Catuity Unveils New Loyalty Software Products at 2003 ETA Annual Meeting.

Business Editors

2003 ETA

DETROIT--(BUSINESS WIRE)--April 4, 2003

Products Enable Wider Use of Catuity Software on Older Transaction Terminals and Save Money for Merchants on the Issuance of Smart Cards

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 two new software products for POS-based transaction service providers that will be unveiled at the 2003 ETA Annual Meeting being held at the MGM Grand Hotel in Las Vegas, April 8-10, 2003.

The two new products are:

-- PTS Toolkit - Enhanced Magnetic Card Support; and

-- Memory Card Support

Jonathan Adams, Catuity's Vice President of Business Development, stated: "These enhancements to our basic system will make it easier for our partners to incorporate our loyalty system into their product offerings for small and medium-sized merchants."

According to Adams, the PTS Toolkit for Enhanced Magnetic Card Support enables third party support of the Catuity application on the majority of the point of sale devices currently installed in the U.S. "The Catuity loyalty program engine that manages loyalty logic has traditionally been resident on the terminal. This is appropriate for applications where smart cards, memory cards and magnetic cards are required to be supported in the same device simultaneously. However, it requires late model terminals that are not yet widely deployed. Our new PTS Toolkit can be deployed on a wider range of older terminals that make up the majority of the installed base today. This creates numerous opportunities for our VARs, Merchant Service Organizations and processors to quickly and easily adopt the Catuity gift card and loyalty solution on POS terminals they already support."

He noted: "The kit, which is available now, includes sample source code that will work on the Verifone Verix based terminals, Banksys C-ZAM, Schlumberger MagIC, and Ingenico terminals. It is designed to be easily ported to other devices, as well."

This addition to Catuity's product line creates a seamless migration path for merchants, processors and issuers that want to offer traditional mag stripe programs and simultaneously participate in the smart card and RFID value added programs currently being supported by Visa and MasterCard.

Catuity's second new product being unveiled at the show is its Memory Card Support. "The addition of a memory card with a substantially lower cost than the smart cards currently issued by banks, enables Catuity to market a complete 'Loyalty Over the Counter' package to processors for resale to their Independent Sales Organizations," stated Adams. Loyalty Over the Counter allows a retailer to activate and issue a loyalty card right at his POS, much in the same way a gift card is dispensed now. Adams indicated that the off-line feature of the memory card enables processors to package this with a fixed monthly price regardless of the number of transactions performed, thus creating a fixed cost package with reduced overall cost of operation. "This is a key selling feature for the ISO community. Additionally, the memory card capability can allow merchants to accept any traditional payment card along with loyalty and have both function with only one phone call or access online to process payment approval," Adams said.

Michael V. Howe, President and CEO of Catuity, stated: "Both of these features are especially valued by our current processors who are able to offer their merchants a broad array of card-based management services off a single processing platform. KESM Transaction Systems and EDS Information Services, LLC, a division of EDS Corporation, are two new licensees of the company that have these systems available for use by ISO and other merchant organizations."

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, Catuity's software applet has been included on millions of chip-based credit cards. Catuity's Loyalty Software can be used by a broad range of sellers of goods and services, particularly those who sell through both 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 website: 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 included in the Company's Form 10-K, which is filed with the U.S. Securities & Exchange Commission.