Chicago, IL. (December 13, 2007) – Card Activation Technologies (OTC BB: CDVT), owners of a patented point-of-sale technology for the activation and processing of transactions related to debit styled cards, which include gift cards, phone cards and other stored value cards, today said that the Company has made significant progress since its spin-out from MedCom USA, Inc. (OTC BB: EMED) approximately one year ago.

At that time, MedCom announced that due to the huge potential for licensing of the Company’s technology in the prepaid card market, which the Federal Reserve Bank of Philadelphia estimated to be valued in excess of $181.7 billion in transactions in 2006, as well as the need to aggressively pursue all legal options for those who chose to ignore infringement of the Company’s patent, it would create a separate entity, Card Activation Technologies Inc., and distribute shares in that Company to MedCom shareholders of record on December 15, 2006. 

Although the company actually only commenced trading on October 15, 2007, Bill Williams, Card Activation Technologies’ CEO, noted that several milestones were reached in 2007:

·                     The successful SB2 registration

·                     The Company commenced trading on the OTCBB

·                     A settlement and license agreement with McDonalds Corporation for use of the Company’s technology

·                     Approximately 500 letters of notice were sent to retailers, petroleum companies, and other companies that are potential licensees of the Company’s technology.  These letters are important in that should companies ignore them and/or choose not to respond to a request to negotiate a license agreement, then Card Activation Technologies may take legal action to enforce its rights.  Once Card Activation Technologies prevails in this action, the damages are determined based on the date of the letter of notice. 

·                     The Company continues to progress in its previously-announced lawsuits against Walgreen’s, Sears, OfficeMax, Aeropostale, Barnes & Noble and its most recently-announced suit against TJX Companies, owners of TJ Maxx and Marshall’s stores. 

·                     The Company also continues to negotiate licenses with several companies that have responded to the Company’s correspondence advising them of the patent infringement and believes that these negotiations can result in new licenses signed in 2008.

“When we filed the original patent application in 1996 to protect against theft of phone cards, little did we realize that in a very short time this same technology would be used to process billions of dollars of gift cards,” said Mr. Williams.  During this holiday season alone, the National Retail Federation is projecting gift card sales to total some $26 billion. “Our primary goal with Card Activation Technologies is to license our technology to retailers, using a model similar to that of the credit card industry – a percentage of the amount transacted,” explained Mr. Williams. 

Card Activation Technologies, Inc. is a Chicago-based company that owns proprietary patented payment transaction technology used for processing gift cards, phone cards and other debit purchase transactions. The company is actively seeking to license its technology to the thousands of current users and believes that many retailers, gas stations, phone companies and others that utilize those stored value cards, such as gift and debit, infringe its patent.  As a result, the company is aggressively pursuing litigation against these infringements.

Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Card Activation Technologies, Inc. (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) defend its patent; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."