Canada Issues 'Gateway' Loyalty System Patent to Smart Chip Technologies.

Business Editors/High-Tech Writers

LAS VEGAS & OTTAWA--(BUSINESS WIRE)--June 15, 2004

Smart Chip Technologies (OTC: SCTN) is pleased to announce that the Canadian Intellectual Property Office has issued its patent 2182596, "Method and System for Allocating and Redeeming Incentive Credits between a Portable Device and a Base Device," which is an expanded version of the patents owned in the United States, Mexico, Australia and Japan.

The broad SCTN patents cover the business process of allocating, storing and redeeming any type of loyalty, rewards or incentives between devices such as smart cards, mobile phones, merchant point-of-sale terminals, ATMs, PCs, satellites or mainframe computers.

"Intellectual Property Attorney John Thompson has been working with the company for nearly a decade," stated Joseph Diamond, SCTN SVP of finance and administration. "We are delighted to have the broad, business process patent finally issued in the Canadian market which has higher adoption rates of smart cards and advanced chip technologies than the U.S. market, thereby strengthening our Canadian product offering and creating an additional revenue stream through patent licensing."

The patents are key to SCTN's end-to-end loyalty program management solution that is engineered for EMV (Europay, MasterCard, Visa), Global Platform and MULTOS compliance for electronic payment integration. As the loyalty system is compatible with bar code, magnetic-stripe, RFID and smart cards, it provides a smooth migration path for banks and financial institutions that must maintain popular cardholder rewards schemes during the upgrade to secure, EMV-compliant smart cards. The loyalty system can also be integrated with CRM systems, and add value to multi-application transit, gaming, entertainment, access and campus cards.

John R. Thompson of Stoel Rives' intellectual property practice group is SCTN counsel for patent filings in North America and the Asia Pacific regions, working with the Canadian intellectual property legal firm of Gowling Lafleur Henderson LLP.

"The patent not only adds value to our end-to-end loyalty solution," explained David Simon, chairman and chief product architect, "but licensing Smart Chip Technologies' patent will also provide protection for our Canadian customers from other industry patents."

About Stoel Rives 

Stoel Rives LLP is a business law firm providing counseling and litigation services throughout the western United States. The firm's 375 attorneys provide client-focused services to a wide range of clients from nine offices in five western states. Stoel Rives is regarded as a regional leader in energy, natural resources, environment, litigation, corporate and intellectual property law. (www.stoel.com)

About Smart Chip Technologies (OTC: SCTN)

Smart Chip Technologies' "gateway" patents, owned in the United States, Mexico, Australia, Japan and Canada, cover the business process of storing consumer incentives on a smart chip or device. The patent-protected turnkey loyalty system, co-developed with the Airos Group (www.airosgroup.com) and IBM, enables click-and-mortar, real-time rewards programs using any existing customer identification device as well as smart chip, magnetic-stripe, bar code or RFID cards, laptops, PDAs such as Palm(TM) or Windows(TM) devices, TV set top boxes or mobile phones, establishing business continuity across physical, mobile and virtual streams of commerce. (www.sctn.com)

For further information about Smart Chip Technologies, please call 702-837-3594 or write to [e-mail] or [e-mail].