Planet Payment Announces 2012 Results and Guidance for 2013

Planet Payment Announces 2012 Results and Guidance for 2013

Implemented 11 Customers in 9 Countries; During 2012 Increased Active
Merchants 47%; Focus on Emerging Markets

LONG BEACH, N.Y., March 18, 2013 (GLOBE NEWSWIRE) -- Planet Payment, Inc.
(Nasdaq:PLPM) (LSE:AIM:PPT), a leading provider of international payment
processing and multi-currency processing services, today announced its results
for the fourth quarter and fiscal year ended December 31, 2012.

Financial Highlights for the Fourth Quarter Ended December 31, 2012

  oNet revenue for the period decreased approximately 4% to $11.9 million
    compared to $12.3 million in the fourth quarter of 2011.
  oConsolidated gross billings increased 8% to $34.0 million compared to
    $31.5 million in the fourth quarter of 2011. (See Table 3 for explanation
    of this metric).
  oGross foreign currency mark-up increased 11% to $30.1 million compared to
    $27.2 million in the fourth quarter of 2011. (See Table 3 for explanation
    of this metric).
  oNet loss for the period was $(0.1) million or $0.00 earnings per diluted
    share compared to net income of $1.8 million or $0.03 per diluted share in
    the fourth quarter of 2011.
  oAdjusted EBITDA for the period was $0.9 million compared to $2.7 million
    in the fourth quarter of 2011. (See Table 1 for reconciliation of net
    (loss) income to Adjusted EBITDA).

Financial Highlights for the Year Ended December 31, 2012

  oNet revenue increased approximately 4% to $43.6 million compared to $41.9
    million for fiscal year 2011.
  oConsolidated gross billings increased 15% to $117.9 million compared
    $102.4 million for fiscal year 2011. (See Table 3 for explanation of this
    metric).
  oGross foreign currency mark-up increased 17% to $103.2 million compared to
    $87.8 million for fiscal year 2011. (See Table 3 for explanation of this
    metric).
  oNet loss was $(4.5) million or $(0.09) loss per diluted share compared to
    net income of $2.4 million or $0.04 per diluted share for fiscal year
    2011, in part due to the expensing of deferred IPO costs of $2.6 million
    in 2012 and additional costs incurred arising out of the acquisition and
    operations of Branded Payment Solutions Ltd ("BPS") totaling $1.4 million
    during the year.
  oAdjusted EBITDA was $2.4 million compared to $5.9 million for fiscal year
    2011. (See Table 1 for reconciliation of net (loss) income to Adjusted
    EBITDA).

Operational Highlights for the Year Ended December 31, 2012

  *Total active merchant locations increased by 47% to approximately 41,000
    (See Table 3 for explanation of this metric).
  *Settled multi-currency dollar volume processed increased 12% to $2.6
    billion. (See Table 3 for explanation of this metric).
  *Total settled dollar volume processed increased 27% to $6.1 billion and
    total settled transactions processed increased 48% to 46.0 million. (See
    Table 3 for explanation of these metrics).
  *Entered into a number of new contracts, notably multi-currency processing
    agreements with Taishin Bank in Taiwan, Mashreq in UAE, and with Payment
    Alliance International for ATMs in the USA.
  *Entered into a processing agreement and UPOP participation agreement with
    UnionPay to enable online UnionPay acceptance in the USA and Canada.
  *Launched services with Global Payments Canada, Vantiv ATMs in the USA,
    Mashreq UAE, Citibank Philippines, Citibank Hong Kong and Macau, Taishin
    Bank in Taiwan and our hospitality solution with Banorte in Mexico.
  *Acquired BPS commercial services platform and its enabling technology,
    which allows us to put value-added applications on the point-of-sale.
  *Continued to enhance our processing platform including implementing
    support for ATMs and UnionPay online and at the point-of-sale, to help
    merchants access the Chinese market.
  *Entered into a strategic processing relationship with Visa and launched
    ATM services with two banks in Myanmar.

