Smart Card Marketing Systems Inc. Enters Into Agreement With Atlantic Payment Systems, LLC

Smart Card Marketing Systems Inc. (PINKSHEETS: SMKG), a leading provider of prepaid cards, value smart storage cards and payment transaction management services, announced today that they have entered into a joint marketing and service agreement with Atlantic Payment Systems, LLC of Niskayuna, New York. From its New York headquarters and satellite offices in Minnesota, Florida, and Maryland, Atlantic Payment Systems provides commercial payment services to North American and European-based companies.

Atlantic Payment Systems will market Smart Card's prepaid debit card as a payroll solution for its corporate clients. The company's president, Daniel Alcorn, stated, "The VISA™ branded payroll card gives our corporate customers the benefit of 100% electronic payroll delivery. All employees are eligible, even if they do not have an individual bank account." The payroll card from Smart Card benefits employees because it is safer than carrying cash, it eliminates expensive check cashing fees and it allows employees to inexpensively remit money via companion cards to family members living anywhere in the world. Bruce Baillio, President of Smart Card, said, "We are pleased to be able to add our payroll card to Atlantic's outstanding existing corporate payment and funding services. We believe that this agreement will be very beneficial for both companies."

Atlantic Payment Systems will also use Smart Card's Canadian Electronic Funds Transfer (EFT) facility on its VelocityMoney(TM) Internet platform to service its payment collection and money transfer customers in Canada. Smart Card is one of the few companies in Canada that provides EFT services to its clients.

About Atlantic Payment Systems, LLC

Atlantic Payment Systems specializes in payment solutions for small to medium-sized businesses with services including e-commerce merchant credit card processing, secure gateways for e-commerce, international multi-currency payment services, ACH debit and check drafting services, international bank transfer and direct debit services. Atlantic also provides funding programs like equipment leasing and advance funding and factoring arrangements. For more information, visit Atlantic Payment's website at: www.atlanticpayment.com.

About Smartcard Marketing Systems, Inc.

Smart Card Marketing Systems, Inc. was established in 2003 and is a leading provider of prepaid cards, value smart storage cards, loyalty programs and payment processing services. Smart Card offers a powerful sales organization and merchant reseller marketing program that incorporates cutting-edge technology and delivers a viable cost-effective solution. Smart Card is looking to revolutionize the prepaid and loyalty card market by presenting their proprietary solution offering, the GoSmartCard platform. To learn more about Smart Card Marketing, go to www.gosmartcard.com.

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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