Ballast Point Ventures and North Hill Ventures Invest in FSV Payment Systems

Leading Provider of Stored Value and Prepaid Card Solutions to Use Funds to Accelerate Growth

HOUSTON FSV Payment Systems, Inc. (FSV) today announced that Ballast Point Ventures and North Hill Ventures have invested a total of $6 million in the Company. FSV, a privately-held company, is an industry leader in providing open loop prepaid card processing and program management services. The Company provides payroll cards, general purpose reloadable, rebate, incentive, gift and healthcare card solutions to corporations, financial institutions and government agencies.

“We are pleased that these two investment firms who know the financial services and transaction processing markets well, like what they see in FSV and its future so much that they invested in the Company,” said Jonathan J. Palmer, FSV’s CEO. “This investment will help FSV accelerate our growth in the prepaid market, a market which has proven resilient during these tough economic times.”

“The prepaid market has continued to grow in this difficult economic environment, and we see that growth continuing,” said Paul Johan, Partner, Ballast Point Ventures, “We’re happy that we are able invest in FSV, a company that is well-positioned to capitalize on the market growth with its reliable scalable technology and strong management team.”

Ben Malka, Partner, North Hill Ventures, added, “In FSV we see a strong company with an outstanding market position, and a company whose vertically integrated business model allows it to deliver high quality products and service to clients and cardholders.”

About FSV Payment Systems, Inc.

FSV Payment Systems is a leader in the stored-value and prepaid debit card industry, providing full-service programs and processing services. Founded in 1999, the privately-held company has extensive experience in payroll and benefit cards, loyalty, rebates and promotions, healthcare and gift cards. The Company is headquartered in Houston, Texas and operates a state-of-the-art Client and Customer Service Center in Jacksonville, Florida. For more information, visit www.fsvps.com.

About Ballast Point Ventures

Ballast Point Ventures is a later stage venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast and Texas. The BPV partners have many years of experience investing in and supporting over 75 high-growth companies in the healthcare, business services, communications, technology, financial services and consumer industries. Ballast Point Ventures has over $180 million under management and seeks to make minority equity investments ranging in size from $3 million to $10 million.

About North Hill Ventures

North Hill Ventures, LP (www.northhillventures.com), a private equity firm established in 1999, manages $120 million in venture capital funding. North Hill invests in information technology and software companies with a specific focus on financial services and direct-to-consumer marketing businesses that require capital to continue or accelerate their growth. North Hill Ventures is affiliated with Capital One Financial Corp. (through its wholly owned subsidiary, Oakstone Ventures, Inc.), the multi-national financial services company. With a managed asset base of more than $155 billion and a customer base of over 50 million accounts, Capital One is one of the world’s leaders in financial services, risk management, direct marketing, and information management. Through its relationship with Capital One, North Hill can tap this expertise to the benefit of its portfolio company investments.

Source: FSV Payment Systems, Inc.