SOURCE: SmartCard Marketing Systems Inc.

February 09, 2007 07:35 ET

SmartCard Marketing Systems Inc. (SMKG_Pink) Signs Revolutionary Processing Agreement With The Home ATM Inc.

SAN ANTONIO, TX -- (MARKET WIRE) -- February 9, 2007 -- SmartCard Marketing Systems Inc. of San Antonio, TX (PINKSHEETS: SMKG) (FRANKFURT: QYH), a leading provider of prepaid cards, value smart storage cards and Optical management services, is pleased to announce a service and distribution agreement with The Home ATM Inc. to revolutionize the payment service industry over the Internet.

Stated by CEO Massimo Barone, the agreement between SmartCard and CEO Mitch Kobrin of The Home ATM Inc. ( will revolutionize the self fund marketplace for consumers and merchants in the E-wallet Industry and for online merchants that require constant exchange of funds between consumers, an already Multi-Billion dollar industry on the Internet Worldwide.

In the agreement, will benefit from becoming the first online E-wallet (virtual process service provider) with prepaid cards to have a Home ATM unit that will allow merchants and consumers to fund their accounts and Pre-paid cards from the privilege and convenience of their home or business. The device once installed permits transfers directly from their existing bank debit card or Credit card domestically or Internationally to the merchants settlement account from a single swipe (a USB Mag stripe and Pin Pad device for your home PC). This will have an enormous impact on how funds are transmitted between parties, also creating a secure and cost-effective gateway for processing of funds worldwide in US currency with the True Card being present for the transaction, unlike existing methods where cards are not present and merchants are at risk.

In addition, the service will be able to allow business merchants in Emerging Markets and Developing Countries the same privilege to use the device at a fraction of the cost of existing bank offerings locally and to improve on services to the Tourism and business market segments, where presently not existent.

The agreement as signed by both parties stipulates that SmartCard will issue 1 million common shares for exclusivity of an existing client list as well as for the Caribbean Islands and Haiti. Furthermore, SmartCard will also have the exclusivity of 3 months from launch for the online E-wallet segment Internationally with prepaid card services such as MasterCard® and VISA™. This will allow to benefit from a Multi-Billion dollar market segment and to immediately penetrate the financial sector while creating a footprint in these markets as a leader and turnkey provider.

About The Home ATM Inc.

Home ATM Inc. owns the worldwide patent for Secure PIN Debit and PIN credit over the Internet. PIN Debit and credit with the Home ATM Inc. offers merchants and consumers the safest and fastest means to transfer money and pay for merchandise and services on the web. Headquartered in Montreal, Canada, the company was formed by a group of senior payment industry experts and Internet entrepreneurs. The founders have 40+ years' experience successfully introducing new products and services to the payment industry. Their experience includes sales, marketing, product development, finance, operations, and leadership.

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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