The contract, which involves the delivery of personalised loyalty cards with patented key fobs, is expected to impact on ID Data's second half results for the year ended 31 March 2008 by adding approximately £1.5 million of new sales.

ID Data has a solid reputation within Europe for delivering high quality loyalty card solutions. ID Data has a proven ability to deliver complete solutions in the retail sector where client demand involves large volumes of sophisticated and personalised cards and associated items delivered in short time frames. In the past, ID Data has delivered the successful launch of Tesco Clubcard, Boots Advantage and Nectar, amongst many others loyalty programs across Europe.

The new contract will use a patented key fob design, which has a strong proven track record in global retail programs. ID Data's key fob, which offers longevity combined with a wide range of reading POS technologies including barcodes, magnetic stripe and RFID, has passed numerous independent tests and has outperformed competitive product offerings.

Commenting on this contract win Peter Cox, CEO of the ID Data Group plc said, "We have been through a very tough trading period where competitors have forced prices down to levels where we understand clients were buying lower-quality product through following a price driven procurement policy. This contract demonstrates our commitment to adhere to our stated principles of only accepting contracts at the right price and focusing on clients who demand both quality and leading edge technology to protect their brand integrity."

"This contract win resulted from our proven capabilities and the delivery of innovative products that provide true value for money through cost savings from longer life cycles. Many retailers are now looking at the total product life cycle costs associated with their loyalty and gift card programs and have realised that investment in initial high quality card/fob pack costs is necessary to reduce ongoing costs including call centre complaints, lack of product in the hands of their customers and postal costs of replacements."

"Over the last two years, ID Data has suffered a loss of business from choosing to not compete with unrealistic margins. This contract, together with others under current negotiation, show increasing awareness of the link between quality and price, and subsequently the importance of choosing a proven and trusted provider rather than attractive prices. For this reason we have seen many clients returning to ID Data over the last months, who have recognised the need to focus on quality and customer service."

"The name of our client cannot be disclosed at this time due to commercial confidentiality, but will be released on completion of the contract and their appropriate consent."