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SAFECARD ANNOUNCES CHANGE IN STATUS OF CREDITLINE AGREEMENT

 CHEYENNE, Wyo., June 28 /PRNewswire/ -- SafeCard Services, Inc. (NYSE: SSI) announced today that it has been notified by CreditLine Corporation, a company controlled by Peter Halmos, that the license agreement under which SafeCard markets certain credit information products and services known as CreditLine will not be renewed on Nov. 1, 1993.
 SafeCard is engaged in litigation with Peter Halmos and certain related parties involving, among other things, the CreditLine agreement. Peter Halmos was formerly the company's chairman, chief executive officer and executive management consultant.
 Notwithstanding its termination, the CreditLine agreement gives SafeCard the perpetual right to continue to service existing CreditLine subscribers and to participate in the resulting income. In addition, the CreditLine agreement provides that SafeCard has the perpetual right to market CreditLine, and participate in the resulting income, through all of its existing card issuer clients with which it either has a CreditLine marketing agreement on the date the CreditLine agreement otherwise terminates or enters into such a marketing agreement within the following three years.
 SafeCard does not believe that the non-renewal of the CreditLine agreement will have a material effect on the company's revenues or earnings. In the first six months of fiscal 1993, CreditLine accounted for $2.7 million or 3.5 percent of SafeCard's subscription revenues and $500,000 or 2.8 percent of the company's net earnings.
 As previously disclosed in SafeCard's Form 10-Q filed with the SEC for the quarter ending April 30, 1993, in an action brought by the company in federal district court in Wyoming SafeCard alleges, among other things, that the CreditLine agreement represents a misappropriation of corporate opportunity and breach of fiduciary duty on Peter Halmos' part and seeks, among other things, monetary damages and equitable relief including protection of the company's CreditLine business free of interference from Mr. Halmos. In litigation brought by Peter Halmos and certain related parties in Cook County, Ill., Mr. Halmos seeks rescission of the amendment to the CreditLine agreement which, among other things, gives the company the perpetual right to market CreditLine through card issuer clients after the agreement is otherwise terminated.
 SafeCard is actively pursuing its claims, in the Wyoming litigation. SafeCard believes it has substantial defenses to Peter Halmos' claims and intends to defend its position vigorously.
 SafeCard Services, Inc. is the world's largest provider of credit card registry services and also provides other enhancement services through its credit card issuer clients.
 -0- 6/28/93
 /CONTACT: Gene Miller, investor relations of SafeCard Services, 407-852-1925, or Bob Stone of The Dilenschneider Group, 212-922-0900, or (home) 914-591-5534, for SafeCard Services/
 (SSI)


CO: SafeCard Services, Inc. ST: Wyoming IN: SU:

TS-MP -- NY015 -- 6122 06/28/93 09:22 EDT
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Publication:PR Newswire
Date:Jun 28, 1993
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