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SmartCard Marketing Systems Inc. (PINKSHEETS:SMKG) Corporate Update With Regards to Share Buyback Plan

Friday 29. August 2008 - As stated by SmartCard Marketing Systems Inc.(PINKSHEETS:SMKG) "Management is pleased to announce that management has entered into discussion with 2 Private Equity Firms in the US with the intent of purchasing back upto 10mm to 15mm shares on the open market (equivalent to a min of 5% of authorized shares or 11% of free trading float).

We believe strongly that this is a value proposition and commitment from Management to demonstrate the existing and potential growth of (PINKSHEETS:SMKG) business. We have not finalized an agreement but feel that the interest from Private Equity groups is favorable and allows management to be transparent in its decisions.

It is our intent to build investor value and bring larger investment institutions to (PINKSHEETS:SMKG) as focus on the Money remittance segment, Prepaid Cards and Pin Debit is gaining strong momentum with existing merchants vamping up and new merchants beginning to startup making Velocitymoney.com a leader in online and off-net payment services.