Hypercom EMEA

Hypercom Corporation continued to aggressively close on the leadership position for point-of-sale equipment as awareness of and demand for the company’s solutions soared throughout Europe, the Middle-East and Africa during 1999 and 2000.

Hypercom terminal shipments in the region jumped 316% to 153,396 in 1999 versus 48,424 in 1998, as the electronic payments system provider outpaced and continued to take market share from all competitors, Hypercom CEO George Wallner said at the Mobile Commerce World and Card Conference here in London.

“Hypercom is rapidly building its European market share, and our technology is setting the standard for the electronic payments industry throughout this important region,” Wallner said. “We are bringing to market advanced terminals and value-added wireless, Internet-based and smart card advanced applications that allow merchants to maintain and increase their competitive edge in the rapidly changing marketplace. And our growth represents the market’s validation of that strategy.”

“We are well on the way to eclipsing our growth in 1999. In two years EMEA terminal shipments will have grown three-fold,” Wallner said. “Our near-term objective is to retain our rapid growth and further strengthen our position as the technology leader in this region.”

The company has also established direct offices in England, Scotland, South Africa, Sweden, Germany, Hungary and Russia – and appointed more than 30 authorized local partners.

Independent analysts and publishers have documented Hypercom’s rapid pace to overtake other vendors for worldwide leadership of the POS market. “Hypercom continues to grow organically, while our European competitors have grown through acquisition of market laggards. Hypercom reported worldwide revenues of $167.2 million for the first half of year 2000. That is, for example, 63% more than the leading European vendor has reported for the same period,” Wallner said.

Hypercom has introduced a number of groundbreaking products and services in recent months that enable merchants and their service providers to roll out new customer services and generate new revenue streams.

The company has developed a framework, called ePOS-infocommerce(TM), or ePic, to bring to market Internet-enabled terminals and their supporting gateway servers. Based on the popular ICE(TM) family of interactive touch screen terminals, a broad range of Internet-based information and services can now be made available, securely and cost-effectively, on the retail merchant’s countertop. The platform brings together advanced wireless, Internet and smart card technologies.

Hypercom is now rolling out multi-mode, touch screen card payment and web-enabled terminals for the retail countertop that allow merchants to conduct e-mail, e-commerce, electronic receipt capture, on-screen advertising and an array of other applications – without investing in costly and difficult to use personal computers.

Hypercom Corporation (NYSE: HYC) is a global provider of end-to-end electronic payment solutions, including card payment systems, peripherals, network products, software and e-commerce payment solutions that add value at the point-of-sale for consumers, merchants and acquirers.

Headquartered in Phoenix, Arizona, Hypercom markets its products in more than 100 countries through a global network of affiliates and offices in Argentina, Australia, Brazil, Chile, China, England, Germany, Hong Kong, Hungary, Japan, Mexico, Puerto Rico, Russia, Scotland, Singapore, South Africa, Sweden and Venezuela. Hypercom’s Internet address is [www.hypercom.com][1].

Hypercom is a registered trademark of Hypercom Corporation. ICE and ePOS-infocommerce are trademarks of Hypercom Corporation. All other products or services mentioned in this document are trademarks, service marks, registered trademarks or registered service marks of their respective owners.

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

JCPenney Makeover

The resurgence of store credit cards is picking up steam as JCPenney and GE Card Services unleash a major direct mail campaign this week for the newly overhauled JCPenney card. The re-designed bold red JCPenney card has been personalized with the first letter of the individual member’s last name, the first of its kind in the USA. The card is being re-launched to current members and is reaching out to targeted JCPenney shoppers with instant promotions for newly approved members. The new card is also introducing ‘insiderperks’ which offers cardmembers exclusive promotions such as a one day discount shopping pass and special offers throughout the year in different retail departments, through the JCPenney catalogs, at jcpenney.com, and at Eckerd’s. In addition, the no-annual fee card will provide members with special financing options for big-ticket items, lower monthly payments, and expanded customer service for cardmembers on-line at jcpenney.com in mid-Oct. The new card and features will be introduced to the public through a multi-million dollar marketing campaign, beginning in November.

