New York, NY - SMART System Technologies, a leading provider of hosted contactless payment, loyalty and marketing solutions, announces a definitive agreement with Dexit Inc., the creator and operator of the Dexit(tm) electronic payment facilitation service for everyday purchases.

In the agreement, SST has appointed Dexit as its preferred supplier of prepaid functionality for everyday purchases in the United States. Likewise, Dexit has appointed SST as its preferred supplier to offer SST loyalty and reward services in Canada.

SST and Dexit will create a solution that combines the SST loyalty product and the Dexit prepaid payment service into a single offering. Together the companies plan to offer the combined solution to customers in their respective markets.

“As a logical extension of each company’s proven product offerings, this partnership will enable SST and Dexit to provide all the benefits of a robust payment system and loyalty solution to merchants across North America,” said Michael Richardson, President and Chief Operating Officer of SST. “In addition to offering the convenience of prepaid payment services, merchants will now have the ability to reward their customers and deliver incentives based on their purchase intent or loyalty at the point of sale.”

SST’s PowerPay solution is a merchant platform that combines the speed and convenience of contactless payment for consumers with the power of loyalty and customer relationship management to merchants, retailers and sports properties. The PowerPay platform provides an end-to-end customer transaction management and marketing system that allows merchants to track and reward consumer purchases with highly targeted rewards and incentives.

“Dexit offers everyday small value payment services and welcomes the opportunity to provide its current and future customers with loyalty services by partnering with SST,” added Renah Persofsky, President and Chief Executive Officer of Dexit. “SST meanwhile offers loyalty services and now has the opportunity to extend its product line by providing its customers with the Dexit prepaid small value payments service through Dexit. This is very much a case where the sum will be greater than the total of the parts. Given SST’s position in the United States, we view this arrangement as a critical next step to entering that market.”

Pierre A. Roberge, Vice-President Research and Development for Dexit, said the agreement launches a new chapter for Dexit and SST. “This agreement is a natural fit for both companies,” Roberge said. “Both Dexit and SST are multi-merchant focused. We target similar merchants and both believe strongly in the convenience and security of contactless payments as well as the privacy of the consumer and consumer transaction data. This initiative will open up new opportunities for merchants and exciting benefits to consumers.”

About SMART System Technologies, Inc. SMART System Technologies, Inc. (SST) is a leading provider of hosted contactless payment, loyalty and marketing solutions. The company’s PowerPay(tm) solution provides a quick and rewarding cashless payment experience to consumers, and a powerful marketing tool to merchants, retailers and sports properties. Leveraging ISO 14443 standards for proximity card technology, PowerPay is being used by thousands of consumers and multiple retail establishments in Detroit, Philadelphia and Seattle, representing the largest deployment of multi-application contactless payment and loyalty in North America.

SST is funded by leading venture firms including Apex Venture Partners, Draper Fisher Jurvetson Gotham Ventures and The Grosvenor Funds. For more information, please go to www.SmartSystemTech.com.

About Dexit, Inc. Based in Toronto, Dexit has pioneered an “instead of cash”(tm) electronic payment facilitation service for small transactions (generally under $25). The Dexit(tm) service enables consumers to pay for coffee, muffins, lunch and other low-cost items quickly and conveniently with the tap of a RFID (radio frequency identification) tag linked to a pre-paid account. Founded in 2001, and funded in part by CANARIE Inc., Dexit launched its service in September 2003, initially in downtown Toronto. More than 47,000 consumers have registered for the Dexit service, which is currently available in more than 350 merchant locations.

Dexit completed its initial public offering (IPO) of common shares in June of 2004. To find out more about Dexit Inc. (TSX: DXT), visit our website at www.dexit.com.