Snapper Half Year Update: Increase in Customers

Wellington, 18 November 2009

Key Operating Metrics

* Issued Snapper cards have increased from 58,000 to 90,000 since March 31 2009. This compares with 30,000 at September 30 2008.

* Snapper has processed 6.8 million transactions in the 6 months since March 31 2009. This is an increase of 55% on the preceding 6 months. In total Snapper has processed more than 12 million transactions since market launch in July 2008.

* Snapper retailers increased from 105 retailers at March 31 2009 to 180 retailers at September 30 2009.

* Total staff numbers increased to 18 at September 30, including additional development and deployment staff.

Product Highlights

* Snapper releases Hotlisting, allowing lost and stolen cards to be blocked, and the balance and any passes transferred to a replacement Snapper.

* Snapper releases transfer functionality on Valley Flyer and Runcimans services, providing customers with automatic transfer discounts when they tag on and tag off.

* Snapper introduces child cards and the ability to age-enable an existing Snapper card, providing automatic access to child fares.

* Snapper introduces the Snapper USB with support for Windows XP and Mac OS X.

* Snapper releases pass products for Runcimans customers including term passes for students and monthly passes for commuters.

* Snapper releases version 1 of its Software Development Kit (SDK) allowing third parties to develop applications and services that interface to the Snapper system.

* Snapper's system accuracy operates consistently above 99.99%.

Company News

* Snapper introduced on Valley Flyer services, including the Airport Flyer, with over 10,000 cards swapped over in one weekend.

* Snapper introduced on Runcimans services in Upper Hutt.

* Adams Coachlines in Whangarei upgraded to accept Snapper for electronic payment.

* Snapper team moves to new offices in Cuba St, providing room for further organisation growth.

* Snapper signs up key retailers including Subway, Four Square and New World Metro.

* Snapper enters into agreement with Taxicharge to provide Snapper for payment in 1,000 Wellington taxis from March 2010.

* Snapper enters into agreement with East West Ferries to pilot Snapper on Wellington Harbour Ferries from December 2009.

* Snapper, with partners Eyede and Taxicharge, wins tender to provide integrated Total Mobility services for Greater Wellington Regional Council. Due for launch in mid 2010.

* Snapper engages with Board of NZTA to define the architecture and standards for the proposed National Integrated Ticketing Programme.

* Snapper supports NZBUS in offering a 50% off campaign for Bledisloe Cup weekend.

Summary

Snapper's growth was continued in the six months to 30 September. A broad range of retailers and public transport operators now accept Snapper for payment and ticketing. The retailer network and operator penetration has resulted in strong rates of customer growth since launch. The Snapper customer base shows encouraging signs of increased usage in retail towards the end of the half-year.

Snapper continues to develop its platform and team for the next stage of growth that will see Snapper introduced across more modes of transport and expand into other regions of New Zealand.

Auckland remains a key area of focus for Snapper.

Snapper has actively campaigned for a fair market in Auckland and has received good support from NZTA, operators and the general public. This is particularly important in a market that will be very competitive in the coming years and is focused on delivering integrated ticketing in time for Rugby World Cup 2011.

Snapper continues to execute on its plans and is well positioned for further growth in the coming year.

About Snapper

Snapper has created a brand new payment sector in New Zealand, based on small value payments using contactless smartcards. Nearly 100,000 Snappers have been issued, generating over 13 million transactions, across over 400 buses and 180 retailers in New Zealand. Snapper offers customers integrated ticketing and instant small value payments. The Snapper system is 99.99% accurate, providing valuable journey data that can be used to plan better transport services for passengers.

Snapper Services Limited was formed in 2006 as a wholly owned subsidiary of Infratil Limited.
http://www.http://www.snapper.co.nz

ENDS

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