BIOSCRYPT INDIVOS

Bioscrypt Inc., a leading provider of
biometric authentication solutions, announced it has teamed with
Indivos Corporation to provide merchants and their customers with integrated
solutions that eliminate the need to carry cash, cheques or credit cards by
conducting electronic payment transactions with the convenience and added
security of biometric authentication.

Indivos is provider of a payment service in which consumers voluntarily
enroll in order to access their chequing, credit and loyalty accounts without
having to use cumbersome, costly plastic cards, paper cheques, and other
tokens. Instead, consumers who enroll in Indivos’ free service will be able to
pay for goods simply by placing their finger on a sensor integrated with a
countertop credit card device. Bioscrypt’s algorithm will perform the
authentication of the user against a previously enrolled template.
“Bioscrypt is excited to be working with Indivos to bring shoppers and
retailers a secure and efficient method of executing transactions without
having to carry cash or remember cumbersome cards or tokens,” said Pierre
Donaldson, President and CEO of Bioscrypt Inc. “Consumers and merchants are
embracing this new payment method that not only adds security but also is more
convenient and less costly than paper-and-plastic methods.”
“Indivos is very pleased to be working with Bioscrypt to help give
consumers and retailers the advantages of a free Pay By Touch(TM) service,”
said Phil Gioia, CEO of Indivos. “In bringing Pay By Touch to the retail
marketplace, Bioscrypt’s algorithm is an integral technology for high
performance and customer satisfaction.”

Indivos service allows consumers to access their bank and debit accounts
electronically without having to use the plastic cards, paper cheques, and
passwords that can easily be lost, stolen or damaged. At the same time, the
service provides merchants with reduced risk and lower costs in handling cash
and cheques. Consumers who enroll in the voluntary system no longer have to
carry their cards and cheques, but can easily access their accounts online
using the ultra security of fingerprint authentication.

About Indivos Corporation

Indivos’ fully voluntary patented service enables a cashless, chequeless,
cardless payment environment in which consumers who have voluntarily enrolled
a finger scan to complete transactions securely, conveniently, and
efficiently. It also enables merchants to substantially reduce transaction-
processing costs, and significantly mitigate the risk of fraud. Indivos’
Internet address is www.indivos.com. Indivos has 16 issued patents enabling
the service.

About Bioscrypt Inc.

Bioscrypt Inc. (TSE:BYT) is a leading provider of fingerprint-based
biometric solutions to organizations requiring a high level of security for
network, wireless and physical access. Bioscrypt provides strong
authentication through the use of a robust pattern recognition algorithm that
is used to bind a user’s credentials to their biometric, such as a
fingerprint. Bioscrypt’s biometric solutions are designed to enhance end user
convenience and reduce password management costs. Bioscrypt brands its
technology as “bioscrypt on board”, which signifies that Bioscrypt Inc.’s high
standards of biometric quality and security reside within that product. For
more information on Bioscrypt, visit the Company’s Web site at
www.bioscrypt.com.

Identico Systems

Image Data, pioneer of the use of identity verification to stop point-of-service frauds by putting a “face on every transaction,” announced a name change to Identico Systems LLC. The new name more closely reflects the company’s expanded business strategy and unique expertise in successfully securing financial transactions in today’s complex point-of-service environment.

According to CEO Larry Gilbert, the move also positions the company to take advantage of the broader market opportunities it has identified for its True ID service. “True ID’s growing and diverse customer base speaks for itself ­ identity verification offers businesses better protection against payroll check, auto rental, and other point-of- service frauds,” said Gilbert. “Because our True ID Service verifies ‘the person, not the paper,’ customers have experienced a dramatic decrease in losses. True ID’s consumer-friendly process also alleviates growing consumer fears over the security of their personal and financial account information.”

The increasing acceptance of the True ID Service across market segments reflects the critical need for a new approach to providing secure payment solutions in face-to face-transactions. Businesses relying on traditional loss prevention systems are experiencing staggering losses, with worthless checks alone costing retailers and banks an estimated $15 billion annually. Gilbert noted, “The outdated approach of verifying easily counterfeited financial and identification documents is no longer effective against today’s technology-enabled identity criminal.”

True ID® — a Better Solution

True ID’s ability to securely identify a consumer as the “true” owner of a financial account presented during a transaction means less fraud for businesses, better information for loss prevention investigations and increased protection for consumers. Retailers, banks, auto rental firms, and distribution centers are already successfully using True ID to deter fraud by as much as 80%, and increase restitution efforts by 50%.

True ID® is simple to use and integrates easily into any point-of-service environment:

1) During a transaction, the consumer presents his or her photo ID to a clerk or teller. 2) The photo ID is scanned, encrypted, and transmitted to a secure Identico Systems database, where it is mapped to the consumer’s account data; and

3) The next time the consumer initiates a transaction at any business that uses True ID, the consumer’s image is securely sent back to the point of service for instant identity verification.

Because Identico Systems is committed to protecting consumer privacy, no information other than the image is sent to the point of service. The employee views the image, decides whether it matches the consumer’s face, and proceeds with the transaction.

“True ID has met with nearly 100% consumer acceptance everywhere it’s been used because people are increasingly aware of the threat of ID theft,” said Gilbert. “At the same time, businesses are realizing the need to be more proactive in protecting their honest customers from ID thieves, so they are welcoming a new technology that not only cuts their financial losses from fraud but also builds a loyal customer base.”

To learn more about Identico Systems, call 1-888-887-8343 (1-888-8TRUE-ID) or visit them online at [www.identicosystems.com][1]

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

BALTIMORE RESTRUCTURING

Baltimore Technologies, plc announced a significant restructuring and cost reduction
programme that will enable the Company to refocus on its core areas of
expertise in providing trust and security for e-business. This strategy will
enable it to extend its leadership position in the market for authentication
and authorisation applications and solutions. The restructuring plan will
chart a fully funded path to positive EBITDA in Q2, 2002. The Company also
announced today its second quarter and half year results for the period ended
30 June 2001.

Restructuring Highlights

— The targeted cost savings and proceeds of 72.0 million pounds sterling
(US$101.3million) from the restructuring and divestment of non-core
activities will ensure sufficient cash resources are available to fully
fund the Company’s operations to become EBITDA positive in Q2, 2002.

— Baltimore Technologies will focus on maximising return from its
authorisation and Public Key based authentication technology, in a
market estimated by IDC to be valued at US$4.0 billion by 2004. These
offerings will be combined into one business unit targeting Baltimore’s
core traditional sectors in addition to exploiting the emerging
opportunities in the wider Corporate market so as to restore its market
leading position.

— Direct salesforce reorganised to offer both authentication and
authorisation products individually or as part of an integrated
solution. A fundamental review of the business and sales engagement
models has been conducted in order to realign direct and indirect sales
channels to jointly market both Baltimore’s authentication and
authorisation products and solutions.

— The review has concluded that there are 2 clearly different businesses
with limited synergies between them. The market leading Content
security business will immediately be run as a separate business unit.
The Board strongly believes in the potential of this business and has
concluded that a divestment strategy will maximise its market
opportunity and the overall return for all stakeholders.

— The Company has initiated a review of the potential divestment of all
other non-core activities with the objective of maximising shareholder
and customer value and to fund the profitable growth of the core
business.

— As part of the restructuring, a reduction of a further 220 positions
will be made.

— The Company is targeting a staffing level of approximately
470 employees, which will be achieved by Q2 2002 primarily through
divestment.

— Voluntary delisting from NASDAQ and move to the OTC Bulletin Board with
effect from 30 September 2001.

Peter Morgan, Chairman of Baltimore Technologies commented,
“Baltimore earned its reputation as a dynamic company producing innovative
products and solutions. This restructuring ensures that the company is now
fully focussed on its core competencies in providing security and trust for
e-business and will ensure that all activities are closely targeted at
building a strong viable company for the future and delivering enhanced
shareholder value.”

Paul Sanders, Chief Financial Officer and acting Chief Executive Officer
commented,
“The radical restructuring announced today demonstrates our commitment to
growing and investing in the business by concentrating on what we know and do
best. The excellent technology and people within this company have enabled us
to build an acknowledged leadership position in the IT security industry and
this restructuring provides us with a clear, fully funded path to
profitability.”

Q2 and Half Year 2001 Results:

Financial Highlights:

Q2 2001

— Total revenues for Q2 were 16.5 million pounds (US$23.2 million)
compared to 22.9 pounds million (US$32.2 million) in Q1 2001 and
16.3 million pounds (US$22.9 million) in Q2 2000.

— Gross Margin was 47% (Q1 2001: 60% and Q2 2000: 64%)

— LBITDA (Loss before interest tax depreciation amortisation and
exceptional items) of 23.7 million pounds (US$33.3 million) has
increased from 17.9 million pounds (US$25.2 million) in Q1 2001 and
from 4.4 million pounds (US$6.2 million) in Q2 2000.

— Ending cash balance of 53.9 million pounds (US$75.8 million) compared
to 83.6 million pounds (US$117.6 million) at the end of Q1 2001.

