Acies Corporation Announces Third Quarter Results for Fiscal 2008

Record Revenues Continue; Up 13% and 11% for Comparable Three and Nine Month Periods

NEW YORK- (BUSINESS WIRE) - February 15, 2008 - Acies Corporation (OTCBB:ACIE), a business services company specializing in providing payment processing services primarily to small- to medium-size merchants across the United States, reported its fiscal third quarter results for the three and nine months ended December 31, 2007.

Financial Highlights for the Three Months Ended December 31, 2007 Compared to Three Months Ended December 31, 2006:

• Gross margin increased 33% to $400,619, compared to $300,639. Gross margin as a percentage of revenues increased to 12% from 10%.

• General, administrative and selling ("G&A") expense decreased 39% to $427,335, representing 13% of revenues, from $695,367, which was 24% of revenues. The decrease in G&A expense was primarily the result of decreased personnel costs, including a decrease in non-cash compensation expense of approximately $178,000 for the fair value of stock options and restricted stock.

• Operating loss improved to $26,716 from $394,728. Net loss improved to $71,765, or $0.00 per share, from $405,021, or $0.01 loss per share, as the increased gross margin and decreased G&A expense were partially offset by a $34,000 increase in interest expense.

Financial Highlights for the Nine Months Ended December 31, 2007 Compared to Nine Months Ended December 31, 2006:

• Revenues increased 11% to $9,968,838, up from $8,960,737.

• Gross margin increased 19% to $1,180,308, compared to $989,149. Gross margin as a percentage of revenues increased to 12% from 11%.

• General, administrative and selling ("G&A") expense decreased 13% to $1,555,075 from $1,792,827. The decrease in G&A expense was primarily the result of decreased personnel costs, including a decrease in non-cash compensation expense of approximately $219,000 for the fair value of stock options and restricted stock.

• Operating loss improved to $374,767 from $803,678.

• Net loss improved to $487,690, or $0.01 loss per share, compared to a net loss of $813,971, or $0.02 loss per share, as the increased gross margin and decreased G&A expense were partially offset by a $102,000 increase in interest expense.

Commenting on the results, Oleg Firer, President and Chief Executive Officer of Acies, said: “We are pleased to be heading toward our primary goal of becoming profitable in the near future. As our revenues and margins continue to grow, and with controlled G&A costs which continue to decrease, I am confident that sustained profitability and positive cash flow are on the very real and visible horizon for Acies.”

Firer added, “Our flexible sales strategy and operations infrastructure have enabled us to ‘roll with the punches’ in our ever-changing competitive landscape. We are able to overcome challenges in the short-run to remain focused on maximizing shareholder value over the long run.”

About Acies Corporation (pronounced "ay-see-us")dquartered in New York City, Acies Corporation is a financial services company that, through its wholly owned subsidiary, Acies, Inc., specializes in providing payment processing and online banking services to small, medium, and large-size merchants across the United States. Acies' payment processing services enable merchants to process Credit, Debit, Electronic Benefit Transfer (EBT), Check Conversion, and Gift & Loyalty transactions. Acies also offers traditional and next-generation point-of-sale (POS) terminals, which enable merchants to utilize Acies' payment processing services. Acies' banking services offer customers traditional banking services and the ability for customers to apply for an on-line bank account and pay bills electronically. For more information, visit http://www.aciesinc.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains or may contain forward-looking statements such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction, and trends in the industry in which the Company operates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission, including the risk factors in its form 10-KSB for the year ended March 31, 2005. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements, or for prospective events that may have a retroactive effect.

For More Information, Please Contact: 

Acies Corporation Jeffrey A. Tischler Executive Vice President and Chief Financial Officer 212-931-5182 jeff@aciesinc.com