SOURCE: Catuity Inc.

June 26, 2006 09:45 ET

Catuity Signs Equity Commerce as Reseller

Merchants Have Eight Turnkey Options to Drive Customer Loyalty

DETROIT, MI and HAGERSTOWN, MD -- (MARKET WIRE) -- June 26, 2006 -- Catuity Inc. (NASDAQ: CTTY) (ASX: CAT) (ASX: CATN), a loyalty and gift card processor, today announced that it has signed a three-year re-seller agreement with Equity Commerce L.P. to provide terminal-based programs to the company's growing national network of sales agents.

Under the deal, Catuity will support loyalty and gift card programs on the Lipman 8320 and Hypercom T-4100 terminals and provide a full-range of support services including program set-up, card design and production, Point Of Purchase merchandise fulfillment, billing and residual management services.

"In the two years since its founding, Equity Commerce, L.P. has been rewriting the rules on how merchants and small retailers are served by focusing on the long-term value of the relationships they have with both the store owners and the sales agents who are at the frontline of a brutally competitive business," said John Racine, President & CEO of Catuity Inc. "The management team are industry veterans who recognize that loyalty and gift card will be the pivotal factor in winning new accounts."

The re-seller relationship is an expansion of a relationship that began last year. Equity Commerce, L.P. had originally planned to only deploy Catuity's solution on a single terminal family, but under the new agreement, it has agreed to deploy the loyalty and gift card application on every qualified terminal supported by Catuity. In addition, Catuity has agreed to be a re-seller of credit and debit card processing services from Equity Commerce, L.P.

"Now our relationship has come full circle as both companies are supporting one another's core capability," said Jerry Julien, Executive Vice President of Business Development for Equity Commerce, L.P. "There are so many options for merchants and for processors like us, but Catuity stands out because they have the broadest range of loyalty and gift card programs that we've seen in the market. We think that choice and a flexible solution will win more accounts for our agents."

"We are focused on preparing our large sales force to sell the bottom-line impact of loyalty and gift card to merchants as the all-important fall buying season begins," said Mr. Julien. "Beginning in August, merchants are thinking ahead to how to get the most out of the holiday shopping season. We'll be showing them how gift card, for instance, is the No.1 gift in America and how our product grows their business."

While Catuity's direct sales efforts are targeted at mid-sized chain retailers, Equity Commerce, L.P. has quickly built a large base of merchants by understanding the needs of Main Street merchants and smaller chains and by offering them a mix of transaction processing, technology and funding products that help them make their business more profitable.

"Like Catuity, we make money when we help our merchants run their businesses more profitability," said Mr. Julien. "For a significant number, loyalty and gift card will grow their sales, cut the cost compared to paper- based programs and help them win more walletshare from existing customers. For our sales agents, this is a powerful tool to help them close more deals and reduce the attrition of their merchant base."

About Equity Commerce L.P.

Equity Commerce, L.P. is a payment solutions company designed specifically to give businesses the tools they need to achieve their goals and build equity in their businesses. Through competitive pricing, premium services, flexibility and state-of-the-art technology, Equity Commerce, L.P. delivers big business benefits to small business clients. Based in Hagerstown, MD, Equity Commerce, L.P. provides a local presence in 30 offices throughout the country. Equity Commerce, L.P. is committed to providing merchants, ISO's and agents with a full spectrum of payment processing solutions from web-based management to Merchant Cash Advances. To learn more about how Equity Commerce, L.P. can grow your business, become an agent or referral partner visit www.equitycommerce.com and www.equitymerchantfunding.com. Equity Commerce, LP is a registered MSP with Bank of America, N.A., of Charlotte, N.C.

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 www.catuity.com.

This press release includes statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding market share growth, market acceptance of services, sales, revenues and profits. These forward-looking statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, factors that could cause actual results to differ materially from those in forward-looking statements include the ability to win new customers and new businesses; industry, competitive and technological changes; the loss of, and failure to replace any significant customers; market acceptance of new services; the performance of suppliers and subcontractors; risks associated with international operations and foreign currency fluctuations; the state of the U.S. and global economies in general and other risks detailed in our filings with the Securities and Exchange Commission, including the Company's most recent 10-KSB and subsequent 10-QSBs. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements.

Contact Information

  • Contact:
    Jack Lowry
    CFO
    Catuity Inc.
    734-779-9000 ext. 202
    Email Contact

    Jerry Julien
    EVP Business Development
    Equity Commerce L.P.
    866.790.3995 X203
    Email Contact