Catuity Shareholders Approve Private Placement; Progress of Company Highlighted.Business Editors SYDNEY, Australia & DETROIT--(BUSINESS WIRE)--Sept. 19, 2003 Catuity, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CTTY CTTY Control Teletype CTTY Console Teletype ; ASX ASX See: Australian Stock Exchange : CAT) today announced shareholder approval of its previously announced, July 2003 private placement of 3,000,000 shares of common stock. Shareholders voted overwhelmingly to approve the issuance of the shares to seven accredited investors during the Company's special shareholder meeting held today in Australia. As previously announced, the funds raised in the placement will be used primarily for general operations of the Company as its business accelerates. Michael V
Michael V the Caulker or Kalaphates (Greek: Μιχαήλ Ε΄ Καλαφάτης, . Howe, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Catuity, Inc. updated shareholders on the company's business outlook, highlighting Catuity's substantial progress during the past three years. "This has been a very difficult environment for every company in the IT industry," Howe told shareholders. "Yet, we have been prudent with our management of resources by reducing our expenses and holding them steady, while increasing our revenues each year." Howe also outlined the Company's current business activities for shareholders including the following highlights. The complete presentation is available at Catuity's website: http://www.catuity.com: -- The Smart Visa Rewards program continues with a successful operational trial earlier this year as well as the national deployment of the system with the Company's major retail customer. The rollout, which commenced in July, is now in its marketing pilot phase in all stores of this retailer. -- Continuation of work with VISA USA and VISA International on a number of new initiatives. -- Catuity's applet is being added to 20,000 Visa cards in Canada this fall as part of a smart card market trial. -- Catuity is in contract discussions with several prospective Channel Partners that are interested in licensing the Catuity system for use with their clients around the world. -- Company's revenue is expected to be in the US $4.3 to US $4.6 million range for 2003. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , excluding non-cash, variable stock compensation expense/(credit), is expected to be approximately the same as in 2002, which was US $5.85 million. Howe reiterated that the Company believes it will substantially narrow its loss before noncash stock compensation expenses/(credits) in 2003 compared to 2002. 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. The patented Catuity system can be utilized via mag stripe, smart card, RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. or contactless tokens and to date, Catuity's software applet has been included on millions of chip-based credit cards. Catuity Loyalty Software can be used by a broad range of sellers of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. , particularly those who sell both through store locations and over the Internet. In addition to its innovative software products, Catuity also provides marketing expertise and services to its clients so that 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 on Catuity is available at its website: http://www.catuity.com. In conjunction with the provisions of the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " section of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 found in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , filed with the U.S. Securities & Exchange Commission. |
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