
                                                                    EXHIBIT 99.1
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                                  PRESS RELEASE

 ACTRADE FINANCIAL TECHNOLOGIES LTD. FILES FOR CHAPTER 11 BANKRUPTCY PROTECTION


         New York, NY - December 12, 2002 - Actrade Financial Technologies Ltd.
("Actrade" or the "Company") announced today that it and one of its
subsidiaries, Actrade Capital Inc. ("Capital"), have today filed voluntary
petitions for relief under Chapter 11 of the United States Bankruptcy Code
("Chapter 11") in the Bankruptcy Court for the Southern District of New York
(the "Bankruptcy Court"). Chapter 11 allows the Company to continue operating
its business while under the jurisdiction of the Bankruptcy Court. Except for
Capital, the Chapter 11 filings do not include any of the Company's other
subsidiaries.

         Actrade also announced today the following recent developments:

1.       APPOINTMENT OF CEO.

         As previously disclosed, on October 8, 2002, Alexander C. Stonkus began
a paid leave of absence from his positions as President and CEO of Actrade.
Richard McCormick has been appointed Chief Executive Officer and has entered
into an agreement with Actrade effective October 8, 2002.

         Mr. McCormick has over twenty years of experience in investment banking
and financial consulting. His prior experience includes positions with
PaineWebber Incorporated and Kidder, Peabody & Co. Mr. McCormick graduated from
the University of Southern Connecticut with a B.S. in economics and accounting
and received an M.B.A. from Pace University.

2.       PENDING DELISTING APPEAL

         As previously announced, on October 17, 2002, Actrade received a NASDAQ
Staff Determination that Actrade's common stock, par value $.0001 per share
("Common Stock"), no longer qualifies for inclusion in The NASDAQ Stock Market.
Actrade appealed the NASDAQ Staff Determination before a NASDAQ Listing
Qualifications Panel (the "Panel"). At this time, Actrade is awaiting the
decision of the Panel. If the Panel upholds the NASDAQ Staff Determination, then
Actrade's Common Stock will be subject to immediate de-listing from The NASDAQ
National Market.

3.       ONGOING AUDIT COMMITTEE EVALUATION.

         As has also previously been disclosed, Actrade has ceased operating its
international bill of exchange business (the "IMT Business"), which had
primarily been conducted through Actrade Resources, Inc. ("Resources"), an
Actrade subsidiary. Actrade's Board of Directors (the "Board") has directed the
Audit Committee of the Board (the "Audit Committee") to conduct an evaluation
of, and make appropriate recommendations to the Board with respect to, anonymous
allegations received by Actrade relating to alleged serious irregularities and
improprieties in the operations conducted by the Company and its subsidiaries
(the "Evaluation"), including, among other matters, allegations relating to the
bona fides of nearly all of the transactions financed by

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the IMT Business and of a majority of the domestic Trade Acceptance Draft
("TAD") transactions, the relationship of the IMT Business with banking and
other financial institutions with which the IMT Business conducted its business,
the possible affiliation of Amos Aharoni, Actrade's former Chairman of the Board
and Chief Executive Officer, with certain customers and salespeople and entities
of the IMT Business, and other issues concerning certain of the Company's
domestic accounts, including, among other things, the possibility that buyers
and sellers in certain domestic TAD transactions are affiliated with one
another.

         In this connection, it appears that Actrade did not maintain, in the
United States, appropriate books and records regarding the IMT Business.
Moreover, none of the employees or other individuals who have cooperated with
the Audit Committee's Evaluation have indicated any significant familiarity with
the day-to-day operations of the IMT Business. Further, as previously disclosed,
Mr. Aharoni, who was substantially involved in the operations of the IMT
Business, resigned, effective August 21, 2002, from all director and officer
positions he held with Actrade and its subsidiaries. Mr. Aharoni has refused to
meet with the Audit Committee or to provide substantive information to the Audit
Committee in connection with the Evaluation.