Half Year 2001

— Total revenues for H1 were 39.4 million pounds (US$55.4 million)
compared to 25.7 million pounds (US$36.1 million) in H1 2000.

— Gross Margin was 54% (H1 2000: 65%)

— LBITDA (Loss before interest tax depreciation amortisation and
exceptional items) of 41.6 million pounds (US$58.5 million) compared to
9.7 million pounds (US$13.6 million) in H1 2000.

— Non-cash goodwill write-off of totalling 503.8 million pounds
(US$708.5 million), following write down of acquisitions and
amortisation charge.

Paul Sanders, Chief Financial Officer and acting Chief Executive Officer
said,
“There is little doubt that this has been a difficult period for the group
whilst, the strength of our technology offering enabled us to achieve revenues
of 16.5 million pounds (US$23.2million) for the second quarter of this year
and 39.4 million pounds (US$55.4 million) in the first half of 2001. Clearly
these results are not acceptable and do not reflect the Company’s true
potential. The measures we have announced today will firmly address this
situation.”

* Six months to 30 June 2001 includes restated results for first quarter
2001

Chairman’s Statement
Baltimore Technologies has grown rapidly both organically and by
acquisition in the past 18 months. However, the downturn in global IT
spending combined with recent operating results has made it necessary for the
Company to fundamentally examine its approach to the market and to ensure that
it has the right cost base to deliver the anticipated revenues.

Restructuring Plan:

To achieve the targeted annualised savings of 72 million pounds
(US$101.3 million) Baltimore is implementing a significant restructuring plan
to concentrate on its core competencies of authorisation and Public Key based
authentication products and solutions. In parallel, the Company will pursue a
policy of divestment of non-core activities. This restructuring plan will
chart a fully funded path to positive EBITDA in Q2, 2002.

— Focus on Core Competencies of Security & Trust
The Company sees continuing opportunities for authorisation and
authentication technology deals amongst its traditional market sectors of
finance, healthcare, government and telecommunication companies where, despite
its deployment concerns, public key based security is the defacto standard.
In addition, the implementation of digital signature legislation around
the world and an increase in the adoption of devices for e-business such as
mobile phones and smartcards will ensure growth for e-security authentication
and authorisation solutions. Datamonitor forecast that the wireless PKI
market will represent more than 40 % of the total PKI market by 2006 and the
Company believes it is some six months ahead of its competitors in this area.
The success of the Baltimore Telepathy wireless solution has already been
evidenced by the recent deal with Radiolinja.
Baltimore’s authorisation product, SelectAccess continues to establish
itself in the rapidly growing authorisation market (CAGR 70%).

Why Authentication & Authorisation?

As businesses continue to open more of their internal IT systems to the
Internet, they face a series of security challenges around authentication and
authorisation.

Authentication is being able to verify the identity of someone trying to
access information via an electronic service. Authorisation ensures that the
right people get access to the right information and services.
Given the increase in the value and volume of trade on the web there is a
need to maintain digital evidence of binding transactions, which is necessary
for both normal business-auditing purposes and for dispute resolution. A
common approach being used today and that will continue to be used in the web
services era, is to digitally sign the electronic transaction, verify the
signature and store a copy of the signed data.

Customers will increasingly use the Internet as a distributed operating
system to supporting application services (commonly referred to as web
services) from multiple suppliers. New harmonised security standards
essential for web services are currently being defined, leveraging existing
Public Key authentication and authorisation management systems, and these will
be deployed in the coming years.

Baltimore’s UniCERT PKI authentication and SelectAccess authorisation
systems together provide the key security elements of any information service
delivery platform and future web services. These synergies led to the
decision to closely align the offerings in this space into a single business
unit.

Market Strategy for Authentication & Authorisation
Baltimore plans to achieve market penetration for its public key based
technology and authorisation system through a realigned sales engagement model
comprising of direct, and indirect channels. Sales and marketing have been
streamlined worldwide in line with this model.
Baltimore’s direct salesforce will now be structured to offer both
Baltimore’s authentication and authorisation products and solutions either
individually or as part of an integrated solution. Baltimore will continue to
invest in developing future solutions in its European, US and Australian
development centres. A strategic business development group has been created
to focus on key opportunities and initiatives in areas such as wireless and
emerging technologies.

The Baltimore TrustedWorld Partner programme will be relaunched to better
leverage channels to market and by incorporating complementary vendor
products, Baltimore can provide a wider range of applications, solutions and
service offerings in a more cost-effective model.
In conjunction with its partners, Baltimore is committed to the ongoing
development of its Managed Services Solutions offering as a key element of its
strategy.

— Manage Content Security as a separate business unit
The market leading Content security business will be run as a separate
business unit with a view to divestment. The Board of Baltimore Technologies
believes in the potential of this business and that this approach will
maximise its market opportunity and the overall return for all stakeholders.
The Content security unit will have its own sales and marketing strategy
targeted at sustaining its leading position in the market. These changes will
enable the business unit to concentrate its efforts on the unique requirements
of the MIMEsweeper channel partners, and maximise revenue opportunities in a
market which is expected to grow according to IDC by 40% per annum until it
reaches a size of US$1.2 billion in 2004.

Content security is increasingly being recognised as necessary to protect
against virus attacks and the distribution of inappropriate content. The
MIMEsweeper product suite is the market leader with strong brand recognition.
The Content business is adopting a two-tier channel strategy based upon Value
Added Distributors (VADs) and Authorised/Premier resellers for its MIMEsweeper
range. OEM opportunities will also be explored with Anti Virus and archiving
vendors. Service Providers will continue to host the e-Sweeper service for
small to medium sized organisations.

— Cost reductions through restructuring

Headcount has been reduced from a peak of 1,400 at March 2001 to
approximately 1,100 employees post the redundancies announced in May. With
immediate effect, there will be a reduction of a further 220 positions
worldwide. The Company is targeting a staffing level of approximately
470 employees, which will be achieved by Q2 2002 primarily through divestment
of non-core businesses.

Baltimore’s extensive office network has already been reduced from 51 to
38 offices with plans to eliminate under utilised and excess office capacity
resulting from its divestments.

— Voluntary NASDAQ Delisting

In light of the high cost of maintaining a separate listing in the USA and
the fall in the ADR price, the company has decided that it is no longer
appropriate to maintain its listing on the NASDAQ national market, and
accordingly will be applying to voluntarily delist its shares from that market
and move to the OTC Bulletin Board with effect from 30 September 2001. Once
completed, the estimated annualised savings from not having a separate US
listing will be at least 2 million pounds (US$2.8 million).

Business Highlights:

During the period, demand continued for Baltimore’s e-security solutions
in the finance, government and mobile commerce sectors.
In the finance sector, Baltimore was chosen to provide a leading
Australian bank with a PKI-based certificate solution. This bank has also
purchased Baltimore SelectAccess to provide access authorisation to new online
banking services, demonstrating sales synergies between Baltimore’s
authentication and authorisation products.

In the government sector, the Company was also chosen to supply the secure
communications and e-business solutions to the 90,000 Australian Defence
personnel and through Baltimore’s TrustedWorld partner Getronics, Baltimore
UniCERT will provide the underlying security infrastructure for all internal
and external communication requirements for the 25,000 users within the
Italian Railways.

In the mobile commerce space, the Company won a notable contract for
wireless e-security with Radiolinja, one of Finland’s largest network
operators and a world leader in new mobile services, licensing Baltimore
Telepathy(TM) wireless e-security to build and deploy a complete wireless
trust infrastructure for secure mobile commerce. A further example has been
the strengthening of the relationship with Motorola through partnering to
provide a service to issue mobile operators and service providers with
“short-lived” digital certificates for the security of wireless applications.
The SelectAccess v3 authorisation system was released with new enhanced
features to enable more business processes and transactions to be securely and
cost-effectively conducted online, enabling organisations such as BBS, the
clearinghouse and payment service provider for the Norwegian banking industry,
who chose SelectAccess in Q1 to easily provide secure, role-based user access
to online information and services. Baltimore SelectAccess has recently been
endorsed by Mindcraft, an independent testing lab, when it received the
highest performance marks in tests designed to mirror a real world corporate
environment.

Repeat business occurred from Commercial Certificate Authorities worldwide
such as Belgacom E-Trust and Cable & Wireless for Baltimore’s Public Key based
authentication technology.

Management Changes:

On July 10, Fran Rooney resigned as Chief Executive Officer and Deputy
Chairman of Baltimore Technologies. Paul Sanders was appointed Acting Chief
Executive Officer while retaining his responsibilities as Chief Financial
Officer. The Company is currently undertaking a search for a new Chief
Executive Officer. Changes were also made to the Board with the appointment
of David Guyatt and Bijan Khezri as non-Executive Directors on 12th July.

Outlook:

The Board firmly believes that there is a long-term profitable opportunity
for authorisation and public key based authentication in the Company’s
traditional core sectors of finance, government, telecommunications and
healthcare. The restructuring, together with the divestment of non-core
activity will radically realign the cost base while still maintaining
leadership in innovative authentication and authorisation technology.

