EXHIBIT I

CATUITY INFORMED OF SMART CHIP TECHNOLOGY PHASE-OUT BY MAJOR CUSTOMER


Detroit, MI., March 1, 2004 -- Catuity, Inc. (NASDAQ: CTTY; ASX: CAT), provider
of loyalty software for transaction processors, card issuers and merchants,
today announced that a major customer of the company has indicated that it will
phase out its smart chip technology program.

Catuity was notified by Target Corporation that it has elected to phase out its
use of smart chip technology over the next 12 months. This technology was the
first to be used on a nationwide basis by a major retailer and contained the
Catuity software as part of an e-couponing smart loyalty application.

"We are disappointed this specific program will not be going forward. Catuity is
fortunate that our loyalty software supports a variety of consumer
identification devices. While in this instance it was smart chip technology, the
system works equally well for mag stripe, contactless, RFID or bar codes and we
are hopeful that we can continue to work with Target in the future," stated
Michael V. Howe, president and CEO of Catuity.

Howe indicated that Catuity is evaluating the impact on 2004 forecasted revenue
and net income. "We believe at this time it will be material. The company will
provide additional information in its Form 10K filing in mid-March."

About Catuity, Inc.

Catuity, Inc. is a leading provider of loyalty program management and e-coupon
software to merchants, card issuers and processors. Clients of Catuity use the
software to establish and administer a new breed of customer loyalty and
e-coupon programs that immediately reward profitable behavior by customers at
the point of sale. The patented software can be used to attract and retain
customers and to encourage more valuable purchases, thereby resulting in greater
revenue for the merchant or card issuer. The Catuity system supports many forms
of customer ID, including mag-stripe, smart cards and RFID tokens. Catuity's
smart card loyalty applet has been loaded on millions of chip-based credit
cards. Catuity's software is in use in more than 4,200 U.S. stores, including
multi-lane mass merchandisers and local independent retailers. In addition to
its innovative software, Catuity also provides marketing expertise and support
services to its clients. 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 anticipated 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 and CEO
                  Catuity, Inc.
                  313-567-4348 ext. 213

                  or

                  Beverly Jedynak
                  Martin E. Janis & Company, Inc.
                  312-943-1100 ext. 12
                  after-hours:  773-583-1447
                  cell:  773-350-5793