Citi Commerce Solutions

Citibank’s initial ownership of SPS Payment Systems has come full circle. Citibank Cards said Wednesday the name of its private-label credit division has been changed to Citi Commerce Solutions. The unit previously operated under the name Associates Commerce Solutions. Citi Commerce Solutions was founded in 1985 as SPS Payment Systems, a division of Sears, Roebuck and Co. In 1989 the company became part of Dean Witter Discover. In late 1998, the company was sold to Associates First Capital Corporation, which was acquired by Citigroup in late 2000. Among the CCS clients: RadioShack, Staples, Goodyear, Texaco, Gateway, BP Amoco, Office Depot, OfficeMax, Dell Computer, Shell, Zales and Citgo.


ERG Announces Acquisition of Proton World
The ERG Group announced the full acquisition of Belgian-based Proton
World International (Proton World), the leading, global, high-security
and identity smart card technology company.
In consideration, ERG will issue the former shareholders of Proton World –
American Express, Banksys, Interpay Nederland and Visa International – with
approximately 75.5 million shares (representing 8.4 per cent of ERG’s

In addition, ERG has agreed to pay cash consideration of approximately A$58.8
million. The shares will be subject to escrow agreements. The agreements with
American Express and Visa International also provide for an entitlement to 8
million ERG options that are exercisable if certain performance criteria,
will enhance the value of Proton World, are achieved.

The sale agreements call for long-term (5-7 year) service level agreements to
be executed by American Express, Banksys and Interpay Nederland. The
are expected to generate revenue in excess of A$200 million.

Proton World was formed in 1998 as a joint venture between ERG, Banksys (a
joint venture between the Belgian banks), American Express, Interpay
(a joint venture of the Dutch banks), and Visa International. There are now
more than 35 million Proton-based smart cards in circulation worldwide and
than 500 banks have deployed the technology.

ERG’s Chief Executive, Mr Peter Fogarty, said the full acquisition of Proton
World would enhance ERG’s strengths in the smart card arena.
“ERG’s existing MASS technology is the world’s leading transport smart card
technology. The combination with Proton Prisma technology means that ERG will
now have the ability to deliver full multi-application smart card solutions,
including high-level security for the financial services and identity

“In addition, the ERG Group is very pleased to have American Express,
Interpay and Visa as investors in ERG and the benefit of long-term recurring
revenue contracts with American Express, Banksys and Interpay.”
The parties to the transaction made the following comments:
Proton World, Chief Executive Officer, Dr Armand Linkens: “Proton World has
made a name for itself with its security architecture and smart card
in the financial industry. Our know-how is very complementary with the
achievements of ERG in Mass Transit. The commonality of vision and cultures
the two companies assure me of an even greater worldwide success of the ERG
Group and its subsidiary Proton World in the key markets of transit, finance,
mobile telephony and identity.”
American Express, President, Northern Europe, Mr John de Trafford: “American
Express has been actively involved in the development of the Proton platform
and has recently committed to use their upcoming Proton Prisma product for
future issuances of smart cards worldwide.”

Banksys, Chief Executive Officer, Mr Chris Lebeer: “We fully support ERG in
moving Proton World forwards to new markets and customers. As an early
mover in
applying new technologies we will remain an important customer for ERG’s
financial products. We are happy to conclude this deal.”

Interpay Nederland, Director, Mr Antoon Kuijpers: “Our commercial
with Proton World and new shareholding in ERG ideally complements the joint
venture established with ERG in the Netherlands earlier this year. As a
company, we have positioned ourselves to ensure we participate in our country
and indeed the world’s adoption of smart cards.”
Visa International EU, Chief Operating Officer, Mr Philippe Menier: “Many
Members are already significant users of Proton technology and we are
that they are. Visa is proud of the part that it played in the creation of
Proton World and is happy to support ERG in this next phase of the company’s
development. As we continue with our programs designed to change Europe’s
cards to use the chip, we are confident that our Members will expand their
of the Proton technology. We look forward to continuing to work with Proton
a member of the Visa Smart partner program.”

