SOURCE: Smart Card Marketing Systems Inc.

June 13, 2006 09:00 ET

Smart Card Marketing Systems, Inc. Signs Letter of Intent to Acquire Fifty Percent of Consolidated Ophthalmic Purchasing Services Ltd.

SAN ANTONIO, TX -- (MARKET WIRE) -- June 13, 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, announced today that they have signed a letter of intent to acquire fifty percent of Consolidated Ophthalmic Purchasing Services, Ltd. (C.O.P.S.).

C.O.P.S. is a management firm that offers a range of practice management and technology consulting services to Canadian Optometrists. Their main focus is to make available, through ophthalmic suppliers to member Optometrists, the broadest range of ophthalmic products and services for professional patient care at the lowest possible cost.

Massimo Barone, CEO of Smart Card stated, "Smart Card is well positioned to aggressively grow the C.O.P.S business into the North American marketplace. By utilizing the GoSmartCard platform, we will be able to grow the C.O.P.S. membership base, which will increase profit margins for both companies."

C.O.P.S. generated sales in 2005 of $6,102,279.00 CAD, and they have already had first half sales this year of $2,893,667.00 CAD. Smart Card will purchase the initial fifty percent of C.O.P.S. by issuing 1,600,000 shares of the company's stock at a price of $0.25 USD per common share, with the proceeds totalling $560,000.00 USD. They will also retain the right to purchase the remaining fifty percent of C.O.P.S. within the two-year period following the closing date of the initial transaction.

Gary Bevan, President and CEO of C.O.P.S. stated, "Smart Card has a vast knowledge of the ophthalmic sector and therefore they are the logical choice to assist us with growing our business and creating awareness for our services outside the Canadian marketplace."

About Consolidated Ophthalmic Purchasing Services, Ltd.

C.O.P.S. is a purchasing group for Optometrists, Opticians and Ophthalmologists with over eighty member participants. It is celebrating its twentieth year of operations in Canada, with offices in Brampton, Ontario and the President and CEO is Gary Bevan, who has over twenty seven years of experience in the medical field. With its proprietary software, C.O.P.S. provides customers with one combined billing statement from all suppliers, breaking down purchases by category. This provides an easy, cost effective accounting records solution for each individual customer. For more information, please visit the C.O.P.S. website at

About Smart Card Marketing Systems, Inc.

Smart Card Marketing Systems, Inc. was established in 2003 and is a leading provider of prepaid cards, value smart storage cards, loyalty programs and payment processing services. Smart Card offers a powerful sales organization and merchant reseller marketing program that incorporates cutting edge technology and delivers a viable cost-effective solution. Smart Card is looking to revolutionize the prepaid and loyalty card market by presenting their proprietary solution offering, the GoSmartCard platform.

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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