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For Partnership Opportunities Contact:
Vaden Landers
ProfitPoint, Inc.
Phone: 615-324-9870
Email: vadenl@rewardforloyalty.com


For Editorial Content Contact
Elethia Deal
ProfitPoint, Inc.
Phone: 610-446-4277 Ext. 140
Email: elethiad@rewardforloyalty.com

ProfitPoint Brokers Major Private Equity Deal

Partners with Venture Capital Groups and Secures Millions

FRANKLIN, TENN. (March 12, 2007) - ProfitPoint Inc., an emerging leader in the rapidly expanding gift and loyalty card industry, announced today it has raised $6 million in equity capital. The venture round was led by NewSpring Ventures II LP, and was joined by Clayton Associates.

This latest investment follows a successful initial round of venture capital in 2004 that resulted in increased revenue of more than 250 percent for ProfitPoint in 2005. In 2006, ProfitPoint experienced equally impressive revenue growth in excess of 100 percent above the previous year.

"We chose to take on the investment capital now because we wanted to better position ourselves to capture a greater share of the stored value gift and loyalty card market, specifically within the mass market," said Vaden Landers, CEO of ProfitPoint. "We truly believe we have the best product and service available on the market. We lacked the horsepower to rapidly expand our distribution capabilities in order to reach our target audience in the most cost-effective and efficient manner possible."

The $6 million equity infusion will be used to fund expansion of ProfitPoint's distribution capabilities among its direct sales force, reseller channels and other strategic third-party relationships. A portion of the capital will fund opportunistic acquisition of gift card and/or credit card portfolios.

Additionally, money is earmarked for improvements in the features and functionality of ProfitPoint's stored value card platform. The company also plans to expand the CRM capabilities of its closed-loop loyalty offering and make its back-office operation more efficient by streamlining the process of boarding new accounts.

NewSpring Ventures is a member of NewSpring Capital, a family of private equity funds based in Radnor, Pa., which manages more than $250 million of capital. NewSpring provides equity capital to growth- and expansion-stage companies focused on enabling technologies, business services and information technology.

Clayton Associates is a venture capital firm in Franklin, Tenn., that invests in early-stage growth companies. Clayton Associates has more than 10 years of private equity experience, with more than $100 million in committed capital in four funds.

"We are thrilled about our investment in ProfitPoint," said Glenn Rieger, General Partner of NewSpring Capital. "ProfitPoint meets all of our key investment criteria and is part of a large, growing and highly fragmented market. Their proven business model is attractive and the senior management team is highly experienced and motivated to build on their success."

"We selected New Spring and Clayton because we felt there was a strong cultural and philosophical fit in terms of our approach to doing business," ProfitPoint's Landers said. "Both of these firms are filled with hard-working, dedicated professionals who are committed to helping their partners succeed, and each of them has a significant track record of success.

"It was also really important to have proximity to our partners. NewSpring is within miles of our national sales headquarters, and Clayton is based in Franklin, just outside of Nashville, where we have our operations center."

"Our business model is simple," Landers added. "We advocate putting a loyalty card in the wallet or pocketbook of every single person who walks through your front door. We believe that creating a loyal customer who will shop with you more often and spend more money is the best marketing investment you can make in your business."

About ProfitPoint, Inc.

ProfitPoint Inc. is a leading provider of gift and loyalty card services to the small to medium sized merchant community. Headquartered near Nashville, Tennessee, ProfitPoint supports its gift and loyalty cards with point-of-purchase accessories, real-time electronic transaction processing and customizable reports for each merchant. ProfitPoint specializes in the design and production of custom gift and loyalty cards, software capability and merchant education to meet each individual client's needs. Now serving approximately 20,000 merchant locations nationwide, ProfitPoint produces in excess of five million cards per year and does more than 10 million stored value transactions on its gift and loyalty card platform. ProfitPoint has experienced annualized growth of more than 100 percent each year since its inception in 2003