Chockstone Reports Record Results in Deployment of Its Gift and Loyalty Card Program for Quick Service Restaurants -- QSRs.

Business Editors/Technology Writers

PORTLAND, Ore.--(BUSINESS WIRE)--Nov. 25, 2003

QSRs Are Seeing a 15 Percent Increase in the Average Size of

Consumer Transactions When an Electronic Loyalty Card

Accompanies the Purchase

Chockstone, Inc.'s stored value platform designed for the Quick Service Restaurant (QSR) industry proves to have a major impact on consumer spending trends. Chockstone, an industry leader in providing integrated gift and loyalty card programs for the QSR industry, today announced significant results from program implementations.

As the technology leader in the stored value industry, Chockstone was the first processor to implement an integrated gift-loyalty-marketing card program nationally. Chockstone's integrated platform, ChockPoint, enables retailers to combine payment, loyalty and promotional programs through a single consumer card. With one retail-branded card, consumers draw down gift card dollars, earn loyalty points, and redeem these points in real time. Additionally, QSRs instantaneously deliver promotions based on historical transaction behavior or an e-mail offer previously sent to the individual cardholder.

Based on 2003 transaction data, Chockstone retailers are experiencing a significant lift in consumer dollars as the transition is made from paper gift certificates to electronic gift-loyalty-marketing cards. A few highlights of Chockstone's findings include the following:

-- QSRs are seeing a 14.5 percent increase in the average size of

consumer transactions (across cash, credit, and debit) when an

electronic loyalty card accompanies the purchase.

-- QSR locations are experiencing a three- to four-times increase

in gift card sales vs. paper gift certificate sales during the

previous period.

-- Seventy two percent of gift-loyalty cards have been used two

or more times since initial activation over the past six

months.

"These latest results illustrate the financial benefit realized by retailers who upgrade their paper loyalty and basic gift card programs to electronic gift-loyalty-marketing programs," said Jeffrey Lipp, president and CEO, Chockstone. "In a highly competitive market, QSRs are now relying on Chockstone's technology to de-emphasize price wars, and instead differentiate themselves through personalization and quality of service."

In an industry where speed of service is critical to operational success, Chockstone has benefited from its ability to process stored value cards and act as an integrated gateway for all credit, debit, and electronic benefit card transactions. Chockstone shaves valuable seconds off of a transaction requiring multiple cards, leading to faster throughput and incremental sales for QSRs. Chockstone further differentiates itself in the QSR industry by providing franchisee-specific services that include daily settlement of gift and loyalty currencies and real-time Web-based reporting tools to access card, transaction, and settlement data.

Chockstone is being recognized in the industry for raising the bar in stored value technology. "Finally, a company has figured out how to deliver profitable loyalty solutions to the QSR market," comments David Diamond of David Diamond Associates, a loyalty and marketing consulting firm. "Chockstone's technology elegantly bridges the gap between the payment processing and loyalty marketing industries by replacing cumbersome manual processes with efficient and effective electronic processing."

About Chockstone, Inc.

Chockstone is the Technology Behind Stored Value(TM). As the leading stored value card processor, Chockstone focuses on gift, loyalty, and marketing card programs for multi-unit QSR and retail organizations. Chockstone's services enable retailers to strengthen their relationships with their customers and drive incremental profits. Chockstone's services and expertise are based on years of developing and operating mission-critical payment and loyalty-based applications in the physical and online worlds. More information at www.chockstone.com.