Points International Delivers Record Revenue and Business Metrics for the Third Quarter of 2008

TORONTO, Nov. 6, 2008 (Canada NewsWire via COMTEX) --

....
....Third Quarter 2008 Highlights:

....- ...Highest Quarterly Revenue in Company History of $20.4 Million(1), up
........183% Year-Over-Year

....- ...Company on Track to Hit High End of 2008 Revenue Guidance of $65 -
........$75 Million

....- ...Third Quarter Transaction Volume of 3.1 Billion Points/Miles - Up
........from 2.6 Billion a Year Ago Demonstrates Value of Programs in
........Challenging Economic Environment

....- ...Former Head of Delta Sky Miles Program Hired as CMO to Drive
........Awareness, Member Growth and Capitalize on Points' Unique Market
........Opportunity
....

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 third quarter ended September 30, 2008.

"Points posted another record quarter in terms of revenue and business metrics despite extremely challenging economic conditions," said CEO Rob MacLean. "Our third quarter results demonstrate positive momentum in our business driven by strong volume from our key principal-based partnerships as well as the increasing value of Points' services to our loyalty partners and consumers. During the third quarter we signed a number of new partners including Harrah's Entertainment's Total Rewards Program, TACA International Airlines, and Trident Hotels. Furthermore, during the quarter, we launched our Corporate platform on behalf of British Airways and continue to deepen that important European relationship. In addition, we added both InterContinental Hotel's Priority Club, one of the world's leading hotel brands, and recently Midwest Express to GPX, the world's first peer-to-peer loyalty trading platform. We have also signed an agreement to add AirTran's A+ Rewards to GPX. Given this strong momentum on the partner side as well as encouraging metrics, we are very pleased with the building momentum of this new initiative. Subsequent to the quarter end, we signed a binding letter of agreement with Mexicana Airlines to provide our suite of Buy, Gift and Transfer services to their Frequenta members as well as adding Frequenta miles to the GPX platform."

"At our recent loyalty partner summit it was evident that during these difficult economic times our partners are highly motivated to maximize their loyalty programs to maintain and expand relationships with their best customers. At the same time, consumers will be looking for additional opportunities to utilize their banked loyalty currencies. Our leadership position in the loyalty industry, supported by our strong balance sheet will enable Points to capitalize on these trends and drive robust growth in the fourth quarter of 2008 and into 2009," added MacLean.

Third Quarter 2008 Financial Results

Total revenue was a record $20.4 million for the third quarter of 2008, an increase of 183% over the $7.2 million reported in the third quarter of 2007, and up 18% from $17.3 million in the second quarter of 2008. For the third quarter of 2008, principal revenue totaled $18.3 million, an increase of 296% over $4.6 million in the same period last year, and up 27% from $14.4 million in the second quarter of 2008. Commission revenue was $1.9 million, a decrease of 20% over $2.3 million reported in the same period of last year and down 30% from $2.7 million in the second quarter of 2008. Interest revenue was $208,000, a decrease of 13% over $239,000 reported in the same period last year and down 5% from $219,000 in the second quarter of 2008.

Points reported a net loss for the third quarter of 2008 of $1,372,987, or ($0.01) per share, compared to a net loss of $963,779, or ($0.01) per share in the same period in the previous year, and a net income of $43,484 or $0.00 per share, in the second quarter of 2008.

During the third quarter of 2008, Points reported negative EBITDA(2) of $542,662 compared to positive EBITDA of $253,531 in the same period of 2007 and positive EBITDA of $473,844 in the second quarter of 2008.

"Points has established a unique leadership position in the loyalty market and in order to capitalize on the sizable opportunities before us we have chosen to continue to make strategic investments in marketing resources, as well as to product and business development initiatives. We have also worked with some of our largest partners during this tough economic cycle to reduce our per transaction contribution while implementing plans to aggressively grow volumes. While these efforts, combined with fluctuations in the relative mix of our various revenue streams, have impacted EBITDA margin in the short term, we believe that these are prudent investments toward long-term growth and profitability," concluded MacLean.

Points ended the third quarter with $31.8 million in cash and cash equivalents and the Company carries no long-term debt. Points believes that its strong balance sheet and ability to generate positive free cash flow on an ongoing basis puts it in a very strong operating position going forward.

