EURONET 2Q/03

Euronet Worldwide reported second quarter consolidated revenues of $48.1 million, a 175% increase over the second quarter 2002, driven by its new e-pay prepaid processing segment. Second quarter revenues for prepaid processing segment were $32.2 million. Total transactions processed in the second quarter were 22.8 million. e-pay processes electronic prepaid transactions at more than 50,000 point-of-sale terminals located in the U.K., Australia, Malaysia and New Zealand. The EFT processing segment posted second quarter revenues of $12.2
million, a 5% decline over 2Q/02. The decrease reflects the January sale of the the U.K. ATM network. The EFT processing segment processed 27.1 million transactions in the second quarter, compared to 18.7 million transactions for the same period last year. At the end of the second quarter, Euronet had 3,120 ATMs owned and/or operated as compared to 2,840 ATMs at the end of the second quarter of last year. Euronet owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, the U.K., Greece, Kosovo, Slovakia, Egypt and India.

Oberthur Ships 22.2 Million Smart Payment Cards This Year

The top supplier of VISA and MasterCards reported this morning it delivered more than 28 million microprocessor cards during the second quarter including 11.2 million smart payment cards. Oberthur Card Systems reported total 2Q/03 revenues of $111.1 million, a 5.6% decline over 2Q/02 (at constant exchange rates). Second quarter revenues for smart payment cards increased 5.4% to $22.3 million. However, sales of banking magnetic stripe cards, loyalty cards, scratch cards and memory cards declined 29.7% to $19.9 million. Sales of SIM and ID cards for the second quarter totaled $42.9 million. Oberthur says the decline was due to its voluntary withdrawal from memory card activities as well as from the decrease in the value of the dollar versus the euro. But, sales of magnetic stripe cards has been stable despite the migration towards smart cards. Obethur’s revenues from the Americas region represented 28% of its global revenues. For complete details on Oberthur Card Systems’ second quarter results visit CardData (www.carddata.com).

DINERS & ATG PORTAL

Diners Club International Ltd. has selected Art Technology Group’s “ATG Portal” to facilitate the exchange of information among its 83 franchises, sub-franchises and agencies around the globe. The new “Diners Club InfoNet” portal, will serve as a secure, single access point to existing and future applications, including business-critical reporting systems. Through InfoNet, Diners Club will be able to provide a user-friendly environment where franchises can turn to gain information and insight about programs other franchises are executing as well as corporate customer information from individual regions.

Metris Unloads Membership and Warranty Products Business

Metris Companies confirmed yesterday the sale of its membership and warranty products, and operations of Metris’ enhancement services business, to the privately owned UK-based CPP Group. Metris will retain its credit protection and insurance business under the terms of the agreement. Under terms of the deal, CPP will be the preferred provider of enhancement services to Metris going forward. During the second quarter Metris reported revenues from its enhancement services of $85 million, compared to $96 million one year ago. According to CardData, Metris had $46 million in credit protection revenues, $29 million in membership products revenues, and $10 million in warranty product revenues, during the second quarter. CPP Group has a worldwide base of more than 8.3 million customers.

CLEARJET & KANEMATSU

Grambach-based CLEARjet GmbH has teamed with Kanematsu USA to market is
thermo-re-writable printer in the USA. The CLEARjet products allow for the
reuse of smart cards, contactless cards, or magstripe cards. CLEARjet PVC
cards are made with a special rewritable film that is activated by the
printer and can be reprinted up to 500 times. The printer offers resolution
of 300dpi and can be used to print text information, pictures, and
barcodes. Kanematsu USA Inc is a supplier of ID card printing products
since 1994.

