Mr. Jonathan Pasternak reports

EFT CANADA APPROVES SHAREHOLDER RIGHTS PLAN

EFT Canada Inc.'s board of directors has approved the adoption of a shareholder rights plan. The rights plan has been adopted to allow the board of EFT Canada to respond appropriately to an unsolicited takeover bid.

EFT Canada is not adopting the plan in response to any specific proposal to acquire control of its outstanding securities. The plan will be similar to plans adopted by other Canadian companies.

Once adopted, in accordance with the terms of the rights plan, one right will be issued in respect of each common share of the company outstanding and each common share issued thereafter. The rights will become exercisable following any transaction in which a person, together with his affiliates, associates and joint actors, acquires beneficial ownership of common shares of EFT Canada which, when aggregated with his holdings, and the holdings of his affiliates, associates and joint actors, total 20 per cent or more of the outstanding common shares of the company (determined in the manner set out in the rights plan). Following the acquisition of 20 per cent or more of the company's outstanding common shares, each right held by a person other than the acquiring person, and his affiliates, associates and joint actors, would, upon exercise, entitle the holder to purchase common shares at a substantial discount to the market price of the common shares at that time. Rights held by a person, together with his affiliates, associates and joint actors which actions trigger the rights plan, would become void and not be exercisable. The board has the discretion to defer the time at which the rights become exercisable and to waive the application of the rights plan.

The board considers a 20-per-cent triggering threshold to be appropriate, and is intended to ensure stability and protect the interests of all shareholders.

The rights plan will be required to be ratified by the shareholders of the company within six months of its adoption. If the rights plan is not ratified by the shareholders, the rights plan and any rights issued pursuant to it will terminate. If the rights plan is put to a vote and ratified, it will continue in effect until the third annual meeting of shareholders thereafter. The rights plan is subject to approval by the TSX Venture Exchange. A copy of the rights plan will be available on SEDAR.

We seek Safe Harbor.