ERG Group

ERG Group is a world leader in the development and supply of integrated fare
management and software systems for the transit industry and technologically
advanced smart card systems and services. In 2000/2001, ERG’s revenue
A$299.9 million. The Group has established market leadership for its
multi-application smart card management technology. ERG is an
company listed on the Australian Stock Exchange and is ranked in the
Standard &
Poor’s-Australian Stock Exchange Top 100 index.
For more information visit:

American Express

Founded in 1850, American Express Company is a global travel, financial and
network services provider. It is a global Proton licensee, and a leader in
smart card development and issuance. In 1999, the company launched Blue from
American Express in the first wide-scale rollout of smart cards in the US.
company has since launched Blue in several international markets.
For more information visit:

Banksys was founded in 1989 with the merger of two debit card networks
(Bancontact and Mister Cash). In 1995, Banksys launched Proton, the
inter-sector electronic purse smart card, which became the world’s first
e-purse to be rolled out on a national scale in 1996. In 1998, Banksys spun
its international smart card activities to form Proton World in association
with four other shareholders and became the Proton licensee for Belgium.
For more information visit:

Interpay Nederland

Interpay Nederland is a major service provider in payment processing and
related services. It processes large transaction quantities and thus
an important link in the flow of payments in the Netherlands. Each day it
processes more than 6 million payments that are made through giro collection,
direct debit authorization, funds transfers, Eurocard/MasterCard and Visa
credit cards, PIN cards, Chipknips and SET. In 1996, it became the first
international Proton licensee and launched the Chipknip e-purse card.
For more information visit:

Visa International

Visa is the world’s largest payment system, with more transaction volume than
all other major payment cards combined. Visa has 21,000 member financial
institutions, more than 80 smart card programs in 35 countries and on the
Internet, and over 1 billion cardholders worldwide, which generate an annual
transaction value of more than US$1.97 trillion. Visa-branded cards are
accepted at over 22 million locations worldwide.
For more information visit:

ABNH 3Q/01

American Bank Note Holographics reported Wednesday that revenues for the third quarter increased 12% to $5.2 million, compared with $4.7 million for the third quarter of 2000. However net income of $103,000 for 3Q/01 and $115,000 for 3Q/00 was flat. ABNH is the leader in the origination, production and marketing of mass-produced holograms for transaction cards. The company anticipates the current increased security environment to expand its business.

VISA Acceptance EVP

Financial services industry veteran Angela L. Brown has been appointed to the position of executive vice president of Acceptance for Visa U.S.A. Brown has more than 19 years of corporate sales, marketing, product development and payments experience, including 13 years with the Canadian Imperial Bank of Commerce.

Most recently, she held the post of senior vice president of Amicus Payments, a wholly owned CIBC start-up that entered the U.S. retail market. In her new role, Brown has responsibility for Visa U.S.A.’s Acceptance division that has been formed to continue Visa’s commitment to addressing the specific needs of Visa’s Acquirer, merchant and processor customers. She will serve as Visa’s chief acceptance strategist and will explore the potential to open new acceptance markets and ways that Visa can support customers by providing back office and physical point of sale services that are available through existing and future technologies, products and services. In addition, Brown will serve on Visa U.S.A.’s executive management committee.

“We are delighted to have Angela here to drive our acceptance strategy. Angela’s track record will serve our Acquirer, merchant and processor customers well,” said Carl F. Pascarella, president and chief executive officer, Visa U.S.A., Inc. “Her appointment represents Visa’s commitment to serving these critical customers.”

During her tenure with CIBC, Brown held a variety of management and executive positions in the marketing, savings and investment, card product and merchant acquisition divisions. In 2000, Angela was appointed to the position of senior vice president of Amicus Payments. Prior to assuming that post, Brown held the positions of vice president, Personal Lending Products, and senior vice president, Payment Products. From 1996 – 1999, she served as vice president, Merchant Acquiring, where she led the stand-alone merchant acquiring business unit responsible for providing merchant card processing services to bank and non-bank customers.

Brown holds a bachelor of arts degree in Honours Economics from the University of Toronto (1981), and a master’s degree in Business Administration from York University, Toronto (1983).

