Ruling Stay

The U.S. District Court for the Southern District of New York this week granted a stay in its ruling which ordered VISA and MasterCard to drop their exclusionary rules which prohibit members from issuing American Express or Discover cards. The stay will enable the card associations to pursue the appeals process and could run from two to three years. In October, Judge Barbara S. Jones issued a 157-page ruling which said VISA’s bylaw ‘210(e)’ and MasterCard’s ‘Competitive Programs Policy’ weaken competition and harm consumers in a number of ways. American Express said the development “was disappointing, but not surprising.” VISA said this week’s ruling “preserves the market structure of an industry” and avoids making the payment card business “subject to an academic experiment using untested remedies with unknown consequences.” MasterCard said the court recognized “the importance of maintaining the member business agreements pending appeal and the potentially irreversible consequences of imposing the Judgement.” The full text of the October court ruling is available on CardFlash Online ([www.cardflash.com][1]).

[1]: https://cardflash.com

NextBank Closed

NextCard’s bank subsidiary, Phoenix-based NextBank, was shut-down late Thursday by the OCC and the FDIC was appointed receiver. The beleaguered issuer says it has been unable to find an acquisition partner and will now re-evaluate its business and operations strategies. On Jan 12th, NextCard notified the OCC that it was not possible to prepare and submit a ‘Capital Restoration Plan’, and said liquidation of the bank’s assets would not raise enough money to retire in-full the bank’s existing and anticipated liabilities. At year-end, NextBank had total assets of approximately $700 million and total deposits of approximately $554 million. The Internet-only bank has about 4,400 depositers holding jumbo CDs. The OCC determined that the bank was classifying some delinquent accounts sold into a securitization trust as fraud losses, although the delinquencies were actually attributable to credit quality problems. These assets were being repurchased by the bank at par, a practice that constituted sale of assets with recourse. This finding, together with significant accounting adjustments and the need for additional loan loss reserves, resulted in the bank becoming significantly undercapitalized. NextCard’s stock closed Thursday at 14 cents, a 26% decline from the previous session, and a new 52-week low. The stock traded at nearly $12.50 one year ago. NextCard has approximately $2 billion in card loans and 1.2 million accounts, according to CardData ([www.carddata.com][1]). The company has not released its 4Q/01 earnings report. (CF Library 10/31/01; 1/31/02)

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

Idaho Tax Service

The Idaho State Tax Commission is making it easier for businesses and citizens to pay their taxes. The state of Idaho recently introduced a convenient online credit card payment option for most types of Idaho state taxes, including 2002 individual and business income taxes. Idaho’s tax center is available online at [www.accessIdaho.org][1], the state’s official website.

Idaho’s new tax payment services are easy to use, and a typical tax payment can be processed in just a few minutes. Visitors to the Tax Commission’s website ([www2.state.id.us/tax][2] or [www.accessIdaho.org][3]) only need to enter a taxpayer identification number, select the type of tax to be paid from a drop-down menu, and provide a credit card number.

More than $1.0 million in tax payments have been processed online since the service was launched in late December.

Both Visa and MasterCard payments are accepted through the tax website’s secure server. Taxpayers have the option of paying the balance due, making an extension payment or paying estimated taxes, or paying amounts owed for prior taxes. Credit cards can also be used to pay business income tax, sales tax, employer income tax withholding, and other business tax payments under $100,000. Any amount of individual income tax can be paid by credit card, and no additional fee is charged for using credit cards.

“We are delighted to offer a user-friendly tax payment solution to the citizens and businesses of Idaho,” said William Hart, financial officer for the Idaho State Tax Commission. “To my knowledge, Idaho is the only state in the nation that does not charge its constituents an additional fee to make credit card tax payments over the Internet.”

The tax payment system was developed and is maintained by Idaho Information Consortium, the subsidiary of eGovernment firm NIC (Nasdaq:EGOV) that manages accessIdaho on behalf of the state of Idaho.

The Tax Commission has also created a new credit card payment voucher (Form CCV) that allows taxpayers to fill in credit card information for processing by mail. Form CCV can be downloaded and printed from the Tax Commission’s “Forms” page of its website.

