Advantex Marketing International Inc.
TSX VENTURE : ADX

Advantex Marketing International Inc.

March 16, 2010 13:02 ET

Advantex Announces Agreements With Aeroplan & CIBC for Expansion Into Retail Fashion, Footwear & Accessories Sectors

TORONTO, ONTARIO--(Marketwire - March 16, 2010) - Advantex Marketing International Inc. (TSX VENTURE:ADX), a leading specialist in merchant funding and loyalty marketing programs, today announced that it has signed a multi-year partnership agreement with Aeroplan Canada Inc. that will enable Advantex to offer Aeroplan Miles to retailers in the fashion clothing, footwear and accessories sectors across Canada. There is strong interest in the market from many fashion retailers who want to offer Aeroplan Miles to their customers.

"This agreement with Aeroplan is very exciting and significant for Advantex in a number of respects," said Kelly Ambrose, Advantex's Chief Executive Officer and President. "It is our second major marketing agreement with a Canadian business enabling Advantex to manage merchant based programs for a leader in loyalty programs and is indicative of the recognition that Advantex is receiving for our experience and leadership in this area."

"For the first time, Advantex will be able to market our services to retail merchants in men's and ladies' fashion clothing, footwear, and accessories across Canada. Under the agreement we will offer retail merchants in selected categories the opportunity to participate in the Aeroplan Program. Aeroplan Members will earn one Aeroplan Mile for every dollar spent in addition to benefiting from various special offers including first time purchase bonuses. This agreement enables Advantex to expand our merchant base into these segments, providing us the opportunity for profitable growth of our business," Mr. Ambrose said.

Aeroplan, Canada's premier loyalty program, is owned by Groupe Aeroplan Inc., a global leader in loyalty management. Aeroplan's millions of members earn Aeroplan Miles with its growing network of over 75 world-class partners, representing more than 150 brands in the financial, retail, and travel sectors. In 2009, over 2.1 million rewards were issued to members including more than 1.5 million flights on Air Canada and Star Alliance carriers which offer travel to more than 1,000 destinations worldwide. In addition to flights, members also have access to over 600 exciting specialty, merchandise, hotel, car rental and experiential rewards.

Advantex will target high-end branded fashion clothing, footwear and accessories retailers in major cities across Canada. Advantex also plans to introduce its Advance Purchase Marketing (APM) program to merchants in the fashion clothing, footwear, and accessories segments. Under the APM program, in addition to offering Aeroplan Miles and participating in marketing and loyalty promotions, merchants are able to obtain cash in advance for working capital based on future sales.

"The APM program has been a great success, proving very popular with merchants since its launch in the restaurant sector. More than half of the nearly 650 merchants that Advantex operates in the CIBC Advantex program, are in the APM program and we expect participation will grow rapidly now that we are able to make it available to retail merchants in the fashion clothing, footwear, and accessories sectors," said Mr. Ambrose.

"Aeroplan is always looking for new and relevant ways that we can provide additional benefits to both our members and our partners," said Steve Allmen, Vice President, Business Development, Aeroplan. "Our partnership with Advantex will enable Aeroplan to broaden the reach of our program across the country, offering members more options to earn miles every day. This also provides merchants with a compelling opportunity to incentivize new and exiting customers to do business with them. We look forward to working closely with Advantex to make this new initiative a great success for everyone."

Coinciding with signing a multi-year agreement with Aeroplan, Advantex is pleased to announce that it has signed an amendment to its agreement with Canadian Imperial Bank of Commerce (CIBC).

As the result of the amended agreement, the holders of CIBC Visa Infinite credit cards will be able to earn bonus Aeroplan Miles or CIBC rewards when they use their cards to make purchases at retail merchants participating in the CIBC Advantex programs. At retail merchants participating in both the CIBC Advantex program and the Aeroplan retail program, CIBC Aerogold Visa Infinite cardholders who use that card and also swipe their Aeroplan loyalty card will have the ability to earn triple Aeroplan Miles for every dollar spent.

"We have had a mutually beneficial relationship with CIBC for more than 13 years and together we have created a leading loyalty marketing program in Canada," said Kelly Ambrose, Chief Executive Officer and President of Advantex. "We are energized to be launching the extension of the CIBC Advantex program to retail merchants."

About Advantex Marketing International Inc.

Advantex is a specialist in the marketing services industry, managing white-labeled rewards accelerator programs for major affinity groups through which their members earn bonus frequent flyer miles and/or other rewards on purchases at participating merchants. Under the umbrella of each program, Advantex provides merchants with marketing, customer incentives, and secured future sales through its Advance Purchase Marketing model. Advantex partners include more than 1000 restaurants, online retailers, golf courses, small inns and resorts, and major organizations, including CIBC, Aeroplan, United Airlines, Alaska Airlines, and Lufthansa Airlines. Advantex is traded on the TSX Venture Exchange under the symbol "ADX". For additional information on Advantex, please visit www.advantex.com.

Forward-Looking Information

This Press Release contains certain "forward-looking information". All information, other than information comprised of historical fact, that addresses activities, events or developments that Advantex believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Such forward-looking information relates to, without limitation, information regarding: Advantex's belief that there is an opportunity for profitable growth in the fashion clothing, footwear and accessories retail sector; Advantex's expectation on its ability to target high end fashion retailers and expand its merchant base in this segment; Advantex's expectation on the timing of introduction into retail marketplace of the Aeroplan Advantex Benefit Program, and CIBC Advantex Benefit Program; Advantex's expectation connected to timing of launch of APM program in the retail sector and/or popularity of the APM program in the retail sector and/or in restaurant sector; Advantex's ability to extend its current agreement with CIBC beyond June 30, 2010; Forward-looking information reflects the current expectations or beliefs of Advantex based on information currently available to Advantex. Forward-looking information is subject to a number of risks, uncertainties and assumptions that may cause the actual results of Advantex to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have expected consequences to, or effects on Advantex. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in general economic and market conditions, changes to regulations affecting Advantex's activities, uncertainties relating to the availability and costs of financing needed in the future, Advantex's financial status, and other factors, including without limitation, those listed under "General Risks and Uncertainties" and "Economic Dependence" in Advantex's Management Discussion and Analysis for the six months ended December 31, 2009. All forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Advantex disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although Advantex believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Advantex Marketing International Inc.
    Mukesh Sabharwal
    Vice President and Chief Financial Officer
    905-470-9558 ext. 249
    mukesh.sabharwal@advantex.com