News from the Wire

ProfitPoint purchases over 12,000 locations in gift card portfolio deal

Wednesday, August 15, 2007 — 15:40:55 (EDT)

August 15, 2007, Franklin, Tennessee – ProfitPoint, a leading provider of stored value gift & loyalty card services to the “mass market”, announced today it has acquired in excess of 12,000 gift & loyalty card processing locations from an undisclosed source. Although no specific terms of the deal were available at press time, the purchase will substantially increase revenues and the number of accounts being serviced by the Company through its growing portfolio of clients.

Under the terms of the transaction, ProfitPoint has also entered into a long-term agreement involving its stored value card technology, and will make significant investments in hardware and software upgrades to the platform in order to provide its partners with the highest level of support and product functionality available in the marketplace today. Also planned, in addition to the system enhancements that are scheduled to take place, are a number of additional terminal and POS software certifications which will allow the company to extend its reach into other areas of the small to medium sized merchant marketplace.

“This acquisition will better position ProfitPoint to become the leading provider of stored value gift and loyalty programs within the mass market merchant community, a goal we have had since we started the business in 2003, says Vaden Landers, CEO of ProfitPoint. “This investment further establishes our commitment to diversifying our distribution capabilities beyond our own direct sales force by aligning ourselves with key channel partners where there is a direct correlation between a customer need and our solution set”, Landers added.

“We are very pleased to have been able to complete this transaction so quickly following the close of our Series C round of financing in March, and we continue to be excited about the other opportunities for growth that are filling our pipeline”, commented Glenn Reiger, a partner with New Spring Ventures. Profit Point has expanded to nearly 20,000 installed sites, and has seen revenues grow year over year at a rate of 100% or more each of its first three years in business. In one of the fastest growing expansion markets of the value-add arena, Profit Point is demonstrating a commitment to helping its clients implement, manage and execute successful customer acquisition and retention programs through on-going education, strategic consultation and world class support of its card based offerings.

About ProfitPoint

ProfitPoint (www.rewardforloyalty.com ) is a payment services company that markets value added, gift & loyalty card programs to businesses which enables them to attract new customers, encourage repeat visits, track, monitor and report customer purchasing patterns as well as reduce the risk of shrinkage and exposure to fraud. ProfitPoint supports these products with knowledgeable marketing and advertising assistance, pro-active client support, merchant education and comprehensive transaction processing services for all forms of non-cash payments. Founded in 2003, ProfitPoint is a privately held company backed by venture capital firms New Spring Ventures (www.newspringcapital.com ) and Clayton Associates (www.claytonassociates.com ), with headquarters in Havertown, Pennsylvania, and an operations center located in Franklin, Tennessee. The company currently employs 35 persons.

Source: Company press release

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Source: Company press release.