Schimatic Technologies, Inc (SCTN)

[jmhollen]

Smart Chip Technologies Licenses Patent to Smart Card Innovator TranStar Systems

LAS VEGAS & LOS ANGELES & PARIS, Nov 18, 2003 (BUSINESS WIRE) -- Smart Chip Technologies (OTC:SCTN) is pleased to announce that TranStar Systems has licensed the SCTN business process patent, "Method and System for Allocating and Redeeming Incentive Credits between a Portable Device and a Base Device," with 36 claims relevant to its own smart card loyalty system.

TranStar has smart chip-based stored value, gift, and loyalty card systems installed in retailers and restaurants including Little Caesars and Subway, and was recently featured in the American Banker Online article "For Eateries, a side order of (Silicon) Chips."(http://216.131.121.27/abarticle.pdf) SCTN will receive initial and usage-based royalties per the licensing agreement.
"As early adopters of advanced card technologies and the SCTN patent, TranStar customers will continue to enjoy the benefits of real-time loyalty in the only licensed U.S. implementation of consumer incentives stored on a smart chip," stated SCTN Area Vice President Geoff Thomas. "This establishes a strong competitive lead for TranStar in the emerging global market."

"We are excited about leveraging the strength of SCTN's patent to expand our market share into Mexico, Canada, and beyond," explained Mike Radlovic, TranStar CEO and featured speaker at the Cartes and IT Security 2003 international smart card conference held in Paris, France November 18-20. (http://www.cartes.com)

Little Caesars New York City and Washington D.C. franchisee and TranStar customer Paul Hoffman added, "Smart Chip Technologies is a welcomed addition to our Coca-Cola (NYSE-KO) sponsored smart card rollout. The smart stored value and loyalty cards represent a more cost effective way to process transactions and boost my repeat business as patrons return more frequently to earn and redeem their bonus credits."

Jerome Svigals, internationally recognized authority on Smart Cards, banking technology, and TranStar Director confirmed that smart card-based loyalty is a significant market driver in his Lafferty Publications book "Smart Cards 2010": "Payment transactions using loyalty-incentivized, smart chip devices will grow at an annual rate of 75% over the next five years, to over $1.4 trillion. The revenues from loyalty transaction processing, including servicing and licensing, will exceed $8 billion by 2010, growing from a current nominal base." Mr. Svigals has since revised his 2010 projection to $2 trillion in smart payment transactions and $12 billion in smart loyalty transactions.

About TranStar Systems, Inc.

The TranStar team represents several decades of business acumen and technical expertise. Their diverse backgrounds and experiences have enabled us to create innovative multiple application Smart Card solutions for lodging, retail, union, government, educational, healthcare and Internet market organizations among others. TranStar team members have experience in credit, debit, loyalty, data tracking and access programs, including those that transition from traditional magnetic stripe cards. (www.transtarsystems.com)

About Smart Chip Technologies (SCTN)

Smart Chip Technologies' "gateway" patents, owned in the U.S., Mexico, Australia, Japan, and Canada, cover the business process of storing consumer incentives on a smart chip or device. The patent-protected turnkey loyalty system, co-developed with the Airos Group(www.airosgroup.com) and IBM (NYSE-IBM), enables click-and-mortar, real-time rewards programs running on smart cards, laptops, PDAs such as Palm(TM) (Nasdaq-PALM) or Windows(TM) (Nasdaq-MSFT) devices, TV set top boxes, or mobile phones, establishing business continuity across physical, mobile, and virtual streams of commerce. (www.sctn.com)

For further information about TranStar Systems, please call 800-905-9945 or write to [e-mail].

For further information about Smart Chip Technologies, please call 702-837-3594 or write to [e-mail] or [e-mail].

SOURCE: Smart Chip Technologies
CONTACT:
Smart Chip Technologies
Elaine K. Beavon, 702-837-3594, ext. 705
[e-mail]