APPRO Beefs Up Lending System

APPRO Systems, Inc. announced today at the Financial Technology Expo, the launch of a new version of the company’s consumer lending systems. The new version of the company’s consumer lending systems. The new version of the company’s core lending system incorporates a financial institution’s credit policy, scorecard, bankruptcy screening, delinquency screening, collateral value (on secured loans) and applicant’s credit characteristics to determine the best loan product fit for the applicant. According to APPRO officials, lenders specializing in in-direct auto lending could move toward a near zero decline rate with this system.

APPRO’s consumer lending systems are used by high volume lenders throughout North America to evaluate credit risk and process consumer loans. Some of APPRO’s customers include BMAC, Hibernia, PNC Bank, San Francisco Federal Employees Credit Union and The Toronto-Dominion Bank.

The new system was developed to address major changes in the lending environment and to provide more complex decisioning capabilities.

“Lenders are facing a myriad of challenges today that didn’t exist just two years ago,” said Craig Uffman, president of APPRO Systems. “They are looking at a shrinking population in key demographics areas, accelerating pressure for higher earnings, soaring bankruptcy rates and intense competition. The legacy this new system will leave is that it is the first lending system with automated down-selling capabilities to match the right product at the right price for the applicant.”

APPRO’s new systems can apply the institution’s complete credit policy for each applicant or multi-applicants on multiple products. By looking at hundreds of variables within seconds, the system can evaluate the strengths of the individuals and match them to the appropriate product. The system can also determine if one applicant has a stronger credit profile than the co-applicant.

The new system includes more than 200 significant enhancements and enables financial institutions to maximize workflow while minimizing risk. New loan queuing options give APPRO customers flexibility in routing applications.

In-direct Lenders Move to Zero Declines with New System

According to Uffman, consumers who don’t qualify for a particular loan product are constantly re-evaluated for products with different credit guidelines. This process is called “downselling” because the applicant is automatically routed to a “conduit” business partner which specializes in sub-prime loans. In general, lenders that can increase automated lending decisions can generally respond to dealers quicker and secure a higher percentage of contracts.

APPRO’s system can be used to connect to other front end loan application systems such as IBM’s Auto Loan Exchange, and ADP/CMSI’s Credit Connection.

“Risk-based pricing is the key for maximizing profits today,” said Uffman. “Downselling will enable lenders to look beyond the scorecard mentality of pass or fail and close loans at a price relevant to the risk.”

More System Enhancements

Customers also have more control over the handling of duplicate and potentially fraudulent applications. There are new controls for branch-sponsored applications, applications requiring special handling and applications received via solicitations.

The new system includes:

– More control in implementing risk management and work flow strategies

– Increased ability to process much higher volumes

– Greater connectivity to dealers, branches, mail processors, data warehouse, and other external databases

– An easy, reliable transition from the current version

“Those who take advantage of the new system should experience much greater loan officer and loan processor capacity, significantly greater control over credit policy, and be able to catalyze volume growth through simplified connectivity to their marketing channels,” Uffman added.

The software automatically computes the correct buy rate, contract rate, or origination fee based upon credit quality measurements, collateral parameters, financial measurements, the product itself, the delivery channel and the lender’s cost of funds.

“Automatic, consistent, risk-based pricing directly provides control and enhances underwriting capacity,” Uffman said.

As another enhancement, the APPRO Expert System provides more pre-bureau declines as well as a much more powerful “indexed” decision matrices. New rules help customers consider aggregate relationships with customers in approving credit and assigning credit limits.


APPRO Systems, Inc., founded in 1979, is privately help and managed. The company’s family of credit assessment products is installed in more than 90 financial institutions nationwide. Along with the consumer lending systems, APPRO’s products include the 20/20 Small Business Lending System, a complete assessment package for commercial lending that evaluates multiple applicants and products.

Card Transactions Via Satellite

Hughes Network Systems has successfully installed 5,000 VSATs (very small aperture satellite terminals) for Mobil Oil’s centralized credit card authorization system. Mobil is replacing its leased line system with the satellite network and is projecting that 5,500 service stations will be connected to its Lenexa, KS data center via the Hughes satellite network by year’s end. Mobil said yesterday it plans to use the VSAT network for much more than credit card processing, for example: supporting marketing initiatives and managing gas tank monitors. Hughes has more than 130,000 VSATs installed in the U.S.

