A leading online money transfer service provider, notes the recent action early on Saturday 30 September by US Congress to pass HR 4954, the Safe Port Act (the "Act") which includes certain provisions to prohibit unlawful internet gambling through the restriction of payments to such sites.
The Act further states that there will be a period of up to 270 days beginning on the date of the enactment for a board including the US Federal Reserve and the US Attorney General to prescribe regulations requiring each designated payment system and all participants therein to identify and block or otherwise prevent or prohibit restricted transactions.
The Company, in conjunction with its advisers, is considering the potential impact of the Act at this time. The Board believes that the Act may have a material adverse effect on NETELLER's US facing business. Once the Company has more information about what the regulations will stipulate, it will have a clearer view of which companies are affected, how those companies will be expected to comply, and any possible resulting impact on the Company. In the meantime, the Company will continue to monitor the progress of this legislation and to energetically plan and adapt NETELLER's business to minimize any potential adverse impact. The Company will remain focused on developing its business in line with its stated strategic objectives including geographical and product diversification.
The Company's next trading update for the third quarter will be issued towards the end of October 2006. In the meantime, the Company will endeavor to keep shareholders informed of any material developments.