to operate as a regulated e-money issuer. For more informationabout the Group visit www.netellerplc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Paysafe Group