About Visa U.S.A.

Visa is the world’s leading payment brand and largest consumer payment system, enabling banks to provide their consumer and merchant customers with a wide variety of payment alternatives. More than 14,000 U.S. financial institutions rely on Visa’s processing system, VisaNet, to facilitate over $835 billion in annual transaction volume – including roughly half of all Internet payments – with virtually 100 percent reliability. U.S. consumers carry 353 million Visa-branded smart, credit, commercial, stored value and check cards, accepted at approximately 22 million locations worldwide. Visa has long led the industry in developing payment security standards, and has been named the most trusted payment brand online. Visa’s people, partnerships, brand and payment technology are helping to create universal commerce – the ability to safely conduct transactions anytime, anywhere and anyway. Please visit [][1] for additional information.



SchlumbergerSema announced
that Smart Communications has chosen its new-generation Simera Classic 64K
Java SIM smart cards as the platform to
increase market share with a growing portfolio of data services.

Smart Communications is the Philippines’ leading digital wireless operator
with over 4.7 million subscribers on its GSM network. Its network services
cover the mobile waterfront, and it has been particularly successful in
leveraging the data messaging capabilities of short message services (SMS)
and the power of the SIM toolkit to give mobile consumers friendly and
simple access to a wide range of centralized information content.

With almost a hundred million SMS messages sent every day, the Philippines
is the SMS messaging capital of the world, and Smart already handles an
average of 45 million outgoing messages per day. By doubling the memory
available to subscribers for storing service application software, the
SchlumbergerSema Simera Classic 64K SIM gives Smart a powerful
differentiator in the data services arena. It provides the ideal proven
Java platform for Smart to build on its leading market position by
continuing to optimize the service perception of the customer, in turn
boosting revenues from the SMS channel.

Smart’s service portfolio is exceptionally broad, combining conventional
offerings – such as weather and traffic updates, news, mobile chat, exchange
rates, airline and entertainment schedules – with many novel services such
as prepaid reload and purchases through its ‘Smart Money’ service,
horoscopes and biorhythms. It even provides subscribers with recipe ideas
for an evening meal while they are out shopping. The Simera Classic 64K SIM
will double or treble the number of “easy-access” services that can be made
available to the subscriber, as well as supporting increasingly
sophisticated services which leverage its additional memory to provide high
levels of security and enhanced usability.

>From the subscriber’s point of view ‘more’ is definitely better when it
comes to mobile services. With Simera Classic 64K SIM, Smart’s subscribers
can multiply the number of services they can access, giving the operator a
real advantage. At the same time, the advanced Java Card(-compliant
technology positions Smart to rapidly take advantage of increases in
bandwidth as 2.5G technologies arrive, supporting over-the-air downloads to
make one-to-one marketing a practical reality.

The Simera Classic 64K SIM reflects the SchlumbergerSema commitment to
deliver state of the art mobile services and Java technology. Full
conformance to the latest standards for over-the-air downloading, source
code development, and applet loading and processing make the Simera Classic
64K SIM an ideal launch pad for more services and new subscriber servicing
strategies. To a proven and stable Java Card platform, it adds the power
and memory capacity to integrate the state-of-the-art security required for
a new generation of applications, such as m-commerce and the new generation
of location-based services.

In the highly competitive mobile marketplace where customer loyalty is a
distinct advantage, the ability to deliver imaginative and accessible new
services is critical to operators’ success. The higher memory capacity of
the Simera Classic 64K SIM is designed to support more and more
sophisticated applications to meet the demands of an increasingly discerning
subscriber base.

