New improvements and pricing changes to BREAD

1st February 2008

DEAR BREAD CUSTOMERS,

We would like to let you know that we will be making some improvements to the BREAD Card program which will come into effect on the 1st February 2008. As a result of these improvements there will also be a change in our pricing.

The improvements and changes are as follows:

BREAD CASHBACK SHOPPING

We are very excited to announce the introduction of ‘BREAD CASHBACK SHOPPING’. This is a completely new service for BREAD Cardholders and allows you to earn an extra ‘slice’ of cash when shopping online at over 900 shops featured on www.breadcard.com You can earn up to 10% back in cash at hundreds of leading online shops, including households names such as PC World, Halfords, Boots, Woolworths, JD Sports, and M & S. The cash is rebated back onto your BREAD Card once a month for you to spend. Full terms and conditions can be found on the website along with details of all the shops. All you need to do is sign into your BREAD account on the website, and activate BREAD CASHBACK SHOPPING.

As an overall result of providing this service however, we are introducing a UK transaction fee of 2% to all card purchases to offset the costs of operating the scheme.

Loading Facilities – NEW LOADING OPTIONS & PRICING

Due to a cost increase from our suppliers, the existing PayPoint loading fee will be changed from a flat rate of £1 per load to 3% effective 1st February 2008.

As an alternative, BREAD Cardholders will soon be able to load their cards at the branches of a major high street bank. We will be announcing details on this shortly - please look out for news on the website

BACS (bank transfer) and Payroll (wages transfer) loading will continue at a cost of 25p per load.

Customer Services – IMPROVED RESPONSE TIME

We have taken significant steps to improve our online customer services response time. So if you have any query about your BREAD Card then please email us via the website. We will respond within 24 hours, and aim to resolve your issue as soon as possible. We will still have our customer services phone line available for urgent enquiries: 0905 786 0106 (NB Calls do cost 80p per minute including VAT from a fixed BT landline). As our valued customers, we really don’t want you to incur costs, so please consider emailing us before picking up the phone. We are here to help!

All these changes will commence 1st February 2008

If you have any questions or comments on these changes, please feel free to contact me directly at tim@breadcard.com

Best regards

Tim Day

BREAD Marketing Director



The BREAD Card is issued by Newcastle Building Society pursuant to licence by Mastercard International Incorporated or its affiliates. Newcastle Building Society is authorised and regulated by the Financial Services Authority and is entered in the Financial Services Authority Register (www.fsa.gov.uk/register/) under Registration No. 156058