Financial Review

Financial Results for H1 2001 and Q2 2001:

— Quarter 2, 2001 Summary (unaudited)
Total revenues for Q2 2001 were 16.5 million pounds (US$23.2 million) an
increase of 2% compared to the same quarter last year and a decrease of
28% over Q1 2001.

Licence revenue of 6.6 million pounds (US$9.3 million) accounted for
40% of total revenue in Q2 compared to 50% in the same period last year and
53% in Q1 2001. The license revenue for the quarter decreased by 18% compared
to Q2 2000 and by 46% compared to Q1 2001. However, services revenues for Q2
2001 of 8.9 million pounds increased by 34% over Q2 2000 and by 10% over Q1
2001.

The geographic mix of revenue continues to reflect Baltimore’s strong
global footprint with EMEA, APAC and the US accounting for 47%, 28% and
25% respectively of total revenue in Q2 2001 compared to 53%, 25%, 22% in Q1
2001, and 40%, 34%, 26% in the same period last year.
Gross Profit Margin of 47% is down from 64% in the same quarter last year
and 60% in the first quarter principally due to an adverse change in license
revenue mix and under utilisation of professional services.
LBITDA (before exceptional items) of 23.7 million pounds (US$33.3 million)
increased from 4.4 million pounds (US$6.2 million) in Q2 2000 and from
17.9 million pounds (US$25.2 million) in Q1 2001. Operating expenses before
exceptional items, for Q2 2001 of 91.0 million pounds (US$127.9 million)
(including 57.6 million pounds (US$ 81.0 million) charge for amortisation)
increased by 240% from 26.7 million pounds (US$37.6 million) (including a
10.9 million pounds (US$15.3 million) charge for amortisation) in Q2 2000 and
by less than 1% from 90.4 million pounds (US$127.1 million) ( including a
57.3 million pounds (US$ 80.6 million) charge for amortisation) in Q1 2001.
Exceptional charges in the quarter totalled 393.8 million pounds
(US$553.8 million) and comprises accelerated amortisation of goodwill
389.0 million pounds (US$547.0 million), write off of Fixed Assets of
2.1 million pounds (US$3.0 million) and redundancy costs of 2.7 million pounds
(US$3.8 million).

Loss per share before Exceptional Items was 0.16 pounds (US$0.23)
At 30 June 2001, net cash totalled 53.9 million pounds (US$75.8 million),
compared to 83.6 million pounds (US$117.6 million) at the end of Q1 2001.

— Half Year 2001 Summary (unaudited)

Total revenues for H1 2001 of 39.4 million pounds (US$55.4 million)
increased by 53% compared to the same period last year. Licence revenues for
the period were 18.8 million pounds (US$26.4 million) an increase of
42% compared to Q2 2000. Licence revenue accounted for 48% of total revenue
in H1 2001 compared to 51% in H1 2000. Services revenue for H1 2001 of
17.0 million pounds (US$23.9 million) increased by 76% over H1 last year.
The geographic mix of revenue continues to reflect Baltimore’s strong
global footprint with EMEA, APAC and the US accounting for 51%, 26% and
23% respectively of total revenue in the first half of 2001 compared to
45%, 32% and 23% in the same period last year.

Gross Profit Margin of 54% is down from 65% in the first half of 2000, and
reflects the reduction in licence revenue as a proportion of total revenue
compared to the same period last year.

LBITDA (before exceptional items) of 41.6 million pounds (US$58.5 million)
increased from 9.7 million pounds (US$13.6 million) in H1 2000. Operating
expenses before exceptional items for H1 2001 of 181.4 million pounds
(US$255.1 million) (including 114.9 million pounds (US$161.6 million) charge
for amortisation), increased by 329% from 42.3 million pounds
(US$59.6 million) including 14.4 million pounds (US$20.3 million) charge for
amortisation) in H1 2000 reflecting the impact of the acquisitions made in
2000. Exceptional charges in the period totalled 393.8 million pounds
(US$553.8 million) and comprises amortisation of goodwill 389.0 million pounds
(US$547.0 million), write off of Fixed Assets of 2.1 million pounds
(US$3.0 million) and redundancy costs of 2.7 million pounds (US$3.8 million).
At 30 June 2001, net cash totalled 53.9 million pounds (US$75.8 million),
compared to 107.8 million pounds (US$151.6 million) at the end of 2000.

Goodwill Charge:

The necessity for making a Goodwill impairment charge has arisen
principally to ensure compliance with FRS 11 to reflect the likely fall in the
value of acquisitions made last year as a result of the global economic
downturn, and lower valuations for technology companies.

Working Capital:

At the end of the six month period ended 30 June 2001 the Company had a
cash balance of 53.9 million pounds (US$75.8 million), and had suffered a net
cash out flow of 43.0 million pounds (US$60.5 million) over the same period.
The targeted cost savings from the restructuring and the proceeds from the
divestment of non- core activities will ensure sufficient cash resources are
available to fully fund the anticipated net cash outflow until the Company has
positive EBITDA in Q2, 2002 and is operating cash flow positive in Q4 2002.

Revenue Restatement:

As announced on July 30, as part of the extensive business review and
restructuring, Baltimore Technologies discovered specific instances where
software revenues were overstated in the India, Middle East and Africa region
(“IMEA”) due to incorrect contract classifications, which was the direct
result of the actions of a limited number of employees. The restatement
principally relates to Q4 2000 and the impact is a reduction in the revenues
for the 12 month period ended 31st December 2000 of 5.5% from 74.2 million
pounds (US$104.4 million) to 70.1 million pounds (US$98.6 million), and in the
three month period to 31st March 2001 of 3.4% from 23.7 million pounds
(US$33.3 million) to 22.9 million pounds (US$32.2 million). These adjustments
had no effect on the results for the three month period ended 30th June 2001
or on the current cash position of the Company.

About Baltimore Technologies — A Global Leader in Security & Trust for
e-business

Baltimore Technologies’ products, services and solutions solve the
fundamental security and trust needs of e-business, ensuring that companies
can verify the identity of who they are doing business with and which
resources and information users can access on open networks. Many of the
world’s leading organisations have chosen Baltimore’s e-security technology to
conduct business more efficiently and cost effectively over the Internet and
wireless networks. The company also offers support worldwide for its
authorisation management and Public Key based authentication systems.
Baltimore’s products and services are sold directly and through its
worldwide partner network, Baltimore TrustedWorld. Baltimore Technologies is
a public company, principally trading on London (BLM). For more information
on Baltimore Technologies please visit .

Snowball Buxx

Visa U.S.A. and Snowball.com announced the launch of a joint promotional campaign to reach millions of teens with a special offer for the Visa Buxx card — the prepaid re-loadable card for teens that teaches financial responsibility.

The promotion will be e-mailed to the millions of teens registered on Snowball’s IGN.com and ChickClick.com networks and will offer a free three- month trial subscription to Snowball’s hip IGNinsider club if the teen’s parent signs up to receive a Visa Buxx Card.

“We are very pleased to work with Snowball to reach teens and share the benefits associated with being a Buxx cardholder. What we saw in Snowball is a partner with a strong presence on the web with a large, active teen user community,” said Visa U.S.A. Vice President of Prepaid Products Todd Brockman. “Teens like Visa Buxx because it offers them independence and convenience while showing their parents they can be smart about how they spend money. Parents like Visa Buxx because it helps them teach their teen about responsible spending.”

The Visa Buxx card is parent-controlled. Parents load money onto the card, and then track with their teens the spending through the Visa Buxx issuing bank’s web site or . It is not a credit card, but a reloadable pre-paid card that can be used everywhere Visa is accepted — over 21 million merchant locations worldwide — and provides the same conveniences and protections of all Visa cards.

“While Snowball’s audience encompasses young adults as well as teens, we understand teenagers and how their interests and needs differ from adults. For years, we have fostered a special connection with teens by developing content and services geared specifically toward this age group, including our MissClick channel and the IGN handheld games and Nintendo channels. Because our audience is web savvy and comfortable with online shopping, we are especially pleased that Visa chose Snowball to reach this audience. It enables us to provide a valuable service to the teen segment of our community by giving them spending power online in a way that teaches financial responsibility,” said Rick Boyce, President of Snowball.

Visa U.S.A. launched the Buxx card in August 2000 and the reaction from both parents and teens has been very positive.

“Parents tell us they love the fact that Visa Buxx is not a credit card. They appreciate the control they have in loading the card, reviewing spending and then working with their teens to manage the money responsibly,” Brockman said.

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 the best way to pay and be paid. More than 14,000 U.S. financial institutions rely on Visa’s processing system, VisaNet, to facilitate over $810 billion in annual transaction volume — including more than half of all Internet payments — with virtually 100 percent reliability. U.S. consumers carry more than 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 by any device. Please visit for additional information.

