Jul 7, 2004 10:15:00 AM

ORLANDO, Fla., Jul 7, 2004 (BUSINESS WIRE) --

Walter H. Roder, the president & CEO of ACS Holdings Inc. (OTCBB: ACSH), announced the following shareholder update today.

I would like to take this opportunity to update our shareholders in light of our recent merger transaction. MaxxZone.com Inc. and American Card Services Inc. merged through an Asset & Liabilities Purchase Agreement that was approved by the MaxxZone shareholders and closed on May 12, 2004.

Financial Overview

The company is currently generating revenues and has produced 150,000 stored value debit card packs. The company engages in a profitable business model, retaining an estimated 35 percent of the sale price of card packs and 55 percent of the fee income as its gross margin from recurring fees (after variable expenses). Management believes that with as few as 26,000 average active card packs in the second half of 2004, the company would likely earn nearly $500,000 in pre-tax income for the year. Management further believes it is reasonable to expect $1.6 million in pre-tax income in 2005 (with 107,000 average active card packs) and up to $4.8 million in pre-tax income in 2006 (with 225,000 average active card packs).

The Company

The company seeks to capture a large portion of the rapidly emerging stored value debit card market that provides unbanked, primarily immigrant workers in the United States with viable alternatives to carrying cash and using traditional money transfers. ACSH is a full-service company providing data processing, customer service, distributor and sales support, card production, marketing and sales stored value debit card products and programs. The company's flagship product, the Ultima Card(TM) Twin-Access Debit Card Pack(TM), is one of the most comprehensive and complete product and program in the market for participating distributors, resellers and merchants, as well as the cardholders, bar none. A payroll product is in the final stages of approval.

Market

The market is enormous and growing and underserved. Immigrant groups in the United States represent more than 50 million individuals who spent more than $880 billion in 2000, primarily in "cash" as most do not have access to basic checking and banking services (U.S. Census Bureau). The Bureau of Labor and Statistics found that more than 14 percent of U.S. jobs are held by foreign-born workers. The initial product and program focuses on the Hispanic segment because it is the largest and fastest growing ethnic group in the United States. There are 40 million Hispanics in the United States that annually spend more than $500 billion domestically, $50 billion in money transfers to Central and South America. The market continues to grow exponentially, with at least 1 million new Hispanics entering the United States each year. In addition, it is estimated that 14 million Hispanics are undocumented (New York Times), making the majority of this group unbankable.

Product and Operations

The company has developed one of the most comprehensive and competitive stored value debit packages in the market today. Utilizing the MasterCard(R), Cirrus(R), Maestro (R) and STAR(R) networks, this two-card product provides a cost-effective, convenient, and safe method to share funds with loved ones worldwide. The company's retail is the only product in the market that offers three features in one card pack: A single STAR only card that can be loaded and used up to $995 per day without ID, a second Cirrus, Maestro and STAR that requires ID and can be used to share money with loved ones through withdrawals from more than a million ATMs worldwide, as well make purchases at millions of merchants worldwide that accept Maestro-marked cards. Single debit card products do not offer the Ultima Card shared funds feature. Because the cards share the balance loaded on the cards, there is no "card-to-card fee" to transfer funds between cards either.

Lastly, cardholders can also receive up to two Ultima Card Debit MasterCard cards with two valid IDs at no additional charge. This product fully complies with all federal laws and regulations, including the Patriot Act.

The company's card packs are one of the few that can be loaded using the merchant's existing credit card terminals and bank accounts that process debit cards by using an industry-approved, standard-return merchandise credit. In addition, the ACS product can be loaded using the www.payallbillshere.com service. This adds thousands of merchants that don't have credit card terminals that now can load the ACS cards and shortly at more than 10,000 commercial banks nationwide.

The company's Orlando operations center supports sales, marketing, card pack production, data processing, customer service, the company's customer and distributor Web site, and distribution channel disbursements. The back-end customer service support, Internet, Web site, distributor, reseller and merchant fee disbursement, internal accounting and control processing is performed by ACSH at its Orlando data processing center.

We anticipate a year of exciting growth, and appreciate our shareholder support. I can assure you that the management of ACS will continue to strive for excellence in our products and to bring about a successful company on behalf of its shareholders. For more information about ACS, visit www.ultima-cards.com or call 866-703-7556.

This press release may contain "forward-looking statements." In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) our limited operating history; (2) our ability to pay down existing debt; (3) our ability to retain the professional advisors necessary to guide us through our corporate restructuring including, but not limited to, our contemplated transaction with American Card Services Inc.; (4) the risks inherent in the investigation, involvement and acquisition of a new business opportunity; (5) unforeseen costs and expenses; (6) potential litigation with our shareholders and/or former or current investors; (7) the company's ability to comply with federal, state and local government regulations; and (8) other factors over which we have little or no control.

SOURCE: ACS Holdings Inc.

ACS Holdings Inc. Dorian Beach, 407-226-1025 (Press) dorian.beach@ultima-cards.com Robert Warner, 407-226-1022 (Investor) robert.warner@ultima-cards.com

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