Smart Card Solutions, LLC to License Smart Chip Technologies' Loyalty Patent

Both companies are leaders in the high-growth international smart card industry. Smart Chip Technologies(SCTN)licenses its patents and software for loyalty or incentive programs that run on smart portable devices, such as smart cards, palm-sized organizers, or mobile phones. The patents are key to SCTN's software suite, providing an end-to-end loyalty solution that is engineered for EMV, Global Platform, and MULTOS compliance to simplify integration with payments and other applications.

Media Contact:
Elaine Simon
Smart Chip Technologies
(801)685-7676
esimon@sctn.com
www.SmartChipTechnologies.com

SALT LAKE CITY, UT AND HARTLAND, WI -- June 5, 2002 -- Smart Chip Technologies (OTC: SCTN) announced today that Smart Card Solutions, LLC has signed a Memorandum of Understanding to license the SCTN loyalty patent and associated intellectual property.

Under a related Software License and Development Agreement, SCTN and Smart Card Solutions have begun to explore cross product licensing and joint revenue sharing opportunities with respect to each others products. This may include interfacing Smart Card Solutions loyalty software for point-of-sale (POS) terminals with SCTNs comprehensive back-end clearing operation, LoyaltyCentral.

Bill Biwer, Smart Card Solutions President, stated: "We are very pleased to be working with Smart Chip Technologies to advance interoperability in the smart loyalty and rewards arena and expand our product offering."

SCTN is very excited about our partnership with Smart Card Solutions. We will now provide support to a true smart card innovator, while promoting the open standard compatibility of our efficient, infinitely scalable loyalty processing architecture," explained David Simon, Chairman and CEO of Smart Chip Technologies.

Richard Hauge, SCTN SVP of Global Alliances, added, "Our goal is to work with the industry in any prudent manner required to ultimately accelerate the acceptance of smart devices into the stream of commerce."

Smart Chip Technologies patents cover the business process of allocating, storing, and redeeming loyalty, rewards, or incentives between smart devices, such as smart cards, palm-sized organizers, or mobile phones, and any base device, such as merchant POS terminals, local and remote servers, ATMs, PCs, satellites, or mainframe computers. SCTNs intellectual property is patented in the United States, Mexico, Australia, and pending in Canada and Japan. The patents are key to SCTNs software suite, providing an end-to-end loyalty solution that is engineered for EMV, Global Platform, and MULTOS compliance to simplify integration with payment and other applications.

Loyalty programs have long been touted as one of the primary drivers for the business case for smart cards. A recent report from Frost & Sullivan (Fall, 2001) suggests that North America will see a jump from 32 million chip-based payment cards in 2000 to 125 million in 2004, a 41% compound annual growth rate. The revenue from loyalty transaction processing, including servicing and licensing, is expected to exceed $12 billion annually by 2010.

About Smart Card Solutions, LLC

Smart Card Solutions, LLC is a worldwide leader in software development and system integration for the transaction automation industry, focused on magnetic stripe and smart card based payment systems, Internet connectivity, eCommerce, and frequency/loyalty tracking systems. Smart Card Solutions has customer installations throughout the United States. (www.sc-solutions.com)

About Smart Chip Technologies

Smart Chip Technologies [OTC: SCTN] is a Software Technology Company with a patent protected loyalty system for use in the smart card and wireless environment. SCTN licenses its patented e-llegiance multi-platform smart chip loyalty application that is engineered for EMV, Global Platform, and MULTOS compliance. Although backward compatible with magnetic-stripe cards, the software is chiefly designed to operate on smart cards, POS terminals, and smart devices such as PDAs or mobile phones. SCTN also provides complete loyalty program management, transaction processing, and accounting services through its LoyaltyCentral software and back office operation. The e-llegiance and LoyaltyCentral solutions provide maximum flexibility in the management of click-and-mortar incentive programs, establishing business continuity across the physical, mobile, and virtual worlds. (www.SmartChipTechnologies.com)

For further information, contact Smart Chip Technologies at (801) 685-7676 or sales@sctn.com; or contact Smart Card Solutions at (262) 369-3400 or info@sc-solutions.com.

Any statements contained in this press release that do not describe historical facts may constitute forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties.

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