GCA Adds Microsoft, IBM & Six Others

The Global Chipcard Alliance (GCA) today announced the addition of eight new members to its growing roster of industry leaders around the globe. New members include IBM, Microsoft, Telstra, GemPlus, Landis & Gyr Communications, Nortel (Northern Telecom), SPT Telecom and Elcotel. The new member companies bring the GCA membership to 16, including major telecommunications, software, networking, hardware and financial services companies and equipment manufacturers dedicated to accelerating the technology and pace of electronic commerce and its worldwide consumer acceptance.

With the recent developments in chipcard technology, consumers may someday soon be able to carry only one card which could house communications, financial, license, insurance, debit/credit, loyalty points as well as other important personal data. The aggressive development and rapid acceptance of global smart cards will also accelerate electronic commerce making the buying and selling of truly worldwide goods and services versatile, easy and secure. Industry and cross industry open standards, combined with interoperability agreements which allow consumers to use cards from location to location, are the keys to implementing smart card capability on a global scale.

“Our growing membership is evidence of the support for the GCA’s efforts to achieve worldwide smart card interoperability,” said David Anastasi, vice president and general manager, U S WEST Public Services as well as GCA president and a member of the board. “We have a vision that within the next five years, smart/chipcard consumers will be able to access their personalized applications and solutions wherever they are in the world. With these additional industry leaders joining our organization, we are even more confident of our vision becoming reality.”

The goal of global smart card interoperability began with the first significant interoperability agreement signed by GCA members, PTT Telecom Netherlands/Unisource and Deutsche Telekom. This was followed by a similar interoperability agreement between U S WEST and GTE. Most recently, the U S WEST and GTE agreement was expanded to include Bell Canada. “These interoperability agreements demonstrate the commitment of current Global Chipcard Alliance members to create worldwide interoperability and create the foundation on which to build future agreements and applications,” added Anastasi. “The GCA members have created interoperability and multi- functionality committees. These committees will coordinate future interoperability agreements, adopt standards and work with current as well as new members to add multiple applications to those agreements.”

“Microsoft is very pleased to be a participant in the GCA with telecommunications, financial services, and software industry participants,” said Cameron Myhrvold, vice president, Internet Customer Unit at Microsoft. “Microsoft will work together with the alliance in an effort to achieve compatibility in smart card technology and to ensure interoperability with Microsoft platforms.”

“For IBM, multifunctionality and interoperability of smart card solutions are not only at the heart of the strategy,” said Dr. Toni Merschen, responsible for Technology and Alliances in IBM’s Smart Card Solutions unit. “In fact, we have delivered truly multifuntional solutions to our customers in various industry segments such as telecommunications, electronic commerce, education, health, and network solutions. We are glad to join the GCA today and are looking forward to make substantial contributions to GCA’s goals on a global scale.”

The new GCA members, with current members Bell Canada, Deutsche Telekom, GTE Public Communications, PTT Telecom Netherlands/Unisource,Telekom Malaysia, U S WEST Communications, American Express and Oracle represent a wide range of industries as well as geography. In addition to IBM and Microsoft, Nortel is a leading provider of digital network solutions as well as the Millennium public access terminals. Telstra is Australia’s leading telecommunications and information services company. SPT Telecom is located in the Czech Republic. GemPlus, headquartered in Southern France, is the largest smart card manufacturer in the world. Other payphone, hardware equipment manufacturers and suppliers of electronic payment solutions include Landis & Gyr communications headquartered in Geneva, Switzerland and Elcotel, Inc. in Sarasota, Florida.

About the GCA

The Global Chipcard Alliance was founded in October 1996 by PTT Telecom, U S WEST Communications, GTE, Bell Canada and Telekom Malaysia. The GCA’s mission is to create an environment which accelerates the development of multi-functional smart/chip technology and related applications through business alliances that have a commitment to: 1) worldwide open interoperable networks; 2) public advocacy; 3) endorsing of standards and specifications; and 4) promoting communications-enabled applications and solutions. See for more information about the Global Chipcard Alliance.

