May 2002

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" background="13cfd5a3.jpg"> <div> <FONT SIZE="5" COLOR="#000000" FACE="Arial" ><B>HealthCard Systems </B></FONT><B>    </B><B> |     </B><A HREF="index.htm" TARGET="_top" TITLE="HealthCard Systems "><U><B>home</B></U></A></div> <div> <A HREF="id55.htm" TARGET="_top" TITLE="January 8 2008"><U>January 8 2008</U></A>   |   <A HREF="id52.htm" TARGET="_top" TITLE="January 15, 2007"><U>January 15, 2007</U></A>   |   <A HREF="id53.htm" TARGET="_top" TITLE="December 4, 2006"><U>December 4, 2006</U></A>   |   <A HREF="id51.htm" TARGET="_top" TITLE="November 20, 2006"><U>November 20, 2006</U></A>   |   <A HREF="id50.htm" TARGET="_top" TITLE="January 10, 2006"><U>January 10, 2006</U></A>   |   <A HREF="id49.htm" TARGET="_top" TITLE="August 1, 2005"><U>August 1, 2005</U></A>   |   <A HREF="id48.htm" TARGET="_top" TITLE="July 15, 2005"><U>July 15, 2005</U></A>   |   <A HREF="id46.htm" TARGET="_top" TITLE="May 17, 2005"><U>May 17, 2005</U></A>   |   <A HREF="id47.htm" TARGET="_top" TITLE="May 1, 2005"><U>May 1, 2005</U></A>   |   <A HREF="id45.htm" TARGET="_top" TITLE="April 14, 2005"><U>April 14, 2005</U></A>   |   <A HREF="id38.htm" TARGET="_top" TITLE="May 17, 2004"><U>May 17, 2004</U></A>   |   <A HREF="id42.htm" TARGET="_top" TITLE="February 6, 2004"><U>February 6, 2004</U></A>   |   <A HREF="id39.htm" TARGET="_top" TITLE="September 12, 2003"><U>September 12, 2003</U></A>   |   <A HREF="id29.htm" TARGET="_top" TITLE="March 31, 2003"><U>March 31, 2003</U></A>   |   <A HREF="id30.htm" TARGET="_top" TITLE="August 15, 2002"><U>August 15, 2002</U></A>   |   <A HREF="id31.htm" TARGET="_top" TITLE="August 2002"><U>August 2002</U></A>   |   <B>May 2002</B></div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="13dd2b03.jpg"> <bR> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>May 2002</I></div> <bR> <div> <TABLE BORDER="0" CELLPADDING="1" CELLSPACING="1" WIDTH="626" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="VOID" RULES="NONE" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 573 WIDTH="622"><div> Rochelle Park, NJ, May, 2002 . . . Two highly-successful credit card executives announced today the establishment of their new business venture, HealthCard Systems, LLC. </div> <div> Richard Spigai and David Schwartz, who have successfully developed niche-marketing programs in the credit/debit industry have now established what is deemed the “preferred credit card processor for the healthcare industry”. </div> <div> HealthCard Systems will focus solely on the unique and intrinsic transaction processing needs of an industry facing growing challenges. Escalating processing costs, unpredictable statement fees and a general unfamiliarity with the inherent needs of the healthcare industry, have all contributed to ongoing confusion and mounting operational costs for individual healthcare providers and facilities. HealthCard’s proprietary processing system has been developed to address these industry concerns by providing cost-effective transaction processing programs that streamline services, eliminate confusion, reduce operating costs, minimize staff involvement, and enhance cash flow. </div> <div> “The ramifications of unmanageable industry costs and other growing challenges are far-reaching to everyone - from patients to providers who often feel the negative effects. HealthCard wants to set a new credit and debit card processing standard within the industry, bringing about an important change that will have meaningful financial and operational impact for all involved,” explains Schwartz.</div> <div> The company’s management team is comprised of proven professionals from both the healthcare and credit/debit card industries, who not only recognize the needs and concerns prevalent in the healthcare industry, but more importantly, have developed programs to successfully address them.</div> <div> “Our focus is clear. HealthCard Systems will take the healthcare industry into the 21st century by introducing state-of-the art electronic systems that combine credit and debit card processing with valuable information intrinsic to individual client needs,” explains Spigai.</div> <div> In 1989, Spigai and Schwartz founded NationalCard Processing Systems, a credit and debit card processing company that focused on the upscale niche national market. With clients that included Donna Karan, Hermes, Louis Vuitton, Gucci of America, The New York City Ballet and The U.S. Open, NationalCard experienced a gross revenue increase of over 300 percent in the first five years of operation and quickly grew to be the eighth-largest non-bank credit card processing company in the nation. The company earned an industry reputation for excellence in large part for their unique approach to customized software solutions and extraordinary customer service. </div> <div> In 1993, NationalCard was acquired by First USA, Dallas, Texas, and the pair moved on to form Retail Resources, which was one of the nation’s forerunners in customer database processing and relationship marketing services. Retail Resources’ rapid success was attributable to its visionary management, proprietary software and customized loyalty card programs resulting in an enviable client base that included Bruno Magli, Eileen Fisher, Ferragamo, The Metropolitan Museum of Art and The Culinary Institute of America. In 1999, Retail Resources was acquired by Chicago-based Trans Union Corporation. </div> </tD> </tR> </TABLE></div> <bR> <bR> </td> </tr></table></body>