Equitex Announces 1 for 6 Reverse Stock Split Record Date and Warrant

    Business Editors

    ENGLEWOOD, Colo. & WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Jan. 21, 2005--Equitex, Inc. (Nasdaq:EQTX) announced today the record date for the one share for six shares (1 for 6) reverse stock split recently approved by the Company's stockholders at its Annual Meeting. The Record Date will be January 24, 2005, with a distribution date of January 25, 2005. The Company is not requiring an exchange of certificates. Stockholders holding certificates will receive a letter of transmittal from the Company explaining the procedure for exchanging their certificates if they wish to do so. Effective Tuesday January 25, 2005, for a period of twenty trading days, the Company's stock symbol will be appended with a "D" (EQTXD) in order to inform the trading community of the reverse split.
    As previously announced, the Company's board of directors authorized the issuance of a warrant dividend to be paid to stockholders following the reverse stock split. Common stockholders of record on the Dividend Date, February 7, 2005, are eligible to receive one Class A warrant and one Class B warrant for every two shares of Equitex stock owned. The Class A warrant will be exercisable at $0.51 per pre-split share ($3.06 post-split) for a period of five years from issuance and be callable by the Company at a nominal price should the stock price close above $1.17 per share pre-split ($7.02 post-split) for 15 consecutive trading days. The Class B warrant will be exercisable at $1.02 per pre-split share ($6.12 post-split) for the five year period and callable at a nominal price should the stock close above $1.50 per pre-split share ($9.00 post-split) for 15 consecutive trading days. The warrants will not be exercisable until a registration statement registering the underlying common stock has been filed and declared effective.

    Equitex, Inc. is a holding company operating through its majority-owned publicly traded subsidiary FastFunds Financial Corporation (OTCBB:FFFC) of Minnetonka, Minnesota, as well as its majority-owned subsidiary Denaris Corporation. FastFunds, through its operating subsidiary Chex Services, Inc., provides comprehensive cash access services to Native American and traditional casinos, other gaming facilities and retail establishments. Denaris was formed to provide stored value card services.

    The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, factors detailed in Equitex's Securities and Exchange Commission filings; completion of due diligence, shareholder approval, regulatory approvals and certain other pre-closing conditions for all incomplete merger or acquisition transactions; financial results of potential merger candidates; economic downturns affecting the operations of Equitex, its subsidiaries or companies proposed for merger or acquisition; the loss of contracts or failure to acquire new contracts; success of any legal actions; failure to successfully implement newly developed product lines including projected increases in revenues or earnings; the termination of previously announced acquisitions; delays or the inability to obtain regulatory approvals for previously announced acquisitions; the inability to initiate or complete any contemplated restructuring, offering, acquisition, disposition or other transaction; adverse financial performance by Equitex or any of its subsidiaries; failure to obtain or maintain regulatory approval for products and services offered by Equitex or its subsidiaries; adverse equity market conditions and declines in the value of Equitex common stock; and the unavailability of financing to complete management's plans and objectives. The forward-looking statements contained in this press release speak only as of the date hereof and Equitex disclaims any intent or obligation to update these forward-looking statements.

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CONTACT: Equitex, Inc. Thomas B. Olson, 303-796-8940

KEYWORD: COLORADO FLORIDA INDUSTRY KEYWORD: BANKING GAMING SOURCE: Equitex, Inc.

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