Exhibit 99.59
(POINTS INTERNATIONAL LTD LOGO)
POINTS INTERNATIONAL ANNOUNCES AGREEMENT TO ACQUIRE
ASSETS OF MILEPOINT, INC. FOR CASH AND SHARES
Combined solutions to create loyalty industry's most
comprehensive product offerings
MINNEAPOLIS AND TORONTO - MARCH 11, 2004 - Points International Ltd. (TSX: PTS),
the only independent loyalty exchange service and operator of The Points
Exchange at www.points.com, announced today that it has entered into an
agreement to acquire substantially all of the assets of MilePoint, Inc., a
loyalty program technology provider and operator. The purchase price is C$7.5
million to be satisfied through a combination of C$3.5 million in cash and four
million common shares. Once the transaction closes, Points International will
take another step forward in adding to its impressive partner base and the
potential of both The Points Exchange and its broad portfolio of customer
loyalty solutions. MilePoint's current clients include long term relationships
with Northwest Airlines, Delta Air Lines, and Starwood Hotels.
In addition to The Points Exchange, Points International develops and hosts
technology solutions to power the online exchange or sale of miles and points
for leading loyalty programs. Similar to Points International's custom
technology solutions, MilePoint's products are hosted by MilePoint and include
several private label services for loyalty programs. Points International
expects to realize economies of scale after integrating MilePoint's solutions
into its business.
"With the acquisition of the assets of MilePoint, we are building on the
tremendous successes of these two entrepreneurial organizations. Both MilePoint
and Points have successfully enhanced the loyalty experience for members of the
world's largest and most successful loyalty programs." said Rob MacLean, CEO of
Points International. "MilePoint's strong relationships with Northwest, Delta,
and Starwood Hotels, among
others, will be added to Points International's current roster of partnerships
with airlines, hotel and major online entities such as American Airlines(R),
eBay, USAirways(R), Alaska Airlines, Priority Club Rewards(R) and Aeroplan(R).
Following the acquisition, Points International will be working with an
impressive group of the world's top loyalty programs and will continue to add a
depth and breadth of options for both consumers and programs alike."
Mark Lacek, CEO and President of MilePoint added, "With this transaction, we
will be in a position to provide the most comprehensive suite of loyalty and
online promotional technologies found with any single provider."
Once the acquisition is completed and both companies' offerings are combined,
MilePoint's partners will be able to participate in The Points Exchange and add
their own loyalty currency to the site's growing list of more than 3,600
exchange options. Both MilePoint's and Points International's partners will also
be able to seamlessly implement any of the custom loyalty solutions offered by
the two companies', including pointselite(TM), a channel for consumers to
purchase tiered frequent flier status online, and pointsclub(TM), an online tool
for selling and renewing airline lounge and private club memberships.
With the acquisition of MilePoint's assets, Points International's current
partners will be able to access additional MilePoint products. These include
private label magazine subscriptions in exchange for miles and points and the
M)Promo online customer acquisition and promotion tool.
Points International will also welcome new relationships with several loyalty
market experts who have been instrumental in the success of MilePoint. In
connection with the acquisition, Points International will retain as consultants
MilePoint's founders, and loyalty industry veterans, Mark Lacek and Peter
Brennan
Pursuant to the purchase agreement, Points International will pay C$3.5 million
in cash and issue four million common shares in consideration for the assets of
MilePoint. The cash payment will be satisfied by C$1.9 million on the closing
date with the balance payable semi-annually over two years. The four million
shares will be issued into escrow on the closing date and will be released to
MilePoint in four tranches over two years.
Closing of the acquisition is subject to regulatory approval and customary
closing conditions.
ABOUT MILEPOINT, INC.
Based in Minneapolis, MilePoint gained immediate interest in the Fall of 2000
when it introduced a new way for frequent flyers to utilize their miles and
points as a form of payment for the purchase of goods and services on the
Internet. MilePoint continues to provide this service with a broad offering of
magazines, cruises, condo and resort stays through its milepoint.com site.
MilePoint is now primarily focused on providing services to the loyalty industry
helping them to generate new revenues, manage customer relationships, reduce
operational and award costs and add new member benefits to their respective
programs.
ABOUT POINTS INTERNATIONAL LTD.
Points operates The Points Exchange, the only independent loyalty points
exchange - at www.points.com - allowing consumers to exchange points and miles
from one participating loyalty program to another to achieve the rewards they
want faster than ever before. The Points Exchange has to date attracted over 35
partners, including industry leaders eBay (Anything Points), American Airlines
(the AAdvantage program), InterContinental Hotels (Priority Club(R) Rewards),
Air Canada (Aeroplan), US Airways (Dividend Miles), Delta Air Lines (Sky Miles),
Imperial Oil (Esso Extra), GiftCertificates.com, Fairmont Hotels & Resorts,
Cathay Pacific Airways (Asia Miles), American West Airlines (FlightFund), Alaska
Airlines, (Mileage Plan), JCPenney and
many more.
Through a portfolio of custom technology solutions, Points is building rewarding
partnerships with the world's leading loyalty players. Additional Points
Solutions include the innovative pointspurchase(TM) and pointsgift solutions,
which power the online sale of miles and points to members of leading loyalty
programs.
Points Solutions, including The Points Exchange, are internationally marketed to
travel providers and loyalty programs through a distribution alliance with
Sabre, the leading provider of technology, distribution and marketing services
for the travel industry.
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FOR MORE INFORMATION, PRESS ONLY: FOR INVESTOR RELATIONS,
Jeremy Adams Steve Yuzpe
Edelman Public Relations CFO, Points International
+1 312 233-1226 +1 416 596 6382
jeremy.adams@edelman.com Steve.Yuzpe@points.com
FOR PARTNERSHIPS AND OTHER INQUIRIES:
Christopher Barnard
President, Points International
+1 416 596-6381
christopher.barnard@points.com
Points' shares trade on the TSX under the stock symbol PTS. For more
information, visit www.points.com.