Outlook for Fiscal Year 2013

  oNet revenue estimated to be in the range of $52.2 million to $55.0
    million.
  oNet income estimated to be in the range of $2.6 million to $4.8 million.
  oAdjusted EBITDA estimated to be in the range of $8.3 million to $10.6
    million. (See Table 2 for reconciliation of prospective net income to
    Adjusted EBITDA).
  oFully diluted earnings per share estimated to be in the range of $0.05 to
    $0.09 based upon 56.4 million fully diluted common shares outstanding.
  oOur guidance assumes an effective tax rate of between 12% and 15%.

Commenting on the results, Philip Beck, CEO and Chairman of Planet Payment,
Inc., said:

"2012 has been a significant year for Planet Payment. We continued to make
substantial progress implementing 11 customers in 9 countries including a
number in exciting emerging markets, while increasing our merchant base by
nearly 50%. While we are happy with this operational progress, our 2012
results are reflective of our investment in opening new markets, winning new
customers, and acquiring and developing our commercial services platform. We
look forward to continued growth based on our strong pipeline and significant
opportunities in emerging growth markets."

Conference Call

The Company will host a conference call to discuss fourth quarter and fiscal
year 2012 financial results today at 5:00 pm EDT. Philip Beck, Chief Executive
Officer, and Robert Cox, Chief Financial Officer will host the call. The
conference call can be accessed live over the phone by dialing (877) 705-6003,
or for international callers (201) 493-6725. A replay will be available
approximately two hours after the call concludes and can be accessed by
dialing (877) 870-5176, or for international callers (858) 384-5517, and
entering the conference ID 410139. The replay will be available through
Monday, March 25, 2013. The call will be webcast live from the Company's
investor relations website at http://ir.planetpayment.com/.

Additional analysis of the Company's performance can be found in the
"Management's Discussion & Analysis of Financial Condition and Results of
Operations," included in the Annual Report on Form 10-K to be filed at
www.sec.gov.

About Planet Payment

Planet Payment is a leading provider of international payment processing and
multi-currency processing services. We provide our services in more than 20
countries and territories across the Asia Pacific region, North America, the
Middle East, Africa and Europe, primarily through our more than 50 acquiring
bank and processor customers. Our point-of-sale and e-commerce services help
merchants sell more goods and services to consumers, and together with our ATM
services are integrated within the payment card transaction flow enabling our
acquiring customers, their merchants and consumers to shop, pay, transact and
reconcile payment transactions in multiple currencies, geographies and
channels.

Planet Payment is headquartered in New York and has offices in Atlanta,
Beijing, Bermuda, Delaware, Dubai, Dublin, London, Hong Kong, Mexico City,
Shanghai and Singapore. Visit ww.planetpayment.com for more information about
the Company and its services. For up-to-date information follow Planet Payment
on Twitter at @PlanetPayment or join Planet Payment's Facebook page.

Notice Regarding Forward-Looking Statements.

Information contained in this announcement may include 'forward-looking
statements'. All statements other than statements of historical facts included
herein, including, without limitation, those set forth in "Outlook for Fiscal
Year 2013" and those regarding the financial position, business strategy,
plans and objectives of management for future operations of both Planet
Payment and its business partners, estimated net revenue, net income, Adjusted
EBITDA, diluted earnings per share, future service launches with customers and
new initiatives and customer pipeline are forward-looking statements. Such
forward-looking statements are based on a number of assumptions regarding
Planet Payment's present and future business strategies, and the environment
in which Planet Payment expects to operate in future, which assumptions may or
may not be fulfilled in practice. Implementation of some or all of the new
services referred to is subject to regulatory or other third party approvals.
Actual results may vary materially from the results anticipated by these
forward-looking statements as a result of a variety of risk factors, including
the risk that implementation, adoption and offering of the service by
processors, acquirers, merchants and others may take longer than anticipated,
or may not occur at all, regulatory changes and changes in card association
regulations and practices, changes in domestic and international economic
conditions and changes in volume of international travel and commerce and
others. Additional risks may arise, with respect to commencing operations in
new countries and regions, of which Planet Payment is not fully aware at this
time. See the Company's registration statement on Form 10, filed at
www.sec.gov for other risk factors which investors should consider. These
forward-looking statements speak only as to the date of this announcement and
cannot be relied upon as a guide to future performance. Planet Payment
expressly disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statements contained in this announcement
to reflect any changes in its expectations with regard thereto or any change
in events, conditions or circumstances on which any statement is based.

