nFinanSe Launches $3 Reloadable Prepaid Cards at Fred’s Hometown Discount Stores

nFinanSe Inc. (OTCBB:NFSE) (www.nFinanSe.com) today announced the launch of its $3 Reloadable Prepaid Discover® Cards at Fred’s Hometown Discount Stores (NASDAQ:FRED) (www.FredsInc.com), a leading regional chain of variety stores located in the Southeast and Midwest United States.

"As a result of the unchecked growth of Walmart® in the Reloadable Prepaid Card Marketplace, nFinanSe has stepped up to help all other retailers compete with them on price. We provide Fred’s and our other retail partners a terrific Reloadable Card product with consumer fees actually lower than Walmart,” says Jerry R. Welch, Chairman and Chief Executive Officer of nFinanSe. "Our cards sell for $3 like Walmart’s, but from there, we differentiate our pricing to the consumer. Our reload fee and monthly maintenance fee are only $2.95, our ATM withdrawal fee is an industry low $0.99, and our online bill pay is $0.44 – the cost of a postage stamp. And of course, we pioneered free customer service, with live agents located in the United States, 24 hours a day.”

Tracing its history back to an original store in Coldwater, Mississippi, opened in 1947, Fred's is now headquartered in Memphis, Tennessee, and operates almost 700 discount general merchandise stores, 300 plus pharmacies and 24 franchised Fred's stores, mainly across the southeastern states. With a unique store format and strategy that combines the best elements of a discount dollar store, drug store and mass merchant, Fred's stores stock more than 12,000 frequently purchased items that address the everyday needs of its customers.

The nFinanSe’s Reloadable Prepaid Discover® Card features what the Company believes to be the best overall pricing in the marketplace at this time. The card sells for just $3 at retail stores; has a low $2.95 monthly maintenance fee for an unlimited number of purchase transactions; and allows cardholders to load additional funds or "top up” for only $2.95. The Company also offers FREE direct deposit of payroll, FREE 24/7/365 live agent customer service in English and Spanish and FREE cell phone text message alerts with purchase and balance information after each transaction.

The nFinanSe Discover® Reloadable Prepaid Card is issued by Palm Desert National Bank, Palm Desert, CA, Member FDIC or by First Bank & Trust, N.A., Pipestone, MN. Member FDIC, pursuant to a license from Discover® Network. Discover® and the Discover acceptance mark are service marks used by Palm Desert National Bank and First Bank & Trust, N.A., Pipestone, MN under license from Discover Financial Services. All cards funds are insured by the FDIC in accordance with the FDIC's applicable terms and conditions.

"Safe Harbor” Statement under Private Securities Litigation Reform Act of 1995

This press release contains certain forward-looking statements based on nFinanSe Inc.’s, or, the Company’s current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements include statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate,” "believe,” "could,” "estimate,” "expect,” "intend,” "may,” "should,” "will,” and "would” or similar words and include statements regarding the anticipated benefits of the Company’s products and the anticipated roll out of the Company’s products. Forward-looking statements in this release are based on information available to the Company as of the date hereof. The Company’s actual results may differ materially from those stated or implied in such forward-looking statements due to risks and uncertainties associated with the Company’s business, which include the Company’s ability to execute its business strategy and the other risk factors disclosed in the Annual Report on Form 10-K for the year ended January 2, 2010 on file with the Securities and Exchange Commission. The Company assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.

About Fred’s Inc.

Fred's Inc. (NASDAQ:FRED) operates 674 discount general merchandise stores, including 24 franchised Fred's stores in the southeastern United States. For more information about the Company, visit Fred's Website at www.fredsinc.com.

About nFinanSe Inc.

nFinanSe Inc. (OTC Bulletin Board: NFSE) is an innovative financial services company and provider of stored value and prepaid card solutions headquartered in Tampa, Florida. nFinanSe has developed the nFinanSe Network™, a secure, reliable value load and activation platform that connects with retail merchants and other value load stations located throughout the United States. For more information, visit www.nfinanse.com