SelectCore Ltd.
TSX VENTURE : SCG

SelectCore Ltd.

May 05, 2011 07:49 ET

SelectCore to Launch Iridium MasterCard in United States

TORONTO, ONTARIO--(Marketwire - May 5, 2011) - SelectCore Ltd. (TSX VENTURE:SCG), a provider of prepaid telecom and financial solutions for the credit challenged and unbanked consumer market is pleased to announce that it has received approval for its Iridium brand from the United States Patent and Trademark Office.

Mirroring its proven business model in Canada, SelectCore now plans to launch Iridium MasterCard in the United States with an initial roll-out by the third quarter through the Company's top 2,000 existing retail locations.

Unlike Green Dot (NYSE:GDOT) and NetSpend (NASDAQ:NTSP) who successfully focus on large corporate retail distribution, SelectCore is uniquely positioned to capitalize on the untapped independent retail channel by leveraging its proprietary point-of-sale technology and considerable experience.

According to NACS (the National Association of Convenience Stores), there are over 146,000 convenience stores across the United States of which 62.7% are dominated by single-owner / operators. This, in management's opinion, represents a significant opportunity for the Company to continue growing its US retail network.

A great deal of SelectCore's success to date has been a result of its retail partners' ability to connect with consumers of the same ethnic background and language. "Our typical locations are located in areas where the highest concentration of underbanked consumers shop" explained Keith McKenzie, CEO of SelectCore, "This provides SelectCore with direct access to a captive audience."

Iridium will be the first of its kind prepaid card that is issued in both Canada and the United States. Iridium MasterCard is accepted at millions of locations worldwide from retail stores to online, mail, and phone orders. Card features include online account access, text message and email alerts, bill pay, money transfers, ATM cash access and more. No credit check or bank account is required and cards can be reloaded over and over again with up to a $5,000 balance.

According to a recent article on Forbes.com and the most recent FDIC national survey, 25% of households in the United States are unbanked or underbanked, representing over 60 million adults. In 2010, value-loads on open-loop prepaid cards alone totaled $165 billion and is expected to grow to $400 billion by 2013.

"Iridium provides unbanked consumers with financial empowerment in a society that is quickly shifting to electronic forms of payment" commented Ryan Deslippe, President of SelectCore, "Expansion into the US is a natural progression for us, especially with our already established retail network"

About SelectCore

SelectCore is a leading provider of transaction processing and point-of-sale solutions for the prepaid telecom market and financial services sector. From prepaid mobile top-up to stored-value cards, SelectCore services a market of nearly 80 million underbanked and credit-challenged consumers through its extensive retail distribution network across Canada and the United States. SelectCore is listed on the TSX Venture Exchange under the symbol "SCG" (TSX VENTURE:SCG). SelectCore was ranked by Profit100 Magazine as one of Canada's fastest growing companies in 2006, 2007 and 2009 and is a candidate again for 2010.

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the Company's debt financing arrangements with Windsor Bancorp Limited Partnership and Digital Telecom Inc. and the Company's future plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks related to market and financing conditions as well as risks associated with the prepaid telecom, prepaid financial and transaction-based point of sale activation industries, changes in project parameters as plans continue to be refined as well as those risk factors discussed in the Company's management's discussion and analysis for the period ended September 30, 2010, available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information contained herein, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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