Global Chipcard Alliance (GCA) Welcomes New Members

Elcotel, Inc. — Sarasota, Florida “Participation in the Global Chipcard Alliance is an essential strategic initiative for Elcotel, Inc. of Sarasota, Florida,” said Tracey Gray, president and Chief Operating Officer. “We endorse the multi industry and international cooperation this alliance represents in the ambitious initiative to advance the technology and applications necessary to deliver the services and capabilities the global smart card will provide to customers.”

Landis & Gyr Communications — Geneva, Switzerland

“Landis & Gyr Communications is very excited about joining the GCA. Beyond a recognition of the investment already made to promote cross-border acceptance of common payment schemes, this membership is also a clear sign of confidence given by major telecom operators in Landis & Gyr Communications abilities to further develop and roll out leading-edge electronic payment solutions for low value transactions. Landis & Gyr Communications is fully committed to support telecom operators in the deployment of standardized payment solutions.”

Landis & Gyr Communications is a supplier of electronic payment solutions, including smart cards, terminal equipment and systems.

Nortel — Canada

“We feel it is important to be a part of this customer-driven organization which shares our goal of providing the public with an advanced communications platform that facilitates global smart card interoperability,” said Tom Manley, AVP, General Manager, Millennium, Nortel. “Customers of GTE, U S WEST, and Bell Canada will use their smart cards interchangeably in Nortel’s Millennium phones, and our participation in the GCA is the next major step towards a universal smart card that can be used in any Millennium phone.”

AmEx to Promote Flower Club

Florafax International, Inc., a leading flowers-by-wire provider, has signed a tentative agreement with iMall, Inc. to become the popular online shopping mall’s primary distributor of floral products.

“Though electronic commerce is still in its early stages, we believe that online retailing has enormous potential. This marketing alliance will enable Florafax to establish the exclusive Flower Club on the Internet’s leading mall site and develop brand-name identity with consumers. Over time, the Internet exposure will help Florafax build its transaction volume for our member florists.” said Andrew W. Williams, president of Florafax International.

iMall owns the largest independent mall on the Internet and its Web site hosts over 1,600 merchants and 6,000 paid classified advertisements. iMall’s proprietary software and unique architecture makes shopping convenient and secure. Online shoppers will be able to place floral delivery orders through Florafax’s interactive iMall web site.

iMall chief executive officer Richard Rosenblatt stated, “We are excited to announce Florafax as our primary floral provider, and not only will we be creating an exclusive Flower Center for Florafax on our popular Guide Page, but we will be promoting the sale of Florafax flowers throughout our Web Site. Our Web Site receives over 16 million hits per month and we are confident this relationship will blossom into a profitable venture for both iMall and Florafax.”

In a related announcement, Williams said that American Express Company has agreed to insert a Flower Club promotion in its October 1997 mailings to about 6 million Cardmembers. Both programs, Williams noted, will help distinguish Florafax from its competition and enhance revenues obtained by its wholly-owned Flower Club subsidiary. Florafax is continuing its partnership alliances with other Fortune 500 companies. “This year we will insert over 100 million Flower Club statement coupons for our various marketing partners. Each will promote The Flower Club web site (),” Williams added.

Florafax International, Inc. is principally engaged in the business of generating floral orders and providing floral placement services to retail florists. The Company is also a third-party processor of credit cards.

Euronet Continues Explosive Growth

Euronet Services Inc., which completed an initial public offering March 6, 1997, announced today that cash withdrawal and other transactions by cardholders over its ATM network in Hungary, Poland and Germany reached 548,350 in August, up 15% from 473,784 in July. As previously reported, this follows a 21% increase in transactions from June to July.

Established in 1994, Euronet operates the only independent, non-bank owned ATM network in Central Europe. Through agreements and relationships with local banks, international card issuers and ATM networks such as American Express, VISA, Plus, MasterCard, Europay and Cirrus, Euronet’s ATMs are able to process ATM transactions for holders of credit and debit cards issued by or bearing the logos of such banks and card issuing organizations. In addition, Euronet offers outsourced ATM management services to local banks that own proprietary ATMs.

The Euronet network now includes 456 installed ATMs, up from 412 as of Euronet’s last public announcement on August 4.

