(OTC:PYCT) Paychest, Inc

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PayChest Inc. 2008 Year-End Corporate Review

(OTC:PYCT) Paychest, Inc.

Wednesday February 4, 7:02 pm ET

VANCOUVER, BC-Feb 4, 2009 - PayChest Inc. .

During 2008, PayChest Inc. underwent significant corporate changes. The Company had focused on new technology implementation and was previously focused on commercializing a micropayments money transfer technology. In April 2008, a private investment group based in Hong Kong acquired control of the company by way of acquiring all the preferred shares in the company in a private transaction. The transition to the new control group began as the previous negative issues surrounding the company were completely resolved. Those issues include a previous SEC investigation and a full DTC stock audit. The company is not involved with previous management or any of their affiliates in any way. The company is also not involved with companies previously spun out as dividends.

PayChest Inc. was chosen as the investment vehicle by the investment group for several reasons. First, the investment group inherits a large and very loyal shareholder base. The company has over 6500 shareholders and growing. Approximately 5000 shareholders hold 1 million shares or less. Studies have shown it can cost anywhere from $300 to $500 and more using market awareness programs to acquire a shareholder. This costly shareholder infrastructure was already in place. Secondly, the shares of the company trade publicly and are at historic lows. This allows for substantial upside in the company's share price in the future. The shares presently trade in the US micro-cap market that is traditionally known for large trading volumes. The liquidity in the micro-cap market makes it much easier to obtain financing from investor groups going forward. In addition, there are substantial tax losses that can be carried forward sheltering future income and thus creating a tax savings. Lastly, the company had essentially a clean balance sheet that consisted of a small liability under $60,000 for previous work completed for the company.

By way of the new control group, PayChest Inc. acquired the contracts to exclusively manufacture "Flushaway," the world's first commercially patented and patent pending brand of flushable women's hygiene products consisting of flushable pads and liners. The "Flushaway" brand of pads and liners are specifically designed to compete directly with Procter & Gamble, Johnson and Johnson and Kimberly-Clark, the three largest companies selling in this marketplace. None of these companies have a flushable alternative at this time. PayChest Inc. has also acquired the exclusive rights to sell the "Flushaway" products in areas not already under contract by Consolidated Ecoprogress Technology Inc. of Vancouver, Canada. Consolidated Ecoprogress Technology Inc. had spent approximately 10 years developing, researching, testing and marketing the "Flushaway" concept. Research has consistently shown that many consumers will switch to a flushable alternative if the price point is similar to their present brands.

"Flushaway" falls under the FMCG category of products. Products such as "Flushaway" are essential to everyday modern life. Products such as "Flushaway" are not discretionary and are less affected by market downturns.

Women will not stop using pads and liners even in times of a recession.

Previous versions of the "Flushaway" pads and liners have been sold in K-Mart, Wal-Mart, Walgreens, in the US; Boots, Sainsbury and Waitrose in the UK, and numerous other retailers worldwide. Sales were limited for several reasons. Due to large capital expenditures necessary to advance the core business model, advertising was generally limited to the local level. A small feature was included in Cosmopolitan Magazine in South Africa. A couple of key issues needed addressing for the company's long term sales success. First, the "Flushaway" products had a much higher price point than competing non flushable products. Secondly, production costs were too high for the long term viability of the "Flushaway" product.

Production of the "Flushaway" product first originated in the UK. Production subsequently shifted to Canada and lastly to China. In each successive move, product quality improved and production costs fell. Yet, production costs needed to fall further to create healthy margins necessary for the long term success of the product. In March 2007, Consolidated Ecoprogress made a decision to stop production and make the necessary changes before the supply chain for the product grew too large. During 2008, both PayChest and Consolidated Ecoprogress jointly addressed those key components.

The strategy for funding the "Flushaway" business model has been relatively unaffected by the recent world economic slowdown. The company has continued to be funded solely by private sources. The funds advanced to date have paid for such items as legal, accounting, corporate compliance, investor relations, research and product testing among others. It is anticipated that this type of funding will remain in place as alternate sources of financing are being finalized. Repayment of these advances would be by way of proceeds of future private placements, sales revenue, licensing of sub territories, the future issuance of shares, or senior long term debt financing. Some of the funding instruments include letters of credit, accounts receivable financing, purchase order financing and a currency hedge program as most costs and sales are in US dollars. These financial instruments have taken much longer than anticipated to complete and will be finalized shortly as the company heads toward initial production. Moving forward, private placements may be considered as the share price improves but not at the current price levels. During the 4th quarter of 2008, much of the groundwork was laid for these financial instruments as PayChest and Consolidated Ecoprogress have worked jointly towards this end. The $5,000,000 note payable to Consolidated Ecoprogress is classified as long term payable, to be paid over a 4 year period. It is anticipated that the repayment will be out of cash flow in the 4 year period and from the sales of sub-licences for territories. No payments have been made to date as payments will begin in the latter half of 2009 and will scale upward in 2010 and 2011.