About Snowball

Snowball (Nasdaq: SNOWC) is the leading Gen i(tm) network for Web-centric young adults who have grown up using the Internet. Consistently ranked by Media Metrix as one of the most-visited consolidated Internet properties, Snowball produces and aggregates top Gen i Web sites, attracting millions of unique visitors with its award winning content and resources. Snowball’s networks — IGN, ChickClick and HighSchoolAlumni — partner with a collection of affiliate sites delivering a diverse selection of content, community and commerce for Snowball’s users. Snowball also offers subscriptions to premium content and services on its IGN and HighSchoolAlumni networks. The company offers its business customers a full spectrum of integrated marketing solutions to reach Snowball’s large Net-centric audience. These products include impression-based advertising and sponsorships, permission marketing, custom publishing, contextual e-commerce, direct e-mail marketing and content syndication. The company is headquartered in San Francisco, with sales offices in New York and Los Angeles. For more information visit .

Hypercom University

Hypercom has established the first electronic payment systems industry training and certification program. The ‘Hypercom University’ program will train developers, programmers and engineers in Hypercom’s hardware and networking systems, as well as software applications. In-depth training will be offered in smart card payment systems, Visual HDT (VHDT) C++-based software, electronic signature and receipt capture, ICE-PAC(R) on-screen/receipt terminal advertising, and IEN networks. Students successfully completing the courses will be granted the professional designations of Certified Developer, Certified Support Engineer or Certified Networking Engineer, depending on the course. Courses will be open to customers, international distributors, VARs and Authorized Repair Facility personnel at select Hypercom offices.

OPUS & BEETLE

Wincor Nixdorf, Inc., the leader in the delivery of open systems solutions to the retail and banking industries, announced a strategic partnership with market-leading retail software solution provider, Cornell-Mayo Associates. Under their agreement, the companies will offer retailers an array of open-platform POS solutions based on Cornell-Mayo’s OPUS(TM) POS application and Wincor Nixdorf’s BEETLE POS platform.

The alliance includes joint marketing of a Linux and JavaPOS thin-client POS solution that delivers high value with low total cost of ownership. The OPUS-BEETLE thin-client configuration leverages the inherent benefits of both the OPUS application and BEETLE platform to create the ideal combination of thin-client manageability and fat-client fault tolerance. It can be delivered as a single platform that addresses all customer touch points in the retail store, from POS checkouts to kiosks, mobile devices, and browser-based systems.

“Due to flexibility and cost efficiencies, leading retailers have accepted Linux and JavaPOS as viable platforms for their store environments,” said Gene Cornell, president, Cornell-Mayo Associates. “Cornell-Mayo’s proven open platform design, paired with Wincor Nixdorf’s leadership and success with Linux and JavaPOS, creates a winning combination for our customers.”

“This agreement broadens our offering for tier-one general merchandise retailers, and helps us achieve our vision of a unified platform for the retail store environment,” said Jeff Soisson, vice president, Retail Solutions Group, Wincor Nixdorf. “As a respected leader in the retail industry, Cornell-Mayo is a welcome addition to our open standards family of alliances.”

About Cornell Mayo Associates

Cornell Mayo Associates has been delivering robust, high-function POS systems since 1981. The OPUS Millennium Store System(TM), CMA’s flagship product, first released in 1997, is the third generation of POS software developed by CMA. OPUS has been fully rolled out to many well known retailers including: Ames Department Stores; Belk Department Stores; Borders Books & Music; Talbots; and Tiffany & Co. Opus is highly scalable and is able to run diverse store types ranging from the small specialty store consisting of only a single register, to the largest department store consisting of back office servers and hundreds of registers. OPUS is easily tailored to meet diverse requirements for an unusually wide variety of retail formats. OPUS Millennium is installed on tens of thousands of point of service units in thousands of stores. For more information, visit [www.cornell-mayo.com][1].

The BEETLE Family of POS Systems

Wincor Nixdorf’s BEETLE family of POS systems addresses the complete spectrum of customer touch points in the retail store environment. With solutions that encompass thin-client POS terminals, lean- and thick-client POS systems, kiosks, lottery terminals, and mobile POS devices, the BEETLE family is the industry’s most comprehensive POS product line. An open design supporting commonality of components across the entire BEETLE family substantially simplifies software deployment and hardware maintenance, keeping costs down and productivity high.

More than just PCs, BEETLE systems are rugged, designed to withstand the rigors of retail environments. All systems include standard retail interfaces, accept a wide range of peripherals, and are compliant with established retail software standards. Standard operating systems include Red Hat(R) Linux, the Microsoft(R) Windows(R) family, and Microsoft DOS.

The BEETLE family of POS systems is the industry’s first and only complete line of customer-proven, Linux-ready POS systems in production. The systems also offer the most expansive and complete set of JavaPOS drivers for POS peripherals.

About Wincor Nixdorf

Worldwide, Wincor Nixdorf, Inc. is one of the fastest growing providers of IT products and solutions for the retail and banking industries. Wincor Nixdorf’s offerings include hardware, application software, professional services and a complete range of service programs including on-site support, depot service and Advanced Exchange. Wincor Nixdorf is the world’s third largest provider of POS systems and automated teller machines. Employing more than 4,600 people, Wincor Nixdorf operates in 40 countries with manufacturing plants in Germany and Singapore. North American headquarters are in Austin, Texas. For more information, visit [www.wincor-nixdorf.com/usa][2].

[1]: http://www.cornell-mayo.com
[2]: http://www.wincor-nixdorf.com/usa

AA MasterCard Promotion

American Airlines Vacations offers something extra for travelers who use MasterCard to purchase Hawaiian vacation packages.

Travelers who book five-night stays through American Airlines Vacations’ Web site — — at participating hotels on the islands of Oahu, Maui, Kauai, and The Big Island of Hawaii by Sept. 30, 2001, will receive a $100 MasterCard Prepaid card per booking. Travel must begin Sept. 1, 2001, and be completed by Dec. 15, 2001.

In addition, American Airlines Vacations will award 3,000 AOL(R) Aadvantage(R) bonus miles per booking. This promotion also offers great Alamo and Hertz car rental savings, transfers and optional sightseeing tours on each of the islands.

Booking Dates: Now through Sept. 30, 2001

Travel Dates: Sept. 1 through Dec. 15, 2001

Restrictions: All payments for vacation packages must be purchased using a valid MasterCard. The card must be valid for six months from the date it is issued and must be valid wherever the card is honored. The MasterCard Prepaid card will be received 6-8 weeks after travel has been completed and verified. Travel must be completed by Dec. 15, 2001.

Reservations and information available from local travel agents, American Airlines Vacations at 1-800-321-2121 or by visiting .

OAHU MAUI

Aston Waikiki Joy Aston Kaanapali Shores
Aston Waikiki Sunset Aston Mahana at Kaanapali
DoubleTree Alana Waikiki Embassy Vacations at Kaanapali
Hilton at Turtle Bay Resort The Fairmont Kea Lani Maui
Hilton Hawaiian Village Hyatt Regency Maui
Hyatt Regency Waikiki Outrigger Wailea Resort
Outrigger Reef on the Beach Sheraton Maui
Outrigger Waikiki
Sheraton Moana Surfrider
Sheraton Princess Kaiulani
Sheraton Waikiki
The Royal Hawaiian

HAWAII THE BIG ISLAND KAUAI
Hawaii The Big Island Aston Islander on the Beach
Aston Shores at Waikoloa Aston Poipu Kai
Hilton Waikoloa Village Hyatt Regency Kauai
Outrigger Waikoloa Sheraton Kauai

About AA Vacations

American Airlines Vacations is the most successful airline-owned tour operator in the United States. As a market leader in the travel industry with more than 50 years’ experience, American Airlines Vacations offers its customers a choice of over 1500 hotels and resorts in more than 300 destinations worldwide. Visit American Airlines Vacations’ Web site at .

The world’s largest carrier, American Airlines is celebrating its 75th anniversary in 2001. Together with its regional affiliate, American Eagle, American serves more than 240 cities in more than 50 countries and territories with more than 4,100 daily flights.

Buy.com

‘The Internet Superstore’ may go dark next month unless it finds a new credit card processor. Aliso Viejo, CA-based Buy.com, which serves over 4 million customers, has until September 1st to locate a new processor after its current processor notified the company of its intention to terminate credit card services. The termination was to be effective July 23, but an extension was negotiated after Buy.com agreed to pay a 1% surcharge on the processing fee, and 5% hold back for a security deposit. The extension expires August 31st. The company has other woes including a delisting from The Nasdaq National Market on August 14. The company’s founder Scott Blum has signed a definitive merger agreement to buy the firm for $0.17 per share. Buy.com offers nearly 1,000,000 SKUs in a range of categories including computer hardware and software, electronics, wireless products and services, books, office supplies and more.

Tidel 2Q/01

Tidel reported a net loss of $16.5 million for its third fiscal quarter ending June 30. Results included the effects of an $18 million provision for losses on the company’s receivables from Credit Card Center and the write off of $2.5 million of unamortized debt discount and financing costs applicable to the company’s convertible debentures. Tidel is continuing to pursue collection of CCC receivables which aggregate approximately $27 million. Excluding the special charges, Tidel experienced a sharp decline in sales for the quarter, resulting in its first loss since September 1995. Tidel has sold more than 30,000 retail ATMs and 115,000 retail cash controllers in the U.S. and 36 other countries. For complete details on Tidel’s latest results visit CardData (www.carddata.com).