         The Evaluation to date has raised serious questions and issues
regarding the nature and substance of the past operations of the IMT Business,
the accounting for the Company's operations, and the Company's securities
filings with the United States Securities and Exchange Commission (the "SEC"),
all of which warrant additional and continuing review and evaluation by the
Company.

4.       SEC FILINGS AND FINANCIAL STATEMENTS.

         During the course of the Evaluation, serious and material questions and
issues have arisen regarding the accuracy and completeness of Actrade's
securities filings, including the financial statements contained or incorporated
by reference in such filings. In this connection, the Company is evaluating a
number of disclosure and financial statement issues relating to, among other
things, the past accounting treatment of certain stock options, the proper
amount of reserves for doubtful accounts and the description and
characterization of Actrade's foreign and domestic businesses, and other issues
relating to the accuracy and completeness of the Company's prior SEC filings.

         At this time Actrade is unable to determine whether the description and
characterization of the IMT Business and other aspects of Actrade's IMT Business
and reported financial results of such business contained in Actrade's filings
with the SEC are accurate or whether Actrade will be able to obtain the
information about the IMT Business necessary to complete financial statements
for the fiscal year ended June 30, 2002.

         Amendments to, and/or a restatement of, the disclosures in Actrade's
historical SEC filings and the financial statements included or incorporated
therein are being considered by the Company and may be required.

         Actrade cannot at this time identify or quantify the exact nature or
amount of any amendments or restatements that may be required and, accordingly,
Actrade's historical financial statements and SEC filings should not, at this
time, be relied upon.

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         Further, as previously disclosed, Deloitte & Touche LLP ("D&T"),
Actrade's independent auditor, has notified Actrade that it has suspended its
audit of Actrade's financial statements for the fiscal year ended June 30, 2002.
D&T has thus far not provided the Audit Committee with information in connection
with its Evaluation.

         For all of the reasons described herein, Actrade has been unable to
complete the disclosure required to be included in its Annual Report on Form
10-K for the fiscal year ended June 30, 2002 (the "Annual Report"). At this
time, Actrade is unable to provide any further guidance as to when its Annual
Report will be filed.

         In addition, the two banks with which the Company presently has credit
facilities have requested that the Company provide them with financial
statements for the fiscal year ended June 30, 2002. As of December 11, 2002, the
principal amount of Actrade's borrowings under the facilities aggregated
approximately $6.7 million. Unless the Company delivers financial statements to
the banks or is able to negotiate a waiver of the requirement to deliver
financial statements, the banks may no longer extend credit to Actrade. As
described above, Actrade is unable to complete such financial statements at this
time. The Company is unable to predict whether the banks will grant a waiver and
continue to extend credit to the Company.

5.       UNAUTHORIZED TRANSFERS AND DISBURSEMENTS.

         The Company believes that, in June and July 2002, certain unauthorized
transactions with respect to the off-shore bank accounts of Actrade Commerce
Ltd. ("Commerce") and Resources, each a foreign subsidiary of Actrade, may have
resulted in the disbursement of approximately $31.5 million of Company funds to
third-parties that is purportedly to be repaid over an extended period of time
pursuant to certain loan agreements provided to the Company by Mr. Aharoni.
Actrade has been unable to contact the counterparties to these purported
transactions and cannot, at this time, determine the likelihood that the funds
referred to above will be repaid. The failure of such funds to be repaid would
have a material adverse effect on the financial condition of the Company. In
addition, irrespective of whether such funds are repaid, such unauthorized
transactions may also have a material adverse tax effect on the Company.