Non-GAAP Financial Information

The Company provides certain non-GAAP financial measures in this statement.
Management believes that Adjusted EBITDA, when viewed with our results under
GAAP and the accompanying reconciliations, provides useful information about
our period-over-period results. Adjusted EBITDA is presented because
management believes it provides additional information with respect to the
performance of our fundamental business activities and is also frequently used
by securities analysts, investors and other interested parties in the
evaluation of comparable companies. We also rely on Adjusted EBITDA as a
primary measure to review and assess the operating performance of our company
and our management team in connection with our executive compensation. These
non-GAAP key business indicators, which include Adjusted EBITDA, should not be
considered replacements for and should be read in conjunction with the GAAP
financial measures.

We define Adjusted EBITDA as GAAP net (loss) incomeadjusted to exclude:
(1)interest expense, (2)interest income, (3)provision (benefit) for income
taxes, (4)depreciation and amortization, (5)stock‑based expense from options
and warrants and (6)certain other items management believes affect the
comparability of operating results. Please see "Adjusted EBITDA" below for
more information and for a reconciliation of Adjusted EBITDA to net (loss)
income, the most directly comparable financial measure calculated and
presented in accordance with GAAP.

Table 1. Reconciliation of Net (Loss) Income to Adjusted EBITDA
                                                               
For the three months and year ended December 31, 2012 and 2011

                                    Three months ended Twelve months ended
                                    December 31,       December 31,
                                    2012       2011    2012       2011
ADJUSTED EBITDA:                     US$ Millions
                                                               
Net (loss) income                    $(0.1)     $1.8    $(4.5)     $2.4
Interest expense                     0.0        0.0     0.1        0.3
Interest and other expense (income)  0.0        0.0     0.0        0.0
(Benefit) provision for income taxes (0.1)      0.2     0.2        0.3
Depreciation and amortization        0.8        0.6     2.8        2.4
Expensing of deferred IPO costs(1)   0.0        0.0     2.6        0.0
Stock‑based expense                  0.3        0.1     1.1        0.6
Acquisition deal costs               0.0        0.0     0.1        0.0
Convertible debt prepayment fee(2)  0.0        0.0     0.0        0.6
Derecognition of note payable(3)     0.0        0.0     0.0        (0.7)
Adjusted EBITDA (non-GAAP)           $0.9       $2.7    $2.4       $5.9

(1) In July 2011 we filed our first registration statement on Form S-1.From
July 2011 through August 2012 we continued to update and amend Form
S-1.During the quarter ended September 30, 2012 we determined that it is
likely that ourIPO will be postponed for a period in excess of 90 days and as
a result deemed it to be an aborted offering in accordance with the guidance
set forth in ASC 340-10-S99-1. For the three months ending September 30, 2012,
we expensed previously deferred IPO costs of $2.3 million associated with our
registration statement on Form S-1 as well as any IPO costs incurred in the
third quarter to selling, general and administrative expenses.The total
amount of the expense for the year was $2.6 million.

(2) In April 2011, the convertible debt holders converted the outstanding
principal amount of $9.0 million under convertible notes issued in 2007 and
2008 into an aggregate of 4,049,776 shares of common stock. In addition, we
issued 127,318 shares of common stock valued at $0.3 million in lieu of cash
payments for accrued interest and 297,682 shares of common stock valued at
$0.6 million as a prepayment fee negotiated at the time of conversion. The
shares issued for the accrued interest and the prepayment fee were valued at
the average closing price of our common stock on AIM under the symbol "PPTR"
during the 10 trading day period ending two days prior to the conversion.