800America.com Acquisition

800America.com, Inc. , a business-to-business, business-to-consumer and technology Internet company, announced that it has acquired UPSPayment.com, a global multi-currency e-commerce payment service that makes online payment secure, efficient and instantaneous on the Internet and on mobile devices. UPSPayment.com is the first instantaneous multi-currency e-payment system providing instant funds transfer for both B2B users and consumers. Terms of the acquisition were not disclosed.

UPSPayment.com was created as a method of transacting business quicker and simpler both internationally and nationally on the Internet. By being both instantaneous and allowing buyer and seller to transact business in their own currencies, UPSPayment.com leads the push to conduct more e-commerce with “digital cash” — rather than credit cards and paper checks. Its simplicity and security provide services that allow consumers to send/receive electronic bills through the Internet; pay any bill or send money to anyone with an e-mail address; and perform customary banking transactions, such as fund transfers between accounts.

Originally created as a faster and less costly method for all businesses seeking to conduct international B2B transactions in multiple currencies, UPSPayment.com has become popular among many Internet users seeking an online e-payment service that is affordable and easy to use. UPSPayment.com’s ability to deal in multi-currencies and to send money instantaneously to anyone with an e-mail address sets it apart from the other on-line e-payment systems.

This service historically was only available to large multi-national corporations. UPSPayment.com initially developed this service with the B2B user in mind, but has extended its services to all e-commerce users wanting a simple, secure and complete e-payment solution.

The UPSPayment.com system is: easy to use for both buyer and seller, employs a robust authentication for sellers; provides for virtually instantaneous transfer of funds; is available in multi-currencies; and has enabled its platform for use on mobile devices. UPSPayment.com is a new generation of e-payment solutions for the Global Internet Economy.

Jacque Pate, Jr., Executive Vice President of 800America.com, also commented that business across each of 800America.com’s segments remains robust and that, based on current business conditions and internal projections, the outlook for the Company remains promising. 800America.com has also established a strong financial foundation upon which to continue to expand its operations. Mr. Pate noted that at June 30, 2001, the Company reported cash of approximately $5.4 million and is debt free.

CIBC QUARTERLY INCOME

CIBC announced third quarter Operating Earnings
(which exclude the sale of subsidiaries, an adjustment for tax rate changes
and the net impact of Amicus) of $525 million or $1.29 per share, diluted.
Operating Return on Equity was 20.0%. Reported Earnings for the third quarter
were $460 million or $1.12 per share, diluted, (which include the net impact
of building Amicus, $(0.17); a gain on the sale of subsidiaries, $0.05; and an
adjustment for tax rate changes, $(0.05)). Adjusted Earnings (which exclude
only the sale of subsidiaries and an adjustment for tax rate changes) were
$459 million or $1.12 per share, diluted.

Operating Earnings for the nine months ended July 31, 2001, were $1,631
million, compared to $1,787 million for the same period last year. Operating
Earnings per share, diluted, were $3.99, compared to $4.21 for the same period
in 2000. Reported Earnings for the first nine months of 2001 were $1,444
million or $3.51 per share, diluted, compared to $1,728 million or $4.06 per
share, diluted, for the same period of 2000. Adjusted Earnings for the nine
month period were $1,445 million or $3.51 per share, diluted compared to
$1,698 million or $3.99 per share, diluted for the same period last year.
Year-to-date, CIBC’s Operating Return on Equity was 21.2%. Since November
1, 1999, CIBC’s total return to shareholders is up 69.5%, the best total
return among the major Canadian banks.

“Our performance in a less than favourable business environment is a
clear reflection of our ongoing effort to build a broad-based franchise that
is capable of weathering downturns in the market,” said John S. Hunkin,
Chairman and Chief Executive Officer. “We remain confident that — through the
fundamental strength and diversity of our business portfolio — we are well-
positioned for growth as market conditions improve.”

To strengthen CIBC’s position, Hunkin said the company is continuing to
focus on four key areas, including:

Managing Risk

As in the first half of the year, credit conditions continued to be
challenging in the U.S. during the quarter, with trades and services,
manufacturing and telecommunications being the sectors most affected. “We are
managing our business on the premise that conditions are unlikely to improve
during the fourth quarter,” said Hunkin. CIBC continues to manage its market
risk at reduced levels consistent with its goal of low earnings volatility.
Market risk within CIBC’s trading book, measured by risk measurement units,
fell during the quarter to $12.6 million as of July 31, 2001, compared to
$14.8 million at the end of the second quarter and $24.7 million as of October
31, 1999.

Growing Amicus

The growth of Amicus, CIBC’s co-branded retail electronic banking
business, continues to exceed expectations in the area of customer
acquisition. During the quarter, Amicus acquired 121,000 new customers,
bringing the total number of registered customers to 779,000, up 18% from the
previous quarter and 104% from the same quarter in 2000. A highlight during
the quarter was the strategic alliance CIBC entered into with Ahold USA, Inc.,
a leading food retail and food service company, to provide electronic banking
services to the northeastern U.S. market through ABMs, telephone call centres,
the Internet and in-store pavilions. CIBC’s alliance with Ahold is expected to
launch next year and builds upon existing Amicus partnerships with Loblaw
Companies Limited in Canada and Safeway Inc. and Winn-Dixie Stores, Inc. in
the U.S.

Ongoing Business Development

In addition to Amicus, CIBC is continuing to focus on growth across all
of its business units. Developments in the quarter include:

— Electronic Commerce

– PC banking customers (non-Amicus business) grew by 13% to 1.16
million during the quarter. Year-over-year, PC banking customers
are up 66%.

– Telephone banking customers grew to 2.92 million, up 7% from the
second quarter and 26% from the third quarter of 2000.

— Retail and Small Business Banking

– Supporting its goal to provide its retail and small business
customers with Smart, Simple Solutions, CIBC continued its
technology upgrade in the quarter with the installation of 1,090
counter workstations in its branch network. Year-to-date, 1,590
upgraded workstations have been installed in 330 branches.

– To make it easier for its customers to do business, CIBC has
extended operating hours at 86 branches across Canada year-to-date.
– CIBC also continued to expand its bizSmart initiative, with the
opening of nine additional kiosks during the quarter, increasing the
total number operating across Canada to 37. CIBC also expanded
bizSmart’s product offering to include a Personal GIC and a Personal
Line of Credit which offers a credit limit up to $50,000 at an
interest rate of prime plus 1.75%.

— Wealth Management

– CIBC Investor Services Inc. introduced a new website,
www.investorsedge.cibc.com , to enhance and simplify online investing
for customers. The new website has improved navigation and expanded
features including access to CIBC World Markets Canadian equity
research.

– As at the end of June, CIBC Mutual Funds ranked second among the big
six Canadian banks in year-to-date net sales and moved up to third
among all Canadian mutual fund companies. CIBC continued to rank
first in index fund net sales for fiscal 2001, as at June 30, 2001.

— CIBC World Markets

– CIBC World Markets participated in a number of significant
transactions during the quarter, including acting as the sole
underwriter and lead arranger of a US$2.0 billion credit facility to
finance George Weston Limited’s acquisition of Bestfoods Baking
Company. CIBC World Markets was also joint arranger in the financing
of Apax Partners & Co., and Hicks, Muse, Tate & Furst Inc.’s
acquisition of Yell Directories, which include the U.K. Yellow
Pages, from British Telecommunications plc for pnds stlg 2.14
billion.

– CIBC World Markets launched its research broadcast via its new
Internet webcast facility. CIBC eTV is a proprietary, web-based
online television station that provides CIBC’s clients with leading
edge research. More information is available at
www.cibcwm.com/research.

Overall Performance and Accountability

During the quarter, CIBC took additional steps in support of its
commitment to maximize the value of its franchise. First, the company
announced the sale of its Guernsey private banking business to The Bank of
N.T. Butterfield & Son Limited. The sale generated an after-tax gain of $22
million and is consistent with Wealth Management’s strategy to focus on
supporting its North American client base and growing its Caribbean and Asian
operations.

Second, CIBC announced it is in advanced discussions with Barclays PLC,
one of the largest financial services groups in the United Kingdom, to combine
the retail, corporate and offshore banking operations of both companies in the
Caribbean into a new entity called FirstCaribbean International Bank(TM).
Under the proposed transaction, which is expected to close early next year,
CIBC and Barclays would each own approximately 45% of the new entity, with the
remainder held publicly. CIBC believes the future earnings potential from its
interest in FirstCaribbean will be greater than continuing with a controlling
interest of a smaller operation.

Outlook

“Our outlook for the fourth quarter remains cautious, particularly in
light of market conditions in North America,” said Hunkin. “Our focus moving
forward will be to, above all, continue to focus on our customers’ needs; all
our businesses are getting more competitive and we have to be even more
proactive and creative to grow revenue. Also, we will defer all non-essential
spending, but continue to make selective strategic investments, striking the
right balance between short term earnings strength and longer term value
creation.”

