1. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. www.smartcentric.com

2. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. SmartCity “Instant Award” Loyalty Application Overview

3. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. “A smart card ‘e-purse’ cashless payment solution with loyalty and multi-application development platform for closed or open environments” What is SmartCity? Fully audited smart card payment system Advanced multi-party loyalty application Turnkey solution or integrated with other apps Powerful APIs for vertical market integration Scaleable from 1,000’s to millions of cards Worldwide support from industry leaders

4. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. SmartCity Secure off-line cashless payments –Merchant POS –Unattended vending –Internet Advanced Loyalty Access control (physical, logical) ID/membership Custom applications

5. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. SmartCity in Retail Shopping Malls Department stores Supermarkets Chains Fast food Video rental Etc.

6. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Retail Requirements Smart card based gift certificates –high security –eliminate cash back payments –breakage Loyalty –repeat customers –target marketing to most profitable customers –increased sales –competitive edge E-purse

7. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Manny’s Store POINTS CARD 4.95.35.74.1 6.36.56.97.2 7.77.4 Bill’s Store POINTS CARD 2.93.73.82.4 4.14.65.9 The Paper “Punch Card” +Very low cost +Simple to implement +Increase sales -No customer info -Difficult to measure success

8. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. CUSTOMER DATABASE CUSTOMER SALES LOG TERMINALS OPERATORS SALES LOG. POINTS CENTRAL REPOSITORY aDEMOGRAPHIC aANALYSIS  BUYERS TRENDS CARDHOLDER GRADING PERIODIC BONUS POINTS POINTS TRADING  PERFORMANCE MONITORING  FRAUD DETECTION DATA MINING PRECISION RETAILING 1-2-1 Marketing Customer Relationship Management (CRM) +Detail customer info +Track buying habits +1-2-1 marketing -On-line only -Larger initial investment

9. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Smart Card Based Loyalty Systems Punch Card CUSTOMER DATABASE PAPER PUNCH CARD INDIVIDUAL PROGRAMS MULTIPLE MERCHANTS FULLY AUDITED MULTIPLE LOYALTY POOLS CUSTOMER DATABASE CUSTOMER DATABASE SHARED PROGRAM MULTIPLE MERCHANTS FULLY AUDITED SHARED LOYALTY POOL SMART CARD COMBINED WITH CRM FULLY AUDITED COMBINE WITH DATABASE MINING MULTIPLE “PUNCH CARDS” MULTIPLE MERCHANTS ANONYMOUS “MASTER” SHARED PROGRAM COMBINED WITH INDIVIDUAL PROGRAMS CRM SYSTEM

10. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. SmartCity “Instant Award” Loyalty Complete off-line operation Points accumulate on card from purchases and/or transactions (visits) Multiple programs Multiple merchants Multiple loyalty purses on card Configurable award/redemption rules Award points for e-purse and/or other payment methods (cash, credit/debit, etc.)

11. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Simple Loyalty Running point balance stored on card Prints receipt/coupon when award level reached Target Markets: –Cafeterias –Small merchants –Entertainment centers

12. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Advanced Loyalty Supports multiple loyalty programs Individual merchant programs Multi-merchant programs (pooled points) Multiple loyalty purses (programs) per card Each loyalty purse stores on card: –Running point balance –Accumulated (lifetime) points –Total visits (transactions)

13. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Advanced Loyalty (cont.) Adjustable program dates –Program start date –Program end date –Program (point) expiration date Multiple card levels (silver, gold, platinum, etc.) Adjustable discounts, award rules, and redemption rules per card level

14. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Advanced Loyalty (cont.) Accumulate “Points per Value” and/or “Points per Transaction” Auto point redemption (at award level) Accumulate points for selected redemption Multiple promotional programs –Promotion program start dates –Promotion program end dates

15. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Advanced Loyalty (cont.) Complete host transaction history support Detailed auditing and statistic reporting Target Markets: –Shopping malls –Large chains –Multi-merchant programs –Sporting stadiums/arenas

16. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Merchant POS Loyalty Features Award points for purchases and/or visits Point redemption Automatic activation/deactivation of promotion periods Optional automatic discounts based on cardholder profile Merchant activated bonus point option

17. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Merchant POS Loyalty Features View loyalty and e-purse balance POS printer receipt/coupon options –Cardholder name –Points this purchase –Current point balance –Accumulated (lifetime) points –Accumulated visits (transactions)

18. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Purse Data Balance 1 and balance 2 (backup) Points counter 1 and 2 (backup) Transaction (visit) counter 1 and 2 (backup) Flag 1 and 2 (for anti-tearing) Expiration date Last award date, Last award amount Last redemption date, Last redemption amount

19. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Transaction Record Format ITEM Transaction type (award/redemption) Card Transaction Counter (CTC) Terminal Transaction Counter (TTC) Card Serial Number (CSN) Card type Multiplier (for bonus points, 0 = none) Transaction value Loyalty purse balance Loyalty purse number Device ID SIZE 1 byte(s) 3 8 2 1 3 8

20. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Transaction Record Format (cont.) ITEM Level/Promotion/Rule Id ISO card number Loyalty Purse Class ID Loyalty purse Type ID Loyalty purse Version ID Flag 0 = Promotion, 1 = Level Card level Purse CTC Transaction date and time MAC SIZE 8 10 (19 digits) 1 3 6 4 (lower 4)

21. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Reporting Customizable with Crystal Reports Pro Example - Points awarded, redeemed, and/or outstanding Reports per: –System and/or program –Merchant or groups of merchants –Device or groups of devices –Cardholder or groups of cardholders –Specific time periods (promotion evaluation)

22. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Programs Setup

23. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Program Setup - General

24. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - Purse(s) Supported

25. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - POS Display Options

26. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - Card Levels

27. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - Card Levels - Level, General

28. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - Card Levels - Level, Award Rule

29. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - Card Levels - Level, Redemption Rules

30. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - Card Levels - Level, Redemption Rules - Add Rules

31. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - Card Levels - Level, Redemption Rules - Redemption Rule New/Edit (Upgrade)

32. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - Card Levels - Level, Redemption Rules - Redemption Rule New/Edit (Redemption)

33. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - Card Levels - Level, POS Options - Receipt Options

34. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - Promotions

35. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup -Promotions - General

36. © Copyright SmartCentric Technologies International Ltd (2003 – 2005). All rights reserved. No part of this document may be reproduced, stored or transmitted in any form without the prior written permission of SmartCentric Technologies International Ltd. Loyalty Setup - POS Terminal Multipliers (for merchant controlled bonus points x2, x3, etc.)