During 2008, many shareholders have contacted the company since the "Flushaway" contracts were acquired. The Company addressed the shareholders' most pressing concern to inform them there were no plans to execute a reverse split in the foreseeable future, as per previous public news releases. As of February 4, 2009, the Company currently has in excess of 6500 shareholders with 19.85 billion shares outstanding and 25 billion shares authorized. It is possible that the company may issue shares in 2009 to further the business plan but not at these price levels. The company also has no intention in the foreseeable future of raising the authorized capital above the current level of 25 billion shares. The company has been contemplating a buyback at the current historic lows but no decision has been made at this time. Given the extremely competitive marketplace for women's hygiene products and our company's leading edge technology, the company may not issue as much news as expected by some shareholders. While it may be unacceptable to some, the company wishes to protect its competitive advantages and intellectual property and thereby protect shareholders' interest.

While the money transfer business remains under the same corporate umbrella the focus of the company moving forward will be the new "Flushaway" brand of products. Both business units will require capital moving forward to complete their business models. A strain on capital would be too great and dilutive for one company to bear. Separating these business units by way of a stock dividend aims to serve several purposes. First, shareholders of PayChest Inc. will receive shares in a new publicly traded company while continuing to hold onto their PayChest Inc. shares. That gives shareholders significant upside in two public entities. Each company will have separate management and a separate stock symbol. The new public entity can raise its own capital to further that business model without diluting or affecting the present PayChest Inc. shareholders. Those assets presently sit in a subsidiary, PayChest . Due to changes in securities law, the company has had to change the way the dividend was to be spun out as a free trading dividend. The dividend process has taken far longer than anticipated and steps are being made to expedite the process. This remains a priority for the Company. The new control group is awaiting some final documentation necessary to complete the dividend process. As part of the dividend process, there will be a name change and symbol change. A new company name has already been secured and will be available when the dividend process is complete. This is being done to better reflect the new direction of the company.

As previously stated in a news release, the company has outlined a new president ready to step in upon the conclusion of the dividend process. After completion, the only corporate website will be www.flushaway.com. Enhancements will be made to the www.flushaway.com website in anticipation of production. The company will continue to employ the same legal, accounting, transfer agent services and other corporate infrastructure services to aid in a smooth transition of control. Lawson Pillay will step aside from "Flushaway" at that time.

Investors are encouraged to call toll-free or e-mail the company to be included on the company's e-mail list so that they receive copies of public news releases promptly. The company is expecting to provide a series of news releases in the coming weeks outlining new developments. News releases will continue to be made available by and can be found on various sites including Yahoo! Finance and Google Finance.

About PayChest

PayChest, a global marketing company and developer of technology solutions and its strategic partner companies, market and distribute select products and services worldwide, which provide an increased public awareness to conserve and preserve the world's limited resources.

About the dividend PayChest

PayChest and its strategic partner companies are developing integrated commerce processing solutions utilizing cutting edge technologies to deliver in store, online and mobile solutions globally. These include turnkey point of sale solutions, gift and loyalty portal systems, ACH electronic systems, online and mobile payment platforms and rewards-based platforms to integrate into an existing business system.

Safe Harbor Statement

The foregoing press release contains forward-looking statements. For this purpose any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "estimate," "continue," "can" or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties and actual results may differ materially depending on a variety of factors.

Contact:

Contact: PayChest Inc. Investor Relations 1-877-525-5170 ir@paychest.com Source: PayChest Inc.

Profile for Paychest, Inc.

PayChest, Inc. operates as a marketing company, as well as developer of technology solutions. The company has exclusive worldwide rights to Flushaway, a patented range of absorbent biodegradable and flushable products. Its strategic partner companies market and distribute select products and services worldwide, which provide public awareness to conserve and preserve the world's limited resources. The company's affiliated companies develop integrated commerce processing solutions, including point of sale solutions, gift and loyalty portal systems, ACH electronic systems, online and mobile payment platforms, and rewards based platforms to integrate into an existing business system. PayChest, I...

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