BCOM POS

Yucheng Technologies has signed agreements with the Beijing Branch of
the Bank of Communications (”BCOM Beijing”) to provide outsourced POS
merchant acquiring services. The services provided to the bank include
merchant acquisition, deployment, installation/maintenance of POS
terminals, merchant training and a 24-hour technical support hotline.
Yucheng will purchase the POS terminals, which are designed to accept
all major payment cards, and share fee gains with BCOM Beijing.
Developments such as this are becoming more profound given 2007
statistics showing 1.47 billion bank cards were issued in China, up 30%
from 2006, and 21% of the country’s consumption value was made via bank
cards, up from 17% in 2006. BCOM has a network of 2,612 branches across
the country and a 2006 total asset value of RMB1,720 billion while
Yucheng Technologies Limited (YTEC) IT service provider employs 1,700
associates and has representation in 11 Chinese cities.

AIR CHINA & AIRPLUS

Air China and Airplus have signed partnership agreements for the
introduction of the “Air China AirPlus Company Account” to provide
customers with travel payment options on Air China flights and tariffs.
The account provides corporate travel managers with a payment tool for
air travel, access to aggregated data, allows comprehensive analysis of
travel-related expenses, is designed to save time, recognize tangible
cost reduction and provide access to corporate net rates.The offering
will be made available in July of 2008, prior to the Olympic Games, and
is being introduced in conjunction with the AirPlus Payment Management
Co subsidiary based in Shanghai. AirPlus International has over 32,000
corporate customers worldwide and settles flight tickets from more than
260 airlines while Air China Limited operates 230 routes within 28
countries and regions, serves 71 cities in China and 43 international
cities.

AIRPLUS AND AIR CHINA

AirPlus International has partnered with Air China to offer the ‘Air
China AirPlus Company Account”
to be released in July prior to the Olympic Games. “The Air China
AirPlus Company Account”
provides corporate travel managers
a convenient central payment tool for air travel and access to
aggregated data through internet-based travel expense reporting and
electronic invoicing. With this consolidated data, customers can achieve
comprehensive analysis of their travel-related expenses; thereby saving
time and recognizing tangible cost reduction. In addition, this product
will allow Air China customers exclusive access to special corporate net
rates and Air China loyalty program. Within the framework of the
collaboration,
Air China corporate customers
will also gain access to the “AirPlus Information Manager” which enables
analysis of all travel services; helping companies recognize
cost-cutting opportunities and optimize the controlling of their
business travel costs more effectively than ever before. Another unique
feature of the product is that it will provide access to Air China’s
flown data so that companies can track whether their tickets have been
used, thereby speeding up the refund process and cutting down on the
volume of unused tickets. Additionally, AirPlus has founded a
subsidiary company
in China – the AirPlus Payment Management Co. Ltd. based in Shanghai.
The new subsidiary will intensify the customer liaison and support the
local roll-out of the joint payment solution.

BEIJING TRANSIT CARD

Vesta Corporation’s KPay will be processing retail payment services for the
“Beijing Transit Card” at Wu Mart, which generates annual revenues of over
USD $3billion through its more than 400 outlets. The “Beijing transit card”
stored value device uses contactless IC technology for fare payment through
its 15 million currently deployed transit cards. The partnership between
the two
organizations is fundamental to the expansion of the KPay acceptance
network,
which is projected to install and support over 500 Wu Mart POS terminals.
KPay has partnered with the Beijing city government to issue these cards
for
commuters across Beijing while the Oregon-based Vesta Corporation provides
electronic payment solutions to organizations across the world.

OPTEVA CHINA

The Agriculture Bank of China has deployed 1,400 of Diebold’s “Opteva”
ATMs to provide customers with greater accessibility. This greater
accessibility will allow ATM users in remote rural areas to make deposits
and transfer funds without a bank card over an advanced-functionality,
self-service solution. The Agricultural Bank of China has over 31,000
branches and banking offices across China and had 2005 total assets of
$605 billion while Diebold Incorporated provides self-service delivery and
security systems, employs over 17,000 in nearly 90 countries and reported
a 2006 revenue of $2.9 billion.

