Large Internet Retailer Victim of Credit Card Processing Gateway's "Secure" Database Invasion

FOR IMMEDIATE RELEASE

From March 1999 through June 18, 2001, Quality Trading Inc. of San Pedro, California, an Internet retailer, had been using the services of Anacom Communications, Inc., a wholly owned subsidiary of Zixit Corporation of Dallas, TX, as a credit card processing gateway for Internet e-commerce.

On June 18, 2001, the credit card processing capabilities of all websites owned and operated by Quality Trading, Inc. of San Pedro, CA came to a sudden halt without notice. The Anacom web site at www.Anacom.com was no longer in existence. All attempts to contact Anacom were unsuccessful and all calls to their parent company, Zixit, went unanswered. Quality Trading Inc. was not aware of the circumstances of the situation until such time as another credit card company, looking for new business, on June 22, 2001 forwarded a press release written by Zixit and posted on the Zixit website at: http://www.zixit.com/aboutzixit/pressreleases.htm which states that there was a breach of security, intrusions and fraudulent transaction processing at Anacom Communications and the FBI had been called in and confirmed that a breach had indeed occurred. The same press release claims that all merchants utilizing the Anacom Communications system would be notified of "system processing difficulties". No such notification has been received by Quality Trading, Inc. as of this date, July 16, 2001.

In the first week of July, 2001, while in the course of producing quarterly reports and internal accounting audits, Quality Trading Inc. discovered that many credit card transactions had been processed and approved through the Anacom Communications credit card processing gateway system and to date, have never gone through the credit card settlement process which would withdraw and allocate funds from a cardholders account and deposit those funds into the bank account of Quality Trading, Inc. Because approval of credit card purchases were received from Anacom through its system, large quantities of merchandise was shipped to customers with the understanding that settlement would take place within 24 hours, which had been the case for more than two years and is currently the case with most credit card processing systems.

To date, numerous attempts have been made by Quality Trading, Inc to contact Anacom Communications and Zixit Corporation in order to attempt to resolve these issues. To date, all attempts have been unsuccessful as there is no contact information available for contacting Anacom and all messages left with Zixit by telephone, email and fax have gone unanswered.

On July 16, 2001, Quality Trading, Inc. initiated communications with the Dallas, TX office of the FBI in hopes of gathering information that ill prove to be helpful in the recovery of lost revenues and to lend assistance in any ongoing investigations involving Anacom Communications and the Zixit Corporation.





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