- Significant reduction in Net Loss; Swings to Positive EBITDA(1) of

$72,000

- Adds New Partnership with Chase, Continues Diversification Strategy

- Ongoing New Technology Infrastructure Development Will Deliver

Improved Efficiencies, Enhanced Functionality, Improved New Business

Rollouts and Expense Reductions

- Targets High End of 2009 Revenue Guidance and Reiterates Positive

Full Year EBITDA

- Provides 2010 Guidance Calling for Revenue Between $60 Million to $70

Million, Net Income Profitability and 3% to 5% EBITDA Margins

TORONTO, Nov. 5 /CNW/ - Points International Ltd. ("Points") - (OTCBB: PTSEF, TSX: PTS) - the world's leading loyalty reward solutions provider and owner of the Points.com portal - today announced results for the third quarter ended September 30, 2009. All financial results are in U.S. Dollars.

"Third quarter results and business metrics were on plan and we are highly encouraged by strong contributions from our newest partnerships that launched this year," said CEO Rob MacLean. "Following our recent successful European expansion we are pleased to announce a three-year contract extension of our highly productive Lufthansa partnership. Today we are also publicizing our new partnership agreement with J.P. Morgan Chase, one of the largest financial services companies in the world. Working with Chase's Ultimate Rewards program, we will be leveraging our extensive installed base of partners and providing real-time integration services for this newly launched initiative. This deal is yet another important indicator of the success of both our new business efforts and our diversification strategy. In addition, we are working closely with a number of our partners on a variety of promotional activities for the holiday season and expect to end the year on a positive note. Moreover, strong progress on partner launches and Project ePoch, our technology infrastructure initiative, continues to give us good visibility on lowered expenses and promises exciting new functionality, distribution capabilities and operational flexibility into 2010 and beyond," continued MacLean.

Third Quarter 2009 Financial Results

Total revenue was $20.7 million for the third quarter of 2009. Revenue was up from $20.4 million reported in the third quarter of 2008, and down from $21.3 million in the second quarter of 2009. Principal revenue grew to $18.9 million, up from $18.3 million in the same period last year, and down from $19.6 million in the second quarter of 2009. Commission revenue was $1.8 million, down from $1.9 million reported in the same period of last year and up from $1.7 million in the second quarter of 2009.

Points reported a net loss for the third quarter of 2009 of $265,000, or ($0.00) per share. Net loss narrowed sharply compared to $1.4 million or ($0.01) per share in the same period in the previous year, and a net loss of $471,000 or ($0.00) per share, in the second quarter of 2009.

Third quarter results include restructuring charges of $332,000 incurred during the quarter related to previously announced staff reductions.

Points reported positive EBITDA of $72,000 during the quarter compared to an EBITDA loss of $543,000 in the same period of 2008 and an EBITDA loss of $566,000 in the second quarter of 2009.

As of September 30, 2009, Points' total cash, comprised of cash and cash equivalents together with security deposits, short term investments and amounts with payment processors, was $33.5 million, up from $29.4 million at the end of the second quarter of 2009. The Company carries no debt and Points believes that its strong balance sheet and proven ability to generate positive free cash flow on an ongoing basis establishes a very strong operating position going forward.

Board of Directors and Management Team Update

"We are pleased to announce that Bernay Box, a long-time major shareholder and supporter of the company, has been appointed as Chairman of our Board of Directors following the resignation of Stephen K. Bannon as Chairman. Bernay has already proven to be an important contributor to our Board and we believe he will be a valuable asset to the team as we execute on our long-term strategy to drive growth and profits for our business," added MacLean. "We also would like to thank Steve for his strong leadership and look forward to his ongoing contributions as a Board member."

"The successful launch of the ePoch technology platform in mid- November and the new consumer site in early 2010 will be the foundation that transforms the company into a high-growth high margin business. The strategy is in place; it is imperative for senior management to continue to drive this process aggressively and to articulate this to the public," stated Stephen K. Bannon.

Separately, the Company today announced that Rob Borden, Chief Marketing Officer, has resigned for personal reasons. Points has added strength and resources to its consumer marketing capabilities and has an effective team in place to continue to drive its consumer objectives. Mr. Borden will remain an advisor to the Company.

Third Quarter 2009 Business Metrics

Q3/09 Q3/09

vs. vs.

Q3/09 Q2/09 Q2/09 Q3/08 Q3/08

TOTAL ALL CHANNELS

Points/Miles

Transacted 2,977,544,288 2,830,429,997 5% 3,051,397,755 -2%

No. of

Points/Miles

Transactions 325,053 302,419 7% 335,742 -3%

Cumulative

Points/Miles

Transacted 54,344,042,972 51,366,498,684 6% 42,750,548,917 27%

PRIVATE BRANDED CHANNELS

Points/Miles

Transacted 2,695,440,443 2,542,915,477 6% 2,752,100,503 -2%

No. of

Points/Miles

Transactions 301,041 279,311 8% 310,608 -3%

Cumulative

Points/Miles

Transacted 48,842,866,291 46,147,425,848 6% 38,503,143,113 27%

POINTS.COM CHANNELS

Points/Miles

Transacted 282,103,845 287,514,520 -2% 299,297,252 -6%

No. of

Points/Miles

Transactions 24,012 23,108 4% 25,134 -4%

Cumulative

Points/Miles

Transacted 5,501,176,681 5,219,072,836 5% 4,247,405,804 30%

Cumulative

Registered

Users 2,324,611 2,252,404 3% 2,066,919 12%

Business Outlook

"We expect to deliver fourth quarter revenues that will result in the company reaching the high-end of our 2009 revenue range of $70 to $80 million and we are reiterating our outlook for positive annual EBITDA for the third consecutive year," said CFO Anthony Lam. "Looking ahead to 2010 our goal is to replace lower margin business with more attractive and diversified revenues. We plan to accomplish this via a combination of solid growth from our current partners, an improved mix of transactions, strong contributions from new partners and operational efficiencies driven by project ePoch. Our 2010 guidance calls for revenues of $60 million to $70 million and we expect to report net income profitability for the year based on EBITDA margins of approximately three to five percent. Our model calls for continued margin expansion through the rest of 2009 and into 2010 that will drive profitability for our company."

Points has an aggressive 2010 plan that includes the following

objectives:

- Development and deployment of Project ePoch. This upgraded technology

platform is designed to improve efficiencies and support scale for

both Points' private-branded e-commerce solutions and the Points.com

consumer portal. The e-commerce deployment is on track for launch in

the fourth quarter of 2009, followed by a redesigned Points.com

consumer destination. ePoch will facilitate the Company's aggressive

growth plans and enable Points to develop and launch new innovations,

including mobile and social networking applications, for the loyalty

industry, while delivering efficiencies that are expected to result

in lower operating and maintenance costs.

- Continued progress on the Points.com consumer proposition

redevelopment. Building on recent new functionality such as Facebook

Connect integration, Points.com will see tremendous change over the

course of 2010. In coordination with Project ePoch, new branding,

user interface, expanded social media integration as well as improved

product functionality will be rolled out over the first half of the

year and continue throughout 2010 toward a goal of attracting 15

million registered users over the next several years.

- Expand and diversify the customer base.