SOURCE: Catuity Inc.

January 30, 2007 16:11 ET

Catuity Names McStay New Australian CEO

Company Well Positioned as Gift Card Adoption Takes Off

CHARLOTTESVILLE, VA and MELBOURNE, AUSTRALIA -- (MARKET WIRE) -- January 30, 2007 -- Catuity Inc. (NASDAQ: CTTY) (ASX: CAT) (ASX: CATN), a loyalty and gift card processor, today named Graham McStay as the new CEO of its Australian division, Loyalty Magic.

McStay, who joined the company in 2005 prior to Catuity's acquisition of Melbourne-based Loyalty Magic, has been the director of operations and the No. 2 executive behind departing chief Chris Leach. The transition has been planned since last year after Leach decided he would leave to rejoin his family's business in Sydney.

"Graham McStay is the right man to run Loyalty Magic today,'' said John Racine, president and CEO of Catuity. "He has integrity in the way he manages the complex and confidential affairs of our retailers; he has a focused vision for our company to be a leader in the emerging stored value market in Australia and he has a contagious passion for winning."

McStay, 40, today officially assumes the title of Managing Director, though he has been running the day-to-day operations full-time since Jan. 2 along side of Chris and has been the second-in-command under Chris Leach for the past year.

"Graham has instilled a strong ethic of customer service that is necessary to keep the top retailing accounts that we have and to win new business,'' said Leach. "He has played an important role in the past year in major initiatives including the redesign of our gaming industry software; the expansion of our integration to leading bank processors and our strategy to integrate to more points of sale. All of these things multiply our opportunities heading into 2007."

Leach, who joined Loyalty Magic in 2001, led the successful turnaround of the company and went on to guide the company through a period of growth as the firm rolled out loyalty programs for top brands including Amcal, Jigsaw, Jamaica Blue and Sky City Limited.

"Like all good leaders, Chris has built a solid team and left Loyalty Magic better than he found it," said Racine. "We wish Chris and his family continued success in their business ventures."

McStay has diverse experience at leading Australian companies in sales and client management. Most notably, he worked in the fuel card division of Retail Decisions, the largest stored value provider in the Australian market.

"Our investment in our people and our product has positioned Loyalty Magic to capitalize on the growth of the gift card business in the Australian market,'' said McStay. "Our strategic investment in an easy to use technology will benefit our existing clients, new prospects we are targeting and, importantly, the growing network of banks that use our gift card application on their EFTPOS terminals."

Catuity believes that it is well positioned to capitalize on gift cards in the Australian market. In the past two years, gift cards have gone from an emerging opportunity to a must-have product for Australian retailers.

"Today, Australia is where the U.S. market was 5-7 years ago. Early adopters have been successful and now the rest of the market is looking for a solution,'' said Racine. "We have seen other American companies pushing to enter the market this year and we have a head start with our established relationships and local presence."

About Catuity Inc.

Catuity Inc. makes the point of sale more profitable for its customers by delivering products and services which reduce costs and generate new revenues. Our retailer clients have more than four million cardholders participating in Catuity-powered loyalty and gift card programs. For more information on Catuity, please visit our website at

This letter includes "forward-looking" statements within the meaning of the Private Securities Litigation Act of 1995. This Act provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information so long as they identify these statements as forward-looking and provide meaningful cautionary statements identifying important factors that could cause actual results to differ from the expected results. All statements other than statements of historical fact made in this letter are forward looking. In some cases, they can be identified by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," or "continue," the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. In evaluating these statements, you should consider various factors that may cause actual results to differ materially from any forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee our future results, levels of activity, performance or achievement. Moreover, neither we nor any other person assumes liability for the accuracy and completeness of the forward-looking statements. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: changes in currency exchange rates from period to period, inflation rates in the United States and Australia, recession, and other external economic factors over which the Company has no control; the timing and speed with which our major customers and prospects execute their plans for the use of our loyalty software and services; continued development of the Company's software products; competitive product and pricing pressures; use of internally developed software applications; patent and other litigation risks; the risk of key staff leaving the Company; the risk that major customers of the Company's products and services reduce their requirements or terminate their arrangements with the Company; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information