In all stock deal, Global iTechnology, Inc. (OTC: GITN) is acquiring Certificate Express, Inc. The purchase price is 1.2 million shares of Global iTechnology common stock issuable at closing, and an additional 950,000 shares payable upon Certificate Express attaining certain performance goals.

The New York City-based Global iTechnology develops marketing solutions utilizing transaction-processing technologies that integrate Internet and traditional sales channels. Certificate Express is a privately held financial transaction technology company based in Bethesda, Md.

Certificate Express offers Global iTechnology a patent-pending technology that provides Web site merchants the ability to distribute online gift certificates and e-certificates which can be redeemed offline at brick and mortar retail stores in the United States.

Cashiers at participating retailers will accept the e-certificate as a valid payment, and process it using their existing point of sale terminals.

This e-certificate technology targets the business-to-business marketplace for proprietary gift certificates as well as incentive loyalty programs. The technology gives Web sites the ability to offer gift certificates or promotions utilizing the e-certificate as an instant reward for consumers performing a desired transaction such as a purchase incentive, survey completion or site registration.

Companies can also cross-promote their products on Web sites that reach their desired demographic audience by offering targeted e-certificates.

"We believe the acquisition of Certificate Express is the foundation for integrating transactions between online e-commerce and brick and mortar stores," stated Paul Silverstein, chief strategy officer of Global iTechnology. "This technology could revolutionize the existing internet gift certificate retail and promotional business models. The expense of physical gift certificate administration, fulfillment and delivery are completely eliminated allowing companies to increase profitability and provide customers a significantly higher level of service."

Gift certificates are an $11 billion segment of the overall market for gifts. According to Jupiter Research, the market for online gift certificate sales is projected to grow from $200 million to more than $3 billion over the next 36 months.

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"Global iTechnology offers the marketing and distribution expertise to insure the success of our products and technology," said Jon Greene, president and co-founder of Certificate Express. "Large and small retailers in North America with an Internet presence can increase their revenue and in-store traffic with an integrated marketing and promotional program incorporating our e-certificate."

Merchants do not have to modify their point of sale platforms to accept e-certificates. The e-certificate is delivered directly to a consumers' email address and the consumer prints the certificate and redeems it at a participating retailer.

The Certificate Express system can be tailored for promotions by the issuer to be valid at only specific retailers, locations, days and times, and a one-time redemption feature.