BIOMETRIC FORECAST

According to Reporterlinker forecasts, global biometric identification in
China is estimated to exceed USD 3 billion in 2007, reach USD 3.8 billion in 2008
and exceed USD 7.4 billion in 2012. It is estimated that global fingerprint
identification technology accounts for 58.9% of 2007 figures given that the
2006 biological identification market amounted to about RMB 860 million,
97% of which generated from biological identification products. The growth
in biological identification is projected to reach a growth margin of
60% for 2007 to RMB 960 million and it will reach RMB 4.651 billion in 2011.

GIFT CARD REGS

The Consumer Protection Act of 2002 has been amended with Ontario
Regulation to prohibit expiry dates on gift cards issued after October 1,
2007, prohibit up-front fees and to the clear and prominent disclosure of
terms and conditions. Furthermore, with this development, fees can only
be charged for gift card customization and lost/stolen gift cards. The
violation of these amendments subjects individuals to fines of up to
$50,000 and/or imprisonment of no more than 2 years. Corporations are
liable to fines up to $ 250,000.

MICROS & CARA

MICROS has signed with Cara Operations Limited to provide its “Pay-at-
the-Table MICROS 3700” solution for implementation between October
of 2007 to the Summer of 2008. The MICROS “3700” solution eliminates
customers’ fear of fraud (never having to relinquish card possession),
reduces
wait time, is integrated with a mobile payment device from VeriFone
Holdings
and reduces processing fees. MICROS solutions are currently in use at 425
Cara locations throughout North America with 5 of the corporations’ division
brands. The company is a restaurant and airline services organization
operating
such restaurants as Swiss Chalet Rotisserie & Grill, Milestones Grill
and Bar,
Montana’s Cookhouse, Kelsey’s Neighborhood Bar & Grill, Harvey’s and
Airline Solutions. Additionally, MICROS has over 220,000 systems installed
for retail operations and 20,000 management systems for hotels in over 130
countries.

VISA RESTRUCTURING

VISA Inc has completed its series of restructuring transactions
incorporating VISA Canada, VISA U.S.A. And VISA International as its
subsidiaries. This development provides the organization with a strong
management team to continue execution of a competitive strategy for
the expansion of product offerings. This unity of branches is
projected to benefit VISA stakeholders, such as financial institutions,
merchants and cardholders, given the projected resulting revenue
increase. VISA Inc. now operates as the world’s largest retail electronic
payments network to support global commerce through the transfer of
value and information among business and consumers.

EVERLINK EXEC

Everlink electronic payments service has appointed Mark Ripplinger as
President and Chief Operating Officer to oversee company operations
in client support, product strategy, and sales. With 28 years of business
experience, Ripplinger was previously vice president of technology and
chief information officer (CIO) for the Canadian Payments Association
(CPA) following his time as the senior vice president for technology and
CIO at ATB Financial, VP/CIO at Crown Life and vice president of
systems for Co-operators, in that order. Ripplinger’s advance education
includes a bachelor of administration degree from the University of Regina
in Saskatchewan.

QUIC BRIDGE

QuIC Financial Technologies has launched its “QuIC Bridge” allowing
direct user access for risk management. The solution also streamlines
integration and model validation with QuIC Engine and work-flow
management through the application of the QuIC Simulation Framework.
The new “Bridge” solution circumvents the need to go through model
validation and the costs of implementing a high-risk project. The QuIC
product suite provides customizable flexibility and scalability on pricing
and risk analysis for in-house, partner and third-party applications.

CAP ONE REWARDS CARD

Capital One has introduced a no-fee/”no-hassle” rewards card in response
to a recent survey suggesting such criteria is popular. The recent survey,
sponsored by Capital One, shows that only 10% of Canadian consumers
were satisfied with their current rewards card. Moreover, 42% of the
participants were bothered by annual fees and 42% were frustrated with
expiry dates on credit card rewards programs. In addition, 53% would
prefer a cash back reward, 26% prefer gift certificates, 24% would be
happy with merchandise, and 39% prefer travel rewards. Therefore,
Capital One’s rewards card also offers one reward mile for every dollar
spent, a “welcome” bonus of 5,000 miles with first purchase, no limit on
the
rewards customers can earn, no expiration on rewards for the life of your
account, and no blackout dates or seat restrictions among other consumer-
friendly features.

