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Ernex UPDATE
February 2002 Newsletter
Feature Article
Gift Cards: More Than Another Way To Pay With Plastic


Excerpted from Twice Magazine (This Week in Consumer Electronics), January 8, 2002.

While cash has not completely disappeared just yet, the burgeoning gift card market is definitely giving it a run for its money.
By James Christensen
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Special Report
Ernex rockets into 2002 with eight new loyalty and gift card program clients.

Ernex announced that it signed on eight new customers spanning 100 hospitality and retail point-of-sale (POS) locations
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Nuts N' Bolts
Turning data into customer profits.

An important element of customer loyalty programs is frequent analysis to compare ongoing results with the objectives of the program.
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What's New
Ernex in the News
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Ernex Continues Expansion into the United States
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Ernex Rockets into 2002 with Eight New Clients
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Special Report - February 2002

Ernex Rockets into 2002 with Eight New Loyalty
and Gift Card Program Clients.

On January 30th, 2002, Ernex announced that it signed on eight new customers spanning 100 hospitality and retail point-of-sale (POS) locations. Ernex services being used include Ernex's Real-Time Points loyalty programs, Gift stored-value gift card programs, reward fulfillment services, and a suite of business intelligence analytical reporting services.

Ernex provides marketing technology services to help its clients achieve customer relationship management (CRM) success through real-time loyalty points programs, electronic gift cards and customized offers at the point-of-sale. The recent client wins reflect Ernex's overarching mission of helping its clients cost-effectively identify, reward, and personalize offers to their card-carrying customers. The Ernex -enabled point-of-sale tracks customer spending and behavior, and can instantly respond back to customers on their receipts with coupons, messages or even prizes - based on a real-time central database. Ernex has proven successes in a variety of markets, including retail, restaurant, golf, hotel, and travel - managing millions of cardholder accounts and thousands of points-of-sale.

The eight new clients include programs at 100 locations.

The Palm Restaurant
(www.thepalm.com) has implemented its "837 Club" rewards program with plans to roll out Ernex's gift card program in the New Year. The Palm, the oldest family-owned white tablecloth restaurant to expand across the United States while still maintaining its family ownership, is based in Washington, DC. The Palm has 25 participating locations. As part of the relationship with The Palm, Ernex will fulfill reward redemption, provide cardholder support, and provide data keying services through its Customer Service Center.
Maverick Southern Kitchens
(www.mavericksouthernkitchens.com) has dubbed its loyalty program "The Maverick Collection." Maverick Southern Kitchens owns and operates restaurants, a retail and wholesale bakery, and provides food and beverage services to area hotels. Five Maverick locations will participate in the program, and will use Ernex's Interactive Voice Response (IVR) system for points lookups for cardholders. The program's features include bonus points for birthdays and anniversaries, and a web-based cardholder points balance lookup feature.
Levy Restaurants
(www.levyrestaurants.com) will work with Ernex on its "Levy Preferred" program. Levy Restaurants were founded in 1978 by brothers Larry and Mark Levy, and has grown from one delicatessen in Chicago to a specialized, industry-leading food and dining organization, boasting national and international accolades. With a diverse and disciplined culinary background that lead to tremendous success in the restaurant business, Levy Restaurants pioneered a new category of upscale food service - providing authentic restaurant experiences in places one would least expect to find them, such as sports stadiums, ballparks, arenas, convention centers, zoos and more. There are 10 Levy locations participating in the program. The program provides bonus points on birthday and anniversaries as well as for lapsed customers. Additionally, real-time redemption of points is offered at the point of sale. Levy Restaurants also participates in the Compass Rewards Program - launched with Ernex technology in July 2001 - offering stakeholders special incentives for dining at close to 50 participating restaurants. The Compass Group is the world's second-largest food service company with operations in more than 70 countries, providing contract catering and concession services at airports, hospitals, rest areas, and schools.
Gulf Coast Connoisseur Club
(www.florida-hospitality.com) is run by the Klauber-Moulton-Mancini family of resorts, shops and restaurants on Florida's Gulf Coast. The club is using Ernex technology at seven participating locations for its loyalty program. Members may accrue points at The Colony Restaurants, Michael's On East, Michael's Mediterranean Grille, Pattigeorge's, Michael's Wine Cellar, Le Tennique, and The Colony Spa and Salon. This real-time loyalty program also offers bonus points to club members on their birthdays, anniversaries, and as an incentive for lapsed customers. This innovative club also offers exclusive special events for its members, including culinary trips to restaurants across Florida, fashion shows, culinary demonstrations, progressive dinner boat trips, and more. The program includes real-time redemption of points at the point-of-sale, and an IVR and web-based points-lookup for members.
R.J. Gator's HomeTown Grill & Bar
(www.rjgators.com) is offering the "R.J.Gator's Frequent Diner Program" for its patrons. The Restaurant chain is an authentic Florida-style casual dining neighborhood restaurant that captures the laid-back atmosphere of a Key West grill. Nine R.J. Gator locations are participating in the program. Ernex provides fulfillment for gift certificates for cardholder redemptions. The program also includes an IVR system and web-based interface for cardholders to check on their points. Cardholders receive cards on their birthdays and anniversaries.
That's Amore Restaurants
(www.thatsamore.com) offers a program called "Friends of the Family" in six participating locations. The That's Amore restaurant concept originated in May of 1991 during an after dinner stroll on Taylor Street in Chicago, by friends and business partners of 30 years - Fred Berman and Artie Altschuler. They found themselves eating a remarkable, over-portioned, southern Italian dinner and discovered that there was a need for this type of restaurant in Washington, D.C. Today, Chef Gennaro Ferrigno's cuisine champions the idea of "old school" Italian cooking and is a critic of "short cuts" and chain restaurant automation. The "Friends of the Family" program awards points toward free coupon certificates issued at the point-of-sale, IVR and web-based points lookup for cardholders, birthday and anniversary cards, real-time redemption of points at the point-of-sale, and bonus points on Mondays.
CompuSmart
(www.compusmart.com) Canada's largest computer superstore network with the first Canadian computer superstore opened in 1982. CompuSmart is using Ernex's technology to provide a reloadable gift card program for customers at 20 of its store locations. CompuSmart will stand to benefit from being able to electronically track and reconcile its gift card spending across all locations, increase gift card sales, and reduce fraud with a more secure real-time electronic system.
  Coast Hotels & Resorts
(www.coasthotels.com) - Western Canada's leading chain of hotels and resorts throughout British Colulmbia and Alberta is using Ernex technology at 18 of its locations to improve service delivery of its Coast Select loyalty program. The program will begin in March. Hotel guests qualify for Silver, Gold or Platinum status based on their number of stays and room nights at participating locations, earning them special benefits such as complimentary room upgrades. Front desk clerks will use Ernex -enabled point-of-sale systems to automatically record member stays and track redemption of room upgrades.


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