SOURCE: Smart Card Marketing Systems Inc.

October 13, 2006 10:15 ET

Smart Card Marketing Systems Inc. (SMKG_OTC) Commences Deliveries of Prepaid Card Programs

SAN ANTONIO, TX -- (MARKET WIRE) -- October 13, 2006 -- Smart Card Marketing Systems Inc. of (PINKSHEETS: SMKG) (FRANKFURT: QYH), leading provider of prepaid cards, value smart storage cards and Optical management services, is pleased to announce delivery of 3 merchant programs for co-brand Prepaid Cards.

CEO of Smart Card Marketing Massimo Barone is pleased to announce that we have commenced delivery on 3 additional co-brand programs (12,000 cards) in our prepaid Card segment (W5star, L'exar Consulting, InstacashAtm) bringing the number of delivered merchants to 8 programs. The revenue from these card programs will have a more substantial impact on Smart Card's financial statements in the 1st qtr of 2007 and as card programs are in place and marketed.

Smart Card Marketing has established through 2006 a solid book of co-brand merchant programs (14) and direct Retail programs that will allow the company to continue to grow as a premium operator of card programs strengthening its position and platform in the industry domestically as well as internationally.

The Velocitymoney.com and Velocitymerchant.com platforms will have an important role in the success of the Prepaid Card programs as they are the initial activation, loading and reloading gateway for our merchants and their respective clients. The prepaid cards by industry standard will load 2 deposits monthly in average of $200.00 per load bringing the remittance portion of the business with 170,000 cards (active) in excess of $800,000,000.00 USD and 8 to 12 transactions monthly per card generating royalties from ongoing transactions.

It is industry standard that the Prepaid Cards can generate upto $70 USD yearly in ongoing commissions from transactions, Smart Card to date has contractually underwritten over 170,000 cards for delivery in 1st orders in North America. The primary market for Smart Card is the "Money remittance" segment to countries such as Mexico, Central America, Haiti, Israel, and Africa.

About www.Velocitymoney.com

Velocitymoney.com is Smart Cards proprietary platform and gateway for consumer servicing. Consumers can load funds, do card to card transfers to other card members, verify balances, and manage their personal profiles.

About www.Velocitymerchant.com

Velocitymerchant.com is Smart Card's merchant site for co-brand processing and fulfillment of prepaid cards and Smart Cards. The advantage for Merchants is the turnkey activation of cards by single entry or by batch as well as the load card function for activities such as payroll, commissions, gift cards, post-pay and much more.

Our ability to process funds domestically or Internationally and settle in 13 currencies establishes the Smart Card platform as 1st tier in addition with the capabilities of respecting the Patriot Act and International policies governing the Know Your Client regulations.

Forward-Looking Statements. This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements about the expected future prospects of our business and all other statements in this release other than historical facts, constitute forward-looking statements. You can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "would," "should," "seeks," "approximately," "intends," "plans," "estimates," or "anticipates" or similar expressions which concern our strategy, plans or intentions. All statements we make relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those we expected. We derive most of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. Some of the factors that we believe could affect our results include: general economic and market conditions, including the lingering effects of the economic slowdown and services revenue; the overall condition of the bank card industry, including the effect of any further consolidation among financial services firms; the regulatory, credit and market risks associated with our operations; the integration of acquired businesses, the performance of our businesses; the effect of war, terrorism or catastrophic events; the timing and magnitude of sales; the timing and scope of technological advances; the ability to retain and attract customers and key personnel; and the ability to obtain patent protection and avoid patent-related liabilities in the context of a rapidly developing legal framework for software and business-method patents. The factors described in this paragraph and other factors that may affect our business or future financial results and when applicable, will be discussed in our filings with the Securities and Exchange Commission. We assume no obligation to update any written or oral forward-looking statement made by us or on our behalf as a result of new information, future events or other factors.

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