MCCORMICK & SCHNICK AND GIVEX

Operating on the Givex integrated “Squirrel” gift and loyalty program,
McCormick & Schmick’s “Preferred Guest Membership Program” has
been reported to be successful. The seafood restaurant’s loyalty program
provides customers with rewards that offer one point per dollar
spent. These points are redeemable for gifts, travel packages and food.
Since April 2006, the program has acquired 20,000 members. McCormick
& Schmick Seafood operates 77 restaurants, including 5 in Canada under The
Boathouse brand, and was established 35 years ago. Givex provides closed
loop card processing in North America and Europe.

CHIP & PIN

The first chip and PIN transaction made with a Canadian MasterCard chip card was conducted at a Toronto-area spa and salon.
The transaction was made with a “BMO Mosaik MasterCard” at Tresses Spa and Salon on a Moneris POS terminal. Moneris Solutions has been providing merchants across the country with chip-compatible POS systems to accept chip cards with 75,000 chip-compatible payment devices in the
marketplace. A major market trial of chip cards will take place in Kitchener-Waterloo, Ontario in a few months time and is a precursor to the national roll-out of chip cards. As a card issuer, “BMO Mosaik
MasterCard” is the largest MasterCard issuer in Canada and is preparing for the phased introduction of chip cards to its cardholders. MasterCard notes that more than 70% of payment cards issued in Europe are chip-enabled.

PHOENIX & NMS

Giving Phoenix Technology Holdings the resources to more quickly
implement SCTN’s loyalty solutions, the company has acquired National
Merchant Solutions’ (NMS) terminal assets and revenue streams effective
October 1, 2007. With this, Phoenix Technologies can provide a solution
combining debit, credit, loyalty and gift cards on a single card and the NMS
client base with 24 hour level-1 customer support. NMS processes card
transactions from 1,600 terminals across Canada and generates nearly
$500,000 in annual revenue.

SYMANTEC STATISTICS

Symantec has released statistics reflecting the increasing
professionalism of
cyber-criminals and in phishing with the use of professional
methods, tools and strategies. For the 1H07, Symantec found that of these
tools, “MPack” was among the most popular. “MPack” is a professionally
developed toolkit sold in the underground economy that installs malicious
code on computers and monitors the success of the attack through its
online,
password protected control and management console. During the same
period, findings show that 61% of all vulnerabilities were first
encountered
through trusted, popular websites and 28 of the top 50 malicious code
samples
were staged as a download. Additionally, Symantec found an increase of 163
vulnerabilities in Web browser plug-ins since 2H06, 46% of all data
breaches
resulted in theft or loss of computer data-storage and 58% of enterprises
expect a major data loss at least once every 5 years. These statistics
are from
the semiannual “Symantec Internet Security Threat Report (ISTR), Volume XII”
and are a culmination of findings from January 1, 2007, through June 30,
2007.
The findings are conducted with 40,000 sensors in over 180 countries and are
based on reviews of more than 2 million decoy email accounts and the volume
of SPAM they attracted.

ALASKA AIRLINES & GUESTLOGIX

Alaska Airlines has deployed GuestLogix’ “Mobile Virtual Store”
in-flight retail platform on 22 transcontinental flights. This
development is in response to positive reception from Alaska Airline
customers and their option to use credit and debit card purchases
for beer, wine, “Red Bull” energy drinks, “Northern Bites” meals,
picnic packs, and the rental of “digEplayer” personal entertainment
systems. The “Mobile Virtual Store” is available on a total of nearly
300 million passenger trips a year and fast becoming recognized as
an industry standard. Alaska Airlines serves 92 cities throughout
North America and is currently celebrating its 75th anniversary while
GuestLogix provides on-board retail transaction-based solutions for
airlines, caterers, railways, ferries, hotels and commissary customers.