Thailand Gets Iced

Thailand’s top three banks plan to deploy Hypercom’s ePic ICE 5500 Internet-enabled card payment web appliances to increase their electronic card acceptance network. The touch screen web appliances, provided by Bangkok Bank, Thai Farmers’ Bank and the Thai Military Bank, will incorporate electronic receipt capture (ERC) and Hypercom’s ePicPak(TM) advertising gateway and screen format translator. The appliances will be used at medium to large-size retail merchants throughout Thailand. The deployment will initially consist of 2,000 appliances. Thailand is one of the world’s top 20 markets based on total number of payment cards.

Hypercom’s ePic (ePOS-infocommerce(TM)) ICE 5500 is a multi-function touch screen-based terminal incorporating a high-speed thermal printer, paper cutter, and Hypercom FastPOS(TM) 9600 bits per second (bps) modem technology that completes transactions in under six seconds. The ePic ICE 5500 supports a full range of secure electronic payment transactions including debit, credit and checks, in addition to electronic benefits. When used in concert with Hypercom’s ePicPortz(TM) software, the ePic ICE 5500 enables merchants to access a range of Internet-based services including: e-mail, on-screen advertising, interactive electronic coupons, electronic receipt capture and merchant e-commerce functions.

“Our collective objective is to provide our merchants with the highest quality, end-to-end, revenue-generating solutions and services at the point-of-sale, and Hypercom is the ideal electronic payment provider to help us achieve that goal,” said Khun Chalida, First Vice President, Credit Card Dept. of Thai Farmers Bank. “Hypercom’s card payment web appliances, software and networking equipment will help us provide the most advanced and value-packed solution to our customers.”

“Hypercom’s ePic strategically converges the physical and virtual worlds, and transforms POS terminals into information delivery and program access platforms with which merchants can leverage the power of the Internet to provide consumers with an array of new services,” said Jeremy Su, President of Hypercom Asia Ltd. “We are pleased to join Thailand’s leading financial institutions in introducing these new services to this important country’s retailers.”

Hypercom Corporation (NYSE:HYC) is a global provider of end-to-end electronic payment solutions, including card payment systems, peripherals, network products, software and e-commerce payment solutions that add value at the point-of-sale for consumers, merchants and acquirers.

Headquartered in Phoenix, Arizona, Hypercom markets its products in more than 100 countries through a global network of affiliates and offices in Argentina, Australia, Brazil, Chile, China, Germany, Hong Kong, Hungary, Japan, Mexico, Russia, Singapore, Thailand, Sweden, the United Kingdom and Venezuela. Hypercom’s Internet address is [www.hypercom.com][1].

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

VISA VOI Winner

Visa International announced that “Racing With the Dolphins” by Sun-ik Kim from Korea was named as the Grand Prizewinner of the Visa Olympics of the Imagination 23-nation youth art competition. Sun-ik and one of his parents will attend the Salt Lake City 2002 Winter Olympic Games, Utah, USA, as guests of Visa.

Visa Olympics of the Imagination challenged school children, ages 9-13, to use their imaginations to create an original piece of art that represented what the Olympic motto of “Citius, Altius, Fortius” meant to them. The program ran in from late 1999 through June 2000 in most countries. Over 400,000 entries were received.

Sun-ik was selected by renowned Australian artist Ken Done, VOI’s special Ambassador and Artist-in-Residence during the Olympic Games. “I had seen VOI before and I was really struck by the high quality and joy of it,” said Ken. “This piece of artwork reminds people of the absolute ideals of the Games.” His selection was announced at the Awards Ceremony at the VOI Exhibit which is located just outside the IMAX Theatre in Darling Harbour. The children’s winning art will be on display during the entire Olympic Games, from 9:00 a.m. to 7:00 p.m. daily.

The medals were awarded to the children by IOC president Mr. Juan Antonio Samaranch, Olympians Nadia Comaneci, Bart Conner. Olympians Prince Albert of Monaco, Kip Janvrin, Deng Ya Ping, and the Olympic Mascots were also in attendance. A number of Ambassadors, Consuls and other VIP guests attended to congratulate the children.

“The selection of the grand prizewinner was very challenging because all of the artwork is superb,” said P. Scot Smythe, Visa International’s Vice President of Event Marketing. “The exhibit, containing the 33 pieces of artwork, is extremely impressive and it reinforces our belief in the talent and awareness of today’s children in not only the Olympic Movement, but the world they live in. Visa is proud to exhibit to Olympic visitors the talent of our winners.”

