New Edge Networks, Chockstone Team to Provide Fast Gift Card Programs

Business Wire, March 9, 2005

VANCOUVER, Wash. -- New Edge Networks has reached an interconnection agreement with Chockstone Inc. allowing the national gift and loyalty card provider to extend broadband networking capability and electronic card-based programs to multi-unit restaurant chains.

The agreement enables restaurateurs to introduce new electronic gift and loyalty card programs that offer real-time analytics-based promotions at the point of sale. It also allows merchants to cut by two-thirds the time to process card transactions over standard dial-up telephone lines.

"Broadband speed coupled with a leading-edge gift and loyalty card platform translates to fast customer service and increased sales for quick service restaurants, franchisees, or merchants," said Dan Moffat, president and CEO of New Edge Networks. "A direct network connection between New Edge Networks and Chockstone accelerates deployments and eases the barriers of entry for national merchants."

Chockstone and New Edge Networks reached this agreement through their involvement in the Retail Broadband Alliance, a forum that makes it simple for retailers, restaurateurs, and other merchants to migrate to broadband. Through this association, both companies will deliver innovative solutions that enable merchants to realize more value from their IP-based broadband networks and electronic gift and loyalty card programs.

"This agreement and mutual marketing and deployment efforts will reduce the traditional operational headaches merchants encounter with slow, single-use dedicated phone lines and launching gift and loyalty card programs," said Jeffrey D. Lipp, president and CEO of Chockstone, based in Portland, Ore.

"An IP-based gift and loyalty card program that enables merchants to communicate with individual customers based on transaction history, delivered in just a few seconds is the 'holy grail' of loyalty marketing," Lipp said.

Through the dedicated connection to the Chockstone host, a consumer gift and loyalty card transaction will be processed and returned to the point of sale in just two to three seconds. Through a Single Swipe(TM) at a point-of-sale terminal, a customer is instantly recognized via personalized receipt or email communications with targeted promotions based on historical purchasing patterns in order to generate incremental merchant visits and sales.

About Chockstone, Inc.

Chockstone is the Technology Behind Stored Value(TM). A leader in stored value, loyalty and transaction processing, Chockstone operates card-based programs for national retailers seeking to differentiate their gift card programs. Chockstone offers retailers Single Swipe(TM), the most innovative gift card program available in the market. Through POS, Web & Kiosk environments, Single Swipe(TM) combines gift card usage, customer loyalty programs and targeted marketing campaigns for retailers and their consumers. Single Swipe(TM) is currently motivating millions of consumers to increase their visit and purchasing frequency at many of the nation's largest retailers. To learn more about how Chockstone has transformed everyday transaction processing data into valuable business intelligence, please visit www.chockstone.com or call 503-227-7600.

About New Edge Networks

New Edge Networks is a single-source national provider of managed network services for multi-location wide area networks (WANs). Through its own network facilities, New Edge Networks integrates a wide variety of last-mile broadband access technologies for building blended networks that reach 100 percent of all U. S. business locations. Customers include business enterprises, telecom carriers, and other communications providers. New Edge Networks' product suite of managed network services received Frost & Sullivan's Telecommunications Services 2005 Product of the Year Award. New Edge Networks is listed No. 28 on the 2004 Inc. 500 list of fastest-growing companies in America. The company's Web site is www.newedgenetworks.com; telephone: 360-693-9009.