Catuity Shareholders Approve Resolutions at Special Shareholder Meeting; Acorn Capital Increases Holdings in Company.

Business Editors

DETROIT--(BUSINESS WIRE)--March 28, 2003

Catuity, Inc. (Nasdaq:CTTY)(ASX:CAT), a leading loyalty software solutions provider of technical and marketing expertise to credit, debit and gift card issuers, merchants and processors, today announced that its shareholders overwhelmingly approved the following resolutions at the special meeting held on March 26, 2003:

1. The sale of 90,000 shares of common stock to Duncan P.F.

Mount, a non-executive director of the Company, as part of the

private placement previously announced by the company on

November 26, 2002. Mount's purchase will be at $3.75 AUD, the

fair market price on the date of the placement (equivalent to

$2.11 USD), for aggregate proceeds of $337,500 AUD

(approximately $199,000 USD). These shares will be sold

without registration under U.S. securities laws pursuant to an

exemption from such regulation. Mount will not be able to

publicly re-sell these shares for at least one year absent a

registration or other available exemption from registration.

Mount will also receive 30,000 warrants exercisable at $4.20

AUD (equivalent to $2.37 USD on the date of the placement) per

share until November 1, 2004 and a three percent placement

fee.

2. An amendment to the executive employment agreement of Michael

V. Howe and the options thereunder. Howe's contract has been

extended to December 2007. In addition, Howe has surrendered

96,000 unvested options held on January 1, 2003 and will be

issued 100,000 new options that expire December 31, 2005 at an

exercise price of $2.64 USD (equivalent to $4.70 AUD) on

January 2, 2003. This price is 20 percent above the closing

price of Catuity shares on Nasdaq on January 2, 2003. The

options vest immediately.

3. The 2003 Executive Director Stock Purchase Plan adopted by the

Board of Directors on January 21, 2003, which provides a means

for two executive directors, David MacSmith and Michael V.

Howe, to invest, on a routine, predetermined monthly basis, a

percentage of their after tax compensation in shares of the

Company's Common Stock at the closing price of such shares on

the last trading day of each month.

Catuity also announced that Australian-based Acorn Capital Ltd. filed notice with the Australian Stock Exchange that it has become a substantial shareholder of the company, with 478,917 or 5.62 percent of the company's outstanding shares.

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 or contactless tokens and to date Cautity'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, 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 service 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 newly-designed Web site: 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 found in its Form 10-K, filed with the U.S. Securities & Exchange Commission.