The JV card company, which will be incorporated as Interpay Card (Mongolia) Co. ("Interpay Mongolia"), will receive an initial investment of US$800,000. Asia Payments, through its subsidiary, will own 50% of Interpay Mongolia.

Cardtrend Systems Sdn. Bhd. ("Cardtrend"), the recently acquired wholly owned subsidiary and Processing Business Unit of Asia Payments, will supply turn-key card management systems, while Interpay International Associates, another wholly owned subsidiary, will set up the card operating center for Interpay Mongolia. Interpay International Associates will also provide management and technical services in return for an annual management fee based on annual pre-tax profits.

Interpay Mongolia will be sponsored by a bank affiliated with its Mongolian shareholders, Anod Bank, a fully licensed Mongolian bank, to become a licensee for MasterCard Worldwide and/or Visa International and issue MasterCard and/or Visa cards in Mongolia. Anod Bank will also enter into a cooperation agreement with Interpay Mongolia to provide cardholders with a revolving line of credit. At a later stage, Interpay Mongolia will seek to enter into similar cooperation agreements with other banks in Mongolia to accelerate the development of the payment card market in that country.

Mr. KK Ng, President and CEO of Asia Payments, says: "The growing economy of Mongolia offers an opportune time for Asia Payments to enter this relatively untapped payment card market. We will use our experience and know-how to rapidly penetrate the market and expect to achieve a positive return on our investment in the second year of operation."

Mr. Ng added, "We will continue to actively seek local parties in several Asian countries, including China, for similar joint-ventures."