VeriSign OnSite

Security Dynamics Technologies, Inc., the leading provider of enterprise network and data security solutions and RSA cryptographic technology, today announced that it intends to incorporate VeriSign(TM) OnSite(SM) into its Enterprise Security Services (ESS) framework. As a core element of ESS, VeriSign OnSite is designed to allow companies to set up their own Certification Authority (CA) backed by VeriSign’s certificate generation, management expertise and secure facilities (see today’s VeriSign press release titled “Verisign OnSite Secures Corporate Applications with Digital Certificates”). Using this technology, companies will be able to create and manage the digital certificates that will enable new security applications such as secure messaging, digital signatures, secure access to applications, and business-to-business electronic commerce.

The introduction of VeriSign OnSite will also mark the introduction of Security Dynamics’ first SecurID(R) smart card. In order to install and administer the certificate service, administrators of VeriSign OnSite will be required to authenticate using the OnSite SecurID smart card. Security Dynamics’ smart card will be delivered as part of the OnSite Administrator Kit, along with a VeriSign administrator interface software and a smart card reader.

“As customers begin to implement certificate technology, they now have a choice that doesn’t require them to commit the significant internal time and resources needed to install the infrastructure and implement the practices needed to run a digital certificate issuing service,” said Chuck Stuckey, president, chairman and CEO of Security Dynamics. “By leveraging VeriSign’s proven capabilities as the world’s largest Internet certification service, we will be able to provide the users of our Enterprise Security Services with the advantages of either an in-house services solution that can be efficiently outsourced or an in-house solution run by the customer.”

The addition of VeriSign OnSite is another step in a series of moves by Security Dynamics to introduce products and form partnerships to deliver its ESS framework. In addition to certificate management, the ESS framework is designed to provide strong authentication using tokens and smart cards, as well as other encryption-based security services, such as key management, user privilege management and enterprise-wide security administration. ESS is being designed to give companies enterprise-wide security solutions that help them conduct business securely, protect their corporate information assets, and facilitate electronic commerce.

As part of the ESS framework, Security Dynamics plans to provide customers with two certificate service options: first, Security Dynamics will offer a software service utilizing VeriSign’s expert CA to allow corporations to issue their own certificate services that will create, distribute, and manage certificates in-house; second, Security Dynamics will offer the OnSite certificate service to operate a robust business-class CA but will allow corporations to outsource the service to VeriSign.

“Security Dynamics’ ESS strategy is a vital channel for delivering OnSite to corporate customers,” said Stratton Sclavos, president and CEO of VeriSign. “The combination of our leading certificate services with Security Dynamics’ proven authentication, access control and encryption technologies will provide customers with the best-in-class security solution to protect their vital information assets.”

OnSite’s configuration makes it easy to implement. Organizations simply need to use Microsoft Internet Explorer or Netscape Navigator or Communicator Web browsers, versions 3.0 or higher. OnSite provides the rest of the solution by giving an organization complete control of the digital certificate issuing process, managing the intensive technical and maintenance function to alleviate an organization’s administrative and support load. In addition, OnSite is highly scaleable, allowing customers to increase the number of certificates in use without the hardware upgrades or scaleability problems.

About Certificate Authorities

A certificate authority acts as a trusted third party that issues digital certificates to individuals and organizations. These certificates can play several roles in enterprise security applications. They enable secure authentication by binding an RSA public key to an individual. They can help ensure that secure messages arrive unaltered by supporting digital signatures, or non-repudiation, which acts as an electronic notary public.

About VeriSign Inc.

VeriSign, Inc. is the world’s leading Internet Certification Authority, a trusted third party that authenticates, issues and manages digital certificates on the Internet. VeriSign’s Digital IDs enable trusted electronic commerce by authenticating the individuals, organizations and content involved in an electronic transaction. VeriSign has issued its Digital IDs to nearly 25,000 Web sites and 1,000,000 individuals who use Netscape and Microsoft’s Internet products. The company also is delivering customized Digital ID solutions to corporations worldwide, including Novus Services, Toppan Printing and Visa International. VeriSign, headquartered in Mountain View, Calif., was founded in April 1995. The company, which is a spin-out of RSA Data Security, Inc., is privately held and has been funded by strategic industry partners including Ameritech, AT&T, Cisco, Comcast, First Data, Gemplus, Intuit, Microsoft, Reuters, Security Dynamics, Softbank and Visa. For more information, please visit the VeriSign Web site at [][1].

