Chicago, IL. (March 25, 2008) – Card Activation Technologies Inc. (OTCBB: CDVT), owners of a patent covering a method for the activation and processing of transactions related to debit styled cards, which include gift cards, phone cards and other stored value cards, announced that Card Activation Technologies, Inc. won a significant court ruling on March 20, 2008, in its lawsuit against major retailers Barnes & Noble Inc.(NYSE:BKS) and Aeropastale Inc.(NYSE:ARO). Barnes & Noble and Aeropastale sought to invalidate the Card Activation patent in that litigation. Federal District Court Judge Joan B. Gottshall entered a decision, however, refusing to accept Barnes & Noble and Aeropastale’s potion that Card Activation’s patent is invalid.
Mark Roth of Orum & Roth LLC, one of Card Activation’s attorneys, deemed the ruling very significant for Card Activation’s litigation and licensing efforts. “Card Activation’s victory on this motion significantly strengthens our position in this, and other cases. The court’s decision furthers our belief in the strength of the patent and our claims against those entities that we have sued as well as those entities that we have contacted to discuss taking a license under the patent” said Mr. Roth.
The Card Activation patent relates to a method used by most retailers for processing debit styled cards, which include gift cards and phone cards. Card Activation currently has lawsuits pending against Walgreen Company (NYSE:WAG), Sears Holding Corporation (Nasdaq:SHLD), TJX Companies (NYSE:TJX) and OfficeMax ((NYSE:OMX), as well as Barnes & Noble and Aeropastale. Card Activation has also placed on notice approximately 600 retailers relating to their potential infringement of the patent.
Card Activation Technologies, Inc. is a Chicago-based company that owns proprietary patented payment transaction technology used for processing gift cards, phone cards and other debit purchase transactions. The company is actively seeking to license its technology to the thousands of current users and believes that many retailers, gas stations, phone companies and others that utilize those stored value cards, such as gift and debit, infringe its patent. As a result, the company is aggressively pursuing litigation against these infringements. The Federal Reserve Bank of Philadelphia estimated prepaid card market to be valued in excess of $181.7 billion in transactions in 2006. According to market forecasts, the prepaid industry will grow to $421.5 Billion by 2010. For further information about Card Activation Technologies go to www.cardactivationtech.com
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Card Activation Technologies, Inc. (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) defend its patent; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."
