Pipeline Data Continues Rise in Sequential 2007 EBITDA Growth

Adjusted EBITDA for the three months and nine months period ended September 30, 2007 were $1.9 million and $4.7 million, respectively. For the first nine months of 2007, Gross Profit increased 26.1% to a record $13.0 million from the same period last year.

Pipeline’s CEO, MacAllister Smith, commented “Revenue and Gross Profit from our merchant base continued to expand during the quarter as overall merchant count remained steady. At the same time, we selectively increased our marketing expenditures and further bolstered our overall capacity through enhancements to our operational infrastructure.I believe the additional investments and expenditures incurred during the third quarter position Pipeline to take advantage of accretive market opportunities that may present themselves in the near future. Historically, the philosophy of rapid growth augmented by enhanced marketing and increased operational capacity has proven to be a successful formula for Pipeline Data.”

Non-GAAP Measures

Pipeline Data, Inc. presents its financial results in accordance with generally accepted accounting principles in the United States (GAAP). However, in order to provide the investment community with a broader means of evaluating the operating performance of its operations, Pipeline Data is providing non-GAAP measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”). Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as an alternative to cash flow from operating activities or as a substitute for GAAP net earnings. Other companies may calculate EBITDA differently than we do and may not be comparable to similarly titled measures reported by other companies.

Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures

The following table reconciles the differences between Pipeline Data’s net loss as determined under US generally accepted accounting principles (GAAP) and EBITDA as well as EBITDA adjusted for certain non recurring and non-cash transactions.

About Pipeline Data Inc.

Pipeline Data Inc. (PPDA) is a value-added provider of merchant payment processing services and other related software products. The Company currently delivers credit and debit card-based payment processing and related services to over 40,000 small to medium-sized merchants who operate either in a physical “brick and mortar” business environment or over the Internet. Pipeline’s payment processing services enable merchants to process traditional card-present, or “swipe” transactions, as well as card-not-present transactions. For more information, please visit .