Gift Card Transaction, Hosting Operation Launched

MEDIA RELEASE

SmartPay Ltd Launches Gift Card Transaction and Hosting Operations via Agreement with eCard Solutions Ltd

AUCKLAND Tuesday September 26 2006 Prepaid solutions and transaction systems host SmartPay Ltd (NZX:SPY)has signed its first contract to undertake processing and hosting facilities via an agreement with eCard Solutions Ltd, a gift card and loyalty programme operator.

The longterm agreement follows recent announcements by SmartPay of a 35per cent investment in transaction processor, Card Processing Services Ltd and the purchase of source code and intellectual property software rights from Malaysian developer, Cardtrend.

SmartPay chief executive Linc Burgess says the agreement is an exciting and strategic development to position the company at the “cutting edge” of POS technology and the ability to launch its transaction processing in New Zealand.

“This is an immediate and tangible benefit that has been made possible due to completion of the host application source code agreement.

“We are looking to target like minded businesses in terms of transactions, particularly with the growth in prepaid, gift card and loyalty programmes via POS and the internet.

“Overseas projections for prepaid gift cards indicate they will soon represent a significant share of the consumer spend at retail outlets.”

“We have chosen to work with eCard because of their knowledge and experience in transaction processing and their promotional and marketing ability in both the gift card and loyalty markets,” stated Mr Burgess.

eCard Solutions, established in February this year, operates in the retail and hospitality businesses, supplying end to end solutions for both gift card and loyalty programmes.

eCard Solutions managing director Mr Richard Francis says SmartPay technology had offered a unique opportunity in terms of investment and business opportunities in the transaction, prepaid and payment systems.

“We are looking to build on the partnership with SmartPay as we launch a series of gift card, smart card and loyalty programs with several major companies and business associations in the coming months.

Francis says programmes with their associated internet capability, software technology, reporting and management features can be tailored to a range of solutions, depending on the retailer’s individual requirements and programme scope.

A subsidiary company of eCard, Smartcards New Zealand Ltd, is shortly to launch a series of retail gift and loyalty cards with the potential to create hundreds of thousands of additional transactions.

“Smartcards, combined with our gift card loyalty programmes have the potential to realize sales of many millions of dollars annually with a further significant yearly spend in prepaid loadable gift cards outside of the traditional mobile and international calling card top-up market.

“The growth potential in New Zealand and Australia is enormous as retailers compete vigorously for every available customer and their dollar,” added Francis.

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ABOUT SMARTPAY LTD

SmartPay Ltd (NZX:SPY) is a leader in the development and supply of innovative electronic prepaid solutions including mobile phones, international calling cards, internet and POS based services, gift cards and a range of other products

For an example of the business in which they operate, the value of the pre-pay mobile and international calling card market in New Zealand is estimated at $500 million and $100 million annually and growing every year.

Established in 2004, SmartPay has signed contract agreements with telecommunications networks and product suppliers including Telecom New Zealand Ltd and Vodafone New Zealand Ltd. The company is also researching and developing potential software business interests in New Zealand and internationally, including markets in Australia and Asia Pacific.

In New Zealand, SmartPay manages a network of merchants who supply products to a wide range of retailers, including a number of high profile, national retail chains and route/convenience store owners and operators.

More information about SmartPay is available at www.smartpay.co.nz

ENDS

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