In addition to the online and voucher methods for paying Idaho taxes with credit cards, taxpayers can also make payments by calling or visiting any of the six Idaho Tax Commission offices.

About accessIdaho

accessIdaho is the state of Idaho’s homepage and official website ([www.accessIdaho.org][4]), a collaborative effort between the state of Idaho and Idaho Information Consortium. It was built and is marketed, operated, and maintained by Idaho Information Consortium, Inc., a wholly owned subsidiary of NIC.

[1]: http://www.accessidaho.org
[2]: http://www2.state.id.us/tax
[3]: http://www.accessidaho.org
[4]: http://www.accessidaho.org

Cadre Certified

Cadre, an enterprise security solution provider, announced a strategic partnership with Visa USA. After an in-depth qualification process, Cadre has been validated as an independent 3rd party security firm to verify merchant compliance with the Visa CISP security program.

“The purpose of the security review that Cadre provides for Visa is to insure and protect Visa cardholder information from unauthorized access,” says Lou Carli, Vice President for Cadre. “Cadre helps reduce fraud, identify security issues, and measure merchant compliance levels with the Visa security program.”

Visa has created the Cardholder Information Security Program (CISP) in order to verify a merchant has correctly implemented information security controls. The correct implementation of these controls dramatically reduces unauthorized access to Visa cardholder information.

“Within the Visa security assessment process, Visa, the merchant, and independent security firms such as Cadre have major roles and responsibilities in assessing merchant compliance,” emphasizes Lou Carli. “Partnering with the Visa has helped Cadre establish itself as a security assessment expert. This enhances our portfolio of security services and reinforces our reputation as the preeminent provider of enterprise security solutions.”

Cadre is a Cincinnati-based enterprise security solutions provider specializing in the sale, installation, support, training, and assessment of network security systems. Cadre has operations in Cincinnati OH, Indianapolis IN, Louisville KY, Pittsburgh PA, and Detroit MI.

MC PULSE

MasterCard has been selected by the PULSE EFT network to provide future switching and settlement services. Both firms signed a letter of intent this week covering the principal terms of a five-year contract for access to the ‘MasterCard Debit Switch’. MasterCard is expected to assume responsibility for operation of PULSE’s EFT switch when the Association’s current services contract with JPMorgan Chase expires in September 2003. PULSE will process approximately one billion transactions in 2002. MasterCard expects to process approximately 1.2 billion transactions on the ‘MasterCard Debit Switch’ in 2002. When PULSE transactions are migrated to MasterCard in late 2003, the ‘MasterCard Debit Switch’ is expected to process more than 2.2 billion transactions, on an annualized basis. MasterCard has nearly 150 people in three locations exclusively engaged in processing debit transactions. PULSE said the long-term agreement will position the network to continue to operate independently while taking advantage of technical resources of the payments company.

DoD Smart Card Award

The Smart Card Alliance, a non-profit association working to accelerate the widespread adoption of multiple applications for smart card technology, announced that the Department of Defense is the recipient of the “Most Innovative Issuing Organization” through the implementation of its Common Access Card program. The award is presented to those organizations in the public and private sectors that have taken a leadership role in advancing the use of smart card technology. Mary Dixon, director of Access Card Office, Department of Defense, and Robert Brandewie, Deputy Director, Defense Manpower Data Center, Department of Defense accepted the award in Austin, Texas during the Alliance’s February conference.

“The DoD clearly recognizes the benefits of smart cards, which enable secure, standards-based applications and interoperability across a wide range of functions,” said Robert Brandewie, Deputy Director, Defense Manpower Data Center, Department of Defense. “Smart cards have proven to be a valuable, cost effective tool and we are honored that the Smart Card Alliance has recognized us with this award.”

The Department of Defense began initial smart card pilots in 1992 and found that they provided both a secure and private means for identification. As a part of the DoD Common Access Program, the deployment of four million smart cards began in earnest in November 2001. By the end of 2003, the issuance infrastructure will have been rolled out to 900 sites around the world and the initial issuance of the four million cards completed. The smart cards are used for digitally signing and encrypting electronic documents, and in enabling secure remote access to personal data.

