SOURCE: Schimatic Cash Transactions, Inc.

March 27, 2008 11:08 ET

SCTN Announces Significant and Substantial Progress in All Phases of Corporate Activity

LAS VEGAS, NV--(Marketwire - March 27, 2008) - Schimatic Cash Transactions Network, Inc. DBA Smart Chip Technologies, LLC (PINKSHEETS: SCTN), a leading incentives technology company, announced today that it has made significant and substantial progress in building a strong base for the growth of shareholder value. SCTN has made important advancement in the following areas:


SCTN has successfully filed up to year end 2006 with the SEC and looks to complete the filings for 2007 in the short term. Our goal is to move the company to the OTCBB this year.


Amongst other prospects, Phoenix has entered into Letters of Intent (LOIs) with two major US companies that are expected to evolve into contracts leading to pilots and potentially production rollouts in 2008. Phoenix is also in discussions with several other major US companies that may lead to contracts for deployment of our system. These opportunities are significant as both represent annual recurring revenues in the millions of dollars for SCTN.


SCTN'S cash flow requirements, excluding accrued interest and penalties, have been reduced to approximately $1M annually. SCTN is pursuing strategies to substantially further reduce these expenses in the future.


SCTN has completed providing audited statements to the IRS and completed filing corporate tax returns for the IRS to continue the offer in compromise process. As with all creditors, the Company is committed to a fair resolution with the IRS.


The Company continues to approach creditors whenever cash flow exists and settle past debts and obligations fairly. Whenever possible, SCTN has eliminated adding any further debt to the company.


SCTN is still involved with legal disputes with two former employees. The Company is also in litigation with TII, a former client. SCTN believes that none of these disputes is a serious threat to the company and believes the Company will prevail in all of the disputes.


Phoenix has continued to expand the product offering to maintain our status as the most advanced incentive system anywhere. What is most encouraging is that there is a shift in product enhancement to the development of connectors for specific client interfaces. The flexibility of the product configuration and interface customization is allowing Phoenix to start targeting pilot deployments within 60-90 days of contract signing.

Phoenix is targeting card associations, large banks, large retailers, advertising agencies and government projects as significant opportunities for revenue.

Phoenix is also in discussions with several complementary technology companies in order to bundle each other's products. The complementary technologies will further expand potential Phoenix/SCTN revenues by creating a larger market for the SCTN patent protected system. Phoenix is expected to announce a signing of one of these companies within the next two weeks that will achieved that expanded market distribution system and create increase revenue for SCTN.


The Company focus items continue to be (1) completion of filings (2) increase license, transaction and professional services revenue (3) resolving the IRS debt and (4) resolving legal disputes.

SCTN anticipates that this year will be a significant year for the Company in terms of revenues and profitability.

About Smart Chip Technologies (PINKSHEETS: SCTN)

Smart Chip Technologies' turnkey customer retention solutions, including Loyalty, Pre-Paid Stored Value, Punch Cards, and Gift Cards, enable issuers, acquirers, and merchants to take advantage of real-time programs using their cardholders' existing cards using bar codes, magnetic stripes, smart chips, RFID, Internet accounts, and other consumer electronic devices. The SCTN system is a scalable, high performance, end-to-end solution that uses an ASP model to customize the system's look and feel to reinforce customer branding. (

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