Sydney Activities

The winners of the program and a parent or guardian are attending the Sydney 2000 Olympic Games as the guests of Visa in Sydney, Australia, and will be here until September 19. The winners will attend three Olympic events, Men’s Gymnastics, Men’s Basketball and Women’s Beach Volleyball, as well as receive special tours of Sydney, the Taronga Zoo, and the Sydney Aquarium. Additionally, the winners will have the opportunity to put their artistic talents to use when they paint Olympic Athletes on September 17 from 9:30 a.m. to 12:00 p.m. at the Doltone Reception Centre at Darling Island, Pirrama Road, Pyrmont, adjacent to the Sydney Media Centre. A number of Olympic athletes will model for the children and will be available to answer any questions the children may have.

VOI winners were selected from Australia, Bahamas, Barbados, Bonaire, Brazil, Canada, Cayman Islands, China, Czech Republic, Curacao, Finland, Germany, Hungary, India, Japan, Korea, New Zealand, Norway, Poland, Russia, South Africa, United States and Uruguay.

Photos of the winning artwork can be viewed by accessing the VOI Web site . Artwork of past winners and periodic updates on Sydney activities can also be viewed through the Web site. Eighty-two young artists from 28 countries already have attended Olympic Summer and Winter Games as guests of Visa over the past three Olympic Games in Lillehammer, Norway; Atlanta, Georgia, USA and Nagano, Japan. Visa received more than 400,000 entries for the 2000 Olympic Games program. Judging was based on originality, imagination, artistic merit, and how well their art captured the ideals of the Olympic motto, “Citius, Altius, Fortius” (Faster, Higher, Stronger).

VOI History

Originally, the Olympic Games were as much a matter of art as athleticism, with poets, musicians, painters and sculptors competing for medals alongside athletes. Baron Pierre de Coubertin, the founder of the modern Olympic Movement, was keen to revive the link and in 1906 awarded gold, silver and bronze medals for five artistic competitions. Because of the two world wars, these contests were held only sporadically until 1949, when they were dropped altogether and replaced by Olympic cultural programs. Visa began its Olympic Games sponsorship in 1986 and since then has sponsored three Olympic Summer Games (Seoul, Barcelona and Atlanta) and four Olympic Winter Games (Calgary, Albertville Lillehammer, and Nagano). In Sydney, Visa continues its Olympic sponsorship role as a Worldwide Partner as the exclusive card and the official payment system for the Sydney 2000 Olympic Games in Sydney, Australia.

VISA Winners

VISA International announced the 33 winners of the “VISA Olympics of the Imagination,” a 23-nation youth art competition that ran from late 1999 through June of this year. Each of these children and a parent will participate in the ‘2000 Sydney Olympic Games’ in Sydney, Australia, as guests of VISA. The VOI challenged school children, ages 9-13, to use their imaginations to create an original piece of art that represented what the Olympic motto of “Citius, Altius, Fortius” meant to them. The children’s winning art will be on display during the entire Olympic Games following a special opening ceremony on Sept. 15. VOI winners were selected from Australia, Bahamas, Barbados, Bonaire, Brazil, Canada, Cayman Islands, China, Czech Republic, Curacao, Finland, Germany, Hungary, India, Japan, Korea, New Zealand, Norway, Poland, Russia, South Africa, United States and Uruguay. VISA said it received more than 400,000 entries for the 2000 Olympic Games program.

Elloter Terminals

Hypercom has been awarded a US$3 million contract with the Progress Company to support Moscow’s new electronic lottery with terminals. The new electronic lottery, called ‘Elloter’, was created by Moscow-based Progress Corporation and piloted using ‘ePic ICE’ terminals. Under the terms of the agreement, Hypercom ‘ePic ICE 5000′ terminals will be deployed in shops, post offices, metro and railway stations throughout Moscow during the next 24 months.’Elloter’ will feature six games. The first game, called “Happy 4,” calls for lottery players to select and enter four numbers onto the Hypercom card payment terminal. Up to ten four-number combinations can be chosen in any one transaction. The terminal then dials the host system and transmits all of the combinations. An authorization code is sent back to the terminal, which then prints a combination receipt and lottery ticket. Winning numbers will be drawn weekly and televised live. Winning customers present their tickets at an authorized retail outlet. The security code is checked on-line, and winnings are paid out. The lottery will be directed to Moscow’s 8.3 million residents and will benefit various city social and economic programs.