“Issuing organizations, like the Department of Defense, are demonstrating that smart cards enhance the security of facilities and systems worldwide and can support many important applications,” said Donna Farmer, president and chief executive officer of the Smart Card Alliance. “The Common Access Card Program demonstrates the significant use of smart card technology at the federal level and the project’s size and scale of smart card deployment makes the DoD the Alliance’s choice for the most innovative issuing organization.”

The DoD is utilizing the highly secure, multiple application cards for physical identification, building access, and network access. The cards, which incorporate PKI (public key infrastructure) and digital signature technology, serve as highly portable, secure tokens for enhancing the security of network access and ensuring secure electronic communications.

The Smart Card Alliance has published a case study on the DoD Common Access Card program, which can be found at [http://www.smartcardalliance.org][1]

About the Smart Card Alliance

The Smart Card Alliance is a not-for profit, multi-industry association of member firms working to accelerate the widespread acceptance of multiple applications for smart card technology. Through specific projects such as education programs, market research, advocacy, industry relations, and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. For more information please visit [http://www.smartcardalliance.org][2].

[1]: http://www.smartcardalliance.org/
[2]: http://www.smartcardalliance.org/

GLOBALPLATFORM STRATEGIC DIRECTOR

The GlobalPlatform Board of Directors has elected Mr
Shoji Miyamoto – Deputy General Manager, Business Solution Systems Division
of Hitachi Ltd – to become the organisation’s first Strategic Director. In
his new position, Mr Miyamoto will serve on the Board for one year, during
which time he will facilitate an initiative with Japanese Government funded
organisation, Next Generation Ic Card System Study Group (NICSS) to develop
contactless multiple application smart cards for use by local Japanese
authorities.

Mr Miyamoto will be responsible for developing the relationship between
GlobalPlatform and NICSS, where he is also a Board Member. It is hoped that
a collaboration between the two organisations will lead to GlobalPlatform
technology providing the common platform for next generation IC card systems
for public use in Japan.

Commenting on Mr Miyamoto’s new role, Steve Brown, Chairman of
GlobalPlatform says: “Mr Miyamoto’s previous experience as a GlobalPlatform
Board member, coupled with his strategic knowledge of our organisation and
his close links with NICSS and Japan make him an ideal candidate for this
role. I am delighted that he accepted our nomination to stand for this
position and as the first Strategic Director to be elected by the
GlobalPlatform Board, I am confident that he will set a very high standard
for others to follow. I look forward to the future successful relationship
between GlobalPlatform and NICSS that will result from Mr Miyamoto’s
efforts.”

The role of Strategic Director was created in August 2001, when the
GlobalPlatform Board implemented the decision to allow up to two new Board
positions. Under the scheme, the 11 Board Directors elected by the
consortium’s Full Members are entitled to elect up to two Strategic
Directors at any one time, allowing them to fully utilise the strengths and
skills of Member organisations when they require additional advice or
expertise regarding a particular strategic issue.

Strategic Director positions are not always occupied and those elected to
fill these positions hold no voting rights. All GlobalPlatform Members of
good standing, regardless of Membership level, are eligible to serve as
Strategic Director.

About GlobalPlatform:

GlobalPlatform is the only cross-industry forum focused on the development,
management and promotion of specifications for multiple application smart
cards, smart card applications, and enabling devices. With support from its
global member organisations, GlobalPlatform promotes a standard framework
facilitating the implementation of smart card programs in any industry
around the world. GlobalPlatform allows flexibility in the choice of
technologies and vendors through an emphasis on open standards for cards,
terminals and support infrastructure. GlobalPlatform’s card and terminal
specifications are the first open standards adopted by GlobalPlatform and
will provide a solid foundation from which the organisation will define the
future of multiple application smart cards.

SureFire 4Q/01

SureFire Commerce Inc. announced its financial results for the third quarter of fiscal year 2002. The Company continues to deliver on its commitment to profitability by recording its third consecutive quarter of net profit and its ninth consecutive quarter of operating profit. The Company also reported revenue of $64.7 million for the first nine months of fiscal 2002, 21% higher than revenue of $53.4 million for the same period last year.