About SchlumbergerSema

SchlumbergerSema is a leading information technology services company
providing consulting, systems integration, managed services, business
continuity systems, products and IP network security solutions serving the
telecommunications, utility, finance, transport, oil and gas, and public
sector markets. With more than 30,000 employees in 130 countries,
SchlumbergerSema is one of two business segments of Schlumberger Limited, a
global technology services company. For more information about
SchlumbergerSema, visit

About Smart Communications

Smart Communications, Inc. is the leading wireless operator in the
Philippines providing a wide range of innovative services to the 5 million
subscribers on its GSM network. It is a wholly owned subsidiary of the
Philippine Long Distance Telephone Company (PLDT), the country’s largest
telecommunications and multimedia company. For more information, please

Bear/RamBucks Card

Mercer University in Georgia, and Virginia Commonwealth University have chosen the ‘Student Advantage Cash Program’ to add off-campus capabilities to stored-value cards for their students, faculty and staff. The SA Cash feature on the Mercer ‘Bear Card’ and the ‘RamBucks Card’ will enable students, faculty and staff to buy food, necessities and entertainment at off-campus businesses. Students currently use their ‘Bear Cards’ and ‘RamBucks Cards’ for on-campus purchases at vending machines, the bookstore, to buy lunch in the co-op and cafeteria, and at residence hall laundry facilities.


MIST Inc., a global leader
in wireless transaction technology, announced it has expanded its
offices to Tachikawa-city, Japan and signed an agreement to provide Oki
Electric Industry Co. Ltd., a leading manufacturer of telecommunication
systems, information systems and electronic devices, with customized security
technology for ATM financial transactions.

The three-part MIST/Oki agreement encompasses the licensing of customized
security technology, including research and development for software and
hardware as well as unit manufacturing. The technology will enhance security
for customers making ATM transactions.
“MIST’s expertise in the wireless industry will most certainly assist the
growing needs of the Asian market,” said Charles E. Lee, chief executive
officer and president of MIST Inc.
“The greatest advantage that MIST provides is a secure gateway and a
variety of
customized software applications and products. In our agreement with Oki, we
will provide additional security technology and support for ATM financial
The security technology is compatible with MIST’s FreedomGate(TM), the
multiple-transaction processing facilitator through which wireless
are completed. FreedomGate provides users with remote loading of software and
enables updates to each terminal at one time and from one location.
FreedomGate also provides a re-programmable security device and key injection
solution providing PIN changes at varying frequency to minimize security

“Oki, as Japan’s top ATM vendor, has been providing excellent products in the
ATM market,” said Haruo Kimura, general manager, terminal systems division of
Oki Electric Industry Co. Ltd. “This agreement will enable us to develop
secure and user-friendly ATMs to meet market needs.”

About MIST Inc.

MIST Inc., a leading provider of wireless transaction-enabling technologies,
designs, manufactures and distributes wireless and wired point-of-sale
solutions. The MIST “Freedom family” of wireless transaction terminals was
developed to complement its range of existing products.
The MIST FreedomGate(TM) provides gateway services with value-added options
such as messaging, time and attendance and e-commerce.
With facilities in Canada, the United States and Japan, MIST’s clients include
North American and international banks, financial institutions, credit and
debit card processors, as well as retail, hotel, restaurant, health care and
loyalty customers. For more information, visit Investors
may contact [email protected]

About Oki Electric Industry Co. Ltd.

Founded more than a century ago in 1881, Oki Electric Industry Co. Ltd. is
Japan’s first telecommunications manufacturer headquartered in Tokyo. With
than 25,000 employees worldwide, Oki Electric provides customers with
products and technologies for telecommunication systems, information systems
and electronic devices. Visit Oki’s global Web site at

TSAI 3Q/01

Transaction Systems Architects, Inc., a leading global provider of enterprise e-payments and e-commerce software, announced that revenue for the fourth quarter of fiscal 2001 was $75 million. Pro forma earnings per diluted share were $.08. The company’s guidance for the quarter was revenue of $72 to $75 million and EPS of $.03 to $.08. Operating cash flow was $8.6 million and the cash balance for the company was $32 million.

“Our fourth quarter performance was solid given a difficult environment,” said Larry Fendley, interim CEO. “Even with the unfortunate events in early September, we were able to deliver revenue and earnings that met our expectations. We added 15 new customers in our ACI Worldwide subsidiary, including seven new customers for our eCourier secure document delivery and payment product. We added two new countries to our geo portfolio; we now have customers in 81 countries. We were able to continue our focused R&D efforts while still reducing our overall expense levels. One result of our performance is that our annualized revenue per employee increased to its highest level in two years.

