Catuity Regains Full Compliance With Nasdaq Requirements.

DETROIT -- Catuity, Inc. (NASDAQ:CTTY)(ASX:CAT), a provider of POS-focused solutions, including loyalty, advised that on December 2, 2004, the Company received notice from the Nasdaq Stock Market that Catuity has been deemed to be in full compliance with all of Nasdaq's on-going listing requirements. As a result, the appeal hearing Catuity requested and was scheduled to be held on December 9, 2004, has been deemed moot by Nasdaq and will not need to be held.

As Catuity has disclosed in previous filings and announcements, on November 4, 2004, Nasdaq notified Catuity of Nasdaq's intent to de-list the Company because it had failed to trade for 10 consecutive days above Nasdaq's $1.00 minimum bid price during the 180 day compliance period provided by Nasdaq for its listed companies to regain compliance. Catuity appealed the determination because, on November 1, 2004, the Company had received shareholder approval for a reverse stock split and the Board of Directors had immediately authorized a 1 share for 15 shares reverse stock split on the first day it was legally possible to do so (November 12, 2004), to rectify the on-going listing problem. The hearing was scheduled for December 9, 2004. By November 29, 2004 Catuity had traded on Nasdaq for 10 consecutive days considerably above Nasdaq's minimum bid price and the Company prepared a written request to Nasdaq that the Company be deemed to be in full compliance and the hearing deemed moot.

"Although this is the outcome we anticipated, it is none-the-less excellent news," said John Racine, Catuity's President and CEO. "It eliminates the concern that some of our customers, potential customers, and partners may have had about Catuity's near-term future as a Nasdaq listed company."

On Monday December 6, 2004, Catuity will trade under its normal stock symbol CTTY on Nasdaq. Since November 12, 2004 it has been trading under the symbol CTTYD.

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.