         After being contacted by Actrade regarding what the Company believes
were the unauthorized transactions described above, Commerce's and Resources'
off-shore bank informed Actrade that it had frozen the respective accounts at
the off-shore bank of the third-parties whom Actrade had identified as the
recipients of the disbursements. While the off-shore bank continues to freeze
the accounts of such third-parties, such bank has also commenced an interpleader
court action, requesting that the court determine the rightful owner of the
funds at issue (the "Interpleader Action"). The Interpleader Action is pending
as of the date of this press release. Actrade is also attempting, through the
Interpleader Action, to determine the amount of funds in the now-frozen
off-shore bank accounts of the third parties. Until such information is
obtained, it should not be assumed that there are substantial funds in such
accounts. In addition, it should not be assumed that Actrade will recover
substantial funds, if any, through the Interpleader Action. The Company is also
considering pursuing other legal action in connection with these unauthorized
disbursements.

6.       TAD AND BILL OF EXCHANGE DEFAULTS.

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         As of the close of business on December 11, 2002, Actrade held $19
million in TADs issued by two U.S. subsidiaries of a Taiwanese corporation. As
of the close of business on December 11, 2002, the TADs issued by such U.S.
subsidiaries represented approximately 50% of all TADs held by Actrade. The two
U.S. subsidiaries in question defaulted on all TADs they had issued that matured
on and after October 13, 2002. On November 27, 2002, Actrade accelerated the
maturity of the remainder of the $19,000,000 principal amount of TADs issued by
the two U.S. subsidiaries. On December 5, 2002, the Company learned that on
December 2, 2002 the two U.S. subsidiaries filed voluntary petitions for relief
under Chapter 11 in the Bankruptcy Court for the Northern District of Texas.

         Between October 13, 2002 and November 8, 2002, the Taiwanese parent
paid $817,600 in bills of exchange it had issued that matured during this
period, but the Taiwanese parent then defaulted on $354,000 of bills of exchange
that it had issued that matured on or after November 16, 2002. Actrade has since
accelerated the maturity of the remaining bills of exchange it holds that have
been issued by the Taiwanese parent. As of the close of business on December 11,
2002, Actrade held an aggregate of $1,322,800 in bills of exchange issued by the
Taiwanese parent of the two U.S. subsidiaries.

         Since October 14, 2002, Actrade has not purchased any TADs issued by
such U.S. subsidiaries or bills of exchange issued by their Taiwanese parent,
and does not expect to engage in any transactions with any of these companies
unless these defaults are resolved to Actrade's satisfaction. The elimination of
the Taiwanese parent and its two U.S. subsidiaries from Actrade's financing
programs will have a material adverse impact on the volume of business conducted
by Actrade.

         Actrade carries surety bonds insuring performance by such U.S.
subsidiaries under the TADs in the amount of up to $16 million. The agent acting
on behalf of the issuers of those surety bonds has advised Actrade that it is
reserving the right of the issuers to contest the validity of these surety
bonds. In addition, the Taiwanese parent has guaranteed the performance by one
of its U.S. subsidiaries in respect of the TADs issued by such subsidiary.
However, although Actrade has demanded payment from the Taiwanese parent under
the guarantee, there can be no assurance that Actrade will be able to collect on
the guarantee and, moreover, recent news articles reviewed by Actrade suggest
that there are serious concerns about the financial condition of the Taiwanese
parent. Although Actrade has had discussions with the U.S. subsidiaries and the
issuer of the surety bonds regarding the defaulted TADs, given, among other
factors, the Chapter 11 filings of the two U.S. subsidiaries and Actrade's
concerns about its ability to collect on the parent guarantee and about the
financial condition of the Taiwanese parent, Actrade cannot estimate at the
present time the amount, if any, it may recover in respect of the TADs issued by
such U.S. subsidiaries or the bills of exchange issued by the Taiwanese parent.

         As security for one of Actrade's credit facilities with one of its
banks, Actrade has assigned to such bank TADs issued by the two U.S.
subsidiaries at issue with a face value of $8,661,476.49, and surety bonds
insuring such TADs representing $10 million of the aggregate $16 million in
surety coverage described above. As a result of the defaults by the U.S.
subsidiaries described above, such bank declared a default under that credit
facility. On November 22, 2002, Actrade and the bank reached an agreement
addressing this default, pursuant to which Actrade repaid the $8,661,476.49
principal amount outstanding under the

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defaulted credit facility, Actrade agreed to deliver $3.3 million in additional
collateral to such bank to secure $3 million of borrowings under a previously
unsecured credit facility, and such bank also agreed to continue lending to
Actrade under other existing credit facilities and similar arrangements.

