Acies Corporation Announces Financial Results for Fiscal 2007

Record Revenues Reported with 32% Increase over Fiscal 2006

Fiscal 2007 Annual Report  - June 25, 2007

NEW YORK- (BUSINESS WIRE) - June 25, 2007 - 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, today announced its financial results for the fiscal year ended March 31, 2007.

Financial Highlights for the Fiscal Year Ended March 31, 2007 Compared to Fiscal Year Ended March 31, 2006:

• Revenues increased 32% to $11,823,326, up from $8,979,849.

• Gross margin was $1,169,010, as compared with $1,387,804, decreasing as a result of greater pricing pressure in certain merchant industries, and a greater proportion of business sourced through the lower-margin indirect sales channel.

• Corporate expenses totaled $2,272,653 (including non-cash charges for option expense and restricted stock of $347,273), which represented 19.2% of revenues, compared to corporate expenses of $2,265,685 (including non-cash charges for restricted stock expense of $82,500, which represented 25.2% of revenues.

• Net loss increased to $1,130,717, or $0.02 loss per share, from a loss of $903,310, or $0.02 loss per share. The increase was due principally to the decreased gross margin and increased interest expense.

• Secured $2 million line of credit, of which $363,154 was the outstanding principal amount as of March 31, 2007.

Oleg Firer, President and Chief Executive Officer of Acies, commented, "Fiscal 2007 was a year of transition, challenges and continued growth for Acies. Revenues have continued to grow, even as we went through a series of changes in the leadership of our sales function, and faced a more competitive payment processing landscape with limited resources to invest in marketing. Beginning in November 2006, we were able to draw upon a new credit facility and, in the final weeks of the fiscal year, we hired a new senior vice president of sales and marketing to bring stability and experience to that most critical area. I am optimistic that we will resume rapidly growing our recurring revenue base, with a greater proportion of new business generated by direct sales, which in combination with continued expense control, will push us forward to achieve profitability." Firer added, "Having gained deeper understanding and expertise relating to industry-specific needs, and an expanded suite of state-of-the-art services and products, Acies is well on its way to becoming a premier provider of comprehensive payment processing solutions to small- to medium-size merchants across the country."

About Acies Corporation (pronounced "ay-see-us")

Headquartered 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