SOURCE: Smart Card Marketing Systems Inc.

October 10, 2006 13:30 ET

Smart Card Marketing Systems Inc. (PINKSHEETS: SMKG) Completes Acquisition of The Lens Factory Ltd

SAN ANTONIO, TX -- (MARKET WIRE) -- October 10, 2006 -- Smart Card Marketing Systems Inc. (PINKSHEETS: SMKG) (FRANKFURT: QYH), leading provider of prepaid cards, value smart storage cards and Optical management services, completes The Lens Factory Ltd acquisition of Ontario.

CEO of Smart Card Marketing Massimo Barone is pleased to announce that we have officially completed the first of 2 acquisitions in the Optical industry in the Province of Ontario, the 1st being The Lens Factory Ltd owned by its President Mr. Leon Kurtz, an Optical services Laboratory.

Management of Smart Card Marketing is very pleased to move forward and commence implementing its EyeCare loyalty management program and to create an independent offering with the cooperation of the existing member clinics in Canada and the USA. The Lens Factory operations will serve as a great base for operations in Ontario and permit a fulfillment centre point, which will allow Smart Card Marketing to develop an immediate base with multiple office presents for training and implementation specifically in a larger scale capacity.

The Lens Factory Ltd combined with the Gosmartcard platform will become the fabric of the companies Optical segment. Because of the initial customer base of the Lab in Canada it will serve to establish a servicing centre for clients of which have signed up with Smart Card Marketing to become a 1st tier servicing centre for Employee, Union and Cooperatives such as associations and Affinity groups.

Furthermore, we will continue to pursue possible acquisitions and alliances of small to medium sized companies in the Optical sector to create a consolidated base of services for the Independent clinics, vastly improving quality, efficiency and fulfillment with industry competitive pricing of that of the major Conglomerates.

President of US operations Mr. Baillio has stated that the acquisition will bring to Smart Card a direct relationship and added benefit to the launch of the Smart Card program, which is underway and to be operational in Canada for the 1st week of November of 2006.

About Us

Smart Card Marketing Systems Inc. has taken a mainstream position in the smart and prepaid charge card market to develop, integrate and to jointly deploy turnkey co-branded solutions for loyalty and payment management transactions.

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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