CardXX Announces Sampling Program for Contactless RFID Key Fobs for Point of Sale Transaction Market.

ENGLEWOOD, Colo. -- CardXX, Inc. (Pink Sheets: CXCQ) a leading smartcard manufacturer, today announced that the Company has begun its sampling program of contactless RFID Key Fobs for the retail point of sale (POS) transaction market. CardXX is working with a number of platform solutions providers to produce unique, branded and distinctive Key Fobs in various form factors to be used in branded loyalty and prepaid programs. The Key Fobs are uniquely designed to provide branded "key chain shelf space" along with contactless functionality. Many retail card issuers are moving toward securing shelf space on a key chain with a Key Fob as a means of branding their loyalty and gift programs and moving away from fighting for traditional wallet share. CardXX recently exhibited its Fobs with a POS solutions provider at the National Retail Federation Annual Convention and Expo.

Recent market trials by MasterCard, Visa and American Express have shown wide consumer acceptance of Key Fobs as payment devices for time sensitive purchases. These pilots use radio frequency (RF) communication between a contactless Key Fob device and a point-of-sale (POS) terminal to transmit consumer payment information. The speed, convenience, and control of contactless payment transactions result in consumers favoring the contactless payment device and merchants accepting contactless transactions. Other contactless payment initiatives (for example, ExxonMobil Speedpass) have reported similar positive consumer reactions. For retailers, results have shown an increase in both the number of transactions and dollars spent. Key Fobs as payment devices provide consumers with a convenient, secure and fast payment experience and also benefits retailers through increased revenue and cost savings. The value proposition for contactless payments increases as payment devices take on various shapes and sizes in multiple markets and product lines. Market researchers expect a battle to develop among issuers as they try to be the first to place their Fobs on customer key chains as it becomes central to client acquisition strategies for retailers. Some national retailers have signed on. McDonald's plans to roll out MasterCard PayPass throughout North America this year, while pharmacy giant CVS plans to offer American Express' ExpressPay system in most of its retail stores.

CardXX is in the business of manufacturing and licensing secure and intelligent Smart Cards using its proprietary, patented low-temperature low-pressure encapsulation process known as the Reaction Assisted Molded Process (RAMP). RAMP is used to securely integrate a RFID chip, an integrated circuit, and other electronic components including batteries into a small form factor Smart Card, Key Fob or Smart Tag. The process can also be used to produce MMC and SD cards. "As a result of the progress that has been made over the last six months, we are now in a position to begin producing batch quantity Key Fob orders for customers, extending into large scale production and licensing partnerships," commented Phil Worack, CardXX's Chairman.

ABOUT CARDXX

CardXX provides secure encapsulation of advanced electronics through manufacturing and licensing secure and intelligent Smart Cards using its proprietary, patented encapsulation process known as the Reaction Assisted Molded Process (RAMP). The Company's website is www.cardxx.com.

The Statements contained in this release that are not purely historical are forward-looking statements within the Private Securities Litigation Reform Act of 1995 and are subject to various risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. Forward looking statements include, but are not limited to, those relating to demand for the Company's services, expected demand for our services and expectations regarding our revenues, the Company's ability to continue to utilize goodwill, to continue to increase gross margins, to achieve and manage growth, to develop and market new applications and services, risks relating to the acquisition and integration of acquired businesses, demand for new services and applications, timing of demand for services, industry strength and competition and general economic factors. Investors are directed to consider such risks, uncertainties and other factors described in documents filed by the Company with the Securities and Exchange Commission.