VerifySmart Signs MOU with One of Southeast Asia's Most Influential Business Leaders; JV to Introduce Patent Pending Zero-Loss Credit/Debit Card Fraud Technology

VerifySmart Signs MOU with One of Southeast Asia's Most Influential Business
Leaders; JV to Introduce Patent Pending Zero-Loss Credit/Debit Card Fraud
Technology

TAGUIG, METRO MANILA, Philippines, Nov. 2 /PRNewswire-FirstCall/ -
VerifySmart(TM) Inc. (VSMR: OTCBB): ("VerifySmart" or the "Company"), a global
leader in secure and fraud free credit/debit card payment processing and
transfer services, has signed a Memorandum of Understanding (the "MOU") with
Mr. Theodore 'Teddy' Permadi Rachmat of Indonesia. The MOU outlines the terms
of an Agreement ("the Agreement") between Mr. Rachmat and VerifySmart to form
a Joint Venture Company (the "JV Company") to introduce the Company's
proprietary suite of fraud prevention and detection technologies to financial
institutions, businesses, and economic development groups in Southeast Asia,
with first right of refusal for Asia and the Middle East.
The signing is a timely and strategic move for VerifySmart as it partners the
Company's intellectual property with one of Indonesia's wealthiest and most
influential businessmen and founder of the multi billion dollar Triputra Group
conglomerate. Under the terms of the MOU, the new JV Company will be based on
a 50-50 revenue sharing model, and will, merging VerifySmart's in-place
development and implementation team with Mr. Rachmat's legacy of influence,
immediately access one of the most robust and highly-developed commercial
transaction environments in the world.
The opportunity for the JV Company lies is the ever-expanding chasm between
the unprecedented speed at which Southeast Asia's technological and economic
environments develop, and the financial community's inability to harness or
eliminate crippling credit/debit card and online transaction fraud loss.
VerifySmart's patent pending technology reduced credit/debit card fraud loss
numbers to zero in initial testing.
"I am extraordinarily optimistic about the opportunities afforded by
VerifySmart's intellectual property and the patent pending protections on
their IP," says Mr. Rachmat. "Southeast Asia is desperate for fraud loss
solutions that can be implemented in the near term. I believe VerifySmart has
the solutions and we are certainly well positioned to move quickly to
implement them."
Southeast Asia - the vast and densely populated area of Asia including
Singapore, Indonesia, the Philippines, Brunei, Thailand, Cambodia, Laos,
Vietnam and Malaysia, is very evolved technologically and boasts some of the
highest mobile phone subscription rates in the world. The mobile and online
commercial transaction growth rates for many member countries therefore are
extraordinarily high - up to 40 percent annually. This extraordinary growth is
matched only by a tandem increase in crippling credit/debit card and online
transaction fraud losses.
From his position at the very top of Indonesia's financial community,
overlooking all of Southeast Asia, Mr. Rachmat is keenly aware of the risks at
both ends of the transaction - for a) institutions and merchant groups issuing
fraud-susceptible credit and debit cards, and transferring large volumes of
in-bound expatriate cash, and b) for individuals holding 100% liability credit
and debit/cash cards with no built-ins for effective fraud prevention or
detection.
VerifySmart Honorary Chairman Adi Muljo, returned Saturday from Indonesia
where he penned terms of the MOU with Mr. Rachmat, a former PT Astra
colleague. Both gentlemen look forward to working together again. "It is an
honor to be working again with Teddy, and on such a worthwhile project as
improving the safety and security of Indonesia's people and her financial
institutions," says Mr. Muljo.

About Theodore Permadi Rachmat

Mr. Rachmat, best known as 'Teddy', founded the Southeast Asian conglomerate
Triputra Group (PT Triputra Investindo Arya), a private company with estimated
revenues well in excess of $3b annually. Triputra grew to dominate the
regional automotive landscape by addressing the industry supply chain at every
level, from retail automotive and motorcycle parts and tire sales, to vehicle
rentals, attire, logistics, financing, coal mining, and the raw materials used
in the manufacture of automotive tires.
Mr. Rachmat is a former President Director and President Commissioner of PT
Astra International and PT United Tractors. He was the President Commissioner
of PT Adira Dinamika Multifinance Tbk, one of Indonesia's largest multi-brand
consumer financing companies majority owned by private banks in Indonesia and
Singapore. Mr. Rachmat sits on the board of directors for several of the
country's largest banks, and is an active member of Indonesia's National
Economics Board.

