Graphite’s PROGRAM

THE PERFECT GIFT  An estimated $87 billion on gift cards will be spent this holiday season.  The wallet-sized, prepaid piece of plastic has been the most popular gift in the United States for the past five years.  Whether you think it’s the ultimate cop-out or a practical purchase, the gift card has revolutionized the way shoppers and retailers handle special occasions.

GETTING THE MOST FROM GIFT CARDS Gift cards can be utilized in many different ways by all types of retailers:  Employee incentives Example: Employee of the month receives a $25 gift card  Prepaid card for recurring sales  Preload value on cards for businesses with recurring small tickets sales such as coffee shops.

GETTING THE MOST FROM GIFT CARDS (CONTINUED)  Marketing Example: Mail cards loaded with small value (i.e. $5) or a mystery amount to local residents in order to draw them into the store  Use for store credits, returns and refunds  Use for customer appreciation and retention

AGENT BENEFITS  Open doors to new merchants  Retention! Retention! Retention!  Merchant find it difficult to leave because cards with balances must be honored to comply with state and federal laws  Earn additional revenue  If you don’t offer gift cards to your merchants, you leave the door open for competition

TARGET MARKET SECTORS Department store33.8% Restaurant28.5% Discount Store14.3% Bookstore16.6% Electronic Store15.9% Coffee Shop12.4% Home Improvement Store9.9% Entertainment(movies,etc.)9.6% Clothing Store8.4% Grocery Store/Gasoline8% Source: Conducted in November 2007 and January 2008 by BIGresearch for NRF.

MERCHANT BENEFITS  Attract new customers and build customer base  Builds brand recognition and brand loyalty  Enhances a business’ professional image  Increases profitability – no cash back!  Value can be added onto a gift card keeping the funds in the merchant’s register  Merchants benefit from float since they have the funds until the card is redeemed

MERCHANT BENEFITS (CONTINUED)  Gift cards outsell paper gift certificates 3 to 1  Countless gift giving occasions such as birthdays, anniversaries and Christmas/Hanukkah lead consumers to buy gift cards year- round  Cards are like miniature billboard in customers’ wallets  Uplift  Studies have found that people will usually spend 30% more when using a gift card, which is known as “uplift”

MERCHANT BENEFITS (CONTINUED)  People perceive the value on the card as “free money” or “found money”. As a result, people spend more money  Example: A shopper in a retail clothing store with $25 on her card will splurge on a item that is $25 more than they would otherwise be willing to spend.  Breakage  12% of gift card values are never used because the consumer loses or forgets about the card; this unredeemed value is known as “breakage”  Example: For every $100 worth of gift cards sold, $12 will not be used providing $12 in extra profit for the merchant

RETURN ON INVESTMENT CALCULATOR Once a merchant understands the numerous benefits of gift cards, it becomes an easy sales. You can illustrate the financial benefits of offering gift cards with Graphite’s Return on Investment Calculator.

RETURN ON INVESTMENT CALCULATOR 1000 $0.85 $ $ $ $ $25.00 $25,000 $ $ $ $7, $ , % Number of Cards Cost Per Card Total Package Cost Transaction Cost $.15/ea.) Hosting $9.95) Cost of Opportunity Average Activation Amount Total Value of Cards Card Holder Spends More (33% Lift) Profit Margin (15%) Unredeemed Value/Breakage (10%) Program Profitability Cost of Opportunity Net Profit Return on Investment

SPECIAL OFFERING 50 FREE CARDS With a 60-Day Trial Period

50 FREE CARDS  After the 60 day trial, merchant will pay a $9.95 monthly service fee and $0.15 for each transaction (activate, add value, redemption or inquiry)  There is no setup fee for using a pre-designed template or custom image.  Professionally designed cards will require a $75/hr design fee.  Shipping and handling fees will apply  All gift card packages include envelopes, window decals, and acrylic stand with insert and two register decals.

A CUSTOMIZED PACKAGE FOR EVERY MERCHANT Full Color Pre-Designed Package  Create an original card design from a wide selection of professionally designed templates that can be customized with merchant’s info.  Merchant can choose from a selection of font styles, font colors and text placement. Full Color Custom Package  With our full-color custom package, your merchant can upload a logo or their own image use as their card design.

PACKAGE COSTS QUANTITYCOSTCOST PER CARD 100$94.95$ $199.95$ $349.95$0.70 1,000$599.95$0.60 All gift card packages include:  Envelopes  Window decal  Two register decals  Acrylic stand with insert

NEW ONLINE ORDERING WIZARD It has never been easier to order gift cards!  If your merchant enrolls in the free trial with 50 free cards, a link will be sent via directing them to the Graphite Gift Card Wizard to order their gift cards.  The site allows the merchant to select and customize one of our pre-designed templates or upload their own image.

NEW ONLINE ORDERING WIZARD

ONLINE REPORTING Cardholders can log on to www. Checkmygiftbalance.com to view their card’s balance (shown above)

CERTIFIED TERMINALS Graphite is certified on most major terminals in the marketplace today! For a list of certified terminals and POS systems, please visit the Interactive ISO System (IIS)

WRAPPING UP WRAPPING UP  Easy way to get your foot in the door  Well publicized & sought after product  Great retention tool  Flexible program and card options  Creates traffic for your merchants  Great return on investment  Low start-up cost  Completes the “Payment suite”

THANK YOU THANK YOU For additional information, you may contact the Gift Card Department at: Or Com Put the most powerful retention tools in your merchants’ hands !