SOURCE: Smart Card Marketing Systems Inc.

June 14, 2006 07:30 ET

Smart Card Marketing Systems, Inc. Signs Letter of Intent to Acquire Fifty Percent of The Lens Factory Ltd

SAN ANTONIO, TX -- (MARKET WIRE) -- June 14, 2006 -- Smart Card Marketing Systems Inc. (PINKSHEETS: SMKG) (FWB: 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 also acquire fifty percent of The Lens Factory Ltd.

Massimo Barone, CEO of Smart Card, stated, "Smart Card is taking on a vested interest in the Optical market to grow with strong Interest The Lens Factory business into the North American e-commerce fulfillment market through cross border opportunities. By incorporating the Lens Factory product and service line we can offer an open interface for direct practice fulfillment."

The price of the acquisition is $270,000 USD for fifty percent of The Lens Factory Ltd at a share price of $.25 USD a share, for a total issuance of 1,080,000 class a shares. Additionally Smart Card retains the right to acquire the remaining fifty percent of the outstanding shares of The Lens Factory Ltd for 2 years.

The Lens Factory Ltd is a full-surfacing laboratory which manufactures and distributes ophthalmic lenses. The company, located in Toronto, also imports and distributes frames for everyday use and safety wear. Sales for year ending December 2005 were $1,042,133. First quarter results ending March 2006 were $249,701.

Leon Kurtz, President, has been in the laboratory and Optical retail business for thirty years. Mr. Kurtz stated, "Smart Card management team and expertise will assist the Lab in the cross border fulfillment industry and gain some important ground to compete against some of the largest."

About the

Statistics show that it is eight times more cost effective to sell to a current customer than it is to gain a new customer. The smart card loyalty program, Eye Savings Plus, leverages this fact by bringing special eyewear vendor offers to "cardholders" and a points program that rewards loyal buying behaviors. Smart card technology has allowed SMS to design a general promotional platform for all clinics using its web-based system and yet maintain the flexibility for a single office to add their own promotions to the program.

As a cardholder, the Eye Savings Plus club card comes loaded with specific promotions on eyewear purchases and a special "cash back" feature that accrues credit toward your next purchase from your eye doctor. You can log on to using your email address or smartcard number (your smartcard number is printed on the back of the card in the lower right-hand corner) as your username and the default password of password. In addition to seeing all the current promotions on the web site, you can also add family members, view your point total and look up the phone numbers and addresses of participating eyecare providers. When you first enter an office, present your Eye Savings Plus card. The staff person will put your card into the reader and print out all the benefits you are eligible for that day. As you select your eyewear, ask about using the offers on your printout. When you check out, present your card again. The staff member will enter the promotions you selected, enter your total dollars spent and your account will automatically be updated with your new award point total. You can use accumulated credits to help save on today's purchases. The Eye Savings Plus card is designed to help you and your family save money on your eyecare needs.

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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