Letter From The President

Dear AlertPay members,

I would like to take a moment to thank you, our valued members, for your continued loyalty and patience during this period of rapid growth, and to address the various changes taking place here at AlertPay.

Over the course of the last year, AlertPay has grown by leaps and bounds, and is becoming more competitive with the major players in the third party payment processing field. This has led to some growing pains as well as further scrutiny from competitors.

I would further like you to understand that the issues we have been experiencing over the last few weeks will ultimately result in a more comprehensive payment processing service.

COMPLIANCE

AlertPay is registered as a Money Services Business with the Financial Transactions and Reports Analysis Centre of Canada, also known as FINTRAC Canada’s financial intelligence unit specializing in anti-money laundering and anti-terrorist funding. As such, we are governed by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).

To ensure compliance with the PCMLTFA, we have introduced changes to our account verification and banking procedures. As of February 3, 2009, Business account members will have to become account verified to send and request money, and to deposit and withdraw. All Business account holders can receive up to $20,000 USD while unverified. In addition to submitting proof of address and photo ID, Business account holders will have to submit a tax/registration document, a corporation number, or proof of non-profit status depending on the business type. Furthermore, we are introducing limits to the amount of money Personal account holders can send while unverified.

NEW RELATIONSHIPS

As our professional relationships with our banking partners grow, we hope to offer enhanced banking features in the future, such as instant bank transfers for loyal North American members with positive transaction histories, quicker processing times overall, and localized banking for more countries. Furthermore, our ACH/EFT banking features for our North American members will be fully operational in the near future.

Regarding credit card services, we are actively working on solidifying various professional relationships to offer you the best payment processing solution in the market. We are also working towards launching our debit cards. However, due to economic recession, the subsequent tightening of the credit systems, and various other factors, our debit cards will be launched at a later date.

AlertPay is your way to pay! And we want to keep it that way. With our new procedures and relationships, we hope to provide you with the best online payment processing service we can offer. We greatly appreciate your patience and understanding, and hope to continue growing with you by our side.

Firoz Patel

President & CEO