Smart Cards Brazil

Schlumberger Test & Transactions is opening its first South American smart card plant in Brazil in order to meet national and regional smart card demand. Brazil is being transformed into a development and production center of high-tech products, such as mobile phones and PCs. Because they can manage a wide range of applications and significantly reduce the risk of fraud and theft, smart cards are seeing increasing demand in Brazil to replace traditional magnetic stripe cards used by banks, credit card administrators and loyalty programs. Located in Pinhais, in the metropolitan region of Curitiba, the first Schlumberger smart card plant in South America resulted from an initial investment of US$ 5 million. Schlumberger estimates smart cards will grow rapidly from the current base of 160 million cards in use.

Hot Hypercom

Hypercom Corp. said Friday that its stock price’s upward movement and increased trading volume may reflect recent announcements of its ePic ICE4000, an Internet-enabled, hand-held wireless card payment terminal and First of Omaha Merchant Processing’s agreement with ePicNetz, to provide a suite of Internet-based, value-added services to First of Omaha Merchant Processing’s existing merchant portfolio and new merchants are all positive developments.

“Both of our announcements are an indication to customers, the investment community and our employees that our strategy of Internet-enabling the point-of-sale terminal, an initiative we call ePOS-infocommerce(TM), or ePic, is beginning to come to fruition,” said George Wallner, president and chief executive officer of Hypercom Corp.

“We have been building our leadership position in the Internet-enabled POS market and as we stated in our second-quarter 2000 earnings release, we are more than ever convinced that the revolutionary nature of our technology is having broad and far-reaching consequences.

“It is allowing us to leverage alliances and be a catalyst of change within the newly expanding bounds of our industry. It is also allowing us to change the nature of Hypercom’s business towards a higher added-value model.

“In addition, we had stated that our newly created application service provider group, ePicNetz, had started signing up customers and the agreement with First of Omaha Merchant Processing is a prime example.”

Wallner also appeared on CNBC’s “Power Lunch” segment today and talked about the company’s ePic ICE 4000, Internet-enabling the point-of-sale and Internet security.

About Hypercom Corp.

Hypercom Corp. is a global provider of end-to-end electronic payment solutions, including card payment systems, peripherals, network products, software and e-commerce payment solutions that add value at the point-of-sale for consumers, merchants and acquirers.

Headquartered in Phoenix, Hypercom(R) markets its products in more than 100 countries through a global network of affiliates and offices in Argentina, Australia, Brazil, Chile, China, Germany, Hong Kong, Hungary, Japan, Mexico, Russia, Singapore, Sweden, the United Kingdom and Venezuela. Hypercom’s Internet address is [www.hypercom.com][1].

Hypercom is a registered trademark of Hypercom Corp. ICE, ePOSinfocommerce and ePicNetz are trademarks of Hypercom Corp. All other products or services mentioned in this document are trademarks, service marks, registered trademarks or registered service marks of their respective owners.

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

Turkey Online Payments

Oasis Technology, a leading provider of mobile commerce, Internet and real-world ePayment software, and Bankalararasi Kart Merkezi A.S., the Turkish inter-bank credit and debit processing network, announced a series of innovative enhancements designed to further increase the performance of BKM’s Oasis ePayment processing system. To meet the processing demands of more than 45 member banks throughout Turkey, BKM and Oasis worked closely to provide a scalable infrastructure optimized for projected future increases in transaction volumes from real-world, Internet channels and mobile channels.

With a population of 65 million concentrated in urban areas, and the third youngest population in the European region, Turkey is experiencing a boom in the use of online payment instruments and credit and debit traffic. The number of credit and debit cards is currently growing at a rate between 30 and 40%, accounting for 70% growth in transaction volumes and 60% growth in transaction dollar values.

Banks in the region are also continuing to implement lower-cost delivery channels, and preparing to embrace the increasing popularity of Internet and mobile banking. In Europe alone, mobile handset penetration is greater than 50 per cent. IDC also estimates that there will be more than 1 billion WAP-enabled handsets by 2002, presenting an enormous opportunity for banks, both in Turkey and throughout Europe, to prepare their processing infrastructures to support an exponential growth in transaction volumes from Internet and mobile customers.

