Smartpay Shareholding in Internet Based Retail Co

Smartpay Ltd Acquires Shareholding in Internet Based Retail Merchandising Company

AUCKLAND Wednesday March 7 2007 Prepaid and POS solutions provider SmartPay Ltd (NZX:SPY) has acquired a 33 per cent shareholding in “In-Store” multi media company, Retail Radio Ltd, in a strategic move to expand its retail business interests.

Retail Radio, a rapidly growing music and digital signage provider, delivers, via the internet, in-store promotional campaigns to a number of high profile retail chains

SmartPay chief executive Mr Linc Burgess explained: “Retail Radio is viewed by these retailers as the key to creating in-store ambience which is totally consistent with the retailer brand and image, using creative marketing messages and campaigns that reach the shopper.”

He described the stake as significant and complementary to SmartPay’s existing business activities.

‘”SMART AUDIO MERCHANDISER’ (SAM) is the technology behind the business. It has the flexibility to provide each retailer chain or outlet with a unique “In-Store” radio station and digital signage service.

“SmartPay sees this as an investment in the future in terms of smart technology and merchandising initiatives for major retail chains, the route and convenience trade, small niche retailers and even the corner dairy.

“We view this acquisition as a strategic step in the future of SmartPay, not only in New Zealand but globally too.”

Said Mr Burgess: “There are lots of success stories from Retail Radio. The primary aim is to enable retailers to win market share, and improve profitability. Studies prove that delivering a message while the customer is in the store greatly increases sales.

“The time is right to aggressively sell the company’s “point of difference” in the whole shopping experience, including the marketing and merchandising mix.

“Business has increased over 400 per cent over the last 12 months. Retailers are now taking it a step further by using the medium as a continuing and growing profit centre by promoting suppliers’ products and services.

“The concept is successful for a number of reasons. It talks to every customer. It’s an additional salesperson which is very cost effective, works seven days a week, doesn’t get sick, take holidays or contribute to shrinkage.”

It offers many benefits over more traditional promotional mediums including:

- increased sales from add on and impulse purchases driven by promotions

- increased customer loyalty and return visits in response to promotion of upcoming events

- Keeps competitors messages out of the store

“We are offering customers a better shopping experience which is immediate, targeted and creative. For the retailer, there is brand reinforcement, national consistency and improved staff and shopper satisfaction,” he explained.

Retail Radio guarantees compliance with all licencing that is required where music is being played in a public place, such as a retail environment.

Retail Radio, established in 1994, is owned by Greg Lay, Eileen Somerville and Scott Stewart. Mr Lay has been involved in the music industry for many years and also operates Australasian Audio Engineering which specializes in the audio fit-out of commercial premises. After many years in advertising, Robin Somerville was one of the original shareholders and on his death last year, Eileen was invited to take a management role in his place. From a family retail background, Mr Stewart has gone on to develop several successful businesses in New Zealand.

Further information on Retail Radio Ltd is available at www.retailradio.co.nz

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ABOUT SMARTPAY LTD

SmartPay Ltd (NZX:SPY) is a leader in the development and supply of innovative electronic prepaid and POS solutions that add value to retail businesses.

An example of the business in which they operate, is the pre-paid 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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