eConnect Ousts CEO

CA-based eConnect, developer of the “eCashPad” terminal and a company dogged by investor lawsuits and SEC problems, announced Thursday that Chairman/CEO Thomas Hughes has resigned and has no further connection to the company and has been replaced by Christopher Jensen as Acting CEO. eConnect Inc. is focused on delivering next-generation e-payment solutions. The Company develops proprietary hardware, software and transaction-processing services and believes that hardware-originated transactions are the future of Internet commerce and will benefit both the customer and the merchant.

E-CASH-PADS

eConnect has teamed with Electronic Valet to facilitate cash movement from the USA to Mexico and point to point cash movement within Mexico
from homes and walk in locations. The eConnect “eCashPad” will be deployed to tens of thousands of Mexican homes along with a computer and ISP service and will be found at self service retail walk in locations. The point to point eCashPad supported cash movement service will also enable government sanctioned home wagering gaming applications.

E-CONNECT VISA

Bank eConnect has signed with AAA America Direct Inc. to market the Bank eConnect guaranteed issued VISA card to the sub-prime marketplace. Through its network of over 1,500 telesales companies, AAA America Direct has access to over 75,000 individual telesales representatives. Bank eConnect is held by eConnect Financial, a division of eConnect that is the distributor of the eCashPad and the Bank Eyes Only service.

Bank eConnect

Atlanta-based Alan J. Conner & Associates has partnered with eConnect to form Bank eConnect which will act as a depository for eCashCard bank accounts and to effect payment to any payee for the eCashCard Bank “eConnect” customers, and to develop the business of marketing credit cards and credit insurance to the sub-prime credit marketplace. The eCashCard is a value added Smart Card. It is similar to a calling card that can be used to store cash value that can be replenished any time.

eCashPad Launch

Pacific Nakon is jointly working with eConnect to mass launch the eCashPad in conjunction with the ICasino Pay software to meet the needs of the present 6,000 Internet casinos to be paid with on-line cash. 1,000 eCashPads will be deployed at walk-in locations in major cities. Prepaid cards can then be purchased at these locations and the consumer can then use the eCashPad and the prepaid card to effect cash payments to a variety of recipients.

E-CASH-PAD SMART CARDS

Performance Technology announced the pilot using Gemplus GemExpresso lite smart chip and magnetic stripe cards (same cards used by leading US Banks and retailers such as First USA, Fleet, Providian, and TARGET, as part of the Smart Visa Program) with the eConnect (OTC Bulletin Board: ECNC) eCashPad and is scheduled to kick off April 8, 2002. The cards have a Europay, MasterCard, Visa (EMV) compliant debit/credit application, loyalty application, and other e-consumer services applications from Gemplus. Consumers will use their PlayersCash cards for payment, loyalty, and security at http://www.offtrackbettingonline.com and other OTB services. eGS, a gaming service subsidiary of eConnect, will service the pilot in partnership with Performance Technology. Pilot participants will access their account balance information, transaction history, and be able to load their card through the http://www.cashmover.net web site. Once loaded the value added PlayersCash card will then be used with the eCashPad to affect same as cash payments at participating OTB sites. “Gaming requires same as cash payments and since the usage of PIN debit over the internet with processing through ATM networks is not presently supported, the usage of the value added PlayersCash smart card and the eCashPad is a great alternative payment solution,” said Mr. McRae, CEO of Performance Technology. The eCashPad is a $59.95 full service terminal for home Internet usage and enables credit card swipes at Bank Eyes Only web merchant sites. Each eCashPad is injected with a working key which will enable same as cash Internet PIN debit at participating Bank Eyes Only sites once Regional ATM card networks support ATM card and PIN Internet usage. Same as cash at participating web merchant sites can also be effected by PlayersCash smart card usage at web merchant sites. Information on the eCashPad can be found at http://www.ecashpad.tv. About Performance Technology: Performance Technology, Inc. headquartered in San Francisco, CA is a Management and Technology consulting firm. Since 1991 PT has helped small to fortune 100 organizations through comprehensive analysis determine “where they are (point A),” focus their goals and objectives; “where they want to be (point B)” and all the necessary steps in getting from point A to Point B. (http://www.perfweb.com) In 2000 PT started a subsidiary named CashMover.net that provides private label payment, loyalty, and security magnetic stripe and smart chip based cards along with issuing processing services. (http://www.cashmover.net)

eConnect Dividends

eConnect announced that eConnect will issue one share of eGS stock per 100 shares of eConnect stock to shareholders of record as of April 3, 2002. eGS intends to apply to the American Stock Exchange to go public at a later date this year.