FINANCIAL AND OPERATIONS COMMENTARY – OVERVIEW

CIBC’s third quarter Operating Earnings, as noted in the following table,
were $525 million, down $117 million from the third quarter of 2000 and up $31
million from the prior quarter. Operating Earnings for the quarter were lower
than a year ago due to the effects of continued weaker markets, which were
partially offset by a greater proportion of income being earned in
subsidiaries that operate in lower tax jurisdictions. The improvement in
Operating Earnings from the prior quarter reflects stronger results in
Electronic Commerce and CIBC World Markets. Operating EPS, diluted, were
$1.29, down from $1.54 in the same quarter last year and up from $1.19 in the
prior quarter. Operating Return on Equity was 20.0%, compared with 25.5% in
the third quarter of 2000 and 19.4% in the previous quarter.
Reported Earnings were $460 million for the quarter, down $141 million
from the same quarter a year ago and down $9 million from the prior quarter.
Reported EPS, diluted, were $1.12, down from $1.43 in the third quarter of
2000 and comparable to $1.13 in the prior quarter. Reported Return on Equity
for the quarter was 17.4%, compared with 23.8% in the same quarter last year
and 18.4% in the prior quarter.
Reported Earnings for the nine months ended July 31, 2001 were $1,444
million, down $284 million from the same period in 2000. Reported EPS,
diluted, and Reported Return on Equity for the nine months ended July 31, 2001
were $3.51 and 18.6% respectively, versus $4.06 and 23.5% for the same period
in 2000.

FINANCIAL AND OPERATIONS COMMENTARY – SEGMENTED

CIBC’s management structure has four business lines — Electronic
Commerce, Technology and Operations; Retail and Small Business Banking; Wealth
Management; and CIBC World Markets. These business lines are supported by four
functional groups — Treasury and Balance Sheet Management (TBM); Risk
Management; Administration; and Corporate Development.

In 2000, CIBC introduced the Manufacturer / Customer Segment /
Distributor Management Model to measure and report the results of operations
of the four business lines. Under this model, internal payments for sales
commissions and distribution service fees are made between business lines. As
well, revenue and expenses relating to certain activities (such as the
payments business described under Electronic Commerce) are fully allocated to
other business lines. In addition, the revenue and expenses of the four
functional groups are generally allocated to the four business lines. This
model allows management to better understand the economics of our customer
segments, our products and our delivery channels.

In 2001, CIBC continued to refine certain estimates and allocation
methodologies underlying the model. Key changes include refinements to
customer segmentation and cost recovery methodologies. These changes primarily
affected Imperial Service in the Wealth Management business line and both
retail banking and small business banking in the Retail and Small Business
Banking business line.

Prior year segmented financial information has been restated to conform
with the presentation used in 2001. In 2001, the sales and service fees paid
to segments for certain products were renegotiated among the business lines.
Prior year financial information was not restated to reflect these fee
changes.

Business line return on equity is measured using risk-adjusted (economic)
capital which in many instances may be different from regulatory capital. The
difference between economic capital allocated to the business lines and
regulatory capital is held in Corporate and Other. From time to time
enhancements are made to CIBC’s economic capital model as part of our risk
measurement process. These changes are made prospectively.

Net income for the quarter was $47 million, down $12 million from the
third quarter of 2000 due to higher Amicus spending to support customer growth
and increases in the provision for credit losses, partially offset by strong
revenue growth in cards and mortgages. Net income was up $14 million from the
prior quarter, after excluding the second quarter after-tax gain of $43
million from the sale of the Merchant Card Services business. The increase was
primarily due to strong revenue growth in cards and mortgages, partially
offset by higher spending in Amicus. Excluding the gain, net income for the
nine months ended July 31, 2001 was $139 million, down $32 million from the
same period in 2000.

Revenue was $497 million, up $72 million from the third quarter of 2000,
and up $58 million from the prior quarter after excluding the pre-tax gain of
$58 million from the sale of the Merchant Card Services business. Revenue,
after adjusting for the gain, was $1,392 million for the nine months ended
July 31, 2001, up $157 million from the same period in 2000.

Revenue details are as follows:

– Mortgages includes both residential and commercial mortgages. Revenue
was $130 million for the quarter, up $49 million from the third
quarter of 2000 due to a 12% increase in residential loan balances
outstanding and improved spreads. Revenue was up $22 million from the
prior quarter due to an increase in prepayment interest amounts
related to refinancing, a 4% increase in residential loan balances
outstanding and three extra days this quarter versus the prior
quarter.

– Cards comprises a portfolio of credit cards. Revenue was $266 million
for the quarter, up $20 million from the third quarter of 2000
primarily due to a 19% growth in average balances under administration
and lower cost of funds, partially offset by the loss of revenue from
the sale of the Merchant Card Services business. Revenue was up $12
million from the prior quarter after excluding the gain. This was due
to a 3% increase in average balances under administration, an 18%
increase in purchase volumes, lower cost of funds and three extra days
in the quarter, which more than offset the loss of ongoing revenue
from the Merchant Card Services business.

– Insurance provides creditor insurance products. Revenue was $13
million in the quarter, down $33 million from the third quarter of
2000 due to discontinued insurance businesses, partially offset by
growth in creditor insurance revenue. Revenue was comparable to the
prior quarter.

– Other includes Amicus, electronic and self-service banking, the
allocation of a portion of treasury revenue and INTRIA third-party
technology services. Revenue was $88 million in the quarter, up $36
million from the third quarter of 2000 and up $23 million from the
prior quarter. The increase in revenue reflects higher treasury
revenue and Amicus growth.

Non-interest expenses were $354 million, up $63 million from the third
quarter of 2000 as a result of Amicus business growth, partially offset by
lower expenses related to discontinued insurance businesses. Non-interest
expenses were up $25 million from the prior quarter due to Amicus growth, and
the timing of Technology and Operations allocations to the business lines. Non-
interest expenses for the nine months ended July 31, 2001 were $999 million,
up $120 million from the same period in 2000.

The regular workforce headcount totaled 16,371 at quarter end, up 421
from the prior quarter in order to support business growth in Amicus and
mortgages. As well, staffing was increased in Technology and Operations, the
costs of which are allocated to the business lines. Headcount increases were
also experienced in electronic banking to improve service levels.

Developments in the quarter included:

– Amicus and Ahold USA, Inc., a leading food retail and food service
company, announced an intention to forge an alliance to provide
electronic banking services to the northeastern U.S. market through
ABMs, telephone call centres, the Internet and in-store pavilions.

– Amicus added 48 new pavilions during the quarter, increasing the total
number of pavilions operating to 378. Also during the quarter, Amicus
acquired 121,000 new customers, bringing the total number of
registered customers to 779,000, up 104% from the same quarter last
year.

– Amicus commenced selling four index mutual funds and a money market
fund in Florida through its grocery store pavilions in Winn-Dixie
Stores, Inc.

– CIBC continued to expand its extended speech recognition telephone
service within its retail banking network during the quarter. In
addition to being able to register and pay bills by phone using only
their voice, CIBC’s 2.9 million telephone banking customers will be
able to complete other voice-command transactions in the coming months
including: mortgage information requests, cheque reordering, as well
as receiving information on branch and bank machine locations.

– During the quarter, it was announced that Amicus and Yahoo! Inc. will
no longer provide person-to-person banking services on Yahoo! Inc.’s
U.S. website. Yahoo! Inc.’s decision to provide this service globally
did not align with Amicus’ strategy of a continued focus on core
retail businesses in North America.

Net income was $96 million, consistent with the third quarter of 2000 as
increased infrastructure investment more than offset higher revenue and a
lower provision for credit losses. Net income was down $4 million from the
prior quarter mainly due to increased infrastructure investment, partially
offset by higher revenue. Net income for the nine months ended July 31, 2001
was $324 million, up $40 million from the same period in 2000.
Revenue was $659 million, up $8 million from the third quarter of 2000.
The increase resulted from volume growth on personal deposits and consumer
loans and higher treasury revenue, partially offset by lower student loan
revenue, declining spreads on deposits and the effects of refinements to
segment revenue among the business lines. Revenue was up $26 million from the
prior quarter, primarily due to three extra days this quarter and higher
treasury revenue, partially offset by lower deposit spreads and the effects of
refinements to segment revenue among the business lines. Revenue for the nine
months ended July 31, 2001 was $1,950 million, up $40 million from the same
period in 2000 primarily due to volume growth on personal deposits and
consumer loans.

Revenue details are as follows:

– Retail banking is the individual customer segment (customers other
than those in Imperial Service). Revenue is earned from sales and
service fees paid by CIBC’s product groups, primarily the investments,
deposits and lending products businesses. Revenue was $249 million in
the quarter, consistent with the third quarter of 2000. Lower deposit
spreads and the effects of refinements to segment revenue among the
business lines were offset by increased sales and service fees.
Revenue was up $5 million from the prior quarter due to three extra
days this quarter and higher sales and renewal fees, partially offset
by the effect of lower rates.

