SOURCE: Smart Card Marketing Systems Inc.

October 26, 2006 10:30 ET

Smart Card Marketing Systems Inc. (PINKSHEETS: SMKG) Announces Corporate Update

SAN ANTONIO, TX -- (MARKET WIRE) -- October 26, 2006 -- Smart Card Marketing Systems Inc. (PINKSHEETS: SMKG) (FRANKFURT: QYH), leading provider of prepaid cards, value smart storage cards and Optical management services is pleased to announce today corporate update.

CEO of SmartCard Marketing is pleased to announce that the company will be publishing its financial reports in the next 30 days for the 2005 fiscal year and its interim statements to March of 2006, which will also be available on the company's website www.gosmartcard.com. Financial reporting regarding the subsidiary Lens Factory will have financial impact in the last quarter of 2006. Management of SMKG is presently reviewing Investor Relations firms and Investment Bankers to bring the firm visibility in the European marketplace in addition to open an office to cater to the Pre-paid demand and money remittance segment.

As stated by the company's President of Canadian operations Mr. Paul Continelli, we are presently recruiting Senior Account Executives to manage the influx of demand for our services and to properly source our efforts to manage currency fluctuations to increase margins. The service will also be made available through www.velocitymerchant.com to improve our merchants' needs.

Acquisitions Update

At present SMKG is continuing to move forward with 2 announced acquisitions, which will be completed in the next 30 to 50 days should there be no material change to the Letters of Intent for either parties effective since there initial announcement.

Forward-Looking Statements. This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements about the expected future prospects of our business and all other statements in this release other than historical facts, constitute forward-looking statements. You can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "would," "should," "seeks," "approximately," "intends," "plans," "estimates," or "anticipates" or similar expressions which concern our strategy, plans or intentions. All statements we make relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those we expected. We derive most of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. Some of the factors that we believe could affect our results include: general economic and market conditions, including the lingering effects of the economic slowdown and services revenue; the overall condition of the bank card industry, including the effect of any further consolidation among financial services firms; the regulatory, credit and market risks associated with our operations; the integration of acquired businesses, the performance of our businesses; the effect of war, terrorism or catastrophic events; the timing and magnitude of sales; the timing and scope of technological advances; the ability to retain and attract customers and key personnel; and the ability to obtain patent protection and avoid patent-related liabilities in the context of a rapidly developing legal framework for software and business-method patents. The factors described in this paragraph and other factors that may affect our business or future financial results and when applicable, will be discussed in our filings with the Securities and Exchange Commission. We assume no obligation to update any written or oral forward-looking statement made by us or on our behalf as a result of new information, future events or other factors.

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