Points Adds Midwest to the GPX...Now 8 Programs Live

This morning Points International announced that Midwest Airlines has joined the GPX. It is a modestly sized program representing 2.5 million members. As of today, 16% of the trades posted on the system included Midwest Miles.

Over the past few weeks, the total number of trades posted daily has been been between 100 and 110. However, it is difficult to understand the trading liquidity at this point. Does a trade typically stay posted for week? day? or hour before it gets executed?

Notwithstanding, more parters represent more liquidity, which can only contribute to the ultimate success of the concept as it leaves the beta phase, likely at the end of this year, or at the beginning of 2009. I believe that there are few more GPX partners that have been announced including Taca and Mexicana which have yet to launch. There is good possibility that the Company can exit 2008 with double-digit partner base for the GPX. This is ahead of my expectations going into the year. I have not attributed any Global Points Exchange revenue into my 2008 forecast of sales at $75.2 million. It looks like the Company could be poised to beat my, (and consensus) sales forecasts for the year.

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