Acies Corporation Reports 83% Increase in Revenues for 2007 Fiscal First Quarter

Continued Revenue Growth and Strict Expense Discipline Leads to 55% Decline in Net Losses

NEW YORK- (BUSINESS WIRE) - August 15, 2006 - Acies Corporation (OTCBB:ACIE), a financial services company specializing in providing payment processing and online banking services to small, medium and large-size merchants across the United States, today announced its fiscal first quarter results for the three months ended June 30, 2006.

Financial and Operational Highlights for the Three Months Ended June 30, 2006 Compared to the Three Months Ended June 30, 2005:

• Revenues increased 83% to $3,013,179, up from $1,648,521 a year ago. On a sequential quarter-over-quarter basis, revenues rose 16% when compared to $2.6 million reported for the fiscal fourth quarter ended March 31, 2006.

• G&A expenses totaled $474,012, representing 16% of total revenues, compared to $462,809, or 28% of total revenues in the prior year period.

• Net loss declined 55% to $87,997, or $0.00 basic and diluted loss per share, from a net loss of $195,338, or $0.00 basic and diluted loss per share, in the first quarter of fiscal 2006.

Oleg Firer, President and CEO of Acies, stated, "The 2007 fiscal year is off to a very strong start. By remaining focused on increasing merchant processing revenues while maintaining vigilant control over expenses, Acies once again delivered another quarter marked by record revenue and a material drop in our net losses. Successful implementation of our sales and marketing programs continues to drive organic growth of our national merchant portfolio through our steadily expanding direct and ISO channels. As we advance through the 2007 fiscal year, we expect that this proven strategy will persist in promoting opportunities for greater growth in coming quarters and help us to achieve our ultimate objectives - positive cash flow and consistent profitability."

Firer continued, "The Acies brand is fast becoming synonymous with top quality, comprehensive payment processing solutions and superior customer service, and is serving to build a very strong foundation of loyal customers and strategic partners. Through a continuation of focused, creative marketing and sales initiatives, we remain confident that fiscal 2007 will prove to be a defining year for Acies."

Acies will host a teleconference Thursday afternoon, August 17, 2006, beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progress and other meaningful developments. The conference call can be accessed via telephone by dialing 1-866-770-7051 and entering the passcode 13620852, or via the Internet at www.aciesinc.com. For those unable to participate at that time, a replay of the web cast will be available for 90 days on www.aciesinc.com.

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: 

Dodi Handy President and CEO Elite Financial Communications Group (407) 585-1080 acie@efcg.net