(3) In 2003, we entered into an agreement with FHMS and FTB and recorded a
liability. Due to a breach of the contractual terms by FHMS and FTB, we did
not believe we were liable to repay these amounts. As of March31, 2011, the
statute of limitations had expired on $0.66million of the $0.7million
balance and as of September30, 2011, the statute of limitations had expired
on the remaining $40,000. For the twelve months ended December 31, 2011, we
recorded other income due to the derecognition of the note payable in the
amount of $0.7million.

Table 2. Reconciliation of Prospective Net Income to Adjusted EBITDA

For the year ending December 31, 2013

                                      Range
ADJUSTED EBITDA:                       US$ Millions
                                      
Net income                             $2.6           $4.8
Interest expense                       0.1            0.1
Interest income                        0.0            0.0
Provision for income taxes             0.5            0.7
Depreciation and amortization          3.4            3.4
Stock‑based expense                    1.6            1.6
Adjusted EBITDA (non-GAAP)             $8.3           $10.6



Table 3.Explanation of Key Metrics
                                                       
                                  YearendedDecember31,
                                  2012                  2011
KEY METRICS:                                            
                                                       
Consolidated gross billings(1)     $117,945,131          $102,439,474
Total settled dollar volume        $6,114,241,521        $4,833,375,222
processed(2)
Total active merchant locations                         
(at period end)(3)                 40,918                27,887
                                                       
Multi-currency processing services                      
keymetrics:
Active merchant locations (at      22,015                16,347
periodend)(3)
                                                       
Settled transactions processed(4)  11,883,366            10,801,177
Gross foreign currency mark-up(5)  $103,174,205          $87,820,070
Settled dollar volume processed(6) $2,628,252,265        $2,339,615,142
Average net mark-up percentage on                       
settled
dollar volume processed(7)         1.10%                 1.16%
                                                       
Payment processing services key                         
metrics:
Active merchant locations (at      18,921                11,552
periodend)(3)
Payment processing services        $14,770,926           $14,619,404
revenue(8)
Settled transactions processed(9) 34,084,805            20,176,344
Settled dollar volume              $3,485,989,256        $2,493,760,080
processed(10)

(1) Represents gross foreign currency mark-up plus payment processing services
revenue.
(2) Represents total settled dollar volume processed through both our
multi-currency and payment processing services.
(3) We consider a merchant location to be active as of a date if the merchant
completed at least one revenue-generating transaction at the location during
the 90-day period ending on such date. The total number of active merchant
locations exceeds the total number of merchants, as merchants may have
multiple locations. As of December31, 2012 and 2011 and 2010, there were 18
and 12 active merchant locations, respectively, that used both our
multi-currency processing services and our payment processing services. These
amounts are included in multi-currency and payment processing active merchant
locations but are not included in total active merchant locations.
(4) Represents settled transactions processed using our multi-currency
processing services.
(5) Represents the gross foreign currency mark-up amount on settled dollar
volume processed using our multi-currency processing services. Gross foreign
currency mark-up represents multi-currency processing services net revenue
plus amounts paid to acquiring banks and their merchants associated with such
multi-currency processing transactions. Management believes this metric is
relevant because it provides the reader an indication of the gross mark-up
derived from multi-currency transactions processed through our platform during
a given period.
(6) Represents the total settled dollar volume processed using our
multi-currency processing services.
(7) Represents the average net mark-up percentage earned on settled dollar
volume processed using our multi-currency processing services. The average net
mark-up percentage on settled dollar volume processed is calculated by taking
the reported total multi-currency processing services net revenue
($28.8million, and $27.2million for the years ended December31, 2012 and
2011,respectively) and dividing by settled dollar volume processed.
(8) Represents revenue earned and reported on payment processing services.
(9) Represents settled transactions processed using our payment processing
services.
(10) Represents the total settled dollar volume processed using our payment
processing services.

