SOURCE: International Card Establishment, Inc.

November 16, 2007 09:22 ET

International Card Establishment Reports Third Quarter, Nine-Month Results

CAMARILLO, CA--(Marketwire - November 16, 2007) - International Card Establishment, Inc. (I.C.E.) (OTCBB: ICRD) today announced its third quarter and nine month results for the period ended September 30, 2007. For the quarter ended September 30, 2007, the company generated net revenue of $2,162,336 as compared to net revenues of $2,827,008 for the quarter ended September 30, 2006. For the quarter ended September 30, 2007, the company reported a net loss of ($623,317) ($0.02 per share) versus net income of $29,278 ($0.00 per share) for the quarter ended September 30, 2006. The company had positive EBITDAS (Earnings Before Interest, Taxes, Depreciation, Amortization, and Share-based Compensation Expense) of $142,959 for the quarter ended September 30, 2007.

For the nine months ended September 30, 2007, the company reported net revenues of $ 6,929,718 versus $7,683,082 in net revenues for the comparable period a year ago. For the first nine months of 2007, the company reported a loss of ($1,122,991) ($0.03 per share) versus a loss of ($3,584,188) ($0.12 per share) for the nine month period ended September 30, 2006. The company had positive EBITDAS for the nine months ended September 30, 2007 of $1,140,995.

Net revenues fell by 10% from $7,683,082 for the nine months ended September 30, 2006 to $6,929,718 compared to the nine months ended September 30, 2007 primarily because of tighter controls on new accounts, elimination of high risk accounts, and attrition of the Merchant portfolio. There was a corresponding $728,717 decrease in the cost of revenues from $5,243,888 for the nine months ended September 30, 2006 to $4,515,171 for the nine months ended September 30, 2007.

Operating, general, and administrative costs decreased by $1,974,978 from $5,406,793 for the nine months ended September 30, 2006 to $3,431,815 during the nine months ended September 30, 2007 primarily because of cost reductions of $500,778 in payroll expenses, $800,816 in compensation expense for stock option awards, $368,277 in bad debts expense, $118,830 in consulting fees, and $218,632 in office expenses relating to the consolidation of operations from the Irvine, California office to corporate headquarters in Camarillo, California.

"Our business model for bank card operations is predicated on attracting and retaining high-quality, low-risk merchant accounts," said William Lopshire, CEO, I.C.E. "We will not chase high-risk merchants and have tightened our underwriting criteria resulting in lower revenues than in the historical period. However, we are comfortable in the knowledge that we have a quality merchant portfolio for bank card processing that is less prone to generate write-offs in future periods."

Mr. Lopshire went on to add, "The continued development of our Gift and Loyalty operations together with recent strategic initiatives that we have entered into with the National Association of Professional Allstate Agents NAPAA, e-Chx and CPAmerica, and the planned launch of our Community Card program are the means by which we expect to grow revenues and attain sustainable profitability in 2008. "

About I.C.E. (http://www.cardnetone.com)

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 rewards 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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