July-31-2005

TORONTO, July 31, 2005 ePocket Incorporated is pleased to announce that it has accepted and closed on an “offer” to acquire all outstanding shares in the company. The first tranche of this investment (of approximately $2.6 million) was completed July 31, 2005. The remainder of this financing will close by way of multiple tranches -- the entirety of which is to be completed by the end of the first quarter 2006. The “offer” first proposed in February of this year was received from Global Sterling Payments Systems (a private company registered in the United Kingdom) and includes a significant operating investment and enhancement to the senior management team. The ePocket shareholder group will receive as part of this offer a non-dilutable equity interest in GSPS going forward.

Graham Norton-Standen CEO of Global Sterling Payment Systems said, –I am delighted to have the opportunity to lead this company forward within the payments industry. I believe that the landscape within the payments industry is changing rapidly, and that ePocket has developed world-class revolutionary technology, which will allow us to capitalize on the changes and challenges within the payments industry.

About Global Sterling Payment Systems

Global Sterling Payment Systems Limited, (GSPS) is a privately held UK company. GSPS was formed to focus on the electronic payments industry, and has brought together significant capital and senior executives in the payments industry to exploit this marketplace.

About ePocket Inc. (http://www.ePocket.com)

ePocket brings true electronic cash to the world for the first time, making purchases over the Internet as secure and simple as handing cash to a clerk in a store. ePocket enables banks to provide their customers with the ability to withdraw electronic cash in any currency from their regular deposit accounts, and send this electronic cash to merchants or other consumers in order to make payments. Cash created electronically is just like cash, except there are no coins, bills, or plastic cards -- it is entirely electronic. Just like cash, electronic cash does not require the identification of a payer. This provides privacy for consumers, and eliminates fraud and identity theft, making ePocket the most cost effective payment solution for Internet commerce. ePocket payments cost merchants less than any other payment technology. Their extraordinary cost effectiveness enables merchants to profitably accept very small payments of just one or two dollars. In contrast to other payment schemes, consumers do not have to open additional accounts with a payment intermediary. Consumers do not have to give up any identity or credit information in order to accomplish a payment. This makes ePocket payments completely secure, as well as providing complete privacy for consumers.