Understanding the Credit/Debit Card and Transaction Fraud Loss Opportunity

Addressing credit/debit card and online transaction fraud loss is one of the
most important issues facing industrialized and developing nations today. The
fraud loss numbers, threat to economic security, and acceleration of piracy
sophistication are so great that, current and projected loss statistics are
difficult to access. It is reported that identity theft and credit card fraud
are the fastest-growing categories of US Federal Trade Commission complaints,
and that the cost of credit card fraud in the United States is estimated to be
US$50 million a day -- a staggering US$18.25 billion a year. In Canada, card
fraud costs exceed CAD$8 million per day or $2.9 billion per year.
Currently, the accepted credit/debit card and online transaction fraud
detection and prevention solution is the so-called 'Chip and PIN' ("C&P")
which originated in the UK in 2004. C&P launched in parts of North America in
2008, but, in spite of high capital costs to implement and high expectations
from financial institutions, merchants and consumers, the results have been
disappointing at all levels. In 2008 APACS (Association of Payment Clearing
Services) reported card-only fraud losses as a percentage of card turnover
amounted to 0.12%. Prior to the introduction of C&P, this same statistic was
0.14% -- a mere 0.02% reduction in losses weighed against tens of millions in
implementation costs.
VerifySmart's patent pending and PCT approved credit/debit card and online
transaction fraud prevention and detection technologies meet the needs of a
security challenged transaction processing industry. During alpha and beta
testing, fraud loss costs were reduced to zero. At the centre of all
VerifySmart solutions, and at the heart of their PCT approved pending patents,
is the engagement of the mobile device. Of the more than 4.1 billion mobile
devices in use globally, more than two-thirds of them are in Asia. Fraud loss
numbers for Asia and Southeast Asia are not available, but based on
population, mobile device adoption and transaction numbers alone, the
credit/debit card loss prevention and detection opportunities in Asia and
Southeast Asia are greater than anywhere else in the world.

About VerifySmart

VerifySmart(TM) Inc designed and developed a Proprietary Hardware/Software
Solution that solves Credit/Debit Card fraud by using two Factor
Authentication. The Company's Core Technology is designed to meet the needs of
the Security challenged Trans action Processing Industry. Present day
solutions, such as Verified by Visa, Chip and Pin and CVV Code (all which can
be compromised) have not reduced payment card fraud by any significant factor.
The VerifySmart solution has reduced fraud to zero in initial production
pilots. The Company's proven and highly scalable solution is gaining worldwide
attention and placing VerifySmart at the forefront of the fraud prevention
revolution.
To provide better access and services to Southeast Asia's financial services
sector, VerifySmart has plans to relocate its head office to Singapore.
Details of the JV Company and other of VerifySmart's Southeast Asian business
developments will be released as news develops.

Forward Looking Statements

This current report contains "forward-looking statements", as that term is
defined in Section 27A of the United States Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Statements in this current report
which are not purely historical are forward-looking statements and include any
statements regarding beliefs, plans, expectations or intentions regarding the
future.
Actual results could differ from those projected in any forward-looking
statements due to numerous factors. Such factors include, among others, the
inherent uncertainty of financial estimates and projections, the competitive
and regulatory environment for start up software companies, stock market
conditions, unforeseen technical difficulties and our ongoing ability to
operate a business and obtain financing. These forward-looking statements are
made as of the date of this current report, and we assume no obligation to
update the forward-looking statements, or to update the reasons why actual
results could differ from those projected in the forward-looking statements.
Although we believe that our beliefs, plans, expectations and intentions
contained in this current report are reasonable, there can be no assurance
that such beliefs, plans, expectations or intentions will prove to be
accurate. Investors should consult all of the information set forth herein and
should also refer to the risk factors disclosure outlined in our annual report
on Form 10-K for the 2008 fiscal year, our quarterly reports on Form 10-Q and
our other periodic reports filed from time-to-time with the Securities and
Exchange Commission pursuant to the Securities Exchange Act.

SOURCE VerifySmart Corp.

Mr. Adi Muljo at 1-800-685-1584 or visit www.verifysmart.com