LoyaltyPoint, Inc. Announces Revenues and Results of Operations for the Second Quarter Ended June 30, 2004 Second Quarter Revenue of $14.3 Million up 20% from Revenue of $11.9 Million in Q1 2004 ATLANTA, Aug. 17 /PRNewswire-FirstCall/ -- LoyaltyPoint, Inc. (OTC:LYLP) (BULLETIN BOARD: LYLP) , a loyalty marketing company for merchants, schools, and nonprofits that generates parent and supporter contributions to schools and nonprofits, today announced revenue and results of operations for the second quarter ended June 30, 2004. Revenue for the quarter and six-month period ended June 30, 2004 were $14.3 million and $26.3 million, respectively, as compared to revenue of $44,579 and $93,866 for the comparable quarter and six-month period the previous year. Net losses for the quarter and six-month period ended June 30, 2004 were $1.3 million and $2.7 million respectively as compared to net losses of $1.0 million and $2.4 million for the comparable quarter and six-month period the previous year. The comparisons with 2003 reflect a comparison of the results of operation of FUNDever, Inc. which merged into the Company on February 18, 2004 and, in accordance with generally accepted accounting principles, do not include the results of operations of the Company prior to the merger. Curtis Ramsey, LoyaltyPoint, Inc. Chief Financial Officer, stated, "We are successfully integrating our recent acquisitions and are pleased with our revenue as our loyalty programs and scrip business continue to grow. We will continue to drive top-line growth while maintaining a low-cost infrastructure. We anticipate that our recent $4 million equity financing will be of major assistance in enabling us to provide future stockholder value." The Company invites its shareholders, brokers, fund managers, analysts, and other interested parties to listen to a live telephonic presentation by Chief Executive Officer, Paul Robinson, President, Mickey Freeman, and Chief Financial Officer, Curtis Ramsey. Management will discuss the first quarter results, the recent $4 million equity financing round led by Accel Partners, and provide an operational update. The conference call is scheduled for Thursday, August 26, 2004 at 11:00 a.m. Eastern Daylight Time and will be followed by a live question and answer session. To listen to the presentation, please dial the following teleconferencing number and reference the Conference ID. You may begin placing calls 10 minutes before the hour: Participant Dial in: (800) 431-5048 (Domestic) Conference ID: 9480295 There will be a recorded replay of this call available beginning two hours after the completion of the call up until 11:59 pm on September 2, 2004. To access this replay please dial the following number and reference the following Conference ID: Post-call Participant Dial in: (800) 642-1687 (Domestic), Conference ID: 9480295. For further information on the Company, please refer to the Company's recent 10Q, filed August 16, 2004. About LoyaltyPoint, Inc. LoyaltyPoint, Inc. is a loyalty marketing company for merchants, schools, and nonprofits and owner of Schoolpop, Inc. (http://www.schoolpop.com/). The Company markets online, gift card, store, catalog, and event-based loyalty programs that generate contributions to schools, nonprofits and other organizations, based upon parent and supporter purchases. Our corporate headquarters is based in Atlanta, Georgia. Please visit us at http://www.loyaltypoint.com/. Contact: ROI Group Associates, Inc. Thomas Mikolasko, Phone: (212) 495-0200 x16, Andrea Costa, Phone: (212) 495-0200 x14, LoyaltyPoint Mickey Freeman, Phone: (770) 736-9383 x103, This press release may contain forward-looking statements including statements regarding our driving top-line growth and managing costs. Additionally, words such as "believe," "estimate," "project," "expect," "intend," "may," "anticipate," "plans," "seeks," and similar expressions identify forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially from the anticipated results, and undue reliance should not be placed on these statements. These risks and uncertainties include our ability to manage our anticipated growth, integrate our acquisition of NSC and other risks discussed in filings made with the Securities and Exchange Commission. DATASOURCE: LoyaltyPoint, Inc. CONTACT: Thomas Mikolasko, +1-212-495-0200 ext. 16, or , or Andrea Costa, +1-212-495-0200 ext. 14, or , both of ROI Group Associates, Inc.; or Mickey Freeman of LoyaltyPoint, +1-770-736-9383 ext. 103, or Web site: http://www.schoolpop.com/ http://www.loyaltypoint.com/

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