SOURCE: International Card Establishment, Inc.

November 17, 2009 16:01 ET

International Card Establishment Reports Third Quarter, Nine-Month Results

CAMARILLO, CA--(Marketwire - November 17, 2009) - International Card Establishment, Inc. (I.C.E.) (OTCBB: ICRD) today announced its third quarter and nine month results for the period ended September 30, 2009. For the quarter ended September 30, 2009, the company generated net revenue of $ 1,394,161, as compared to net revenues of $ 1,855,281 for the quarter ended September 30, 2008. For the quarter ended September 30, 2009, the company reported a net loss of $ (22,576) ($ 0.00 per share) versus a net loss of $ (17,437) ($ 0.00 per share) for the quarter ended September 30, 2008.

For the nine months ended September 30, 2009, the company reported net revenues of $ 4,320,450 versus $ 5,742,195 in net revenues for the comparable period a year ago. For the first nine months of 2009, the company reported a net loss of $ (286,255) of ($ 0.01 per share) versus net income of $ 32,279 ($ 0.00 per share) for the nine month period ended September 30, 2008.

"The economic environment took its toll on our top line in the third quarter and throughout 2009, as a sharp slowdown in consumer spending, especially associated with credit cards, tighter credit policies and outright store closings put a damper on revenues," said William Lopshire, CEO, I.C.E. "However, our new marketing model, LIFT, has taken advantage of this opportunity by introducing unique promotional strategies available to merchants through our LIFT Network that supplement or replace traditional advertising such as print and other media at a fraction of the cost. By bundling email, SMS Text messaging and traditional print advertising within our LIFT website portal merchants are able to truly capitalize on the customer data gained from use of our proprietary Gift and Loyalty programs. During the third quarter we believe many merchants turned the corner and became much more receptive to looking at cost effective methods to promote their business."

Mr. Lopshire added, "We have been transforming our business away from the commodity driven credit card processing business and into value added lines such as the enhanced marketing and promotional methods for merchants devised by LIFT Network and our Gift and Loyalty programs. Our shareholders should be aware that account growth in our business -- because of the manner in which it is accounted -- will actually produce paper losses as we are obligated to capitalize only a very low percentage of our account acquisition, even though they have historically demonstrated to have been considerably more durable than our amortization schedule. In other words, we tend to rapidly write off the costs associated with acquiring new accounts, even though historically they stay with us for far longer than the schedule to which we must adhere."

Mr. Lopshire went on to say, "This fact is evidenced in the third quarter by our overall Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) results, which was a positive $55,108 for the third quarter and a negative ($29,693) for the nine months ended September 30, 2009. We expect these trends to continue."

About I.C.E. (

I.C.E. is a provider of diversified products and services to the electronic transaction processing industry. I.C.E. establishes merchant accounts for businesses that enable them to accept credit cards, debit cards and other forms of electronic payments; supplies point-of-sale systems; facilitates processing; and markets a proprietary "Smart Card"-based system that enables merchants to offer store-branded gift and rewards cards.

Forward-Looking Statements

This press release may contain forward-looking statements that are subject to risks and uncertainties. Important factors which could cause actual results to differ materially from those in the forward-looking statements, include but are not limited to: the company's short operating history which makes it difficult to predict its future results of operations; the company's initial history of operating losses with possible future losses which could impede its ability to address the risks and difficulties encountered by companies in new and rapidly evolving markets; the company's future operating results could fluctuate which may cause volatility or a decline in the price of the company's stock; the possibility that the company may not be able to price its services above the overall cost causing its financial results to suffer; and other factors detailed in this press release and in future company filings with the Securities and Exchange Commission, at such time as the company is required to report its results of operations under the Securities Exchange Act of 1934, as amended.

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