SOURCE: Smart Card Marketing Systems Inc.

August 01, 2006 08:30 ET

Smart Card Marketing Systems Inc. Releases a Corporate Update

SAN ANTONIO, TX -- (MARKET WIRE) -- August 1, 2006 -- Smart Card Marketing Systems Inc. (PINKSHEETS: SMKG) (FRANKFURT: QYH), a leading provider of prepaid cards, value smart storage cards and payment transaction management services, released today a corporate update.

Smart Card has already captured a large portion of the prepaid card market in Quebec and other parts of Canada and they are now looking to further enter the US market with a larger base of merchant programs. The company has commenced discussions with three new clients to provide prepaid card solutions for the US market segment. Furthermore, Smart Card's pilot in the Florida State video lottery market has commenced in three locations and has been very well received by consumers. Smart Card can now concentrate on providing payment solutions for the over three hundred video lottery locations in the state of Florida.

Smart Card has also been working diligently to become a leading provider of loyalty programs in the optical industry in Ontario and Quebec. The company has started signing independent locations in these two provinces to become key presence sites for customers of the recently launched safety program for frames and lenses. It is important that Smart Card secure a wide variety of presence sites in order to receive corporate safety programs under the agreement in the two provinces.

Smart Card CEO, Massimo Barone stated, "Smart Card is building their client base to establish a strong long term commitment in different vertical markets with existing merchants and retailers to take advantage of momentum sales."

About Smart Card Marketing Systems, Inc.

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. Smart Card Marketing Systems Inc. seeks industry suppliers and creates channel partners to better the availability of API's (automated protocol interfaces) that respectively are only available to preferred corporations/clients and manages the required protocol in-place by the offering institution for the merchant.

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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