– Small business banking is the customer segment supporting small
owner-operated businesses, including owners’ personal holdings.
Revenue is earned from sales and service fees paid by CIBC product
groups, primarily the investments, deposits and lending products
businesses. Small business banking also includes bizSmart, which earns
revenue from net interest spreads. Revenue was $167 million in the
quarter, down $9 million from the third quarter of 2000 due to lower
deposit spreads and the effects of refinements to segment revenue
among the business lines. Revenue was up $7 million from the prior
quarter due to three extra days in the quarter.

– West Indies is a full-service banking operation in eight countries,
servicing all customer segments through a 45 branch network and
electronic delivery channels. Revenue is earned on net interest
spreads and sales and service fees. Revenue was $70 million in the
quarter, comparable with the third quarter of 2000 and the prior
quarter.

– Lending products comprises personal (including student loans), small
business and agricultural lending portfolios. Revenue is earned
through net interest spreads and service fees; part of this revenue is
paid to the customer segments. Revenue was $155 million in the
quarter, unchanged from the third quarter of 2000. Improved consumer
and small business interest spreads and higher consumer loan volumes
drove revenue up, but this was largely offset by a $11 million
decrease in student loan revenue. Student loan revenue declined as a
result of a strategic business decision to exit risk share lending
programs when CIBC’s contract with the federal government expired last
year. Revenue was unchanged from the prior quarter as the effect of
three extra days was offset primarily by higher sales and renewal
commissions paid.

– Other consists primarily of the allocation of a portion of treasury
revenue. Revenue was $18 million in the quarter, up $18 million from
the third quarter of 2000 and up $11 million from the prior quarter
largely due to higher treasury revenue.

Non-interest expenses were $485 million, up $38 million from the third
quarter of 2000 due to salary increases effective January 1, 2001, extended
branch hours, staffing of small business advisory teams and infrastructure
investment. Non-interest expenses were up $30 million from the prior quarter
primarily due to three extra days in the quarter and infrastructure
investment. Non-interest expenses for the nine months ended July 31, 2001 were
$1,372 million, up $79 million from the same period in 2000.
The regular workforce headcount totaled 13,143 at quarter end, up 216
from the second quarter with the additional headcount being primarily in
retail banking and small business banking.

Developments in the quarter included:

– CIBC and Barclays PLC announced that advanced discussions are underway
to combine their retail, corporate and offshore banking operations in
the Caribbean, to create FirstCaribbean International Bank(TM). Under
the proposal, which is subject to government and regulatory approval,
Barclays PLC and CIBC would each own approximately 45% of the ordinary
share capital of FirstCaribbean International Bank(TM), with the
remainder held publicly and with the intention to increase public
share holdings up to 20% as soon as practicable. FirstCaribbean
International Bank(TM) would retain the listings of CIBC West Indies
Holdings Limited in Barbados, Trinidad and Tobago and Jamaica.

– Effective August 1, 2001, the provinces of Ontario, Alberta and Prince
Edward Island entered into alternative arrangements for disbursing
student loans. CIBC continues to disburse student loans in the
provinces of Newfoundland, New Brunswick, and Quebec, and is protected
against credit risk exposure under these programs. As the various
student loan programs migrate to a direct lending program, CIBC
continues to leverage its investment in EDULINX Canada Corporation for
the servicing of student loans.

– For customer convenience, 86 branches across Canada have extended
business hours so far this year. By year end, this number is expected
to more than double and almost 30% of our branches will be open on
Saturdays.

– Robbery prevention initiatives reduced branch robberies 38% year-to-
date compared with the same period a year ago.

– CIBC’s technology upgrade in retail banking continued, with the
installation of 1,090 upgraded counter workstations this quarter.
Year-to-date, 1,590 upgraded workstations have been installed in 330
branches. In the fourth quarter, we plan to install 678 more counter
workstations in 172 branches and will start the rollout of the new
Windows 2000 based technology platform in approximately 200 branches.

– Small Business Way, a training initiative which provides a
comprehensive small business banking accreditation program, was
introduced at the beginning of the quarter.

– Despite the current economic slowdown, impaired personal loans and
personal lines of credit are currently trending favourably versus the
prior two years, the result of enhanced front-end credit adjudication
and back-end collection processes. Small business and agricultural
impaired loans are trending consistently with the previous two years.

– Nine bizSmart kiosks were opened during the quarter (five in Alberta
and two in each of British Columbia and Ontario), bringing the total
to 37 bizSmart kiosks in operation at quarter end. As well, Personal
Line of Credit, which offers a credit limit up to $50,000 and an
interest rate of prime plus 1.75%, and Personal GIC were added to the
bizSmart product line. In addition, an Internet application for
business customers was also launched.

(1) The calculation of the asset growth rate was adjusted this quarter
to exclude assets that were converted to index mutual funds, at
CIBC’s discretion, in March, 2001.

Net income for the quarter was $90 million. Excluding an after-tax gain
of $22 million from the sale of the Guernsey private banking business, net
income was down $11 million from the third quarter of 2000 primarily due to
lower revenue. Net income, after adjusting for the gain, was down $7 million
from the prior quarter as a result of increased expenses. Excluding the gain,
net income for the nine months ended July 31, 2001 was $253 million, down $69
million from the same period last year due to lower revenue from retail
trading activities and expenses incurred to exit certain business operations.
The decrease was also due to higher than normal annual incentive fees earned
on risk-free participation in the profits of investment partnerships in the
prior year.

Revenue for the quarter was $598 million. Excluding the gain, revenue was
down $54 million from the third quarter of 2000 as weaker market conditions
prevailed, and up $15 million from the prior quarter. Revenue for the nine
months ended July 31, 2001 was $1,772 million, down $343 million from the same
period in 2000, after adjusting for the gain, primarily due to lower annual
incentive fees and trading volumes.

Revenue details are as follows:

– Imperial Service is the customer segment offering financial advice to
CIBC’s high-value clients. Specially trained financial advisers
support the financial planning and product fulfilment needs of these
clients. Revenue is earned from sales and service fees paid by CIBC’s
product groups, primarily the investments, deposits and lending
products businesses. Revenue was $168 million in the quarter, up $23
million from the third quarter of 2000 due to business volume
increases and revenue allocations renegotiated during the year.
Revenue was up $8 million from the prior quarter.

– Private client investment and asset management generates fees and
commissions from full-service retail brokerage providing equity and
debt investments, mutual fund products, asset management services and
advisory and financial planning services to individuals in Canada and
the United States. Revenue was $256 million in the quarter, down $53
million from the third quarter of 2000 primarily as a result of lower
trading volumes. Revenue was down $11 million from the prior quarter
due to prevailing weaker markets.

– Global private banking and trust provides a comprehensive range of
global solutions, including investment management, trusts, private
banking and global custody to meet the financial management needs of
individuals, families and corporations with significant financial
resources. Revenue for the quarter was $53 million. Excluding the
gain, revenue was $31 million, down $9 million from the same quarter
last year due to the loss of ongoing revenue from CIBC Suisse S.A.
exited in the fourth quarter of 2000. Revenue, after adjusting for the
gain, was comparable with the prior quarter.

– Wealth products include mutual funds, investment management services,
online and discount brokerage services and GICs. These investment
products are developed and distributed to retail, small business and
Imperial Service customers. Revenue was $98 million in the quarter,
down $30 million from the third quarter of 2000. The decrease was due
primarily to lower discount brokerage revenue resulting from declines
in trading activity, as well as increases in the sales and service
fees paid to customer segments. GIC revenue decreased from the same
quarter last year due to narrower net interest margins, along with
increases in commissions paid to customer segments within CIBC.
Revenue was consistent with the prior quarter.

– Other consists primarily of the allocation of a portion of treasury
revenue. Revenue was $23 million in the quarter, up $15 million from
the third quarter of 2000 and up $11 million from the prior quarter,
due to increased treasury revenue.

Non-interest expenses were $488 million, down $26 million from the third
quarter of 2000 primarily due to revenue-related variable expenses. Non-
interest expenses were up $23 million from the prior quarter as a result of
increases in non-credit losses, legal expenses and recruitment expenditures.
Non-interest expenses for the nine months ended July 31, 2001 were $1,413
million, down $192 million from the same period in 2000 due to decreases in
variable expenses associated with lower revenue.
The Wealth Management regular workforce headcount totaled 6,722 at
quarter end, down 136 from the prior quarter primarily due to the sale of the
Guernsey private banking business.

Developments in the quarter included:

– CIBC Investor Services Inc. introduced a new website at
www.investorsedge.cibc.com to improve and simplify the online
investing experience for Investor’s Edge and Imperial Investor Service
clients. The new website has easy-to-use navigation with a host of new
features and functions including access to CIBC World Markets Canadian
equity research. A new online Alerts service allows clients to receive
personalized stock notifications to keep abreast of the latest
developments affecting their investment portfolios.

– During the quarter, CIBC sold its Guernsey private banking business to
The Bank of N.T. Butterfield & Son Limited in Bermuda for an after-tax
gain of $22 million. This transaction is consistent with CIBC Wealth
Management’s strategy of focusing on its North American client base
and growing its Caribbean and Asian operations.