         Separately, as previously disclosed, a former significant customer of
Actrade defaulted on $8,844,805 in TADs. Actrade carries surety bonds insuring
performance by such customer under the TADs in the amount of up to $8.5 million.
The agent acting on behalf of the issuers of those surety bonds has advised
Actrade that it is reserving the right of the issuers to contest the validity of
these surety bonds. The Company, the agent representing the relevant sureties
and the customer previously entered into a Restructuring Agreement, dated
October 5, 2001 (as amended, the "Restructuring Agreement"), which provided for,
among other matters, a standstill period during which definitive agreements
would be executed in respect of the payment of the defaulted TADs by such
customer (the "Standstill Period"). The parties to the Restructuring Agreement
have extended the Standstill Period on several occasions, most recently on
November 14, 2002. The parties to the Restructuring Agreement have also recently
held discussions regarding a possible restructuring of the former customer's
obligation to Actrade, but no agreement has been reached and no assurance can be
given that a satisfactory arrangement will be reached. In addition, during those
discussions it was disclosed to Actrade that the former customer may file for
bankruptcy in the near future in the event it cannot restructure its debts,
including the amounts it owes to Actrade. Actrade is not presently able to
estimate the amount, if any, it would recover in the event of a bankruptcy of
its former customer. Although the Restructuring Agreement expires again on
December 16, 2002, it is possible that the parties thereto may extend it again.
Pursuant to the Restructuring Agreement, such customer has made one payment to
Actrade of $91,034.37, and five monthly payments to Actrade of $96,612.17,
thereby reducing the present outstanding principal balance of the defaulted TADs
to $8,544,538.10.

7.       REGULATORY INVESTIGATIONS.

         On August 27, 2002, Actrade and the Audit Committee received letters
from the United States Securities and Exchange Commission ("SEC"), notifying
each of them that the SEC was conducting an informal inquiry of the Company and
requesting the preservation of certain documents. On August 28, 2002, the United
States Attorneys' Office for the Southern District of New York (the "USAO")
served a grand jury subpoena on Actrade. Thereafter, the SEC requested that the
Company produce certain documents to the SEC; and, subsequently, the SEC
commenced a formal inquiry of Actrade and served subpoenas on each of Actrade
and the Audit Committee. The SEC and the USAO are continuing to investigate
matters related to the Company. The Company and the Audit Committee have been
cooperating fully with the USAO and the SEC investigations.

8.       PENDING SHAREHOLDER LAWSUIT.

         As previously disclosed, Actrade and several of its officers and
directors have been named as defendants in a consolidated putative class action
lawsuit filed in federal court in the Southern District of New York (the
"Action"). The plaintiffs allege in their complaint that Actrade and the
directors and officers named in the Action violated certain federal securities

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laws, causing damages to purchasers of Actrade's Common Stock during the period
March 11, 1999 to July 3, 2002. The plaintiffs in this Action have been granted
permission to amend their complaint in light of recent disclosures related to
the Company. At this time, Actrade is not in a position to predict its
likelihood of success in defending the Action.

9.       PENDING AND OTHER COMPANY LITIGATION.

         The Company is engaged in litigation in Federal Court in Georgia to
collect $4.6 million from Premier Holidays International, Inc., Daniel D.
DelPiano and Amwest Surety Insurance Company. On March 25, 2002, the U.S.
district court entered a $4.6 million judgment in favor of Actrade against
Premier and DelPiano. On November 19, 2002, the United States Court of Appeals
for the Eleventh Circuit affirmed the district court's decision. Actrade is
pursuing the collection of this $4.6 million judgment. With regard to that
portion of the case involving Amwest, Actrade is also pursuing judgment. In
relation to Amwest's affirmative defenses, on November 19, 2002, the district
court, while raising questions as to the validity of those defenses, allowed
Amwest another thirty days to complete depositions and fifteen additional days
to file any supplemental briefing concerning Actrade's request for judgment
against Amwest. The parties are negotiating an agreement to extend these
deadlines.

