CHAPIN ASSOCIATES LTD.
2441 FOX MEADOW COURT
NORTHFIELD, IL 60093-4305
August 21, 2007
Mr. William P. Williams, CEO
CARD ACTIVATION TECHNOLOGIES, INC.
33 West Jackson Blvd., Suite 1618
Chicago, IL 60604-3749
Dear Mr. Williams:
CHAPIN Associates Ltd. has performed a valuation using a comparable royalty rate approach to provide an indication of market value for CARD ACTIVATION TECHNOLOGIES’S method for processing debit purchase transactions using a counter-top terminal system, including Patent Number 6,032,859.
The results of our engagement are detailed in this report, which is to be used solely for the purpose described herein. A valuation as of a different date of value or for a different purpose could result in a materially different conclusion.
We have performed this engagement following professional guidelines and in a professional manner in accordance with recognized industry practices. We make no further warranty, expressed or implied.