About Security Dynamics Technologies, Inc.

Security Dynamics is the leading provider of enterprise network and data security solutions. Security Dynamics’ solutions help companies conduct business securely, protect corporate information assets and facilitate electronic commerce. Security Dynamics’ products employ patent-protected SecurID token technology and ACE/Server(R) software or hardware access control products to authenticate the identity of users accessing networked or standalone computing resources. With 2 million users in 2,000 companies, Security Dynamics is the world leader in two-factor user identification and authentication.

RSA Data Security, Inc., a wholly owned subsidiary of Security Dynamics, is the world’s brand name for cryptography, with more than 80 million copies of RSA encryption and authentication technologies installed and in use worldwide. Security Dynamics and RSA can be found on the World Wide Web at and, respectively.


US Processing’s New Sales Office

U.S. Processing, Inc., today announced the opening of an Orlando office and the addition of William L. Kealing to its staff as regional sales manager in Orlando. Mr. Kealing will be responsible for sales activities and related functions for the southeast part of the nation. USPI opened offices in New York and Seattle earlier this year. The Milwaukee-based company also has offices in Denver and Minneapolis.

Mr. Kealing, 44, has over 20 years of experience in the financial services industry, most recently as a senior sales executive for Deluxe Data. He also served as regional sales manager for re: Member Data Services, Inc., a credit union processor based in Indianapolis. Mr. Kealing reports to Phillip Sweet, vice president of sales and marketing at USPI.

Mr. Kealing earned a bachelor of science degree at Indiana University and a master of business administrator degree at Butler University.

“Mr. Kealing’s experience with credit unions will help us focus our efforts on that key segment of our market,” said Michael R. Shutters, president of USPI. “Understanding our customers’ needs allows us to bring the best possible service to the table in this field of rapidly evolving technology.”

USPI provides transaction processing services for the electronic funds transfer (EFT) industry. The company drives and supports all popular AM models and brands with advanced functionality, in addition to all major protocols. USPI offers a comprehensive package, from single-point settlement and monitoring of ATM environments to authorization, network access and card management services–available 24 hours a day, 7 days a week. The company also delivers a full range of implementation and support services, including project and account management.

USPI is an alliance partner of First Data Resources (FDR) for MasterMoney and Visa CheckCard Services. USPI is also an alliance partner with transaction Systems Architects, Inc. (NASDAQ: TSAI), parent company of Applied Communications, Inc. (ACI) and U.S. Software, Inc. (USSI). The companies exchange technical, strategic and market development information. USPI uses ACI’s BASE24 and USSI’s TRANS24 software solutions in combination with the latest Tandem and IBM hardware offerings for their processing operations.

US Wireless New CFO

U.S. Wireless Data Inc. (OTC BB: USWDA) today announced the appointment of Robert E. Robichaud to the position of Chief Financial Officer.

Since 1985, Robichaud, age 44, has held several key financial management positions at Triad Systems Corp. including Director of Financial Planning and Analysis and most recently, Director of Finance. Triad Systems is a provider of software, hardware and information management solutions which recorded 1996 revenues in excess of $180 million. Triad Systems was NASDAQ listed and was acquired by Cooperative Computing Inc. on Feb. 27, 1997 for approximately $200 million.

From 1978 to 1985, Robichaud held key financial management positions, including Division Controller, at Mohawk Data Sciences Corp., a NYSE listed supplier of computer and communication equipment and services.

Commenting on the appointment, Evon Kelly, Chairman and CEO of USWD stated, “Bob Robichaud is truly a ‘hands on’ CFO who will bring a working knowledge of implementing and managing both financial and management information systems as well as customer service organizations. Bob will play a key role in creating the critical infrastructure needed for the national roll-out of our exciting wireless data and credit card processing technology.”