Planet Payment,Inc. unaudited consolidated balance sheets

                                                    December31,
                                                    2012         2011
                                                                
Current assets:                                                  
Cash and cash equivalents                            $6,002,457   $7,671,963
Restricted cash                                      2,517,616    1,941,909
Accounts receivable, net of allowances of $1.5
million and $1.4million, respectively, as of        5,585,815    4,768,040
December31, 2012 and 2011
Prepaid expenses and other assets                    2,395,137    947,043
Total current assets                                 16,501,025   15,328,955
Other assets:                                                    
Restricted cash                                      669,406      659,958
Property and equipment, net                          1,396,154    1,223,562
Software development costs, net                      4,776,320    4,978,002
Intangible assets, net                               3,289,590    799,648
Goodwill                                             347,599      —
Security deposits and other assets                   338,408      213,230
Deferred IPO costs                                   —            1,650,789
Total other assets                                   10,817,477   9,525,189
Total assets                                         $27,318,502  $24,854,144
Liabilities and stockholders' equity                             
Current liabilities:                                             
Accounts payable                                     $889,118     $993,872
Accrued expenses                                     5,298,789    2,482,255
Due to merchants                                     2,546,140    2,137,064
Current portion of capital leases                    337,588      247,257
Total current liabilities                            9,071,635    5,860,448
Long-term liabilities:                                           
Long-term portion of capital leases and other        364,010      248,730
long-term liabilities
Total long-term liabilities                          364,010      248,730
Total liabilities                                    9,435,645    6,109,178
Commitments and contingencies                                    
Stockholders' equity:                                            
Convertible preferred stock—10,000,000 shares
authorized as of December 31, 2012 and 4,000,000
shares authorized as of December 31, 2011, $0.01 par 22,438       22,438
value: SeriesA—2,243,750 issued and outstanding as
of December31, 2012 and 2011; $8,975,000 aggregate
liquidation preference
Common stock—250,000,000 shares authorized as of
December31, 2012 and 80,000,000 shares authorized
as of December 31, 2011, $0.01 par value, and        536,589      517,644
53,658,857 and 51,764,405 shares issued and
outstandingas of December31, 2012 and 2011,
respectively
Additional paid-in capital                           97,576,498   94,083,901
Warrants                                             1,622,651    1,622,651
Accumulated other comprehensive gain (loss)          37,925       (40,729)
Accumulated deficit                                  (81,913,244) (77,460,939)
Total stockholders' equity                           17,882,857   18,744,966
Total liabilities and stockholders' equity           $27,318,502  $24,854,144

Planet Payment,Inc. unaudited consolidated statements of operations

                                        YearendedDecember31,
                                        2012         2011        2010
                                                               
Revenue:                                                        
Net revenue                              $43,578,016  $41,858,166 $30,553,164
Operating expenses:                                             
Cost of revenue:                                                
Payment processing service fees          10,943,290   11,677,012  10,051,640
Processing and service costs             11,010,778   9,093,674   6,980,981
Software licenses impairment             —            —           1,108,514
Total cost of revenue                    21,954,068   20,770,686  18,141,135
Selling, general and administrative      25,865,652   18,152,014  14,304,448
expenses
Total operating expenses                 47,819,720   38,922,700  32,445,583
(Loss) income from operations            (4,241,704)  2,935,466   (1,892,419)
Other (expense) income:                                         
Interest expense                         (55,987)     (319,098)   (1,169,578)
Interest income                          1,236        1,582       429
Other (expense) income, net              (8,739)      98,682      —
Total other expense, net                 (63,490)     (218,834)   (1,169,149)
(Loss) income from operations            (4,305,194)  2,716,632   (3,061,568)
beforeprovision for incometaxes
Provision for income taxes               (147,111)    (331,903)   (3,219)
Net (loss) income                        $(4,452,305) $2,384,729  $(3,064,787)
Basic net (loss) income per share        $(0.09)      $0.04       $(0.08)
applicable to common stockholders
Diluted net (loss) income per share      $(0.09)      $0.04       $(0.08)
applicable to common stockholders
Weighted average common stock            52,187,144   49,348,033  40,431,073
outstanding (basic)
Weighted average common stock            52,187,144   52,167,492  40,431,073
outstanding (diluted)