“For the first nine months of fiscal 2002, SureFire Commerce has remained focused on achieving net profitability and we have done so in an economic environment that has been very challenging. We are willing to accept a slower rate of short-term revenue growth in order to remain profitable and build for the long-term. We are extremely pleased with these results,” said Rory Olson, President and CEO of SureFire Commerce.

For the three-month period ended December 31, 2001, revenues totalled $19.6 million. SureFire Commerce also recorded operating profit of $870,000 and net profit of $534,000, or $0.01 per share. For the first nine months of fiscal 2002, revenues totalled $64.7 million, compared to $53.4 million for the nine-month period ended December 31, 2000. For the first nine months of fiscal 2002, net profit totals $2.6 million, compared to a net loss of $20.2 million for the nine-month period ended December 31, 2000. Revenue for the third quarter remained relatively unchanged compared to the previous quarter, primarily due to overall weakness in the general economy and the continuing impact of the tragic events of September 11th.

Cash and cash equivalents at the end of the quarter totalled $94.4 million, including $78.8 million in customer deposits as well as $15.6 million in free cash. The Company has a receivable from one of its suppliers of services in the amount of $10.2 million. This receivable relates to charges from the supplier that the Company believes are unsubstantiated and the Company is actively pursuing their recovery. In the opinion of management, adequate provision has been made in the accounts of the Company. SureFire Commerce also reported that it has achieved several milestones during the quarter. The Company currently has in excess of 130,000 FirePay Personal Accounts, and processed US $87.9 million in transactions for these accounts in the third quarter of fiscal 2002. The Company has in fact processed almost 24 million transactions since the launch of its proprietary transaction processing engine a year ago.

As part of its strategy, SureFire Commerce remains committed to net profitability and will endeavour to stimulate strong mid- to long-term revenue growth by pursuing relationships with regulated land-based gaming companies pursuing online strategies. The international land-based gaming industry, including Nevada and other regions across the United States, is a multi- billion-dollar industry, and several of the best-known names in the industry are announcing proactive online business strategies. The Company continues to derive just over 60% of its processing volume from the licensed online gaming industry, and is seeing a dramatic increase in the internationalization of that revenue. Licensed casino operators have launched significant global marketing campaigns that have resulted and continue to result in a marked increase in consumers from Europe, South America, and Asia.

The Company continues to pursue marketing partnerships in order to increase its merchant and consumer client bases, which rely on SureFire Commerce’s many innovative payment solutions. Recent partnerships with FreeMerchant.com, Infopia, InQuent, Intuit Canada, Network Commerce, points.com, and RedBrigade have contributed greatly to the Company’s low-risk payment processing business, resulting in the opening of 565 new accounts in the third quarter alone. The Company now has over 2500 accounts with small business clients. By processing transactions for points.com and its airline and hotel clients, SureFire Commerce has also accelerated the development of its online loyalty business and intends to pursue further business opportunities where the management of online loyalty points and rewards are prominent.

Third-Quarter Highlights

During the third quarter, SureFire Commerce continued to develop innovative products, which led to the Company closing several marketing partnerships. Product development and partnership agreements are focused on payment solutions in three core areas: Internet payment processing for online businesses, bill presentment and payment processing for physical businesses, and corporate billing solutions. Significant highlights for the third quarter include:

– the extension of its private-label agreement with Intuit Canada through the creation of the Quicken Home and Business Credit Card Service, enabling small businesses to accept credit card payments online and send invoices by email;

– the delivery of multi-currency capability, allowing SureFire Commerce to process 30 currencies, more than any payment processor in the world and facilitating its expansion into Europe;

– a partnership agreement with RedBrigade, a European-based systems integrator, that will integrate SureFire Commerce’s bill presentment and payment solution into its financial processing system and market it to corporate clients with high-volume billing needs;

– a strategic alliance agreement with Wysdom Inc. in order to offer mobile operators a hybrid version of SureFire Commerce’s online payment solution and enable small businesses to perform payment transactions with mobile devices;

– a partnership agreement with points.com that will see SureFire Commerce process transactions for the pointspurchase(TM) platform used to operate loyalty programs such as buyAAmiles from American Airlines;

– the launch of CIBC eShops, which combines the security and peace of mind of online shopping through a trusted financial institution with the convenience of one-stop shopping in a virtual mall;

