DM2 Licenses Smart Chip Technologies’ Loyalty, Stored Value, and Gift Card Software

LAS VEGAS & MONTREAL -- Jan. 31, 2005 -- Smart Chip Technologies (OTC:SCTN) is pleased to announce that DM2 Technology, a wholly owned subsidiary of Bach-Hauser, Inc., has licensed Smart Chip Technologies’ loyalty, stored value, and gift card software solution through sales channel partner Retention Management Group.


DM2 is currently piloting a 50 merchant coalition loyalty program using magnetic stripe cards for loyalty, payments, and other applications, and will immediately upgrade the participating merchants to SCTN software, followed shortly by 200 additional merchant locations. DM2 anticipates that at least 1250 merchants will be using their e-llegiance(TM)-powered program within the first year, and plans to migrate to smart cards within two years.

“SCTN’s software suite will provide our merchants with more flexible tools to win and retain customers,” stated DM2 President Martin Grenier. “Meanwhile, the robust Loyalty Central(TM) back-office suite will automate and simplify program management, driving down operational costs and allowing us to focus on program expansion.”

“DM2 has an aggressive roll out scheduled for hundreds of merchants to support their existing Cardholder Networks,” explained SCTN VP of Sales Neale Brown. “We are moving quickly to keep up with all of the opportunity presented by this exciting new partner.”

About Bach-Hauser, Inc.

Bach-Hauser, Inc. through its wholly owned subsidiary DM2 Technology is a provider of specialized POS equipment and software, which provides greater flexibility and reliability for debit and credit card financial payments. The company currently sells its products and services through traditional retailers, online retailers, taxis and courier companies. (www.dm2debit.com)

DM2 Technology specializes in the sale of POS (point of sale) equipment and software to handle bankcard and credit card payments. DM2 Technology has been in the business of handling Interac and Credit Card transaction payments since the government of Canada deregulated this market. At present, DM2 has terminals in retail outlets in every province. DM2 has a growing list of corporate clients and strategic partners such as Rogers Wireless Communication, Dynacard Capital, Lipman, Datawest and CIT.

About Smart Chip Technologies (OTC:SCTN)

Smart Chip Technologies’ turnkey customer retention solution, including Loyalty, Pre-Paid Stored Value, and Gift Cards, was co-developed with the Airos Group (www.airosgroup.com) and IBM(TM). This software solution enables banks and retailers to take advantage of click-and-mortar, real-time programs running on their existing cards and point-of-sale (POS) systems, including bar code, magnetic stripe, RFID, or smart cards, laptops, PDAs such as Palm(TM) or Windows(TM) devices, TV set top boxes, or mobile phones. Smart Chip Technologies’ end-to-end solution provides a seamless migration path from current customer ID and payment devices to future technology platforms, establishing business continuity across physical, mobile, and virtual streams of commerce. (www.sctn.com)

Any statements contained in this press release that do not describe historical facts may constitute forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties.

Contact Information

Elaine Beavon

Media Contact

Smart Chip Technologies

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