The Peppercoin solution will offer TouchMedia's retailers an affordable way to accept credit and debit cards at the kiosks on a pay-per-use, pre-paid or subscription basis, fostering revenue growth and experimentation in the sale of digital media products.

TouchMedia's retail based multimedia platform allows consumers to preview, discover, download and purchase hundreds of thousands of physical and digital entertainment products. With the launch of paid digital products in 2006, consumers will soon be able to purchase and download songs to their flash drives, MP3 players and other digital devices, and also burn custom CDs and DVDs. TouchMedia systems can be found at more than 125 quality retailer locations nationwide including Tower Records, Twist and Shout, and many of the Altitunes stores found in major U.S. airports.

Peppercoin, the only small payments technology company to offer pay-as-you-go, pre-paid, post-paid billing and subscription purchase plans, provides point-of-sale and online merchants tools to maximize profitability from small payments. Peppercoin's Intelligent Aggregation module allows merchants to adjust - either manually or automatically - a variety of aggregation settings, which reduces processing costs. Peppercoin's online consumer self- care resolves service issues quickly and at a fraction of the cost of traditional customer service.

"The TouchMedia platform is designed to support and grow an entertainment retailer's core business while providing affordable ways to expand into the sale of digital media products," said Michael Fitts, president and CEO of TouchMedia. "With its Small Payment Suite, Peppercoin has addressed one of the biggest issues facing the profitability of digital media products - the high cost associated with debit and credit card payments. As the market matures, the flexible nature of Peppercoin's solution will allow our retail partners to explore new payment models, including pre-paid accounts and stored value programs."

"TouchMedia's TouchStand and TouchView Media Kiosks are the ultimate in convenience for mediaphiles and a creative source of revenue for retailers," said Mark Friedman, president and CEO of Peppercoin. "People want to be able to use their debit and credit cards everywhere, even for purchases of just a few dollars, yet retailers need to be able to make a profit in order to run their businesses. With Peppercoin's Small Payment Suite, this has become a reality."