VeriFone Gets First Order in Mexico Electronic Payments Initiative

Will Provide 10,000 Wireless Payment Systems Primarily for Country's 7,000 Petroleum Stations

SAN JOSE, CA - September 06, 2005 - VeriFone Holdings, Inc. (NYSE: PAY), announced today that a leading Mexican bank has ordered more than 10,000 VeriFone wireless payment solutions to be used primarily by Mexico's 7,000 petroleum stations. The order is a key component in the first phase of an initiative by FIMPE, a joint venture of 15 Mexican banks, to triple the installed base of credit and debit card acceptance systems in Mexico from 150,000 to 450,000 over the next five years.

VeriFone's GPRS-equipped Vx 610 wireless payment solution will provide consumers the ability to make pay-at-the-car credit and debit purchases electronically without letting their cards out of their sight. Previously, credit purchases required consumers to hand over their cards to attendants who took them into a back office for processing. Debit purchases requiring PIN entry were not an option.

FIMPE -- the Electronic Payment Media Infrastructure Fund – was formed by the Banks Association of Mexico (ABM) to expand the use of electronic payments in the country. Although more than 34 million debit cards are in use, Mexican consumers currently use them almost exclusively for ATM transactions. FIMPE will buy and distribute to retailers more than 300,000 electronic payment systems over the next five years. The first phase of the initiative is aimed at gas stations and pharmacies.

"Winning one of the first orders in FIMPE's aggressive electronic payment expansion initiative is a testament to the deep relationships we have established with all the card associations and the banking institutions of Mexico," said Bill Atkinson, VeriFone executive vice president, Global Marketing and Business Development. "VeriFone has been active in Mexico for 15 years and has supplied an estimated 75%-to-80% of the current installed base."

VeriFone is a pioneer in the use of wireless portable devices and has both GPRS and Wi-Fi solutions certified for use in fuel stations at select countries both in Latin America and in Asia Pacific. In Mexico, the GPRS-enabled Vx 610 is certified by the two largest GPRS carriers and the three primary card payment acquirers.

The Vx 610 is a battery-powered portable system featuring swappable modules accommodating GPRS, CDMA or Wi-Fi based transactions using Internet Protocol (IP) for fast transmission of payments at the point of sale. With a sleek, compact design, the Vx 610 allows transactions to be processed just about anywhere, at any time and is an ideal processing solution for petroleum stations, as well as outdoor markets, taxis, delivery services, and restaurants who offer pay at the table, drive thru, and delivery services.

About VeriFone Holdings, Inc.
VeriFone Holdings, Inc. (“VeriFone”) (NYSE: PAY), a global leader in secure electronic payment technologies, provides expertise, solutions and services for today with a migration strategy for tomorrow. VeriFone delivers solutions that add value to the point of sale, resulting in improved merchant retention and the generation of new sources of revenue for its partners and customers. VeriFone solutions are specifically designed to meet the needs of vertical markets including financial, retail, petroleum, government and healthcare.