– As at the end of June, CIBC Mutual Funds ranked second among the big
six banks in year-to-date net sales, and moved up to third among all
Canadian mutual fund companies. As at June 30, 2001, CIBC continues to
rank first in index fund net sales for fiscal 2001.

– Since its conversion to a multi-manager approach in May 2001, Personal
Portfolio Services (PPS), Canada’s leading discretionary investment
management program, achieved net sales of $53 million. Total assets
under management are $6.0 billion.

– CIBC Wood Gundy, CIBC’s Canadian full-service brokerage operation,
continues to focus on growing fee-based asset management programs.
Specifically, Investment Advisory Service increased net assets by $217
million, representing 155% growth, year-to-date.

Net income was $229 million, down $157 million from the third quarter of
2000 which had more robust market conditions and higher merchant banking
revenue. Net income was up $34 million from the prior quarter due to higher
revenue from origination activities. Net income for the nine months ended July
31, 2001 was $695 million, down $284 million from the same period in 2000.
Revenue was $1,066 million, down $233 million from the third quarter of
2000 and up $67 million from the prior quarter. Revenue for the nine months
ended July 31, 2001 was $3,241 million, down $412 million from the same period
in 2000.

Revenue details are as follows:

– Capital markets operates trading, sales and research businesses
serving institutional, corporate and government clients across North
America and around the world. Revenue was $365 million in the quarter,
up $19 million from the third quarter of 2000 and up $14 million from
the prior quarter. The increase was due primarily to the strong
performance of the fixed income business.

– Investment banking and credit products provides advisory services and
underwriting of debt, credit and equity for corporate and government
clients across North America and around the world. Revenue was $480
million in the quarter, up $82 million from the third quarter of 2000
due to increased leveraged finance activity, primarily in Europe.
Revenue was up $82 million from the prior quarter due to improved
leveraged finance conditions, combined with increased U.S. investment
banking activities.

– Merchant banking makes investments to create, grow and recapitalize
companies across a variety of industries. Revenue was $103 million in
the quarter, down $309 million from the third quarter of 2000 which
benefited from higher merchant banking divestiture gains. Revenue was
down $40 million from the prior quarter due to lower realized gains
net of asset write-downs.

– Commercial banking originates financial solutions centred around
credit products for medium-sized businesses in Canada. Revenue was
$125 million in the quarter, comparable with both the third quarter of
2000 and the previous quarter.

– Other includes the allocation of a portion of treasury revenue, net of
unallocated funding charges; CEF Capital, an affiliated Asian merchant
bank holding company; and other revenue not directly attributed to the
main businesses listed above. Revenue was $(7) million in the quarter,
down $29 million from the third quarter of 2000 due to higher treasury
related funding charges. Revenue was comparable to the prior quarter.

Non-interest expenses were $685 million, down $24 million from the third
quarter of 2000 as a result of lower revenue-based compensation expenses. Non-
interest expenses were up $59 million from the prior quarter primarily due to
variable compensation associated with higher revenue. Non-interest expenses
for the nine months ended July 31, 2001 were $2,025 million, down $101 million
from the same period in 2000.

The regular workforce headcount totaled 2,989 at quarter end, up 22 from
the prior quarter.

Developments in the quarter included:

– CIBC World Markets launched a new webcast facility, CIBC eTV, a
proprietary web-based online television station providing clients with
access to current research.

– CIBC World Markets held an official ground breaking ceremony at the
commencement of construction of its new U.S. headquarters to be
located at 300 Madison Avenue in New York.

– CIBC World Markets successfully initiated an equity arbitrage business
in Ireland. This business is expected to play an important role in our
strategy to expand into European equity markets.

– Divestiture of non-strategic facilities continued with the sale of
$316 million of performing loans, resulting in pre-tax charges of $23
million. CIBC World Markets, together with Treasury and Balance Sheet
Management will continue to explore opportunities in this area.

– CIBC World Markets participated in a number of significant
transactions in the quarter:

– Sole underwriter and lead arranger of a US$2.0 billion credit
facility to finance George Weston Limited’s acquisition of
Bestfoods Baking Company.

– Joint-lead arranger, joint bookrunner, documentation agent, and
security agent on a senior debt facility, as well as joint arranger
and administrative agent on a bridge facility for Apax Partners
& Co., and Hicks, Muse, Tate & Furst Inc.’s acquisition of Yell
Directories from British Telecommunications plc for pnds stlg 2.14
billion.

– Financial advisor, lead arranger and underwriter on Nomura
Principal Finance Group’s acquisition of Le Meridien from Compass
Group plc for pnds stlg 1.9 billion.

– Co-lead manager and underwriter in a commercial real estate
securitization offering of US$962 million.

MasterCard & Excite

TORONTO, Aug. 15 /CNW/ – MasterCard Canada, one of Canada’s leading
payment brands and Excite Canada, one of Canada’s foremost Internet companies,
have entered into a co-marketing alliance making MasterCard the preferred
payment brand for consumers shopping online at Excite.ca and the Excite for
@Home broadband portal.

To celebrate the launch of their collaboration, MasterCard Canada is
offering consumers a promotion titled “RAKE IT INstantly”. The promotion is
being supported online by Excite.ca and will run from August 15 to October 15,
2001. Consumers will have the opportunity to win prizes in one of three ways:
instant scratch and win coupons available in participating MasterCard issuer
cardholder statements, automatic entry each time a customer uses their
MasterCard at any of the participating partner locations during the promotion
period; or online by visiting www.mastercard.ca/rakeitinstantly/excite.
Participating partners include Canadian Tire, Loblaw Companies Ltd, The
Northern Group, Music World, The Brick, The Sony Store, Sony Style and Jean
Coutu. A sample of the prizes to be won include free groceries for a year, a
Sony 43″ Projection TV and a $2,500 Canadian Tire Shopping Spree.
“As leaders in our industries, it is a natural fit for MasterCard Canada
and Excite Canada to team up to offer consumers added benefits and convenience
when shopping online,” said Tracy Folkes Hanson, Vice President, Marketing and
Communications, MasterCard Canada. “Excite Canada offers Internet shoppers a
wide range of helpful tools and services to help them make informed decisions
when purchasing online.”

In addition to value and convenience, both MasterCard and Excite Canada
are committed to offering consumers a safe a secure environment when shopping
online. MasterCard Canada recently introduced a Zero Liability Policy. This
policy eliminates the former $50 fee for cardholders who experience fraud
through unauthorized transactions. The Zero Liability Policy applies to all
consumer card purchases, visit www.MasterCard.ca for more details.
“Broadband users are leading the charge to online shopping, taking
advantage of its convenience and security,” says Nyla Ahmad, Executive Vice
President of Excite Canada. “We look forward to building our relationship with
MasterCard to enhance the consumers shopping experience even more.”
MasterCard Canada and Excite Canada are currently developing additional
initiatives including MasterCard Exclusive Offers for Excite.ca and co-branded
web pages.

About MasterCard

MasterCard International has the most comprehensive portfolio of payment
brands in the world. More than 1.7 billion MasterCard(R), Cirrus(R) and
Maestro(R) logos are present on credit, charge and debit cards in circulation
today. An association comprised of more than 20,000 member financial
institutions, MasterCard serves consumers and businesses, both large and
small, in 210 countries and territories. MasterCard is the leader in quality
and innovation, offering a wide range of payment solutions in the virtual and
traditional worlds. MasterCard’s award-winning Priceless(R) advertising
campaign is now seen in 81 countries and in more than 36 languages, giving the
MasterCard brand reach and scope unrivaled by any competitor in the industry.
With more than 21 million acceptance locations, no card is accepted in more
places and by more merchants than the MasterCard Card. In 2000, gross dollar
volume exceeded US$857 billion. MasterCard can be reached through its World
Wide Web site at .

About Excite Canada

Excite Canada, Canada’s leader in broadband, is a joint venture of Rogers
Media Inc and [email protected] Inc. Its branded network of highly popular
content destinations include the open-Web portal www.excite.ca and the
broadband Excite for @Home content portal which is featured exclusively on
the industry-leading Rogers, Shaw and Cogeco @Home high-speed Internet
services. A demonstration site for [email protected] customers is available at
www.excite.ca/broadband. Excite Canada also offers wireless content and
applications at www.excite.ca/mobile for web-enabled Rogers AT&T mobile
devices. Excite Canada is fully engaged in realizing the potential of the
broadband Internet future by working with its partners to provide useful,
interactive and entertaining services to Canadian consumers. Excite and the
Excite logo are trademarks of [email protected], used by Excite Canada under
license.

Information about MasterCard Canada can be obtained by visiting
www.mastercard.ca.

-30-

For further information: Jennifer Duggan, Goodman Communications,
(416) 924-9100 ext. 269, [email protected]; Grant Packard, Excite
Canada, (416) 642-4724, [email protected];
Archived images on this organization are available through CNW E-Pix at
. Images are free to members of The Canadian Press.

MASTERCARD CANADA, INC. has 18 releases in this database.