“We had another strong quarter of operating cash flow,” added Fendley. “Our balance sheet continues to improve, as we have now raised our cash level to $32 million and we have reduced the balance of our operating line of credit from $15 million to $12 million. With our expense run-rate reduced and our strengthened balance sheet, we are well prepared to emerge from the current economic environment even stronger than before.

“During the fourth quarter, we noted several significant developments for the company,” added Fendley. “First, we began shipping release 6.0 of our market-leading BASE24 enterprise e-payments product. We continue to invest in this best-of-breed software, and we continue to add market share, with seven new BASE24 customers added during the quarter. New BASE24 customers included two of the largest e-payment processors in North America, both of whom purchased our software to help them manage increasing e-payment volumes, with stringent requirements for system reliability and scalability. “Second, we announced our Enterprise Payment System, to be shipped on the IBM z-series platform. We believe that this will extend the company into even more markets than before, and will effectively double the market opportunity for our more traditional e-payment solutions.

“Third, we continued our push into new markets for the company with our eCourier software. With seven new licenses for eCourier, across multiple geos and industries, we are beginning to extend the company into a completely new market sector, creating an incremental growth opportunity for TSA. “Our newly-named Intranet subsidiary, focused on the global corporate banking sector, licensed its Money Transfer System to Fortis Bank NV, a top 50 global bank in Belgium,” said Fendley. “Intranet continues to solidify its leadership position at the high end of the corporate banking e-payment software marketplace.”

Pro forma results are computed by excluding acquisition-related charges (amortization of goodwill and software). Pro forma results for the quarter exclude $6.3 million of software and goodwill amortization from the acquisitions of SDM International, Inc., Insession Inc., WorkPoint Systems, Inc. and MessagingDirect, Ltd.

The company completed the fourth quarter of fiscal 2001 with $183 million in backlog, consisting of $50 million in non-recurring revenue and $133 million in recurring revenue. Recurring revenues include all monthly license fees, maintenance fees and facilities management fees that the company expects to recognize over the next 12 months. Non-recurring revenues are composed of all other fees, including initial license fees, specified in software and services contracts the company expects to recognize in the next 12 months. “Looking forward to the first quarter of 2002, we expect revenue in the range of $70 million to $75 million, and pro forma EPS of $.06 to $.12,” said Fendley. “The December quarter has historically been our weakest quarter. We believe that our pipeline is strengthening, but that it is prudent to take a conservative outlook given market uncertainty. For fiscal 2002, we are expecting revenue between $300 million and $320 million, and pro forma EPS of $.50 to $.72. As we have noted, our work in improving the financial health of the company positions us to deliver much better earnings even if we experience modest revenue growth.”

About Transaction Systems Architects, Inc.

Transaction Systems Architects’ software facilitates electronic payments by providing consumers and companies access to their money. Its products are used to process transactions involving credit cards, debit cards, secure electronic commerce, mobile commerce, smart cards, secure electronic document delivery and payment, checks, high-value money transfers, bulk payment clearing and settlement, and enterprise e-infrastructure. Transaction Systems Architects’ solutions are used on more than 3,600 product systems in 81 countries on six continents.

(unaudited and in thousands)

September 30, September 30,
2001 2000
————– ————–


Current assets:
Cash and cash equivalents $ 32,252 $ 23,400
Marketable securities 2,650 8,106
Billed receivables, net 50,277 63,556
Accrued receivables 50,932 51,659
Prepaid income taxes 1,911 2,710
Deferred income taxes 8,700 11,208
Other 10,990 13,134
———– ————
Total current assets 157,712 173,773

Property and equipment, net 14,580 19,614
Software, net 27,954 26,757
Intangible assets, net 82,327 65,254
Long-term accrued receivables 24,916 27,018
Investments and notes receivable 1,309 6,146
Deferred income taxes 13,627 2,958
Other 5,028 8,632
———– ————
Total assets $ 327,453 $ 330,152
=========== ============


