Catuity, Inc. Begins Trading On Nasdaq Small Cap Market December 1, 2000 Under Symbol: CTTY.

Business Editors

DETROIT--(BUSINESS WIRE)--Nov. 29, 2000

Catuity, Inc., a unique provider of loyalty software solutions for retailers and card issuers, will begin trading on the NASDAQ Small Cap Market on Friday, December 1, 2000 under the ticker symbol: CTTY.

Mike Howe, President and CEO, commented, "Listing on NASDAQ is the final step in the transformation of Catuity to a U.S. company. The way is now clear for us to aggressively pursue the North American market. We continue to believe that our business success in North America will provide the foundation for Catuity to become the market leader in the rapidly developing loyalty software market."

In addition, Catuity recently concluded arrangements for the placement of 710,000 shares of common stock (representing 9.9% of the issued capital) to institutional investors at an issue price of $9.47 ($18.00 AUS) per share to raise $6,400,000 ($12,780,000 AUS). The placement arrangements were concluded on November 20, 2000 following an approach to the Company by BNP Paribas, acting on behalf of several accredited institutional investors, who had expressed an interest in Catuity stock.

The price of the issue was based on the average closing price for Catuity shares on the Australian Stock Exchange for the last calendar month. Following completion of the placement, the Company has on issue 7,865,619 shares of common stock. Catuity will be a dual listed stock traded on the NASDAQ Small Cap Market under the ticker symbol: CTTY and on the Australian Stock Exchange under the symbol: CAT.

Howe said, "While the company had sufficient cash resources to implement its business plan and to achieve positive cash flows late in 2001, we have been considering how we could accelerate our growth and exploit the market opportunities that have recently become available to us. This funding will allow us to increase our marketing resources, while at the same time increase the number of institutional investors in the Company."

"Catuity is a growing company and we are moving to take advantage of our strategic position, to boost our marketing resources and to support our partners. We have a growth strategy that we are implementing and we are very pleased to have such strong institutional investor support for the Company in the face of the recent market volatility in listed technology companies."

The placement funds will primarily be used to support an accelerated marketing program for the Catuity loyalty software, which is rapidly gaining acceptance in the U.S. market. In September of this year, Catuity announced its selection as the only loyalty solution provider in the Visa U.S.A.'s smartVisa program and a key partner in the smartVisa technology team. Catuity has established marketing arrangements with VeriFone, the world's largest secure payment terminal supplier, and Gemplus, the world's largest smart card supplier.

About Catuity

Catuity, Inc. is a provider of loyalty software solutions that allow retailers to establish and administer customer incentive and loyalty programs. The Catuity System functions in both the Internet (e-commerce) and the in-store (point of sale) environments.

The Company has its headquarters in Detroit, Michigan, U.S.A. and offices in Philadelphia, Pennsylvania, Arlington, Virginia and Sydney, Australia.