Catuity Receives Nasdaq De-List Notification, Will Appeal As Reverse Stock Split Takes Effect Nov. 12.

DETROIT & SYDNEY, Australia -- Catuity, Inc. (Nasdaq:CTTY) (ASX:CAT), a provider of POS-focused solutions, including loyalty, said that on November 4, 2004 it received written notification of intent to de-list the company from the Nasdaq small cap market pursuant to Nasdaq Marketplace Rule 4310(c)(8)(D).

On Monday, November 1, 2004, the Company advised shareholders and investors that the notification was expected by November 4 and that it would appeal within the one-week time frame allowed under Nasdaq regulations. The Company is currently in the process of filing its appeal. On November 1, 2004, the Company received shareholder approval to effect a reverse stock split at a time to be determined by Catuity's Board of Directors. On the same day the Board authorized a 1 for 15 reverse stock split effective November 12, 2004, the earliest date possible to do so. The reverse split action, overwhelmingly supported by Catuity's shareholders, is intended to raise the company's share price above $1, as required to regain compliance with Nadaq's continuous listing requirements.

"In informal discussions on Oct. 29, Nasdaq expressed that they had no latitude under the rules to avoid sending the delisting letter on November 4," said John Racine, President and CEO of Catuity Inc. "As a result, we will follow the normal process under Nasdaq's rules and request a hearing to appeal the notice."

Based on discussions with Nasdaq, an appeal hearing will likely be held within approximately 45 days from the date that Catuity files its appeal request. In the meantime, Catuity's post-reverse shares will begin trading on November 12, 2004, on both Nasdaq and the ASX, in time for the Company's shares to have traded for 10 consecutive trading days above $1.00 by the end of November.

"At that point we believe Nasdaq will determine that we have achieved full compliance and Catuity will receive a letter from Nasdaq stating that," said Mr. Racine. "We are optimistic that an appeal hearing will not need to be held. Technically, Nasdaq could still de-list the company, but, in consulting with our advisers, we believe that is unlikely to occur."

Catuity, Inc. makes the point of sale more profitable for its clients by delivering products and services that reduce costs and generate new revenue. More information on Catuity is available at its website: http://www.catuity.com.

In conjunction with the provisions of the "Safe Harbor" section to 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 US Securities & Exchange Commission.