“BKM’s Oasis installation was already processing more than one million transactions per day, but this number was on the rise,” said Ertugrul Bayraktar, head of applications development at BKM. “To sustain the high rate of growth in the region, we looked to Oasis to further optimize the processing flexibility, speed and volume of our solution. We found that they already had an extensive research and development initiative underway that would allow customers like us to seamlessly scale their systems and boost their performance when necessary. That’s essential in today’s banking world, where customers are performing more transactions than ever.”

To prepare BKM for the continuing demands on their system, the two companies collaborated on a series of benchmarks and system modifications that required only minimal configuration to the existing solution and no additional programming. Today, the BKM system processes more than 160 transactions per second (TPS), which is a six-fold increase over the processing speed in May 1999, the date of original live production. Oasis’ IST/Switch installation currently processes more than 37 million monthly transactions or 1.6 million daily transactions, a level achieved in January 2000 and which continues to increase. This represents a volume increase in excess of 60%.

“It’s essential that when our customers buy an Oasis solution, they have the flexibility and scalability to meet the huge demand in customer-driven transaction volumes,” said Ashraf Dimitri, president and CEO of Oasis. “Bringing a national switch like BKM into live production is a vast undertaking from both sides, but that’s really only the beginning of the relationship. Infrastructures, banking trends and strategies are unique in many regions, and when you have customers in more than 70 countries, your solution has to be ready to meet specialized requirements. We’ve built that ability into the heart of our ePayment technology and that enables us to prepare our customers for the future.”

In the near future, Oasis and BKM will work together to enable the national switch to process high volumes of eCommerce and chip card transactions, and to implement a SET(TM) Secure Electronic Transaction Gateway to process secure SET transactions between customers, merchants and financial institutions in the region.

About Oasis Technology Ltd.

Oasis Technology Ltd. delivers leading mCommerce, Internet and real-world ePayment software products to Internet and traditional banks, e-tailers, retailers, and processors in more than 70 countries worldwide. Today, payment systems powered by Oasis software process more than four billion transactions annually. Oasis ePayment software products are designed for end-to-end payment processing throughout the entire payment lifecycle, bridging the virtual and real worlds of electronic payments. The company’s international client base includes ABN Amro, American Express, The Bank of Montreal, Citibank, Credicard/Redecard Brazil, Diners, Europay, Golden Card (China), MasterCard and Visa International. With corporate headquarters located in Toronto, Canada, the company also operates offices in Kuala Lumpur, Malaysia, Miami, Florida, San Jose, California, and Watford, England, and supports an extensive network of international partners and sales representatives. Oasis is ISO 9001 registered. Visit Oasis online at [http://www.oasis-technology.com][1].

About BKM

BKM A.S. is a service organization that provides domestic clearing and settlement, authorization, switching and card recovery services to all Turkish banks issuing or acquiring debit and credit cards. BKM processes more than 400 million transactions per year using Oasis’ IST/Switch product. Visit BKM online at [http://www.bkm.com.tr][2].

[1]: http://www.oasis-technology.com/
[2]: http://www.bkm.com.tr/

Oasis ePayment to Linux

Oasis Technology, a leading provider of mobile commerce, Internet and real-world ePayment software, announced that it will now offer its leading ePayment technology on the Linux operating system. By extending its ePayment software to Linux, Oasis is providing an end-to-end ePayment solution optimized for the increasing number of businesses adopting the Linux operating system to drive their eBusiness requirements. As a supporter of “open-source” computing technologies like Linux, Oasis further extends an open platform philosophy centered around its flagship UNIX-based ePayment solution, as well as high-performance enterprise platforms like IBM’s Transaction Processing Facility.

Oasis will be demonstrating IST/Switch on Linux, a complete solution for processing high-volume ePayment transactions from any Internet, mobile or real-world channel, at Oasis Connection 2000, Oasis’ 3rd annual partner and client user conference held from August 22nd to August 25th in Toronto, Ontario.