– the announcement of a normal course issuer bid to purchase for cancellation approximately 5% of the Company’s public float;

– on November 6, 2001, the Corporation adopted a voluntary stock option replacement program for the benefit of its employees pursuant to which a total of 1,717,800 stock options having exercise prices ranging from $1.00 to $11.10 were cancelled and 1,209,235 new options having an exercise price of $0.90 and vesting over three years were issued;

– the launch of the QuickBooks UK Credit Card Service, enabling small businesses in the U.K. and Ireland to process credit card payments as well as send and settle invoices by email in pounds sterling and euros;

– a strategic partnership agreement with Actinic Software Ltd., a leading developer of B2B and B2C software solutions in Europe, to integrate SureFire Commerce’s online payment solutions into their two main products, Actinic Catalog and Actinic Business, which are marketed through over 1600 value-added resellers in Europe. “Building proprietary transaction processing technology a year ago was a significant milestone in the evolution of our company, allowing us to develop innovative solutions and risk management expertise tailored to our customers’ needs,” said Rory Olson. “SureFire Commerce has now processed 24 million transactions since the launch of our transaction processing engine and we are entirely committed to our core business, payment processing.”

About SureFire Commerce Inc.

SureFire Commerce Inc. is a global provider of secure online payment solutions and e-commerce support, processing over $1.2 billion of online transactions annually. The Company specializes in payment solutions in three core areas: Internet payment processing for online businesses and licensed online gaming entities, bill presentment and payment processing for physical businesses, and corporate billing solutions. SureFire Commerce’s online payment solutions are marketed to consumers and merchants through strategic partnership agreements with companies that have_significant brand recognition and distribution channels. SureFire Commerce is headquartered in Montreal (Quebec) with offices in Hull (Quebec) and London (England).

For complete details on SureFire’s latest results visit CardData ([www.carddata.com][1]).

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

RETAIL TRENDS

Moneris Solutions, Canada’s largest processor of
credit and debit card transactions, reports that in the fourth quarter of
2001
credit and debit spending in the home improvement retail category showed
strong double-digit growth over 2000. In addition, this category
significantly
outpaced general retail spending averages both in terms of volumes and
average
dollars spent per purchase.

In total, Moneris processed more than 6.3 million Visa, MasterCard and
INTERAC Direct Payment transactions in the home improvement category in the
fourth quarter of 2001 compared to 5.7 million payment transactions during
the
same period in 2000 – a ten percent increase.

“Moneris Solutions is at the forefront of evaluating retail trends in
real-time and from anywhere across Canada as we meet the challenge of
processing over 1.3 billion transactions securely and seamlessly each year,”
said Jim Baumgartner, President and CEO, Moneris Solutions Corp. “Moneris
continues to streamline credit and debit transactions for retailers so that
they can have a convenient one-stop integrated solution to handle Visa,
MasterCard and INTERAC Direct Payment.”

The total number of dollars spent in the household industry increased by
16 percent in the fourth quarter of 2001 versus the same period in 2000. By
comparison, spending in the entire retail segment only realized a 7 percent
increase during the same period.

Dollar volume growth in some of the key home improvement categories
breaks down as:

– Floor covering: up 15 percent

– Furniture expenditures: up 14 percent

– Drapery and upholstery: up 22 percent

– Paint and wallpaper: up 20 percent

– Appliances: up 26 percent

– Lumber and building supplies: up 27 percent

Not only has the overall dollar volume grown in this segment but the
average amount spent per purchase in the household industry grew 5.7 percent
as the average purchase increased from $183.00 to $193.50. The growth
compares
very favorably to overall retail, which saw the size of the average
transaction increase by only 0.39 percent.
A couple of factors may explain the growth in spending in the household
industry in an otherwise fairly stagnant economy. They include:

– People are cocooning following the events of September 11th and are
choosing to spend more time in their homes. As a result, these
people are spending money on things that improve quality of life at
home.

– Additionally, extremely favorable mortgage rates encourage people to
enter the housing market and to trade up to larger homes. In both
cases, these people will spend money outfitting new homes and
performing renovations.

