SOURCE: International Card Establishment, Inc.

August 18, 2008 13:38 ET

International Card Establishment Reports Profitable Second Quarter Results

CAMARILLO, CA--(Marketwire - August 18, 2008) - International Card Establishment, Inc. (I.C.E.) (OTCBB: ICRD) today announced its second quarter 2008 results.

For the quarter ended June 30, 2008, the company generated net revenues of $1,946,234 as compared to net revenues of $2,253,386 for the quarter ended June 30, 2007. For the quarter ended June 30, 2008 and June 30, 2007, the company reported net income of $55,262 ($0.00 per share) and a net loss of $(295,221) ($0.01 loss per share), respectively.

For the six month period ended June 30, 2008, the company reported revenues of $3,886,913 and net income of $49,717 ($0.00 per share), as compared to revenues of $4,767,382 and a net loss of $(499,674) ($0.01 loss per share) for the comparable year ago period.

"Our strategic decision to institute tighter controls on merchant account acquisitions resulted in a return to profitability in the face of a difficult economic environment," said William Lopshire, CEO, I.C.E. "While this policy did result in revenue contraction, we remain focused on profitability and have pared general and administrative costs an additional $444,000 in the second quarter."

Mr. Lopshire added, "Now, that we have cut expenses as deeply as possible, we have formed the LIFT Networks division, based in Tampa, Florida, in a drive to accelerate revenue growth in our smart card and credit card processing businesses. LIFT Networks will expand on our current product lines by offering additional services to our stored value Gift and Loyalty products; such as, Shop & Dine Rewards, a unique multi-merchant community stored value cash/gift, loyalty and rewards card; stored value MasterCard with payroll rewards; and the introduction of a consumer credit card program -- LIFT Revolution. We believe that, given our current cost structure, any incremental revenue gains will have a strong positive effect on net income."

The LIFT Networks division focuses on the value-added services and products that I.C.E. can provide to merchants to allow them to promote their businesses and to access critical customer data and spending habits.

Mr. Lopshire stated, "Our LIFT Networks division has a suite of products and services that enable merchants to create unique marketing campaigns to attract new customers, reward loyal customers and most importantly, to monitor the actual results through our proprietary customer relationship and management ('CRM') software and databases."

Mr. Lopshire went on to say, "In the current economic environment we believe that are value-added services and products help distinguish us from our competitors, especially those focused on solely providing credit card processing services, which is increasingly becoming a commoditized business."

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 loyalty 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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