LoyaltyPoint, Inc. Announces $4M Equity Financing Accel Partners Leads Round ATLANTA, Aug. 16 /PRNewswire-FirstCall/ -- LoyaltyPoint, Inc. (OTC:LYLPOTC:http://www.loyaltypoint.com) (BULLETIN BOARD: LYLP, http://www.loyaltypoint.com/) , a loyalty marketing company for merchants, schools, and nonprofits, today announced it has closed a $4 million financing round led by Accel Partners, based in Palo Alto, California. Accel Partners is a prior investor in LoyaltyPoint's subsidiary, Schoolpop, Inc. (http://www.schoolpop.com/), a leading nontraditional fundraising company, and became a stockholder of LoyaltyPoint as part of its February 18, 2004 reorganization. As part of the financing, Bud Colligan, a partner at Accel Partners and former CEO of Macromedia, will be joining the LoyaltyPoint board of directors. LoyaltyPoint issued the investors 30,769,231 shares of Series B Preferred Stock, convertible on a share-for-share basis into common stock. The funds will be used to expand existing school and nonprofit account relationships, grow the Company's nontraditional fundraising program suite, and repay debt. "We are pleased to announce the closing of this $4 million financing round," said Paul Robinson, LoyaltyPoint's Chairman and CEO. "It is positive for shareholders for the Company to have attracted a high-caliber investor like Accel Partners, as well as to have recruited Bud Colligan to the board of directors. Bud's background shows a success pattern with rapidly-growing, industry-changing companies." "The Accel team has been watching LoyaltyPoint's progress in expanding the market of fundraising for schools and nonprofits," said Colligan. "Building on Schoolpop's strong brand awareness and technology, LoyaltyPoint has built a collection of excellent assets to enable everyday shopping by parents and supporters to help the school or nonprofit of their choice." About LoyaltyPoint, Inc. LoyaltyPoint, Inc. (OTCBB: LYLP) is a loyalty marketing company for merchants, schools, and nonprofits. The Company markets online, store, and catalog-based loyalty programs that generate contributions to schools, nonprofits and other organizations, based upon parent and supporter purchases. Our vision is to provide a one-stop shop for schools, nonprofits, and other organizations to enroll in year-round, merchant-supported nontraditional fundraising programs. Our corporate headquarters is based in the Atlanta, Georgia area; we also maintain two offices in Northern California. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 ("Act"), regarding the impact of our application of the proceeds. Additionally words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate" and other similar expressions are forward-looking statements within the meaning of the Act. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. Some or all of the results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include, but are not limited to, difficulties which may arise in the integration of the NSC business acquired and its personnel, our ability to manage our growth and other factors mentioned in various Securities and Exchange Commission filings made periodically by the Company. The forward- looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company's expectations or future events. 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, DATASOURCE: LoyaltyPoint, Inc. CONTACT: Thomas Mikolasko, +1-212-495-0200 ext. 16, , or Andrea Costa, +1-212-495-0200 ext. 14, , both of ROI Group Associates, Inc.; or Mickey Freeman of LoyaltyPoint, +1-770-736-9383 ext. 103, Web site: http://www.loyaltypoint.com/ http://www.schoolpop.com/

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