Moneris Solutions also handles loyalty programs, electronic gift cards
and wireless payment processing, as well as delivers enhanced on-line
reporting functionality.

About Moneris Solutions Corp.:

Moneris Solutions is Canada’s leading technology merchant processing
company. Moneris was formed in December 2000 as a result of a 50:50 joint
investment between the RBC Financial Group and Bank of Montreal. Moneris
provides businesses with technologically advanced, easy to use, point-of-sale
solutions designed to electronically process and authorize credit and debit
card transactions, including customized loyalty card transactions. Moneris’
leading-edge technology allows merchants to streamline payment processing and
improve business efficiency. In less than a year, Moneris has become Canada’s
largest and one of North America’s largest merchant payment processing
companies. Moneris serves more than 300,000 North American customers and
has a
staff of over 900 employees. With its head office in Toronto, Ontario, the
company also has offices in Chicago, Illinois and Montreal, Quebec. For more
information, please visit www.moneris.com.

Unemployment Boosts Debt

24% of Americans who added to their debt load in the last month are doing so because their income has been reduced and they are borrowing more money to pay their bills, according to the Cambridge Consumer Credit Index.

Nearly two-thirds of Americans — 61%, continue adding to their debts because they feel confident in their income and ability to pay off their debt. These are among the most striking results from a nationwide telephone poll of 1000+ adults conducted by ICR/International Communications Research in the past week.

“We have known for the past two months that the amount of consumer debt is soaring, according to the Federal Reserve Board’s Consumer Credit Outstanding release, which showed an increase of $19 billion in new debt in November. The results of the February Cambridge Consumer Credit Index poll show that a startling one-quarter of that new debt is being taken on by Americans who have lost their jobs or suffered a major decline in their incomes. This trend of Americans living off their credit cards is extremely dangerous,” says Jordan Goodman, spokesperson for the Index.

The survey also asked Americans who have been paying off their debt where they are getting the money from to do so. The vast majority, 71%, said they are using their normal salary to pay down debt. 10% said they are liquidating their savings to pay off debt, while 4% have used money from friends or family members. Only 3% used proceeds from a year-end bonus and another 3% spent proceeds from the sale of real estate or other investments to pay off debt. Only 1% were lucky enough to receive a windfall such as a lottery winning or inheritance to use to pay down debt.

For the month of February, the reading for the Cambridge Consumer Credit Index is 55. This means that on average 45% more Americans are paying off debt than are adding debt. This is a six-point drop from the Index’s January reading of 61. The Index number is a composite of the three questions asked of respondents every month:

– In the past month, have you taken on more debt or paid off debt?

In February, 32% of Americans say they have taken on more debt, with 22% taking on a little and 10% taking on a lot more debt. Conversely, 68% of Americans have paid off debt, with 48% paying off a little and 20% paying off a lot. The index reads 64 on this question. A month ago, 39% of consumers had taken on more debt while 61% had paid off debt, showing that during January, fewer Americans took on more debt than in the holiday month of December.

– In the next month, do you anticipate taking on more debt or paying off debt?

In February, 18% plan to take on more debt, with 3% planning to take on a lot and 15% planning to take on a little debt. Conversely, 82% plan to pay off debt, with 58% paying off a little and 24% paying off a lot. The index reads 36 on this question. This is up slightly from a month ago, when 16% planned to take on more debt and 84% planned to pay off debt.

– In the next six months, do you expect to take on debt because you are thinking of making a major purchase such as a car, education, appliance, medical procedure, furniture or carpeting?

In February, 32% of Americans plan to take on more debt to make such purchases, with 12% taking on a lot of debt and 20% taking on a little more debt. In contrast, 68% of Americans plan to pay off debt in the next six months, with 46% expecting to pay off a little and 22% expecting to pay off a lot. The index reads 64 on this question. The number of Americans planning to take on more debt over the longer-term is down slightly from January, when 36% expected to increase debt versus 64% who planned to pay off debt.

