Catuity Receives Important New Patent.

Business & Technology Editors

DETROIT--(BUSINESS WIRE)--Sept. 3, 2002

Catuity Inc. (NASDAQ: CTTY, ASX: CAT) announced today that it has been issued a patent for the operation of multi-application systems interactively across a range of acceptance terminals using a card.

The patent has been issued in Australia (No 746867) and applications are pending in most other major markets including the US and Europe. According to the company, this patent carries potential international significance as the growing area of loyalty and rewards programs being implemented by retailers and merchants begins to gain momentum.

This is Catuity's second successful multi-application system patent. Earlier this year Catuity received notice of acceptance for its first patent in the US, and that patent is expected to also be granted in Australia and other markets.

Essentially the new patent covers applications and programs operating between in-store POS devices, mobile devices, personal computers, kiosks, host systems and/or the internet using a single card or other consumer device.

"Interactivity across the sales channels is becoming an important feature of all marketing and sales campaigns and a consumer device such as a card that allows electronic capture of consumer identification numbers is a key element in these systems. Using one card or similar device for all sales channels is the logical solution and Catuity today is marketing the software package that will deliver this result," said Michael V. Howe, President and CEO of Catuity. "Our system is fully diversified, capturing data and awarding real-time loyalty rewards at the point of sale whether the card presented is a mag stripe or smart card. We believe Catuity has a unique opportunity to provide retailers the ability to install a loyalty system and transition it from mag stripe to smart cards using the same system."

"This new patent significantly adds to Catuity's intellectual property and will enable us and our partners to maintain our market leadership in the multi-program systems that all card issuers and retailers are now demanding," Howe noted.

About Catuity, Inc.

Catuity, Inc. is a leading provider of application software that allows merchants, transaction processors and payment card issuers to establish and administer customer incentive and loyalty programs integrated to the payment system at the point of sale. Catuity Loyalty Software can be used by a broad range of sellers of goods and services, particularly those who sell through both store locations and over the Internet. Catuity's software has been included on millions of credit, charge and debit cards, and works on magnetic stripe or chip or "smart" cards. With Catuity's loyalty solution, merchants can offer their customers valuable benefits, thereby attracting and retaining customers as well as encouraging increased purchases. More information is available at Catuity's website: http://www.catuity.com.

In conjunction with the provisions of the "Safe Harbor" section of the Private Securities Litigation Reform Act of 1995, this release may contain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations. All such forward-looking statements are necessarily only estimates of future results and there can be no assurance that actual results will not materially differ from expectations. Further information on potential factors that could affect Catuity, Inc. is included in the Company's Form 10-K, which is filed with the U.S. Securities & Exchange Commission.