Points International Delivers Record First Quarter Revenues and Profitability

TORONTO, May 7, 2008 (Canada NewsWire via COMTEX) --

....
....First Quarter 2008 Financial Highlights:

....- ...Record First Quarter Revenue of $16.2 Million, up 260% Year-Over-Year
....- ...Record EBITDA(1) of $584,000, up from $0.3 million in Q107
....- ...First Time GAAP Profitability with EPS of $0.01
....- ...Record First Quarter Transaction Volume of 3.2 Billion Points/Miles

....Company Reiterates 2008 Business Outlook:

....- ...Reaffirms 2008 Revenue Guidance of $65 - $75 Million
....- ...Expect Meaningful and Material Growth in Positive EBITDA Year-Over-
........Year
....

Points International Ltd., ("Points") - (PTSEF)(PTS) - the world's leading loyalty reward solutions provider and owner of the Points.com portal - today announced results for the first quarter ended March 31, 2008. Beginning with the first quarter of 2008 Points is reporting financial results in U.S. Dollars.

"Record revenue, profitability and business metrics kicked off a strong 2008 for Points," said CEO Rob MacLean. "During the first quarter alone we saw more than 3.2 billion miles transacted across our platform, representing more than $60 million in aggregate transaction value - a new record for our company. This quarter we continued to experience the positive financial impact of the material shift to principal-based partnership agreements and announced new principal-based deals with Amtrak and JetBlue. We continue to further integrate Points within the revenue stream of our partners' loyalty programs by expanding the number of innovative products and services we offer them while simultaneously driving robust traffic to the consumer side of our business at www.points.com."

"During the quarter we continued to see encouraging response levels from consumers and the industry towards our Global Points Exchange (GPX) platform. We plan to continue to add partners and features to GPX as we move through 2008 and believe that GPX is on track to begin to contribute to our growth in the second half of the year. Looking ahead we plan to continue to close principal-based deals with new partners and will continue to diversify our revenue mix by adding partners in a number of industry sectors. We see substantial opportunities to expand the penetration of our programs within our partner base and increase monetization of the billions of miles that flow across our platform each quarter," concluded Mr. MacLean.

(1) EBITDA (Earnings (loss) before interest, amortization and foreign

exchange) is considered by management to be a useful supplemental measure

of performance. However, EBITDA is not a recognized earnings measure

under generally accepted accounting principles (GAAP).

First Quarter 2008 Results

Total revenue was a record $16.2 million for the first quarter of 2008, an increase of 260% over the $4.5 million reported in the first quarter of 2007, and up 12% from $14.5 million in the fourth quarter of 2007. For the first quarter of 2008, principal revenue totaled $13.0 million, an increase of 665% over $1.7 million in the same period last year, and up 13% from $11.5 million in the fourth quarter of 2007. Commission revenue was $2.9 million, an increase of 6% over $2.7 million reported in the same period of last year and up 5% from $2.7 million in the fourth quarter of 2007. Interest revenue was $277,000, an increase of 655% over $37,000 reported in the same period last year and up 6% from $261,000 in the fourth quarter of 2007.

Points reported net income for the first quarter of 2008 of $801,760, or $0.01 per share, compared to a net loss of $703,852, or ($0.01) per share in the previous year period, and a net loss of $953,892 million or ($0.01) per share, in the fourth quarter of 2007.

During the first quarter of 2008, Points reported positive EBITDA of $584,000 compared to positive EBITDA of $250,000 in the same period of 2007 and positive EBITDA of $208,000 in the fourth quarter of 2007.

....
....First Quarter 2008 Business Metrics

....Total All Channels:
....-------------------
....- ...Total points/miles transacted during the first quarter increased 15%
........versus last year to 3.2 billion, bringing the total cumulative
........points/miles transacted to 37.3 billion
....- ...The total number of transactions increased 28% versus last year to
........approximately 356,000

....Private Branded Channels:
....-------------------------
....- ...Total points/miles transacted on products distributed through
........Points' partner channels rose 17% to 2.8 billion bringing the
........cumulative total to 32.8 billion

....Points.com Channel:
....-------------------
....- ...Cumulative points/miles transacted during the first quarter of 2008
........reached approximately 4.4 billion on Points.com, a 51% increase
........versus 2007
....- ...Cumulative registered users on Points.com increased 18% year-over-
........year to 1.9 million
....

Business Outlook

"We are reaffirming our full year 2008 guidance that calls for Points to more than double revenues to a record range of $65 million to $75 million and to report meaningful EBITDA growth over 2007 levels," said Anthony Lam, Chief Financial Officer. "We believe that our airline partners will put an even greater focus on satisfaction of their frequent flier program members given the very challenging macro environment. This will provide Points multiple opportunities to expand our revenue-generating activities for our partners. We intend to continue to sign new partners across the loyalty industry and continue to execute against our growth plans resulting in record growth and results for our company."

Investor Conference Call

Points' quarterly conference call with Stephen K. Bannon, Chairman, Rob MacLean, Points CEO, Christopher Barnard, Points President and Anthony Lam, Points CFO, will be held today at 5:00 p.m. Eastern Time. To participate in the conference call, investors from the U.S. and Canada should dial (800) 866-5043 ten minutes prior to the scheduled start time. International callers should dial (303) 262-2130. Points will also offer a live and archived webcast of the conference call, accessible from the "Investor Relations" section of the company's Web site at http://phx.corporate-ir.net/phoenix.... .

About Points International Ltd.

Points International Ltd. is owner and operator of Points.com, the world's leading reward-program management portal. At Points.com consumers can Swap, Earn, Buy, Gift, Share and Redeem miles and points from more than 25 of the world's leading reward programs. Participating programs include American Airlines AAdvantage(R) program, American Express(R) Membership Rewards(R), Aeroplan(R), AsiaMiles(TM), British Airways Executive Club, Northwest WorldPerks(R), Wyndham Hotel Group's TripRewards(R), Delta SkyMiles(R), and InterContinental Hotels Group's Priority Club(R) Rewards. Redemption partners include Amazon.com(R) and Starbucks.