Smart Card Marketing Systems, Inc. Signs Distribution Agreement With NCSC New Card Secured Canada, Inc.

Market Wire, July, 2006

Smart Card Marketing Systems, Inc. (PINKSHEETS: SMKG) (FRANKFURT: QYH), a leading loyalty provider of prepaid cards, value smart storage cards and payment transaction management services, announced today that they have signed NCSC New Card Secured Canada, Inc. to a co-brand secured Mastercard® distribution agreement.

NCSC New Card Secured Canada, a Canadian based company, has signed a commitment for five thousand (5,000) co-branded Mastercard® secured cards for the Canadian market and one thousand (1,000) cards for the US market. Smart Card will benefit from the sale of the cards with a royalty on transactional based revenue generated by active cards. The total estimated value of the revenue generated by the cards, according to industry standards, will be between $225,000 and $375,000 per year ($45 to $75 per card per year). This figure does not include revenue from the initial purchase or from activation fees for the US cards which is split 65/35 with the distributor.

The secured credit card is a revolutionary new product that will allow credit challenged consumers and immigrants the opportunity to re-establish or create a better credit score to improve their chances for future financing. The secured credit card market is very new in Canada as many of the major financial institutions have not yet targeted this niche opportunity.

Mr. Mario Cloutier of NCSC New Card Secured Canada, Inc. stated, "We are very pleased with the agreement and we believe that the secured cards will make a profitable addition to our existing product offerings."

About NCSC New Card Secured Canada, Inc.

NCSC New Card Secured Canada, Inc. is a Canadian based company that works to repair the credit of individuals using secured credit cards. The company is working right now on major contracts that will give them a competitive edge in the North American secured card market.

About Smart Card Marketing Systems, Inc.

Smart Card Marketing Systems, Inc. was established in 2003 and is a leading provider of prepaid cards, value smart storage cards, loyalty programs and payment processing services. Smart Card offers a powerful sales organization and merchant reseller marketing program that incorporates cutting edge technology and delivers a viable cost-effective solution. Smart Card is looking to revolutionize the prepaid and loyalty card market by presenting their proprietary solution offering, the GoSmartCard platform.

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