Catuity Strengthens Management Team With Two Key Additions.

Business Editors

DETROIT--(BUSINESS WIRE)--Dec. 13, 2001

New Directors of Retail Business Development to Have Responsibility For Key Areas of Growth for Loyalty Software Provider

Catuity, Inc. (NASDAQ: CTTY; ASX: CAT), a leading loyalty software provider, today announced that it has made two key additions to its senior management team.

Walter Nirenberg, a seasoned new business development professional with financial services and e-commerce industry experience, has been named to a newly created position of Director of Business Development. In this position, he will have primary responsibility for the company's activities in connection with its recently announced relationship with Visa U.S.A. As a result, Nirenberg will continue to be based in San Francisco, California.

David A. Slavick, of Cincinnati, Ohio, a marketing professional with extensive knowledge of direct marketing, customer loyalty and CRM best practices, has also been named a Director of Business Development - Retail. In his position, Slavick will be responsible for nurturing relationships with key multi-lane/multi-channel retailers in the U.S. market and overall service delivery for Catuity's real-time loyalty software applications.

Michael V. Howe, President and CEO of Catuity, made the announcement noting: "These two gentlemen bring skill sets to Catuity that will enable us to move aggressively forward in our target markets. Walter is key to our consulting and personal service commitment to Visa U.S.A., its smart loyalty program development initiative and its valued partners as they begin to roll out programs in 2002. David represents our commitment to bring value-added thinking to the programs we will be managing on our advanced technology platform, which includes multi-lane and multi-channel abilities."

Nirenberg most recently was with Korn/Ferry International in San Francisco, as a principal in the Global Consumer Financial Services Practice. Prior to that he was a Vice President at Visa U.S.A., working in the business development-co-branding and loyalty area where he was responsible for new business development and relationship enhancement in the co-branded credit card market. He negotiated relationships with Mercedes Benz, Harley Davidson, Staples, BMG and many other high profile partnerships with a significant focus on consumer, Internet and small business deals. Prior to his affiliation with Visa, Nirenberg was Managing Director of New Business Development at EDS Electronic Commerce Division and was responsible for new business development activities in the credit card processing industry including consumer, commercial and co-branded card services, focusing on the top 50 banks in the U.S. He also held various positions over a 10-year career with Citicorp.

He holds a BA degree from Clark University in Worcester, MA.

Slavick was most recently Director, Advertising Partnerships at PrivaCash, Inc., where he was responsible for new business development and marketing in support of this financial services company. He was responsible for advertising commitments integrated within the company's pre-paid MasterCard product sold through retail and financial channels. Prior to that he was Group Account Director at Frequency Marketing, Inc., where he was charged with managing loyalty programs in support of leading edge companies' efforts to increase profitable yield from best customers and previously had been Director, Retail Business Development at Harte-Hanks, Inc., the world's largest and most sophisticated fully integrated direct marketing service provider. He also held a variety of executive positions at advertising agencies including Barkley Evergreen Partners and Liggett-Stashower, Inc.

He holds a MA in Communications and a BS in Advertising from the University of Illinois, Urbana - Champaign.

About Catuity

Catuity, Inc. (www.catuity.com) is a leading provider of loyalty software systems. The Catuity software includes an integrated suite of applications that provide loyalty, ticketing, access control and membership. The Catuity Loyalty System is ubiquitous in that it can operate on any device, any card program and with any payment process, including stored value and gift cards, smart card and wireless applications. Catuity unites the brick-and-mortar retailer with the Internet to enable cross-sell capabilities with consistent brand imaging across all channels.

In conjunction with the provisions of the "Safe Harbor" section of the Private Securities Litigation Reform Act of 1995, this release contains 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 and Form 10-Q, which are filed with the U.S. Securities & Exchange Commission.