JUNFANG DISTRIBUTION

Pay88 and Junfang distribution agreements, signed in 4Q07, were concluded
with the intent on the distribution the latter’s “51 Game” game time card
throughout Western China. Junfang’s online community website, “51.com”,
boasts over 70 million users with nearly 160,000 new ones each day and
recognizes Pay88’s established, reliable distribution network as important
to providing the game cards to its users. Pay88 distributes and resells
prepaid online video game time and various prepaid digital cards.

SHANDONG ATMS

During the 2008 Olympic Sailing Competition, to be held in Shandong,
China, local bank ATMs are set to validate the foreign debit and cash
cards of the many tourists expected in the area for the event. In doing
so, local businesses have been advised and many have installed special POS
machines to accept RMB and foreign currency cards for the achievement of
an 80% acceptance rate. Moreover, 591 foreign currency exchange points
will be established, 553 of which are at bank branches designated for
foreign exchange. Athletes, officials and tourists are expected to arrive
with origins from over 70 different countries.

PAY IN YOUR CURRENCY

Global Payments and Planet Payment have teamed to provide HSBC Bank
merchants with the “Pay in Your Currency” currency service. This will
provide consumers with immediate payment transaction currency conversion
affording the user the knowledge of the transaction cost in his/her own
funds. These features are projected to be available to users before the
Beijing Olympic Games, which are expected to attract millions of people
from around the world who utilize hundreds of different currencies. Global
Payments provides electronic transaction processing services for payment
cards, verification and recovery to many organizations while Planet
Payment enables processors, acquiring banks and their merchants to accept
transactions in multiple currencies.

CIBC CHIP VISA

CIBC has added chip technology to its VISA cards. CIBC Visa cardholders in Kitchener-Waterloo, Ontario began receiving their chip enabled credit cards as part of an industry market trial. CIBC debit cards will be joining the market trial in the spring. During 2008, CIBC plans to start to roll out chip credit and debit cards to all customers. Already, all CIBC bank machines are chip enabled. This past year CIBC also introduced free value-added safety and security features on all CIBC credit cards through “CIBC CreditSmart,” which helps
clients monitor changes to their credit reports, be aware of potential
fraudulent uses of their credit cards, and deal with identity theft. “CIBC CreditSmart” is unique to the marketplace and CIBC cardholders have responded positively to the offer.

ONLINE CITIZEN ID

Shenzhen Ping An Bank has deployed the Clear2Pay “Online Citizen Identity
Information Check System” interface software at 90 of its branch
locations.
The Clear2Pay solution links the respective bank account to a database in
the Public Security Department in China, providing real-time verification
of the authenticity of identity cards. Moreover, with this development,
“Online Citizen Identity Information Check System” satisfies identify
verification requirements of the bank, which is now allowed to connect to
public id records to prorect against fraud.

Minsheng Bank JCB Card

JCB has teamed with Minsheng Bank and Shiseido Liyuan
Cosmetics to issue a new co-branded credit card. In China, JCB has alliances with ten partner banks and financial institutions for acquiring operations and a network of approximately 70,000 merchants that accept JCB brand cards. The new “Minsheng Lady Flower Aupres JCB Card” design features a sparkling cubic zirconia embedded in the card surface. Under the new card program free gifts and incentives are issued when applying the new card. The first 60,000 applicants receive a cosmetics package. Also, the first 30,000 applicants who use the card three times and spend RMB88 or more in each purchase- within the first two months receive cosmetics package.

XINHUA EZIDATA CCCI

According to the recently updated Xinhua Finance eziData China Consumer
Confidence Index (CCCI), consumer confidence was up a half point for March
of 2008. Currently at 96.3, the index has been continuously slipping since
July of 2007 while consumer expectations rebounded by 0.9 point. Moreover,
on a localized scale, consumer sentiment was positive in Beijing and
Guangzhouin for the month, but fell in Shanghai. Specifically, sentiment
was up 2.4 points to 98.7 among Beijing consumers, up 2.8 points to 96.3
in Guangzhou and it was down 1.6 points in Shanghai to 91.2. Xinhua
eziData CCCI is conducted monthly and, for this month, was compiled on the
findings of 1,534 telephone interviews from March 1 to 15, 2008.