Robichaud is the third new officer named by USWD in the past four weeks. Previously, the company appointed Evon Kelly as Chairman and CEO and Clyde Casciato as Vice President of Sales. Kelly previously held significant management positions at Federated Department Stores and Xerox Corp., where he was Manager of Supply Business Center and responsible for $587 million in sales and directed a national sales force of 400. Casciato previously held key management positions at Xerox and AT&T Wireless, where he was Director of Sales and Marketing, and most recently, Western U.S. Region Sales/Distribution Manager – Wireless Data.

U.S. Wireless Data recently announced an exclusive joint marketing and operating agreement with GTE Wireless, the wireless business of GTE Corp., to distribute USWD’s TRANZ Enabler wireless credit card processing system using GTE’s cellular CDPD network. GTE will begin offering the USWD TRANZ Enabler to merchants this fall as part of its “Wireless Merchant Program.”

U.S. Wireless Data Inc. has developed, tested and is now delivering compelling new proprietary products, programs and standards to the transaction processing and credit card industry which utilize Celluar Digital Packet Data (CDPD) wireless networks. USWD delivers the fastest and most cost-effective transaction processing solution to retail merchants in the United States today — wired or wireless. USWD will generate recurring revenue from every transaction processed by merchants who utilize the company’s wireless technology. The company’s strategy will be to deploy its technology through marketing and partnership agreements with major cellular phone companies, regional and community banks and its own sales force.

Fiserv Connect 3

Fiserv Inc. has developed Fiserv Connect3, a virtual banking delivery channel backed by the unique strategic position of Fiserv.

Fiserv Connect3 is middleware — literally an electronic portal — that delivers an integrated approach to electronic commerce. With Fiserv Connect3, a financial institution can provide home banking via telephone, the Internet and private networks — giving their customers numerous ways to access their accounts.

At the same time, customers can gain a comprehensive, consolidated view of their financial holdings. Customers will have full access to account information, can balance their accounts, transfer funds and pay bills. Eventually, as regulations permit, they will be able to buy stocks and mutual funds, manage credit cards, and buy insurance — all through their financial institution.

“Fiserv Connect3 is an innovative new product within the Fiserv family,” said Leslie M. Muma, Fiserv president and chief operating officer. “Fiserv Connect3 provides a marketing channel that will help deliver a broad array of financial products to financial institutions and their customers.”

By linking with Fiserv Connect3, insurance, credit card, mutual fund and other financial services companies potentially can reach more than 50 million customers of Fiserv clients through a single electronic connection. As these strategic partnerships grow, financial institutions will be able to offer these products to their customers.

Fiserv Connect3 also offers a cash management application for businesses that delivers the ability to review account balances and transaction activity, and manage funds on-line. Cash managers can initiate transfers between accounts, create automated clearinghouse transfers, pay federal taxes, and request wire transfers and stop payments through the Internet and private networks.

For the financial institution, a key benefit of Fiserv Connect3 is the ability to build relationships and retain customer dollars while acting as a conduit to a multitude of financial products. Financial institutions also can generate income by offering the convenience of transactions and bill payment via Fiserv Connect3.

“Fiserv Connect3 gives the financial institution a way to control the transaction point with products bearing the financial institution’s name,” Muma said. “That is a very powerful customer relationship builder.”

Fiserv Connect3 is built with strict attention to security. The Internet security measures actually surpass those set by the U.S. Defense Department.

Fiserv Connect3 is now being piloted and tested in multiple financial institutions. Fiserv Connect3 is available to any Fiserv core processing client, whether a bank, a savings institution or a credit union.

Fiserv Inc. is an independent provider of financial data processing systems and related information management services and products to more than 5,000 banks, credit unions, mortgage firms and savings institutions worldwide. A publicly held company headquartered in Brookfield, Fiserv is traded on the NASDAQ over-the-counter market under the symbol FISV.

Healthy Credit Card

Westlake Village, CA-based HealthCare Credit Inc. has begun marketing a new VISA and MasterCard restricted to use by employees for health care products and services. The cards are being issued by Chicago-based Pullman Bank & Trust. HCC is marketing the cards as a company benefit with employers opting to cover the $39 annual fee or offer the card as an employee-paid benefit. Employers with more than 1,000 employees will have the option of adding the company’s name and logo to each card at no additional cost. Companies with less than 1,000 employees will only be offered a MasterCard, under HCC’s ‘Trilogy Family Benefits’ brand. The card will be issued to all full-time or part-time employees regardless of credit history.