Linux offers all the features of a fully fledged operating system, including true multitasking, virtual memory, shared libraries, demand loading, shared copy-on-write executables, proper memory management, TCP/IP networking and much more. Due to the very nature of its functionality and availability, Linux has become very popular worldwide. In fact, IDC pins Linux growth on its reliability and strength in the Web market and has recently released quarterly data showing that Linux server shipments increased 166 per cent in the fourth quarter of 1999 from the fourth quarter of 1998.

“The software industry is heading into a future that will strongly support open-source standards. When examining the Linux marketplace it’s clear that the demand for it is rapidly increasing,” said Ashraf Dimitri, president and CEO of Oasis Technology. “Based on the increasing number of businesses looking seriously at Linux as a viable operating-system choice for their enterprise-wide business applications, we felt that the time was ideal for us to offer a Linux version of our IST/Switch software.”

During the IST/Switch on Linux demonstration at Oasis Connection 2000, clients and partners will have the opportunity to see how Linux can be used with Oasis’ next-generation ePayment architecture. Enabled with Oasis’ scalable ePayment technology on open Linux platforms, Oasis will show how businesses can evolve their payment processing environment beyond restrictive mainframe legacy systems to provide a fully scalable payment infrastructure optimized for higher volumes of transactions and the rollout of future ePayment services.

The flexibility and openness of Oasis’ ePayment products provide customers with unprecedented flexibility in their information systems. Because Oasis’ ePayment solutions will run on multiple operating systems, firms can use a combination of underlying operating systems and platforms to meet their needs, without having to alter their ePayment solutions.

“We want to give our business partners and customers the flexibility they need to deploy the solution that best meets the requirements of their payment infrastructure. By adding Linux to an already broad range of platforms, Oasis is further enabling global businesses to work with their strategic platform direction,” Mr. Dimitri said. “More supported platforms mean a greater reach in delivering our ePayment products to customers, while easing the transition between the real, Internet and mobile worlds of ePayment.”

Gathering more than 200 clients, partners and ePayment industry experts from over 25 countries, Connection provides an interactive forum designed to drive the evolution of global ePayment technology standards. In addressing the regional needs of so many diverse companies throughout the world, Connection offers the opportunity for Oasis — and its clients and partners — to find innovative new ways to grow their businesses and evolve their payment processing strategies.

About Oasis Technology

Oasis Technology Ltd. delivers leading mCommerce, Internet and real-world ePayment software products to Internet and traditional banks, e-tailers, retailers, and processors in more than 70 countries worldwide. Today, Internet payment systems powered by Oasis software process more than four billion transactions annually. Oasis Internet payment software products are designed for end-to-end payment processing throughout the entire payment lifecycle, bridging the virtual and real worlds of electronic payments. The company’s international client base includes ABN Amro, American Express, The Bank of Montreal, Citibank, Credicard/Redecard Brazil, Diners, Europay, Golden Card (China), MasterCard and Visa International. With corporate headquarters located in Toronto, Canada, the company also operates offices in Kuala Lumpur, Malaysia, Miami, Florida, San Jose, California, and Watford, England, and supports an extensive network of international partners and sales representatives. Oasis is ISO 9001 registered. Visit Oasis online at [http://www.oasis-technology.com][1].

[1]: http://www.oasis-technology.com/

iBanking

Oasis Technology, G&D Security Card Systems and CIT will release this morning an Internet banking solution powered by PKI security on a smart card. The new solution, ‘iBanking’, is designed to provide financial service and investment customers with a full range of retail, corporate and investment banking services protected by the industry’s most advanced PKI security. The solution combines Oasis’ ePayment technology, CIT’s PKI-based security architecture and G&D’s smart card infrastructure.

iCard

Toronto-based Oasis Technology will announce this morning the launch of a new product suite offering a complete, customizable Internet card issuing solution. ‘iCard’ drives a virtual credit card solution that offers dynamic notification messaging to any Internet or mobile device, as well as user-driven authorization for large eCommerce and business-to-business transactions. ‘iCard’s’ functionality enables cardholders to define and customize their payment options according to their own preferences for card expiry dates, credit limits and funding sources, including cash, bank accounts or existing plastic credit cards. Users can also closely monitor their transactional histories from any mobile device. Furthermore ‘iCards’ are compatible with server side wallets and other payment storage devices including multi-application smart cards and SIMs on GSM-compatible mobile handsets.