TAGUIG, Metro Manila, Philippines, Nov. 13 /PRNewswire-FirstCall/ -- VerifySmart (TM) Corp. (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 New York Financial Systems executive Mr. Tony Cinotti on behalf of a Consortium (the "Consortium") made up of professionals experienced in managing financial services firms across many verticals. The MOU outlines the terms of an Agreement ("the Agreement") between Mr. Cinotti 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 North America, South America and Europe. 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 technologies with the Consortium's broad-reaching sphere of influence, create a turnkey fraud loss solutions company based in North America's financial capital. VerifySmart technologies reduced fraud to zero in initial production pilots, and recent beta testing exceeded expectations both in deployment speed and fraud loss. The Consortium signing comes on the heels of an announcement last week by VerifySmart, that the Company had signed a parallel JV with Indonesian billionaire Mr. Theodore "Teddy" Rachmat, one of Southeast Asia's most influential business leaders and financiers, to introduce VerifySmart technologies to Southeast Asia, Asia and the Middle East. The Americas and Europe MOU is strategic in that it indicates confidence, by the establishment, of VerifySmart's suite of zero-loss fraud prevention and detection technologies and creates, together with the Asia and Middle East JV, a global network of financial genius working on behalf of the Company to propagate widespread adoption of its suite of PCT approved, patent-pending financial fraud prevention and detection solutions. "This signing formalizes our belief that VerifySmart will become the global leader in fraud loss solutions. Their fraud prevention and detection solutions, while impenetrable, are genius in their brevity, design, execution and cross-platform compatibility. And, they are based on the most popular of devices, the SMS-enabled mobile handset," says Mr. Cinotti. The Company recently announced an alliance with iMobile Interactive of New Jersey which gives VerifySmart instant consolidated SMS (text message) access to billions of mobile phone customers worldwide. "Suddenly, almost all potential credit/debit card customers are connected by something other than fraud loss risk, they are connected by VerifySmart's SMS-enabled ability to reduce that risk to zero." The 'SMS-enabled transaction' as it applies to debit/credit card fraud prevention and detection, was conceived by VerifySmart and is protected globally by PCT approvals and pending patents. "We are very excited about the future and plan to move quickly to gain traction in all verticals," says VerifySmart Honorary Chairman Adi Muljo. "This Americas JV, led by Tony Cinotti and his extraordinarily talented and accomplished group is key to our business plan, and very soon we will be opening a New York office to accommodate growth." About Tony Cinotti Tony has over 35 years experience in the Financial Industry. He began his career with Kuhn Loeb & Company managing all systems and data center operations. He continued his career with Morgan Stanley and managed Equity and Government Trading as well as Broker Commissions and Management and Planning systems. Upon leaving Morgan Stanley he founded DP Sciences Inc., which provided Management and Systems consulting to the Financial community. The company was contracted to build and manage systems and data centers for various financial clients. DP Sciences was also a service organization processing over 97 % of all Equity IPO's (Initial Public Offerings) for over 30 clients. Tony also owned seats on The New York Futures Exchange and was a registered Floor Broker. He was the co-inventor on two method patents for processing transactions on 3G phones. Tony has a Bachelors degree in Management from Baruch College. Tony was instrumental in bringing the iMobile Interactive and VerifySmart alliance to fruition. iMobile currently interfaces with almost every phone company in the world. 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. More than 4.1 billion mobile devices are currently in use globally. About VerifySmart VerifySmart (TM) Corp 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, placing VerifySmart at the forefront of the fraud prevention revolution. Details of the JV Company and other of VerifySmart's 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. DATASOURCE: VerifySmart Corp. CONTACT: Mr. Adi Muljo at 1-877-685-1584 or visit http://www.verifysmart.com/

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