SOURCE: Smart Card Marketing Systems Inc.

May 10, 2006 16:13 ET

Smart Card Marketing Systems Inc. Signs Agreement With Video Super Choix

MONTREAL -- (MARKET WIRE) -- May 10, 2006 -- Smart Card Marketing Systems Inc. (OTC: SMKG), a leading provider of prepaid cards, value smart storage cards and payment transaction management services, announced today that they have signed an agreement with Video Super Choix of Quebec, a dominant franchise in the Quebec market with over thirty seven locations. Video Super Choix will retail the prepaid Canadian MasterCard® and additionally will become a prepaid card activation and reloading centre.

VP of Video Super Choix, Sylvia Ponari, stated, "We are very pleased with the agreement and we anticipate that the volume of the franchised locations can give great exposure to the prepaid product line-up offered by Smart Card Marketing Systems Inc." It is estimated that the store locations have from 1500 to 2500 walk in clients weekly and both companies believe that the customers will be a captive audience to promotional product offerings.

Both Smart Card Marketing and Video Super Choix have agreed to a joint marketing plan specifically targeting the retail customers of the franchise, in order to improve customer acquisition of the prepaid cards and services.

Smart Card also announced today that the company has signed a deal with a leader in the bill pay market in the United States. This lucrative agreement will be very beneficial to consumers and merchants of the prepaid charge cards marketed through the velocitymerchant.com platform. In addition to the Canadian marketplace, this agreement brings the total of bill payers in North America accessible through velocitymerchant.com to over seven thousand. This also means that Smart Card can now provide four thousand independent locations for loading and reloading of prepaid card services.

About Video Super Choix

Video Super Choix is a Quebec-based family owned video rental chain. It has been in business for over twenty years and presently operates thirty-five corporate locations and eight franchised stores.

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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