The Index survey is conducted by ICR (International Communications Research) of Media, PA., over five days in the week before the index is released. 1000+ households throughout the country are polled with a margin error of plus or minus three percentage points. The Index is released on the fifth business day of every month to coincide with the Federal Reserve Board’s G19 release of consumer credit outstanding data. The Debt Relief Clearinghouse, which sponsors the index, refers consumers to the debt-management agency best able to handle their problem. To date thousands of clients with excessive credit-card debt have been referred to Cambridge Credit Counseling Corporation, based in Agawam, Massachusetts and the Brighton Credit Management Corporation, headquartered in Palm Beach Gardens, Florida. Cambridge and Brighton help thousands of Americans in financial distress by educating them on how to use credit wisely while in turn negotiating lower interest rates, waiving late and/or over limit fees with creditors to help consumers repay their unsecured debt obligations. Unlike other debt management firms, Cambridge and Brighton offer programs that pay a rebate to qualified clients of half the “Fair Share” contribution received from creditors for every six months that the client pays their bill on time. These programs, known as the Good Payer Program at Cambridge and the Bonus Payment Program at Brighton, have helped thousands of Americans repay their debt load while rewarding them for their commitment to reduce their debt.

For more information about the Cambridge Consumer Credit Index, contact publicist Paramjit Mahli at [email protected] or 800-804-0575, or economist Allen Grommet, who provides an economic analysis of Index results, at [email protected] or 800-804-0575, or the Index website at [http://www.cambridgeconsumerindex.com][1]

Consumers wishing to find out more about Debt Relief Clearinghouse referral services should call 1-888-4DEBTHELP or visit [www.debtreliefonline.com][2]

[1]: http://www.cambridgeconsumerindex.com/
[2]: http://www.debtreliefonline.com/

ShopSite 6.0

UT-based ShopSite released version 6.0 of its e-commerce shopping cart application. ‘ShopSite Pro v6.0’ features two major upgrades, including United Parcel Service’s ‘Rates and Service Selection’ tool and National Processing Company’s processing credit card payment gateway. In addition, fraud prevention features, electronic couponing, digital downloads and improved performance capabilities have all been added to ‘Shop Site Pro v6.0’. Pricing for ShopSite Pro v.6.0 is $1,295 for a one-time/license fee. ‘ShopSite’ is available in three different applications: ‘ShopSite Pro’, ‘ShopSite Manager’ and ‘ShopSite Starter’. Pricing for ‘ShopSite Manager v6.0’ is $495 for a one-time licensing fee. ‘ShopSite Starter v6.0’ is only available through an ISP and is generally less than $5 per month and usually included in monthly hosting fees from an ISP.

Corillian 4Q/01

Corillian Corp., a leading global provider of eFinance solutions, reported financial results for the fiscal year and fourth quarter ended December 31, 2001. Revenue for the year ending December 31, 2001 was $53.8 million, a 75 percent increase over revenue of $30.9 million for 2000. Pro forma net loss for the year 2001 was $22.6 million, resulting in a pro forma net loss per share of $0.65 on 34.6 million weighted shares outstanding. Comparable pro forma net loss per share for the year 2000 was $1.03 on 25.1 million weighted shares outstanding.

Revenue for the fourth quarter was $9.9 million, a 20 percent decrease over revenue of $12.4 million for the same quarter of 2000. Pro forma net loss for the fourth quarter was $6.1 million, resulting in pro forma net loss per share of $0.17 on 34.9 million weighted shares outstanding. The pro forma net loss per share for the comparable prior year period was $0.21 on 33.0 million weighted shares outstanding.

Net loss for the year ending December 31, 2001 was $49.3 million, resulting in a net loss per share of $1.42 on 34.6 million weighted shares outstanding. Comparable net loss per share for the year 2000 was $1.33 on 25.1 million weighted shares outstanding.

Net loss for the quarter was $24.7 million, resulting in a net loss per share of $0.71 on 34.9 million weighted shares outstanding. The net loss per share for the comparable prior year period was $0.27 on 33.0 million weighted shares outstanding.

An explanation of Corillian’s practice on reporting pro forma and adjusted EBITDA results is described below. A table detailing the differences between Corillian’s reported net loss, pro forma results and adjusted EBITDA is included in the consolidated statements of operations attached to this release.