Convenient Internet Access

7-Eleven will begin testing credit card driven Internet access stations in eight Seattle-area stores today. Consumers can access e-mail, the World Wide Web and on-line services from the stations without the use of a laptop computer. US West is providing the high-speed ISDN access stations which are activated solely with credit cards. Consumers will be charged 20-35 cents per minute depending on the block of time purchased. 7-Eleven says it believes the new service could be as successful as its phone cards, money orders and ATM services.

CardBASE2000 Gets Funding

Card Services International (CSI), the world’s leading smart card software company, is pleased to announce the completion of a US$3 million investment package aimed at supporting the on-going development and world-wide marketing of its sophisticated multi-function smart card management system, CardBASE2000®. The investment is being supported by Gemplus, the largest plastic and smart card manufacturer, the Irish business development agency Forbairt, the Irish Trade Board, Private Investors, and ICC Venture Capital.

![][1] The total investment of US$3,000,000 is configured as follows; Gemplus US$675,000, Forbairt US$750,000, Irish Trade Board US$450,000, Private Investors US$375,000, and ICC Venture Capital US$750,000.

CSI’s core product, CardBASE2000, enables major financial, telecommunications and retail organizations offer a wide range of multi-function smart card products to their customers on a single card. These products include; electronic purse, loyalty schemes and bill payment, as well as traditional credit and debit card products.

Established in 1993, CSI already has a comprehensive base of customers in Western and Eastern Europe, South America, Australia and the Middle East. Customers include British Airways and Europay International (who along with Mastercard and Visa represent the major payment card organizations in the world). Partnerships have been established with leading industry players such as IBM.

According to Mr Aonghus Geraghty, Managing Director of CSI, “The forecast growth in the application of smart cards is enormous. The three major card organizations have committed to migrate to smart card technology by the year 2004. Each card issuer needs a sophisticated software solution to effectively manage the multi-functionality of these new Smart Card schemes. Smart Cards offer a very secure way of purchasing goods and services. Secure purchases can be made over the Internet as well as streamlining access to public transport, vending and parking services. Smart Cards can also be used to provide government benefits to card holders, securely hold medical, insurance and other personal information.”

Commenting on the investment, Mr Geraghty went on to say; “Our objective was to combine, into a meaningful financial package, the available Government support for a developing business via Forbairt and the Irish Trade Board, with efficient private and management investment, and international corporate support through our existing relationship with Gemplus”.

According to Mr Marc Lassus, Chief Executive of Gemplus, “For Gemplus the importance of having good software solution providers is vital to our continued success. Gemplus has been working with CSI for some years now and the supply of Gemplus smart cards and CSI application software to the largest airline in the world, British Airways, is an example of how both companies are working well together. We recognize the wisdom of the Irish Government in their support of indigenous software companies and we look forward to the benefits of further developing our relationship with CSI.”

According to Mr Dan Flinter, Chief Executive of Forbairt, “CSI has persuaded the largest company in its industry, Gemplus, to become an active partner and a shareholder in its business. This, coupled with a significant growth in sales and employment at the company, convinced Forbairt that CSI is becoming a very important supplier of software, to major smart card issuers world-wide.”

According to Mr Oliver Tattan, Chief Executive of the Irish Trade Board, “the international software market becomes more competitive each day. Having the best technical solution is not enough. Irish companies excel by providing superb niche products and effective customized solutions and by delivering these with exceptionally high service values. International marketing excellence is our single most valuable resource in a global marketplace where differentiation is critical. The detailed marketing plan prepared by CSI, supported by recently entering into a worldwide marketing agreement with IBM, shows that CSI knows what it is about in a particularly competitive market.”

According to Mr Maurice McHenry, Managing Director ICC Software Fund, “The Irish software industry has demonstrated some good returns to investors in the past three to five years and the international market has a very positive view of software that is developed in Ireland. CSI, through their product CardBASE2000®, has an opportunity to capitalize on this image and ICC Software Fund expects to use its knowledge of the software industry to help the company achieve significant growth during the coming years.”

[1]: /graphic/csi/cardbase.gif