EXHIBIT 99.1

CATUITY COMPLETES $4 MILLION (US) PRIVATE PLACEMENT

Detroit, MI (July 22, 2003) -- Catuity, Inc. (NASDAQ: CTTY; ASX: CAT), a leading
loyalty software solutions company that provides both technical and marketing
expertise to credit, debit, smart card and gift card issuers, merchants, and
processors, announced today that it has completed a private placement of 3
million common shares to raise approximately $4.0 million (US) with a number of
institutional and accredited investors who are clients of Linwar Securities.
Terms of the equity placement called for the purchase of each share of Catuity
common stock at $2 AUD ($1.30 US).


Following the placement, the issued capital of Catuity will be 11,644,612 common
shares. Proceeds from the placement will be used for general operating purposes
as well as to fund the expected growth of Catuity's business in the coming
months. Australian-based Linwar Securities served as the placement agent on the
transaction.

Michael V. Howe, President and Chief Executive Officer of Catuity, made the
announcement noting: "We believe that this infusion of capital helps Catuity
continue to grow its business in the real-time loyalty software niche. We are
beginning to see renewed interest in this area after a very tough period for
technology and software companies."

The Company will seek shareholder approval of the placement at a special meeting
of shareholders to be held on September 16, 2003 in Sydney Australia. Proxy
materials providing complete information about the placement will be sent to
shareholders in advance of the special meeting.

Catuity, Inc. is a leading provider of application software that allows
merchants, transaction processors and payment card issuers to establish and
administer customer incentive and loyalty programs integrated to the payment
system at the point of sale. The Catuity system can be utilized via mag stripe,
smart card, RFID or contactless tokens and to date Catuity's software applet has
been included on millions of chip-based credit cards. Catuity Loyalty Software
can be used by a broad range of sellers of goods and services, particularly
those who sell both through store locations and over the Internet. In addition
to its innovative software products, Catuity also provides marketing expertise
and service to its clients so that with Catuity's loyalty solution, merchants
can offer their customers valuable benefits, thereby attracting and retaining
customers as well as encouraging increased purchases. More information on
Catuity is available at its website: http://www.catuity.com.

In conjunction with the provisions of the "Safe Harbor" section of the Private
Securities Litigation Reform Act of 1995, this release may contain
forward-looking statements pertaining to future anticipates projected plans,
performance and developments, as well as other statements relating to future
operations. All such forward-looking statements are necessarily only estimates
of future results and there can be no assurance that actual results will not
materially differ from expectations. Further information on potential factors
that could affect Catuity, Inc. is included in the Company's Form 10-K, which is
filed with the U.s. Securities & Exchange Commission.

Contact:       Michael V. Howe, President/CEO
               Jack Lowry, Chief Financial Officer
               313-567-4348

               or

               Bev Jedynak, Martin E. Janis & Co., Inc.
               312-943-1100 ext. 12