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YapStone, Inc. Raises $2 Million in First Round of Funding

17 April 2000

YapStone, Inc. Raises $2 Million in First Round of Funding

             Angel Funders Lead Investment in New Internet-Based
        Credit Card Payment Services for Rental and Automotive Markets

    MINNETONKA, Minn., April 17 YapStone, Inc.
(http://www.yapstone.com), a new online, easy-to-use credit card payment service for
the rental and automotive marketspace, today announced it has received
$2 million in its first round of funding.  The round was lead by Jason
Ackerman, president of FreshDirect.com and a partner at Crown Capital along
with partners of Texas Pacific Group, Gilbert Global Equity Partners, Colony
Capital, investment bankers of DLJ and Imperial Capital, and partners of
Skadden, Arps, Slate, Meagher & Flom.
    Founded in November 1999, YapStone will soon deploy an easy-to-use,
customer-oriented Web site that enables person-to-person and small business
credit card transactions.  YapStone has created a branded product that will
provide a "simple" way of accepting credit card payments for the rental and
automotive market.
    "This round of funding will support the rapid growth of YapStone.  The
capital allows us to develop and deploy our transaction engine, purchase
hardware, host our Web site, and further expand our exceptional staff," said
president and founder Kirk Honour.  "The user-friendly interface allows small
to mid-sized property managers to manage properties and accept rent payments
online."
    The key benefits for using YapStone are convenience, time, and security.
A landlord or automotive retailer can easily set-up and access an account by
going to the YapStone Web site, completing an application and getting an
approval in real time.  After the merchant account is set-up, renters or
buyers can pay via the Internet or by telephone with a credit card.  Property
owners and individual automotive sellers don't have to worry about setting up
an actual account with Visa, Mastercard or American Express; they can simply
go through YapStone.  To ensure security of payment, YapStone will use Email
confirmation to authenticate customer charges as well as digital signatures.
The company will also utilize state-of-the-art personal data protection
techniques to secure transactions.
    YapStone.com will enable consumers to gain valuable services and rewards
by allowing them to use credit cards to pay for rent or when purchasing
pre-owned vehicles.  Consumers can quickly earn thousands of miles or other
rewards simply by paying their rent -- the single largest recurring monthly
expenditure for most consumers.  In addition, YapStone will give consumers the
option of setting up automatic payments for their rent or the convenience of
paying at any time with a credit card from virtually anywhere, either through
the Internet or by telephone.
    "I am excited about YapStone's prospects given the fact that unlike other
online payment processors such as Billpoint and X.com, YapStone is offering a
comprehensive niche product for the property rental and person-to-person used
car market," said Chris Laurence, General Partner of Brentwood Associates.
"In addition, YapStone is targeting users that are dealing with each other in
an offline environment, not just people transacting online.  I expect to see
YapStone emerge as a leader in the alternative payment systems market."

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