eConnect Inc. (fka ECNT)

[XV19]

my oh my. The BS may have finally caught up with Mr. Evans.

Protective Action League Plans Response to Bloomberg Financial Press for Defamatory Article Against eConnect

WASHINGTON, May 31 /PRNewswire/ -- The Protective Action League ("PAL")
said today that it is in contact with a major Washington, D.C. law firm
regarding a response on behalf of eConnect (OTC Bulletin Board: ECNC) against
David Evans and Bloomberg Financial Press for a potentially libelous article
that was published, then quickly retracted, then republished two further times
in a revised format yesterday. When the article first appeared, it contained
references that were untrue. After these were pointed out to a bureau chief
in New York, some of the references were changed; however, the article remains
fallacious in major respects.

Among these are incorrect references such as: that First American Payment
Systems (FAPS) is "retreating" from a "major order" from eConnect; that
"eConnect prepared ... the release;" and further implications that this was a
"joint" announcement by FAPS and eConnect. A PAL representative interviewed
Mr. Anthony Varvaro, President of FAPS, at length last night, and Mr. Varvaro
confirmed that his conversation with Bloomberg had been misrepresented at best
by Mr. Evans. The release had in fact been written by FAPS, although it was
vetted by eConnect to ensure accuracy before its release. Mr. Varvaro
maintained that he kept full editorial control over the release at all times
.
It is unclear why Evans' article strongly implies that FAPS news release
contained statements that its President would contradict the very next day.
There are numerous other misrepresentations in the article. A response is
being pursued at this point with assistance from PAL
.
PAL is a new organization that has been created to combat Internet bashers
and others that target public companies unfairly and sometimes anonymously.
PAL was contacted yesterday by Alliance Equities, a major shareholder in
eConnect, who expressed grave concern over the false and misleading statements
by Mr. Evans.

For information about joining PAL, call 202-783-7600. Public companies
only should respond.

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SOURCE Protective Action League
-0- 05/31/2001

/CONTACT: Protective Action League, 202-783-7600/

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4597 05/31/2001 07:01 EDT http://www.prnewswire.com

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