Trade Group Seeks Stay of FCC’s Order for DNC Registry

The American Teleservices Association this week filed a petition in the U.S. Court of Appeals for the Tenth Circuit seeking judicial review of the FCC’s “Report & Order” issued earlier this month adopting rules that mirror the FTC regulations creating a national “Do-Not-Call Registry.” ATA has also asked the FCC to issue an expedited stay to forestall enforcement of the new rules until after the court has had a chance to review them. The industry association says implementation of a national do-not-call list on October 1st will cost the U.S. economy up to two million jobs in an industry that produces over $660 billion of sales per year. The ATA filed suit against the FTC January 29, 2003 in federal court in Colorado. Both parties are waiting for a court date to be set before the October 1, 2003 implementation deadline of the national DNC list. As of this week nearly 30 million phone numbers have been registered in the DNC Registry.

Carreker Names Former Citigroup Director to Board

Dallas-based Carreker Corporation has named Keith Hughes, former vice chairman and director of Citigroup, to its board of directors. Hughes retired as vice chairman and director of Citigroup in 2000. Prior to that, he was with Associates First Capital Corporation, serving as chairman and chief executive officer. Hughes is active in the Dallas community, where his board and advisory affiliations include Southwestern Medical Foundation, Children’s Medical Center of Dallas, Salvation Army – Dallas, United Way of Metropolitan Dallas, Certegy Inc., Proudfoot Consulting, Majesco and the Southern Methodist University’s Cox School of Business.

PDG Shopping Cart Gets Payflow Link

Atlanta-based PDG Software has integrated VeriSign’s “Payflow Link” with its “PDG Shopping Cart”. Integration with VeriSign’s Payflow Link is the latest example in PDG Software’s continuous efforts to add value to its already feature rich e-commerce and shopping cart software products, and it provides customers with an efficient and affordable credit card and check processing solution.

TSYS DATA CENTER

TSYS announced plans to build an European data center in Knaresborough. The center is scheduled to be completed and operational by the fourth quarter. The new 53,000 square-foot data center will replace the existing data center in Harrogate which TSYS currently leases. The data center will be built on 3 acres and will contain 15,000 square feet for offices. Additional features include separate machine room, plant block, N+N generator and UPS back-up systems. TSYS currently serves more than 12 million consumer and commercial credit accounts in Europe.

FSV Payment Systems to Process C.E.C. STV Cards

Las Vegas-based C.E.C. Industries has signed a processing agreement with FSV Payment Systems for its forthcoming debit and stored-value cards. C.E.C. Industries Corp. is a Nevada Corporation in good standing that is presently entering the business of providing a suite of cash-based debit cards and stored value cards for ATM and debit “point-of-sale” transactions. The Company believes a multi-functional stored value product will fill a void in payroll and consumer payment services.

eFunds Second Quarter Revenues Climb 13.3%

eFunds Corporation reported that net income for the second quarter increased 13.3% to $5.1 million, compared to one year ago. However, net revenues of $133 million were flat compared to 2Q/02. Net revenues for electronic payments of $45.3 million, and global outsourcing of $18.5 million, declined 14% and 13%, respectively, compared to one year ago. ATM management net revenues increased 32% to $36.3 million while risk management revenues climbed 2% to $32.8 million. For complete details on eFunds’ second quarter results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

Gemplus Revenues Up 12% Since 1Q/03, But Losses Widen

Smart card specialist Gemplus reported this morning that its second quarter revenues increased nearly 12%, and that gross profit jumped 27% over the first quarter. However, second quarter revenues of $197.2 million, are about 18% lower, and gross profits of $54.7 million are slightly lower than one year ago. Gemplus also posted a $94.3 million net loss for 2Q/03 compared to $43.4 million in the prior quarter, and $140.8 million one year ago. The company reported that smart cards for banking and retail applications rose 54% quarter-on-quarter. EMV shipments nearly doubled compared with the first quarter and more than tripled compared with the same quarter a year ago. Sales were mainly driven by the UK market, but also supported by South America and Asia. During the second quarter, the EMV migration in the UK accelerated with the delivery of 15 million EMV smart cards. Gemplus also became a major player in the EMV migration in Malaysia during 2Q/03. For complete details on Gemplus’ second quarter results visit CardData (www.carddata.com).