Catuity Signs New Client, First User of CALS; CertifiChecks to Deploy in Third Quarter, Serves 70,000+ Merchants.

DETROIT & SYDNEY, Australia -- Catuity Inc., (NASDAQ:CTTY)(ASX:CAT) a provider of POS-focused solutions, today said that it has reached agreement with CertifiChecks Inc. to offer a hosted loyalty and gift card solution to the company's 70,000-plus merchants across the U.S.

Under the agreement, Dayton, Ohio-based CertifiChecks will be the first to deploy the new Catuity Advanced Loyalty System (CALS) as a turnkey, hosted solution that will be sold to the merchants and chain stores who now use CertifiChecks' paper-based solutions. The system is expected to be deployed early in the third quarter.

"CertifiChecks created an innovative business model that makes it easy for merchants and retailers of all sizes to tap into the bottom-line potential of loyalty programs. We are proud that they have chosen CALS to deliver gift card and dynamic loyalty programs to their growing customer base," said John Racine, president and CEO of Catuity Inc. "They serve one of the greatest untapped markets which is for small merchants who demand a solution that delivers measurable results."

CertifiChecks Inc. founder and President Steve Buchholz needed to meet the increasing demand by his customers for card-base programs. "We looked at numerous solutions in the market and chose Catuity because they have a flexible platform that can be easily customized to the needs of each client, while offering the scalability to drive our bottom-line," he said. "But we also chose Catuity because of their people and our shared commitment to clients."

Through the company's innovative distribution model, CertifiChecks' gift certificates are accepted at over 70,000 locations nationwide. In addition, the company provides gift certificate programs to a top 10 grocery store chain, the U.S. military's Defense Commissary Agency and Army and Air Force Exchange Service, and other major retailers.

"Valued added services, such as loyalty and gift card, are the best growth opportunities in the retail and merchant markets today," said Dan Neistadt, a board member at CertifiChecks and the incoming president of the Electronic Transaction Association, the trade group for the merchant acquiring market. "The partnership between Catuity and CertifiChecks is a model for the future."

The Catuity Advanced Loyalty System (CALS) is the culmination of a dozen years of experience in delivering loyalty programs. The hosted system is modularized and enables unique customer profiles; the delivering of points-based, discount and frequency programs; as well as enabling a flexible gift card solution. More information on CALS can be obtained at: www.catuity.com.

Catuity delivers POS solutions for chain retailers in the pharmacy, home improvement and franchise markets and to resellers, such as merchant services companies. Resellers like CertifiChecks meet the rising demands of smaller merchants who need a competitive response to larger rivals and are migrating away from paper-based programs.

"Merchant services companies are finding that loyalty and gift card are powerful tools in acquiring processing customers and that basic gift card programs have become the status quo," said Dion Gonzales, a vice president who manages the ISO market for Catuity and is a veteran of the acquiring industry. "To sell just card processing is no longer enough. Acquirers need to differentiate and Catuity helps them do that with a flexible loyalty solution that provides substantial financial benefits to all the players: consumer, merchant and processor."

There are more than 18,000 independent sales organizations (ISOs) in North America. Catuity is focused on relationships with the Top 50 players.

About Catuity Inc.

Catuity Inc. delivers profits at the point of sale for its retailer clients and their partners, including payments processors. The company provides loyalty processing services through a hosted solution that enables membership based loyalty programs and gift card programs to chain retailers in the U.S. and Canada. More information is available at the company's website at www.catuity.com.

About CertifiChecks, Inc.

Founded in 1999, Dayton, Ohio based CertifiChecks is a provider of gift certificate, loyalty and merchant processing solutions. CertifiChecks has partnerships with over 475 chambers of commerce and retail associations representing over 70,000 accepting locations for CertifiChecks gift certificates nationwide. Additionally, CertifiChecks services the Army & Air Force Exchange Service (AAFES) www.aafes.com and the Defense Commissary Agency (DeCA) www.commissaries.com providing worldwide gift certificate purchase and redemption. In 2005, CertifiChecks Electronic Merchant Services was created to offer a complete range of merchant credit card processing, gift and loyalty solutions in addition to the well established and successful CertifiChecks gift certificate business. www.CertifiChecks.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.