....
....Third Quarter 2008 Business Metrics

....Total All Channels:
....-------------------
....- ...Total points/miles transacted during the third quarter increased 22%
........versus last year to 3.1 billion, bringing the total cumulative
........points/miles transacted to 43.5 billion
....- ...The total number of transactions increased 17% versus last year to
........approximately 322,000

....Private Branded Channels:
....-------------------------
....- ...Total points/miles transacted on products distributed through
........Points' partner channels rose 23% over the prior year to 2.7 billion
........bringing the cumulative total to 38.5 billion

....Points.com Channel:
....-------------------
....- ...Cumulative points/miles transacted during the third quarter of 2008
........reached approximately 5.1 billion on Points.com, a 44% increase
........versus 2007
....- ...Cumulative registered users on Points.com increased 17% year-over-
........year to 2.1 million

....................................... Q3/08 ...............Q3/08
....................................... vs. .................vs.
..........................Q3/08 ...........Q2/08 .....Q2/08 ......Q3/07 ....Q3/07
.....................------------------------------------...
....TOTAL ALL
.....CHANNELS

......Points/Miles
.......Transacted .....3,125,128,034 ...3,167,975,685 ..-1% ...2,557,294,607 ..22%
......# of
.......Points/Miles
.......Transactions .........322,266 .........333,303 ..-3% .........275,687 ..17%
......Cumulative
.......Points/Miles
.......Transacted ....43,546,342,246 ..40,421,214,212 ...8% ..30,991,852,634 ..41%

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

......Points/Miles
.......Transacted .....2,728,319,998 ...2,884,407,602 ..-5% ...2,219,840,590 ..23%
......# of
.......Points/Miles
.......Transactions .........297,132 .........315,921 ..-6% .........255,647 ..16%
......Cumulative
.......Points/Miles
.......Transacted ....38,454,423,798 ..35,726,103,800 ...8% ..27,449,765,756 ..40%

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

......Points/Miles
.......Transacted .......396,808,036 .....283,568,083 ..40% .....337,454,017 ..18%
......# of
.......Points/Miles
.......Transactions ..........25,134 ..........17,382 ..45% ..........20,040 ..25%
......Cumulative
.......Points/Miles
.......Transacted .....5,091,918,448 ...4,695,110,412 ...8% ...3,542,086,878 ..44%
......Cumulative
.......Registered
.......Users ..............2,066,919 .......1,962,883 ...5% .......1,762,429 ..17%
....

Additions to Management Team and Board of Directors

During the third quarter Points continued to build its team on both an operating and Board level. Rob Borden joined Points as Chief Marketing Officer, a new position at the Company. Borden brings significant loyalty sector experience as the former president and COO of Delta Loyalty Management Services with responsibility for the Delta SkyMiles program. Borden also had a long tenure at American Airlines where he managed a portfolio of 35 international airline marketing alliances on five continents. Most recently he was heading up global loyalty and CRM efforts for Microsoft's online division in Seattle. Shane Cameron, Points' new Vice President of Marketing joined Points from Dell Canada where he helped build Dell's multi-billion dollar Canadian business over the past seven years. Additionally, Points appointed Bruce Croxon as a new independent director to its board. Croxon was a founder of Lavalife Inc., an internationally recognized online brand and $100 million enterprise that was successfully sold in 2004. "The creation of the CMO role and expansion of our marketing team will allow us to drive revenue by leveraging our partner relationships and capitalizing on Points' unique market position. The fact that Points has attracted top-level talent reflects strong execution by our team and bodes well for our future success," added MacLean.

Business Outlook

"Due to very strong execution through the first nine months of the year and despite the economic downturn, we are poised to deliver on the guidance we previously laid out for our investors. Specifically, we expect that 2008 revenue will come in at the high end of our revenue guidance range of $65 million to $75 million. While perhaps not as material as we had hoped at the start of the year, we are also very encouraged that EBITDA will grow over 2007 levels. We are driving strong volume from our current partners and have a solid pipeline of new business opportunities. We continue to expect a gradual ramp up of increasing contributions from our consumer facing initiatives including our GPX peer-to-peer trading platform," said Anthony Lam, Chief Financial Officer.

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) 240-8926 five minutes prior to the scheduled start time. International callers should dial (303) 262-2053. 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 www.pointsinternational.com