SOURCE: International Card Establishment, Inc.

February 26, 2008 06:00 ET

International Card Establishment Corporate Update

CAMARILLO, CALIFORNIA--(Marketwire - February 26, 2008) - International Card Establishment (I.C.E.) (OTCBB: ICRD) today issued the following corporate update:

Over the course of the past year, we have been working diligently to form a number of strategic alliances and marketing initiatives to increase our revenues and profitability. The first such initiative was announced in September when we became a Preferred Partner of CPAmerica, one of the world's largest networks of independent CPA and consulting firms, and formed an alliance to cross-market our credit card processing and gift and loyalty programs.

In the fourth quarter 2007, we followed up on this sales and marketing initiative by entering into similar agreements with E-Chx, a leading payroll solutions provider and with National Association of Professional Allstate Agents (NAPAA), a 4,000 member association of insurance agents. We are happy to report that each of these partnerships has yielded new accounts for both our credit card processing and gift and loyalty business units. We expect that these alliances will continue to generate an increasing number of accounts to I.C.E. in 2008 and beyond

Another significant initiative occurred when we announced our strategic alliance with American Bancard, a merchant services provider that offers credit and debit/check card processing services and processing equipment to merchants. American Bancard has committed to promote I.C.E.'s proprietary "smart card"-based gift and loyalty program to its significant merchant base. American Bancard key sales agents have recently been trained in the use and marketing of I.C.E.'s gift and loyalty program and we expect to see the results of their marketing program as early as the second quarter of 2008. As part of this strategic alliance I.C.E has begun introducing American Bancard's cash advance program to our existing merchant base. I.C.E. sales representatives are also now able to offer an additional financial product to merchants looking for capital to expand their business.

Internally, we announced our Community Card Program in October 2008. The community card will enable local residents to earn rebates from participating merchants while also benefiting local school districts and charities. Participating merchants will rebate a percentage of each participating customer's purchase to the consumer.

We have hired a dedicated sales force to sign up local merchants in the Thousand Oaks, California area and intend to launch as soon as we have enough merchants on board to insure a strong consumer reception. While we had initially envisioned a launch for early 2008, we decided to handle all of the transaction processing internally reducing third party costs and requiring participating merchants to process their bankcard transactions with I.C.E. Accordingly, we hope to launch our Community Card program later this year. If successful in our test market of Thousand Oaks, we could readily expand the program to other adjoining markets rapidly.

I.C.E.'s intrinsic value is rooted in the market value of its merchant account portfolio. We have been successful at maintaining a steady number of high quality merchant accounts after we made the decision to not continue to carry high-risk accounts that carry substantial loss potential. In consultation with our auditors, we expect to write down the book value of this asset substantially in order to more accurately reflect the value in accordance with GAAP and the charge that we incur every time we lose an account to attrition. This adjustment to amortization in the fourth quarter will result in a significant non-cash loss for the period, but should reduce overall amortization expenses in future periods.

Our goal, since inception, has been to increase shareholder value by building a profitable merchant portfolio. We continue to strive to realize this goal, and intend that the initiatives that we have already undertaken, in combination with a host of others on which we are currently working will further this objective.

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.

Contact Information

  • Contact:

    International Card Establishment:
    Kinzie Visser
    866-423-2491 ext. 571
    Investor Relations Contact:
    PAN Consultants, Ltd.
    Philippe Niemetz