Current liabilities:
Current portion of long-term debt $ 12,559 $ 18,396
Accounts payable 13,542 16,023
Accrued employee compensation 9,030 7,472
Accrued liabilities 23,369 20,003
Deferred revenue 35,857 43,373
———– ————
Total current liabilities 94,357 105,267

Long-term debt 761 532
Long-term deferred revenue 12,610 13,993
Other 1,057 –
———– ————
Total liabilities 108,785 119,792
———– ————
Stockholders’ equity:
Class A Common Stock 184 165
Additional paid-in capital 222,501 170,946
Retained earnings 42,016 85,033
Treasury stock, at cost (35,258) (35,258)
Accumulated other comprehensive
income (10,775) (10,526)
———– ————
Total stockholders’ equity 218,668 210,360
———– ————
Total liabilities and
stockholders’ equity $ 327,453 $ 330,152
=========== ============

(unaudited and in thousands, except per share amounts)

Three Months Ended Year Ended
September 30, September 30,
2001 2000 2001 2000
——– ——– ——— ———
Software license fees $44,454 $48,036 $173,796 $176,295
Maintenance fees 18,474 17,498 70,246 68,727
Services 12,074 16,623 55,759 58,543
——– ——– ——— ———
Total revenues 75,002 82,157 299,801 303,565
——– ——– ——— ———
Cost of software license fees 9,919 12,207 43,466 45,967
Cost of maintenance and services 16,457 18,673 73,490 70,681
Research and development 8,883 10,279 40,528 38,832
Selling and marketing 17,848 20,937 76,273 75,539
General and administrative 18,318 16,434 77,008 62,416
Amortization of goodwill and
purchased intangibles 3,860 2,418 13,933 8,388
——– ——– ——— ———
Total expenses 75,285 80,948 324,698 301,823
——– ——– ——— ———
Operating income (loss) (283) 1,209 (24,897) 1,742
——– ——– ——— ———

Other income (expense):
Interest income 1,132 832 4,397 3,481
Interest expense (287) (599) (2,004) (912)
Other 1,039 215 (22,307) (718)
——– ——– ——— ———
Total other income (expense) 1,884 448 (19,914) 1,851
——– ——– ——— ———
Income (loss) before income taxes 1,601 1,657 (44,811) 3,593
Income tax benefit (provision) (5,147) (729) 1,794 (1,482)
——– ——– ——— ———
Net income (loss) $(3,546) $ 928 $(43,017) $ 2,111
======== ======== ========= =========

Earnings per share information:

Weighted average shares
Basic 35,170 31,610 34,116 31,744
======== ======== ========= =========
Diluted 35,170 31,864 34,116 32,117
======== ======== ========= =========

Earnings per share:
Basic $ (0.10) $ 0.03 $ (1.26) $ 0.07
======== ======== ========= =========
Diluted $ (0.10) $ 0.03 $ (1.26) $ 0.07
======== ======== ========= =========

Reconciliation of Actual Results to Pro Forma Results
For the Quarterly Period Ended September 30, 2001
(unaudited and in thousands, except per share amounts)

Three Months Ended
September 30, 2001

Reported Amortization Pro Forma
——– ———— ———

Software license fees $44,454 $ – $44,454
Maintenance fees 18,474 – 18,474
Services 12,074 – 12,074
——– ——– ——–
Total revenues 75,002 – 75,002
——– ——– ——–

Cost of software license fees 9,919 (2,461) 7,458
Cost of maintenance and services 16,457 – 16,457
Research and development 8,883 – 8,883
Selling and marketing 17,848 – 17,848
General and administrative 18,318 – 18,318
Amortization of goodwill and
purchased intangibles 3,860 (3,860) –
——– ——– ——–
Total expenses 75,285 (6,321) 68,964
——– ——– ——–
Operating income (loss) (283) 6,321 6,038
——– ——– ——–

Other income (expense):
Interest income 1,132 – 1,132
Interest expense (287) – (287)
Other 1,039 – 1,039
——– ——– ——–
Total other income (expense) 1,884 – 1,884
——– ——– ——–
Income (loss) before income taxes 1,601 $ 6,321 7,922
Income tax benefit (provision) (5,147) – (5,147)
——– ——– ——–
Net income (loss) $(3,546) $ 6,321 $ 2,775
======== ======== ========