Planet Payment,Inc. unaudited consolidated statements of cash flows

                                   YearendedDecember31,
                                   2012           2011          2010
                                                              
Cash flows from operating                                      
activities:
Net (loss) income                   $(4,452,305)   $2,384,729    $(3,064,787)
Adjustments to reconcile net (loss)
income tonet cash provided by                                 
operatingactivities:
Stock-based expense                 1,075,079      555,882       739,992
Depreciation and amortization       2,831,379      2,416,873     1,769,650
expense
Provision (recovery) for doubtful   136,350        75,384        (36,703)
accounts
Deferred tax liability              (66,009)       —             —
Disposal of property and equipment  86,388         —             —
Expensing of deferred IPO costs     2,346,210      —             —
Software license impairment charge  —              —             1,108,514
Accrued insurance proceeds          (100,000)      —             —
Non-cash interest expense on        —              254,636       808,193
convertibledebt
Non-cash interest expense on term   —              —             295,743
debt
Warrant expense                     —              14,928        89,741
Common stock issued for payment of  —              20,000        —
account payable
Derecognition of note payable       —              (700,000)     —
Non-cash prepayment fee on          —              601,318       —
conversion ofconvertible debt
Changes in operating assets and
liabilities net of effects of                                  
acquisitions:
(Increase) decrease in settlement   (575,707)      118,448       (46,859)
assets
Increase in accounts receivables,
prepaid expenses and other current  (1,725,523)    (1,825,403)   (1,787,798)
assets
Increase in software licenses       —              —             (80,209)
(Increase) decrease in security     (11,575)       32,051        52,247
deposits andother assets
Increase in accounts payable        1,713,071      2,088,190     231,768
andaccrued expenses
Increase (decrease) in due to       409,076        (157,188)     201,103
merchants
Other                               (65,018)       (13,128)      (1)
Net cash provided by                1,601,416      5,866,720     280,594
operatingactivities
Cash flows from investing                                      
activities:
(Increase) decrease in restricted   (9,448)        90,042        —
cash
Purchase of property and equipment  (269,557)      (161,705)     (300,540)
Capitalized software development    (1,360,091)    (1,862,653)   (1,970,349)
Purchase of intangible assets       (149,420)      (78,453)      (79,618)
Cash paid for business combination, (1,577,829)    —             —
net ofcash acquired
Net cash used in investing          (3,366,345)    (2,012,769)   (2,350,507)
activities
Cash flows from financing                                      
activities:
Proceeds from issuance of common    774,749        269,965       6,058,702
stock.
Principal payments on capital lease (324,795)      (284,682)     (187,144)
obligations
Payment of capital-raising expense  —              —             (343,969)
Repayment of long-term debt         —              —             (2,000,000)
Payment of IPO costs                (354,531)      (1,349,770)   —
Net cash provided by (used in)      95,423         (1,364,487)   3,527,589
financingactivities
Effect of exchange rate changes on  —              —             (27,600)
cash and cashequivalents(*)
Net (decrease) increasein cash and (1,669,506)    2,489,464     1,430,076
cash equivalents
Beginning of period                 7,671,963      5,182,499     3,752,423
End of period                       $6,002,457     $7,671,963    $5,182,499
Supplemental disclosure:                                       
Cash paid for:                                                 
Interest                            $53,994        $64,462       $65,642
Income taxes                        541,933        233,535       142
Non cash investing and financing                               
activities:
Convertible debt converted to
common                              $—             $8,979,926    $—
stock
Common stock issued to pay accrued  —              —             1,103,936
interest
Common stock issued for BPS         1,596,862      —             —
acquisition
Common stock issued for stock       13,335         354           19,661
options andwarrants exercised
Assets acquired under capital       530,984        349,484       223,965
leases
Common stock issued for warrants    —              —             2,000,000
exercised
Reduction of long-term debt through —              —             (2,000,000)
exercise of warrants
Accrued IPO costs                   —              301,019       —

(*)For the year ended December31, 2012 and 2011, the effect of exchange rate
changes on cash and cash equivalents was inconsequential.


