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ADVERTISEMENT Last month, Smart Card signed NCSC to a distribution agreement for five thousand (5,000) co-branded MasterCard® secured cards for the Canadian market and one thousand (1,000) cards for the US market. NCSC has signed an additional agreement for fifteen thousand (15,000) co-branded prepaid MasterCard® exclusively for the Canadian market. This brings the first year commitment to twenty-one thousand (21,000) co-brand cards, giving NCSC the full suite of co-brand prepaid products for North America. According to industry standards this translates into revenues of between $945,000 and $1,575,000 per year ($45 to $75 per card per year). This figure does not include revenue from the initial purchase or from activation fees for the US cards which is split 65/35 with the distributor. Smart Card CEO, Massimo Barone, stated, "Smart Card is well prepared to compete for the prepaid co-brand market in the North American marketplace. Our merchant client list is prominently growing and gaining individual customer retention in their respective offerings." Additionally, Smart Card is preparing for the US Intele-Card prepaid show and Optical show both in Vegas in the same week, for which Smart Card has an introduction of services to unveil for prospective new merchants to expand their prepaid capabilities. About NCSC New Card Secured Canada, Inc. NCSC New Card Secured Canada, Inc. is a Canadian-based company that works to repair the credit of individuals using secured credit cards. The company is working right now on major contracts that will give them a competitive edge in the North American secured card market. About Smart Card Marketing Systems, Inc. Smart Card Marketing Systems Inc. has taken a mainstream position in the smart and prepaid charge card market to develop, integrate and to jointly deploy turnkey co-branded solutions for loyalty and payment management transactions. Smart Card Marketing Systems Inc. seeks industry suppliers and creates channel partners to better the availability of APIs (automated protocol interfaces) that respectively are only available to preferred corporations/clients and manages the required protocol in-place by the offering institution for the merchant. Forward-Looking Statements. This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements about the expected future prospects of our business and all other statements in this release other than historical facts, constitute forward-looking statements. You can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "would," "should," "seeks," "approximately," "intends," "plans," "estimates," or "anticipates" or similar expressions which concern our strategy, plans or intentions. All statements we make relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those we expected. We derive most of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. Some of the factors that we believe could affect our results include: general economic and market conditions, including the lingering effects of the economic slowdown and services revenue; the overall condition of the bank card industry, including the effect of any further consolidation among financial services firms; the regulatory, credit and market risks associated with our operations; the integration of acquired businesses, the performance of our businesses; the effect of war, terrorism or catastrophic events; the timing and magnitude of sales; the timing and scope of technological advances; the ability to retain and attract customers and key personnel; and the ability to obtain patent protection and avoid patent-related liabilities in the context of a rapidly developing legal framework for software and business-method patents. The factors described in this paragraph and other factors that may affect our business or future financial results and when applicable, will be discussed in our filings with the Securities and Exchange Commission. We assume no obligation to update any written or oral forward-looking statement made by us or on our behalf as a result of new information, future events or other factors.
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