Earnings per share information:

Weighted average shares outstanding:
Basic 35,170 35,170
======== ========
Diluted 35,170 35,373
======== ========

Earnings per share:
Basic $ (0.10) $ 0.08
======== ========
Diluted $ (0.10) $ 0.08
======== ========


Oberthur Card Systems remains focused to achieve its full year sales growth
objective of between 7% and 9%

Paris, 30 October, 2001 – 17:35

Third quarter 2001 revenue amounts to 111.1 M EUR, representing a 2% reduction over the second
quarter 2001.

* Microprocessor card sales, down 2%, present a wide mix of differing trends across segments: the
26% increase in SIM cards, due to delivery of the first inter-operable JavaTM cards, partially
compensates for the slowdown in the sales of payment cards resulting from lower renewal
volumes over the summer, as well as network security cards;

* Third quarter sales in Other Cards, Services and Solutions are at a comparable level to the
previous quarter.

Third quarter activity is down 4% compared to the same period in 2000, amounting to a revenue increase
of 12% for the first nine months of 2001 (10% excluding the impact of exchange rate fluctuations and 10%
on a comparable basis).

2001 Outlook

During the fourth quarter, a slight upturn in SIM card sales is expected, as well as strong activity in the
banking sector, although there is a risk of a slowdown in the North American loyalty cards market.
Oberthur Card Systems remains focused to achieve its full year sales growth objective of between 7% and

About Oberthur Card Systems :

Oberthur Card Systems (Paris Stock Exchange – Code SICOVAM 12413), a global leader and the innovator in the
smart card industry, is shaping the future by offering the ultimate in SIM, WAP, 3G (IMT-2000/UMTS), e-wallet
technologies & Internet-based card management services coupled with a firm commitment to open standards.
Championing EMV migration, Oberthur is the World’s number one supplier of MasterCard and Visa cards, a
leader in the banking, e-commerce, m-commerce and pay-TV sectors, and in JavaTM and GSM technologies.

Oberthur Card Systems has an international reach with an industrial and commercial presence in 21 countries
across the five continents. Oberthur Card Systems had sales of 451.1 million Euros in 2000.

Personas Enhanced

NCR has significantly increased the currency-handling capacity of its bunch-cash-accepting ‘Personas 73’ ATM. The solution provided by the new ‘Personas 73e’ validates currency and enables a bank to offer real-time credit for cash deposits or bill payments at an ATM. The ‘Personas 73e’ has a scaleable capacity of 8,000 bills and represents a fourfold increase in storage. The ‘Personas 73e’ also enables multi currency deposit with sorting capabilities.

NextCard 3Q/01

NextCard announced this morning it has decided to explore opportunities for the sale of the Company to a larger and better-capitalized entity. The decision was attributed to newly imposed regulatory limitations on NextBank and the current worsening economic situation. The news sent NextCard’s stock down to the $1.00 level in pre-market trading. NextCard reported a third quarter net loss of $53.1 million compared to $20.3 million for 3Q/00. Total loan charge-offs for the third quarter were 7.89% compared to 2.67% one year ago. The delinquency rate (30+ days) on total managed loans increased to 5.90% as of September 30, compared to 3.30% for the third quarter of 2000. Following consultation with banking regulators, NextCard has increased its reserves for loan losses and has tightened its underwriting criteria to limit new account originations to FICO scores above 680, suspended originations of secured credit cards, and suspended or limited certain line management programs, re-pricing programs, and fee-based product strategies. Effective in the third quarter NextCard said it will classify as credit losses certain loan losses which were previously recognized as fraud losses and reflected as other expenses in the Company’s financial statements. The Company believes that a substantial portion of these losses are related to fraudulent account origination activity specific to the Internet channel. Regulators have notified the NextBank that, as a result of the change in treatment of certain losses on loans sold through the Bank’s securitization activities as fraud losses rather than credit losses, as described above, they have determined that the Company’s securitization activities do not qualify for “low-level recourse treatment” under applicable regulations. The Bank is now considered “significantly undercapitalized” under applicable federal banking regulations because its risk-based capital ratio has dropped below 6%. For the latest details on NextCard’s 3Q/01 results and prior performance visit CardData (