“2001 was an extremely challenging year for us as most financial institutions slowed their technology spending and took a conservative attitude toward all technology decisions. Despite, and to some extent because of, the delays we experienced in 2001, we are cautiously optimistic about our prospects for success in 2002,” said Ted Spooner, CEO of Corillian. “The achievements of customers like Bank One are benchmarks for how large financial institutions can leverage Corillian technology. Bank One has now added small business and credit card customers to the existing retail population, including First USA’s nearly two million online users, further leveraging the best-in-class usability, availability and scalability it has provided to its sizeable retail base since early 2001. Our newest customer, $50 billion-asset Comerica Inc., plans to use the Voyager platform to further expand the services it provides to its online banking customers with additional features such as streamlined enrollment, expanded funds transfer capabilities, account access options for small business owners and online stop payments. We have an unparalleled record of achievement in designing, implementing, and supporting eFinance solutions that enable our financial institution customers to attract and retain retail and small business customers, and the products, people and partnerships we’ve assembled give us confidence that 2002 will be a productive year.”

Recent Highlights

— Corillian increased its leading market share in the top 100 U.S. banks by licensing the Corillian Voyager platform to Comerica Inc., its 17th top 100 U.S. bank.

— Bank One extended its license of Corillian Voyager by providing all of the functionality and services available at bankone.com to its First USA credit card customers at firstusa.com.

— Corillian completed the deployment of Corillian Voyager to its first insurance customer, Allstate Bank.

— Corillian is the preferred reseller for Microsoft’s new Money Explorer and MSN Money Professional products and services.

— Corillian signed a strategic alliance with Spectrum EBP in which Corillian’s Voyager Internet banking platform will be certified to the Spectrum network.

— Corillian and S1 Corporation announced the settlement of the patent infringement lawsuit brought by S1 against Corillian in March 2000.

— Corillian Voyager continues to be the number one retail Internet banking platform with more end users than any other platform in the industry. As of the end of the fourth quarter, there were approximately 5.3 million end users on Voyager platforms, compared to approximately 800,000 end users as of December 31, 2000.

Business Outlook

Based on our current backlog of projects in implementation, we anticipate that first quarter 2002 revenue will be at least $10 million. Based on this revenue estimate and continued expense containment, we anticipate adjusted EBITDA loss to range from $0.11 to $0.13 per share for the first quarter, and we expect to achieve adjusted EBITDA breakeven on a quarterly basis during 2002.

Pro Forma Results

Pro forma results, which generally measure operating profitability by excluding certain non-cash and unusual items, are provided as a complement to Corillian’s reported net loss, which is provided using generally accepted accounting principles (or GAAP). Adjusted EBITDA results, which generally measure operating cash earnings by excluding interest, taxes, depreciation, amortization and unusual items, are provided as a complement to Corillian’s reported net loss. A table detailing the differences between Corillian’s reported net loss under GAAP, pro forma results and adjusted EBITDA is included in the consolidated statements of operations below.

Corillian measures the progress of its business using pro forma operating results, which exclude the following items from its consolidated statements of operations:

— Amortization of deferred stock-based compensation;

— Amortization of goodwill and other intangible assets;

— Restructuring-related charges;

— Merger-related charges; and

— Impairment charges related to acquisition-related intangible assets.

Corillian also measures the progress of its business using adjusted EBITDA results, which exclude non-cash and unusual items as follows:

— Other income (expense), net;

— Depreciation and amortization;

— Restructuring charges;

— Merger-related charges; and

— Impairment charges related to acquisition-related intangible assets.

About Corillian Corporation

Based in Oregon, and with offices in Europe, Asia and Australia, Corillian Corporation is an award-winning provider of eFinance-enabling software for the financial services industry. Built on the Microsoft Windows 2000 platform, Corillian applications support Internet banking, bill delivery and payment, brokerage, customer relationship management, enhanced data aggregation, and small business transactions. Corillian Voyager can be deployed on-site at the financial institution or in the state-of-the-art Corillian Data Center. Corillian technology also enables Open Financial Exchange (OFX) access by finance management software packages such as Quicken(R), QuickBooks(R) and Microsoft(R) Money.

For more information about Corillian Corporation’s 4Q/01 results visit CardData ([www.carddata.com][1]).

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