The New Color of Small Business from American Express OPEN Unveiled Before America’s Leading Conference for Entrepreneurs -- The Inc. 500 Conference and Awards Ceremony in Chicago

NEW YORK, September 07, 2007 -- American Express OPEN today introduced The Plum Card a new trade terms Card that responds to small business owners' need to better manage cash flow and free up working capital. The Plum Card provides small business owners with flexible trade terms – the option to defer payment or receive early pay discounts for just about everything purchased with the Card.

The Plum Card offers Cardmembers an early pay discount of up to 2% on virtually everything they buy with the Card or the ability to defer payment up to two months, simply:

• pay in full within 10 days of the end of the billing period to receive the early pay discount, or
• defer payment up to two months by paying 10% of the balance by the date indicated in the billing statement.

Cardmembers have the flexibility to choose which cash flow management option is best for their business each month.

The Plum Card was developed for small businesses with high materials costs and variable cash flow, including construction, retail, wholesale, IT/Solution providers, the auto-care after market and others. For sellers who supply these markets, The Plum Card can help eliminate accounts receivable risks and generate goodwill among customers who benefit from favorable trade terms as a result of using the Card.

Many small businesses don't have access to trade terms, and those who do have access do not receive trade terms on all purchases. Terms are typically negotiated between businesses and include deferred payments -- 30 days on average -- and less frequently, early pay discounts.

The power of The Plum Card is the combination of these two coveted benefits -- early-pay discounts and the ability to defer payment. It offers trade terms for purchases made with the Card and frees-up working capital for both the buyer and the seller.

“Small business owners have been using trade terms with their key suppliers and customers for decades. What they have lacked until now is the ability to get those terms automatically, and with such flexibility, everywhere they use their Card," said Susan Sobbott, president, American Express OPEN. “The Plum Card is an innovation in small business payments that delivers the economic advantages of trade terms in the simplicity of a Card.”

The Plum Card was unveiled in a keynote address by Ms. Sobbott to a gathering of some of America's most successful entrepreneurs at the Inc. 500 Conference and Awards Ceremony in Chicago. Representing the 500 fastest-growing, private companies in the US, each of this year's Inc. 500 honorees were the first to be offered The Plum Card as part of an initial release of 10,000 Cards. Information on the Card and the future Cardmembers community is available at www.plumcard.com.

"Small business has been the growth engine of the U.S. economy. The power of The Plum Card is that it helps unleash working capital, which we know is the fuel for small business growth. The Plum Card is a powerful growth tool and the Inc. 500 winners embody the power of small business – it's a winning combination,” said Sobbott.

Two-thirds of small businesses report frequent or periodic cash-flow challenges, and 30% cite collecting money as the main reason.(1) The Plum Card helps business owners manage the challenges of cash flow by expanding access to trade credit, which translates into working capital. The result is a new financing tool that enables growth.

About The Plum Card
The Plum Card benefits include:

• Trade Terms
  - Early Pay Discount with no caps(2): Pay the bill in full within 10 days of the billing cycle and receive a 2% discount on new spending when it exceeds $5,000. Any month the charges total $5,000 or less receive a 1% discount for early payment. A credit appears on the following month's statement; OR
  - Defer Pay Option(3): Take up to two months from the billing cycle date to pay for new purchases in full – all without interest or finance charges. All it requires is a payment of 10% of the full balance during the first billing cycle.
   
• Payment cycle selection - Choose to have the billing statement delivered at the beginning, middle or end of the month;
   
• Easy online card management: Customizable online tools for expense management, reporting and to view payment options/history. Online tools that will help small businesses get the most out of the product, including: Early Pay Reminder, E-statement and Online Bill Pay;
   
• No pre-set spending limit(4) based on spending and payment history. Purchasing power adapts based on Card usage and can grow over time;
   
• First year fee-free, $185 annual fee thereafter; fee-free additional Card ideal for a purchasing manager/office manager (First additional Card is free, all additional are $45);
   
• The OPEN Savings program(5), which offers automatic savings at select travel and service providers, and business suppliers like Delta, JetBlue, Fedex Kinko's, and Hyatt. For more information, visit OpenSavings.com; and
   
• Retail and travel protections such as Global Assist, Car Rental Loss & Damage Insurance(6), Purchase Protection Insurance(7), Travel Accident Insurance(8), American Express Card Baggage Insurance(9), Buyers Assurance Plan(10), Automatic Bill Payment, Express Cash Emergency Card Replacement, Emergency Check Cashing, and 24-hour customer service.

