SCTN Obtains Official Written IRS Approval of an Offer In Compromise Settlement

Smart Chip Technologies (PINKSHEETS: SCTN) is pleased to announce that the company has obtained official written approval of an Offer In Compromise settlement from the IRS Appeals Division concerning the Company's past payroll tax liability.

The settlement of this tax issue was reached after several years of negotiating with the IRS and will significantly reduced the company's overall federal tax liability. SCTN appreciates the IRS ruling which allows the IRS to received tax payments in a manner that does not impede any of the Company's current progress or any aspect of its future growth. Under the terms of the agreement, the Company will pay 24 equal payments of $12,500 per month totalling $300,000 starting in January 2009.The Company also has the option to make a full payment of the balance due at any time over the course of the established payment schedule.

About Smart Chip Technologies (PINKSHEETS: SCTN)

Smart Chip Technologies' turnkey customer retention solutions, including Loyalty, Pre-Paid Stored Value, Punch Cards, and Gift Cards, enable issuers, acquirers, and merchants to take advantage of real-time programs using their cardholders' existing cards using bar codes, magnetic strips, smart chips, RFID, Internet accounts, and other consumer electronic devices. The SCTN system is a scalable, high performance, end-to-end solution that uses an ASP model to customize the system's look and feel to reinforce customer branding. ( www.sctn.com )

http://www.b2i.us/irpass.asp?BzID=748&to=ea&s=0

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