         The Company has been named as a defendant in litigation in state court
in California by American Casualty Company of Reading, Pennsylvania and Marsh
USA, Inc., in which American Casualty is seeking to reclaim $5 million from
Actrade in connection with a prior payment by American Casualty to Actrade under
a payment bond. This litigation is scheduled for trial on March 4, 2003.

         At this time, the Company is also evaluating taking legal action
against various parties in connection with the matters described in this press
release.

         The litigations described in Section 8 above and this Section 9 have
been stayed as a result of the Company's Chapter 11 filing today.

10.      ONGOING OPERATIONS.

         For the nine months ended March 31, 2002, the last period for which
Actrade has filed a periodic report with the SEC, reported revenue generated by
the IMT Business and the foreign salespersons who were terminated in connection
with the previously announced closure of the IMT Business accounted for
approximately 86% of total reported consolidated revenue of the Company.
Additionally, Actrade's business with the customers who have defaulted on TADs
and Bills of Exchange as described in Section 6 above accounts for a significant
amount of Actrade's remaining TAD business. There is a substantial risk that
Actrade's other TAD customers are insufficient to support Actrade as a
profitable business.

         Actrade is working to address the issues described above and, at this
time, continues to operate its business (other than the IMT Business) under
Bankruptcy Court supervision. Actrade believes that it has adequate liquid
assets at the present time to meet its current operating obligations. At this
time, Actrade has chosen not to secure debtor-in-possession financing. However,
the Company is continuing to evaluate the advisability of securing such
financing in

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the future, but there can be no assurance that Actrade will be able to secure
such financing at a later date.

         Actrade determined to make the Chapter 11 filings because it faces
significant ongoing expenses and potential liabilities in connection with the
issues raised in this press release and the regulatory investigations and
pending litigations described in this press release that, if realized, could
present a significant threat to Actrade.

         Information in this press release regarding ongoing operations is based
on Actrade's previously reported results. Reported results may differ from
actual results and remain subject to the Audit Committee's ongoing Evaluation.

                                      * * *

         Certain information contained in this press release constitutes
forward-looking statements for purposes of the safe harbor provisions of The
Private Securities Litigation Reform Act of 1995. Actual results may differ
materially from those indicated by such forward-looking statements as a result
of risks and uncertainties due to Actrade's pending litigation, including,
without limitation, the litigation described in Sections 8 and 9 above and the
ongoing internal Evaluation and regulatory and law enforcement investigations,
each as described above. Other factors that may cause events to differ
materially from those indicated by such forward-looking statements include, but
are not limited to: uncertainties regarding the possibility of restatements of
documents previously filed by Actrade with the SEC, including restatements of
Actrade's financial statements; uncertainties regarding Actrade's ability to
collect under defaulted TADs and bills of exchange described in this press
release; uncertainties regarding Actrade's ability to collect under surety bonds
issued in respect of the defaulted TADS described in this press release;
additional facts found by the Company in connection with the issues that are the
subject of the Audit Committee Evaluation; uncertainties regarding the Chapter
11 process; uncertainties regarding the Company's ability to obtain continued
financing for its operations; and those factors discussed in Actrade's Form 10-Q
for the quarter ending March 31, 2002, which is on file with the SEC. In
addition, any forward-looking statements represent our estimates only as of
today and should not be relied upon as representing our estimates as of any
subsequent date. While we may elect to update forward-looking statements at some
point in the future, we specifically disclaim any obligation to do so, even if
our estimates change.