About American Express OPEN
American Express OPEN is dedicated exclusively to the success of small business owners and their companies. American Express OPEN supports business owners with tailored products and services – now including The Plum Card – that delivers purchasing power, flexibility, control, exceptional customer service and rewards to help customers run their business. Specifically, business owner Cardmembers can leverage an enhanced set of products, tools, services and savings, including charge and credit cards, convenient access to working capital, robust online account management capabilities and savings on business services from an expanded lineup of partners. To obtain more information about American Express OPEN, visit www.OPEN.com, or call 1-800-NOW-OPEN to apply for a Card or loan.  Terms and conditions apply.

American Express Company (www.americanexpress.com) is a leading global payments, network and travel company founded in 1850.
 

1 National Federation of Independent Businesses (2001) National Small Business Poll: The Cash Flow Problem Volume 1, Issue 3

2 Early Pay Discount - If payment in full of the New Balance on a billing statement is credited to your Account within ten (10) days after the Closing Date of the billing period covered by that billing statement, then you will receive an Early Pay Discount (“Discount”) on the amount of your Eligible Purchases (as defined below) made during the billing period covered by that statement as follows: You will receive a Discount of 1% if your Eligible Purchases during the billing period covered by that statement are less than or equal to $5,000, and you will receive a Discount of 2% if your Eligible Purchases during the billing period covered by that statement exceed $5,000. This Discount, if any, will be reflected as a credit on the billing statement for the next billing period. You will not be eligible to receive the Discount if on the Closing Date of the next billing period your Account is not active (cancelled) or your Account is in default. “Eligible Purchases” are Charges to your Account for goods and services made in the previous billing cycle that have not been returned or otherwise credited to your Account. Eligible Purchases do not include fees or the purchase of American Express Travelers Cheques or American Express Gift Cheques or other cash equivalents. Previously deferred payments are not eligible to receive an Early Pay Discount. If a credit is posted to your Account for a purchase, we will adjust the amount of Eligible Purchases at the time the credit is posted to your Account. If a Charge is in dispute, it will not be considered an Eligible Purchase until the dispute has been resolved and the Charge remains on the Account.

3 Defer Pay Option - You may be eligible to defer payment of a portion of the New Balance on a billing statement. If you pay at least 10% of that New Balance (plus the entire amount of any previously deferred amounts) by the Please Pay By date on your billing statement, you may defer payment of the remainder of that New Balance until the Please Pay By date shown on your next billing statement. Your Account must be in good standing and active (not cancelled) in the month in which you exercise the Defer Pay Option.

4 No Pre-Set Spending Limit - The American Express Card has no pre-set spending limit, giving you purchasing power that adjusts with your use of the card. No pre-set spending limit does not mean unlimited spending. Your purchases are approved based on a variety of factors including spending patterns, your payment history, your credit history, and financial resources known to us.

5 OPEN Savings®: Payment must be made with an American Express® Business Card at the time of purchase. Savings will be credited to your American Express Business Card billing statement. All savings referenced are in addition to any offers made by participating companies. Participation and offers are subject to change without notice. Terms and conditions apply. For more information, please visit opensavings.com.

6 Car Rental Loss and Damage Insurance: Underwritten by AMEX Assurance Company, Administrative Office, Green Bay, WI. Coverage is determined by the terms, conditions, and exclusions of Policy AX0925 and is subject to change with notice. This document does not supplement or replace the Policy.

7 Purchase Protection Plan: Underwritten by AMEX Assurance Company, Administrative Office, Green Bay, WI. Coverage is determined by the terms, conditions, and exclusions of Policy AX0951 and is subject to change with notice. This document does not supplement or replace the Policy.

8 Travel Accident Insurance Plan: Underwritten by AMEX Assurance Company, Administrative Office, De Pere, WI. Coverage is determined by the terms, conditions, and exclusions of Policy AX0948 and is subject to change with notice. This document does not supplement or replace the Policy.

9 American Express Card Baggage Insurance Plan: Underwritten by AMEX Assurance Company, Administrative Office, De Pere, WI. Coverage is determined by the terms, conditions, and exclusions of Policy AX0400 and is subject to change with notice. This document does not supplement or replace the Policy.

10 Buyer's Assurance Plan: Underwritten by AMEX Assurance Company, Administrative Office, Green Bay, WI. Coverage is determined by the terms, conditions, and exclusions of Policy AX0953 and is subject to change with notice. This document does not supplement or replace the Policy.

Contacts:
Rosa Alfonso
212.640.1712
Rosa.M.Alfonso@aexp.com

Shaunn D'Alessandro
212.640.1627
shaunn.m.d'alessandro@aexp.com