Planet Payment,Inc. unaudited consolidated statements of changes in
convertible preferred stock and stockholders' (deficit) equity

                     Convertible
                     preferredstock      Commonstock
                     $0.01parvalue      $0.01parvalue—
                     4,000,000 shares     70,000,000shares
                     authorized as of     authorizedasof
                    December 31, 2009,   December31,                                                         
                     2010 and 2011 and    2009and2010,
                     10,000,000shares    80,000,000shares
                     authorized as of     authorizedasof
                     December 31, 2012
                     SeriesA
                                       December31,2011                                                    
                                          and250,000,000
                                       shares                                     Accumulated                
                                       authorized as of     Additional             other                      Total
                    Shares    Sharespar December 31, 2012    paid-In                comprehensive Accumulated   stockholders'
                    issued    Value      Issued     Parvalue capital      Warrants   loss          deficit       (deficit)equity
Balance—December31, 2,243,750 $22,438    39,170,213 $391,701  $73,969,455 $1,517,982 $—           $(76,780,881) $(879,305)
2009
Stock issued         —         —          5,357,897  53,579    6,765,090    —          —             —             6,818,669
Warrant exercised    —         —          1,526,718  15,267    1,984,733    —          —             —             2,000,000
Options exercised    —         —          13,668     137       (137)        —          —             —             —
Warrant expense      —         —          —          —         —            89,741     —             —             89,741
Stock-based expense  —         —          —          —         739,992      —          —             —             739,992

Cumulative           —         —          —          —         —            —          (27,600)      —             (27,600)
translation
adjustment
Net loss             —         —          —          —         —            —          —             (3,064,787)   (3,064,787)
Balance—December31, 2,243,750 22,438     46,068,496 460,684   83,459,133   1,607,723  (27,600)      (79,845,668)  5,676,710
2010
Stock issued         —         —          4,484,776  44,848    9,811,033    —          —             —             9,855,881
Restricted stock     —         —          915,000    9,150     —            —                                    9,150
issued
Warrants exercised   —         —          28,560     286       (286)        —          —             —             —
Options exercised    —         —          267,573    2,676     258,139      —          —             —             260,815
Warrant expense      —         —          —          —         —            14,928     —             —             14,928
Stock-based expense  —         —          —          —         555,882      —          —             —             555,882
Cumulative
translation          —         —          —          —         —            —          (13,129)      —             (13,129)
adjustment
Net income           —         —          —          —         —            —          —             2,384,729     2,384,729
Balance—December31, 2,243,750 22,438     51,764,405 517,644   94,083,901   1,622,651  (40,729)      (77,460,939)  18,744,966
2011
Options exercised    —         —          488,513    4,885     769,864      —          —             —             774,749
Issuance of common
shares—Acquisition   —         —          488,337    4,884     1,596,862    —          —             —             1,601,746
ofBPS
Stock-based expense  —         —          —          —         1,135,047    —          —             —             1,135,047
Warrants exercised   —         —          917,602    9,176     (9,176)      —          —             —             —
Cumulative
translation          —         —          —          —         —            —          78,654        —             78,654
adjustment
Net loss             —         —          —          —         —            —          —             (4,452,305)   (4,452,305)
Balance—             2,243,750 $22,438    53,658,857 $536,589  $97,576,498  $1,622,651 $37,925       $(81,913,244) $17,882,857
December31, 2012

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