3Q/01 2Q/01 1Q/01 4Q/00 3Q/00
Recv: $2.010b 1.789b $1.595b $1.312b $1.093b
Accts: 1200k 1016k 881k 708k 577k
C-O: 7.89% 4.92% 3.99% 3.10% 2.67%
Del: 5.90% 5.25% 4.75% 3.92% 3.30%
Recv- receivables; Accts- accounts; C-O-charge-offs; Del- 30+ day delinquency
Source: CardData (

Vital & Certegy Sign Deal

Vital Merchant Services, a leader in terminal management and point-of-sale support services and wholly owned subsidiary of Vital Processing Services, announced the signing of a multi-year agreement with Certegy Check Services, Inc., a subsidiary of Certegy Inc. Certegy’s agreement with Vital is for full POS equipment management and world-class help desk support for its merchant customers.

With more than 46,000 existing merchants, Certegy Check Services continues its solid growth in all aspects of merchant point of sale applications, including electronic check, a growing payment preference. Certegy Check Services provides check risk management, authorization and loss prevention and credit card processing services to retailers, supermarkets, e-Commerce, gaming and check cashing establishments worldwide.

Vital will provide the full range of POS equipment management and related services to Certegy Check Services, including terminal equipment procurement, programming and deployment, inventory management, replacement and repair services and merchant supplies replenishment. As part of its services, Vital will support all of Certegy’s new and existing merchants on its 24X7 merchant help desk. Vital’s merchant help desk is recognized in the industry as one of the best because of its educated and knowledgeable help desk associates, quick response times and high level of service. On behalf of its acquiring clients, Vital currently supports more than 800,000 merchants on its help desk.

“Certegy is a winning player in the industry, and Vital is proud to expand our relationship with them to be the single source provider for these critical merchant services. We look forward to partnering with Certegy as it grows its merchant business by providing reliable terminal management services and help desk support,” said Keith Smith, executive vice president of sales for Vital Processing Services.

“As our business continues to grow at a fast pace, it made strategic business sense for Certegy to build on our existing partnership with Vital and utilize more of their merchant services. We are confident that Vital will continue to deliver reliable technology and quality service to our merchants. Having a single point of service is key in our business, and we look forward to achieving success on behalf of our merchants,” said Jeff Carbiener, senior vice president and group executive of Certegy Check Services.

About Certegy

Certegy (NYSE: CEY) provides credit, debit and merchant card processing, e-banking, check risk management and check cashing services to over 6,000 financial institutions, 175,000 retailers and 140,000,000 consumers worldwide. Headquartered in Alpharetta, Georgia, Certegy maintains a strong global presence with operations in the United States, Canada, United Kingdom, Ireland, France, Chile, Brazil, Australia and New Zealand. As a leading payment services provider, Certegy offers a comprehensive range of transaction processing services, credit risk management solutions and integrated customer support programs which facilitate the exchange of business and consumer payments. Certegy employs over 5,800 associates in nine countries and generated $779 million in revenue in 2000. For more information on Certegy, please visit [][1].

About Vital Merchant Services

Headquartered in Sacramento, Calif., Vital Merchant Services is a leader in terminal management and point of sale (POS) support services. The full suite of POS support services includes equipment procurement and deployment, inventory management, replacement and repair services, merchant training and installation, merchant supplies replenishment and world-class help desk support. Its premiere web-based POS equipment management system, VitalSync, enables acquirers the ability to easily and efficiently manage their merchant customer’s terminal portfolios. Vital Merchant Services is a designated Authorized Repair Facility for Hypercom Card Payment Terminals. The company is a wholly owned subsidiary of Vital Processing Services, a recognized leader in technology-based commerce enabling services. For more information, contact Vital Merchant Services’ Sales Department at (800) 686 – 1999 or visit [][2].