SmartCard Marketing Systems Inc. (PINKSHEETS:SMKG) Update to Shareholders

SmartCard Marketing Systems Inc. (PINKSHEETS: SMKG) Massimo Barone CEO stated, “The company has seen stellar growth in the past 2 years and continues to increase its portfolio of customers on a Global scale in the Prepaid Cards, Bill Pay, Pin Debit and Email money transfer services. The next 12 to 36 months will continue to grow at a similar pace with the added new stream of revenues being generated from licensing sales of the Velocitymoney.com services to Financial Institutions and ongoing franchising of Velocitymoney™ Authorized Retailer Locations.

We want to compete in the Alternative Payment Services segment and with our existing Global presence we can make the transition a very successful one. Until now our focus had been to establish Agency offices Internationally which we have successfully done with the anticipation now of the “Retail Authorized locations” to branch out and to be actively promoting and selling our products and services.

POISON PILL

We are also continuing to extend the “Poison Pill” which had recently expired and from this date on for an additional 12 months period of record will be reconstituted which would require that all shares not solely of management must be acquired in the event of a sale.

SHARE STRUCTURE

Our current share structure remains at 200 000 000 Authorized shares and 92 000 000 Free trading shares with over 64 million of the free trading shares owned by Management and 7 Investors."

We seek safe harbor