DynCom Licenses Smart Chip Technologies’ Loyalty Patent and Software For Multi-Application Smart ID Card

IRVINE, Calif., SALT LAKE CITY, and FORT COLLINS, Colo., Aug. 23 /PRNewswire-FirstCall/–Smart Chip Technologies (OTC: SCTN) is pleased to announce that DynCom, Inc., an innovator in the animal identification market, has contracted to license the SCTN loyalty patent (US Patent #5,806,045) and related software in order to develop and market multi-application EquinePassport™ smart cards with cardholder loyalty programs.

DynCom will integrate Smart Chip Technologies’ powerful end-to-end loyalty system with other EquinePassport™ identification and medical applications. While the USDA’s 2003 deadline for paperless health certificates is driving the demand for smart card-based animal identification, the EquinePassport™ will promote card usage through exclusive cardholder discounts and promotions. With discretionary spending in the equine industry exceeding $120 billion/year*, association / product / service rewards programs have a powerful draw for cardholders.

“Smart Chip Technologies’ powerful, patent-protected loyalty system will add tremendous value to our multi-function EquinePassport™ card, providing additional incentive for horse owners and associations to use our card instead of current tracking systems,” stated DynCom Chairman and CEO Curt Jansen.

Of the 7.1 million Americans involved with 6.9 million registered U.S. horses*, 58% of horse owners use a unique identification for at least one of their horses, according to U.S. Department of Agriculture data. DynCom’s EquinePassport™ smart card will be 100% interoperable with identifying technologies and presents the most secure, economical, and convenient method for the administration of animal health and identification records.

Depending upon owner needs and a horse’s value, the EquinePassport™ can be customized to include the most basic owner and animal identification data (including health certification and Coggins test results) to more sophisticated cards featuring information such as horse photographs, detailed health and pedigree certification, multiple biometric identifiers, event and prize records, facility access, association membership, stored value, and cardholder loyalty programs. The EquinePassport™ system will also interface with the EquinePassport™ website and DynCom’s backend database, in addition to other records systems as needed. Post-issuance updates will be available to insure that EquinePassport™ cardholders will have access to the latest identity and loyalty programs, and is engineered for Global Platform open industry standards to insure interoperability with applications such as electronic payments.

“This agreement to license the SCTN loyalty patent and software for integration with DynCom’s Equine Passport™ substantiates the virtually infinite flexibility and interoperability of our open system architecture, which is designed to enhance almost any vertical market application that wants to amplify its customer loyalty,” explained Smart Chip Technologies’ Chairman and CTO David Simon.

“The DynCom licensing agreement for our loyalty software and business process patent, which has been granted in the U.S., Australia, Mexico, and is pending in Canada and Japan, demonstrates the remarkable momentum of the new SCTN Management Team on the heels of our contract with RNG Gaming and other impending licenses,” added SCTN CEO Bernard McHale.

DynCom President Dr. Jay Altman and Jansen and presented a paper on Smart Card Technology at July’s National Equine Identification Symposium and demonstrated highlights of its EquinePassport™ system. DynCom is currently in discussion with several breed registries and state organizations regarding EquinePassport™ pilot program participation, with an anticipated circulation of more than 200,000 cards by December 31, 2003.

About Smart Chip Technologies (SCTN)

Smart Chip Technologies (OTC: SCTN) is a Software Technology Company with a patent protected loyalty system for use in the smart card and wireless environment. Smart Chip Technologies (SCTN) licenses e-llegiance™, its patented multi-platform smart chip loyalty application that is engineered for EMV, Global Platform, and MULTOS compliance for electronic payments integration. Although backward compatible with magnetic-stripe cards, the software is chiefly designed to operate on smart cards, POS terminals, and smart devices such as PDA’s or mobile phones. SCTN also provides complete loyalty program management, transaction processing, and accounting services through its LoyaltyCentral™ software and back office operation. LoyaltyCentral™ and e-llegiance™ provide maximum flexibility in the management of click-and-mortar incentive programs, establishing business continuity across the physical, mobile, and virtual worlds. ( http://www.SmartChipTechnologies.com )

About DynCom, Inc.

DynCom, Inc., based in Fort Collins, CO, is a leader in the international animal identification and health certification market, with innovative solutions combining the latest in positive identification and biometric technology with the convenience and popularity of a multi-application smart card. Building on its experience in smart database solutions for the gaming, healthcare, and animal markets, DynCom is scheduled to launch its multi-application EquinePassport™ smart card in 2003, featuring information such as horse photographs, detailed health and pedigree certification, multiple biometric identifiers, event and prize records, facility access, association membership, stored value, and cardholder loyalty programs. AnimalPassport™, FelinePassport™, and CaninePassport™ programs are also available.

For further information about DynCom, contact Sharon Knutson at (970) 416-0001 or info@d-c.com.

Learn more about Smart Chip Technologies:

Tune in to the live webcast of Mike King’s investor radio talk show on Sunday, August 25, 2002 at 10:00 p.m. EDT on the Princeton Research website: http://www.PrincetonInv.com.

Join us for an SCTN seminar on Tuesday, August 27, 2002 from 10 a.m. to 1 p.m. PDT in the Hawaiian Conference Room at the Tropicana Hotel in Las Vegas, Nevada.

For further information on either the radio broadcast or seminar, please contact Bernard McHale at (702) 837-3594 or write to InvestorRelations@sctn.com. For sales information, please contact the Corporate offices at (949) 798-3836 or write to Sales@sctn.com.

(* 1999 Horse Industry Directory)

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.