Points International Delivers Record Revenues and Transactions for the Second Quarter of 2008

TORONTO, Aug. 6, 2008 (Canada NewsWire via COMTEX) -- Second Consecutive Quarter of Profitability for Leading Loyalty Rewards

Solutions Provider

....
....Second Quarter 2008 Financial Highlights:
....- ...Highest Quarterly Revenue in Company History of $17.3 Million(1), up
........313% Year-Over-Year
....- ...Second Consecutive Quarter of Profitability
....- ...Positive EBITDA(2) of $474,000, up from an EBITDA loss of $345,000 in
........Q207
....- ...Record Second Quarter Transaction Volume of 3.2 Billion Points/Miles
........- Up from 2.5 Billion a Year Ago

....Company Reaffirms 2008 Guidance:
....- ...On Track to Post 2008 Revenue of $65 - $75 Million
....- ...Expects Meaningful and Material Growth in Positive EBITDA Year-Over-
........Year
....- ...Record Business Metrics and Growth Demonstrate Value of Company's
........Programs to Loyalty Partners in Difficult Market Conditions
....

TORONTO, Aug. 6 /CNW/ - 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 second quarter ended June 30, 2008.

"Points delivered another record quarter with the highest revenues in Company history, our second consecutive quarter of profitability and our strongest business metrics to date. We believe that these results demonstrate the increasing value of Points' services to our loyalty partners and consumers, particularly given the slowdown in the travel sector and the fact that our second quarter has historically been weaker than the first quarter," said CEO Rob MacLean. "During the second quarter, we experienced very strong performance within our installed base of loyalty partners as 3.2 billion points/miles were transacted across our platform, up sharply from the prior year. We expanded our relationship with American Express Membership Rewards with the launch of the bonus points programs. Additionally, we are excited to have recently completed a three-year extension of our broad relationship with American Airlines. We continue to focus efforts on extending our principal-based partnerships, and have recently signed an agreement strengthening our longstanding partnership with Alaska Airlines. Looking ahead, we are optimistic that there are a number of opportunities on the horizon with both new and existing partners which will continue to drive growth in the second half of 2008."

"We also made strong progress on the consumer side of our business during the second quarter by adding new functionality to our consumer portal at www.points.com . We are very pleased with the progress of our Global Points Exchange (GPX) platform, the first peer-to-peer trading platform between loyalty programs, and in the second quarter, we made GPX more accessible to users with the expansion of a number of features and tools. These changes, in conjunction with a comprehensive refresh of the Points.com website, continue to make it easier for our growing base of over 2 million users, to track, manage and trade among various loyalty program currencies. We have begun the initial phases of our communication efforts, and are seeing increased traffic to the website as we implement our Partner and PR plans for the second half of the year," concluded Mr. MacLean.

Second Quarter 2008 Financial Results

Total revenue was a record $17.3 million for the second quarter of 2008, an increase of 313% over the $4.2 million reported in the second quarter of 2007, and up 7% from $16.2 million in the first quarter of 2008. For the second quarter of 2008, principal revenue totaled $14.4 million, an increase of 701% over $1.8 million in the same period last year, and up 11% from $13.0Â million in the first quarter of 2008. Commission revenue was $2.7Â million, an increase of 19% over $2.2 million reported in the same period of last year and down 8% from $2.9 million in the first quarter of 2008. Interest revenue was $219,000, an increase of 44% over $153,000 reported in the same period last year and down 21% from $277,000 in the first quarter of 2008.

Points reported net income for the second quarter of 2008 of $43,484, or $0.00 per share, compared to a net loss of $1,514,934, or ($0.01) per share in the same period in the previous year, and a net income of $801,760 or $0.01Â per share, in the first quarter of 2008.

During the second quarter of 2008, Points reported positive EBITDA of $474,000 compared to negative EBITDA of $345,000 in the same period of 2007 and positive EBITDA of $584,000 in the first quarter of 2008.

....
....Second Quarter 2008 Business Metrics

....Total All Channels:
....-------------------
....- ...Total points/miles transacted during the second quarter increased 26%
........versus last year to 3.2 billion, bringing the total cumulative
........points/miles transacted to 40.4 billion
....- ...The total number of transactions increased 32% versus last year to
........approximately 350,000

....Private Branded Channels:
....-------------------------
....- ...Total points/miles transacted on products distributed through
........Points' partner channels rose 30% over the prior year to 2.9 billion
........bringing the cumulative total to 35.7 billion

....Points.com Channel:
....-------------------
....- ...Cumulative points/miles transacted during the second quarter of 2008
........reached approximately 4.7 billion on Points.com, a 47% increase
........versus 2007
....- ...Cumulative registered users on Points.com increased 16% year-over-
........year to 2.0 million


....................................... Q2/08 ................Q2/08
....................................... vs. ..................vs.
......................Q2/08 ...........Q1/08 .......Q1/08 .....Q2/07 ......Q2/07
..................------------------------------------...
....TOTAL ALL
.....CHANNELS

....Points/Miles
.....Transacted ....3,167,975,685 ...3,154,149,529 .....0% ..2,516,181,034 ....26%
....#
.....of Points/Miles
.....Transactions ........350,104 .........356,025 ....-2% ........265,138 ....32%
....Cumulative
.....Points/Miles
.....Transacted ...40,421,214,212 ..37,253,238,527 .....9% 28,434,558,027 ....42%

....PRIVATE BRANDED
.....CHANNELS

....Points/Miles
.....Transacted ....2,884,407,602 ...2,816,801,473 .....2% ..2,225,758,214 ....30%
....#
.....of Points/Miles
.....Transactions ........315,921 .........336,840 ....-6% ........248,637 ....27%
....Cumulative
.....Points/Miles
.....Transacted ...35,726,103,800 ..32,841,696,198 .....9% 25,229,925,166 ....42%

....POINTS.COM
.....CHANNELS

....Points/Miles
.....Transacted ......283,568,083 .....337,348,056 ...-16% ....290,422,820 ....-2%
....#
.....of Points/Miles
.....Transactions .........17,382 ..........19,185 ....-9% .........16,501 .....5%
....Cumulative
.....Points/Miles
.....Transacted ....4,695,110,412 ...4,411,542,329 .....6% ..3,204,632,861 ....47%
....Cumulative
.....Registered
.....Users .............1,962,883 .......1,905,213 .....3% ......1,685,786 ....16%
....

Business Outlook

"Our record first half 2008 results, combined with excellent performance from our installed partners and increased clarity on our new business outlook gives us confidence in our 2008 guidance calling for revenues in the range of $65 million to $75 million and meaningful EBITDA growth over 2007 levels," said Anthony Lam, Chief Financial Officer. "Our current partners are driving record traffic across our industry-leading platform and this momentum, along with a solid new business pipeline and the expansion and marketing of our GPX points-swap program in the second half of 2008, should result in continued strong top and bottom-line growth for Points."

Investor Conference Call

Points' quarterly conference call with 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) 257-7087 five minutes prior to the scheduled start time. International callers should dial (303) 262-2131. 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.... .