Card Activation Technologies, Inc. Gives A Mid Year Update
To Shareholders On Its Progress As It Continues To Seek Licenses For Its Patented Technology For Stored Value Cards
Chicago, IL. (July 8, 2008) – Card Activation Technologies (OTC BB: CDVT), owners of a patented point-of-sale technology for the activation and processing of transactions related to debit styled cards, which include gift cards, phone cards and other stored value cards, today said that the Company is continuing to press forward on its lawsuits against six major retail chains.
·The Company continues to progress in its previously announced lawsuits against Walgreen, Sears, OfficeMax, Aeropostale, Barnes & Noble and TJX Companies.
·The Company also continues to negotiate licenses with several companies that have responded to the Company’s correspondence advising them of the patent infringement and believes that these negotiations can result in new licenses signed in 2008.
·Over 500 letters of notice were sent to retailers, petroleum companies, and other companies that are potential licensees of the Company’s technology. These letters are important in that should Card Activation Technologies prevail in its legal action, the damages are determined based on the date of the letter of notice.
Mr. Mark Roth of the Law Firm of Orum & Roth LLC who is acting as council for Card Activation stated that, ”We are extremely excited about the progress that has been made in the litigation. We successfully defeated several defendants’ motion for summary judgment challenging the validity of the patent. In addition, we are optimistic about the court’s soon to be released ruling construing the claims 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."