“eGS is currently a privately held subsidiary of eConnect that has been formed with the strategic goal of positioning itself as an Internet agent for future state regulated and licensed games of chance and skill,” said eConnect Chairman and Chief Executive Officer Thomas S. Hughes. “These games will be played from home at Internet web sites that are state licensed or state run with same-as-cash devices such as the eCashPad. eGS anticipates generating an agent fee for various services.”

eGS currently has a service contract with Bentley Communications (OTC Bulletin Board: BTLY), which is focused on establishing same-as-cash services for its Off Track Betting On Line.com web site. As previously announced, Bentley has placed an order with eConnect for 100,000 eCashPads to be delivered this year.

The eConnect eCashPad will deliver same-as-cash payments through the service of PlayersCash smart card as developed by Performance Technologies. Consumers will be able to use their eCashPad to load their PlayersCash smart card through CashMover.net. This will give consumers access to their personal checking account and enable them to move funds to their PlayersCash smart card.

eConnect shareholders should not call Corporate Stock Transfer, as the eGS shares are not currently registered under the Securities Act of 1933 and will be issued to eConnect shareholders by eGS. If you have eConnect shares listed in street name with your broker, then the eGS shares will be issued to your broker, who will then distribute the shares to you. If you have your name and address listed at Corporate Stock Transfer, then eGS will directly mail your eGS stock certificate.

Smart Gaming Card

San Francisco-based Performance Technology is gearing up to begin a pilot using the PlayersCash stored value smart chip and magnetic stripe cards. The pilot will consist of 300 participants using their eConnect eCashPad, inserting their PlayersCash card in their eCashPad and then using a Web site to load value from their checking account. Consumers can “Cash Out” to their PlayersCash card and funds will be moved from the merchant bank account to the card bank account. OffTrackBettingOnLine.com was started by Bentley Communications to address the market of same as cash Off Track Betting gaming, and will be the participating gaming company in the pilot.

eConnect’s SecretAgent

eConnect and Information Security Corporation announced an agreement that will allow combination of the financial data security of eConnect’s eCashPad with the personal communication and business data security of ISC’s SecretAgent software.

eConnect is a leader in the implementation of technologies, products and services that enhance the way businesses and consumers benefit from e-commerce. SecretAgent is a product by ISC, a partner with AT&T in offering state-of-the-art data security software and toolkits.

The agreement brings together three leaders in Internet security — eConnect, ISC and GemPlus, an issuer of smart cards.

eConnect’s eCashPad, a hybrid magnetic stripe reader, PINPad and smart card connector, is a first-of-its-kind hardware approach to safer Internet commerce that prevents credit card data from being stored at merchant web sites. Instead the financial information is processed through eConnect’s Bank Eyes Only(TM) system.

SecretAgent focuses on personal communications and data exchange by manually securing files and sending encrypted e-mails. Additional features include automatic encryption of files, user authentication and verification, and digital signatures for document authenticity.

The eCashPad will read the GemPlus smart card, and SecretAgent will process the smart card usage, then utilize public/private key certificates to encrypt and decrypt messages. The public and private keys are also used to authenticate the sender of the data.

SecretAgent normally sells for $179.95 to government and commercial organizations. Under the agreement announced today, eCashPad owners will be able to purchase SecretAgent for $74.95 at the SecretAgent Bank Eyes Only website, or by contacting directly at 800-203-5563.

The eCashPad, which can be used with laptop or desktop computers, allows web merchants to greatly reduce their risk of fraud and charge backs, while customers enjoy a far greater level of security for their confidential financial information on the Internet.

The agreement to join with ISC in offering SecretAgent comes as eConnect has emerged from its research and development phase and begun to actively market its eCashPad and Bank Eyes Only(TM) system to consumers and Internet merchants. Currently, eCashPad television ads are debuting initially in the Los Angeles and New York markets.

About eConnect:

eConnect Inc., of San Pedro, California, is focused on deploying the eCashPad, a first-of-its-kind, full-service home Internet terminal and a solution for safe and efficient Internet commerce. The Company processes the incoming eCashPad transactions and generates a fee per usage from the web merchant. Future services of the eCashPad will be ATM card with PIN and smart card loyalty programs. For more information, see or .

About Information Security Corporation:

Founded in 1989, ISC specializes in the design and development of cryptographic applications that conform to all Federal and industry standards. ISC’s popular products include SecretAgent Version 5.5, SecurePhone, several cryptographic development toolkits, and the CDSA 1.2 CSP distributed by Hewlett-Packard under the Praesidium brand name. AT&T has marketed ISC’s products since 1993. For more information, see

eConnect Ships Terminals

eConnect began delivering eCashPad USB terminals to participants in a 30-day tryout of the high-security devices designed to make Internet commerce safer for consumers.

The eCashPad USB units are the first commercially ready devices that support MSR, secure PIN and Smartcard features for home Internet financial transactions.

eConnect, which plans to distribute thousands of eCashPad USBs over the next few weeks for the trial, expects to generate revenues from sales of eCashPad USBs to consumers and from revenues from eCashPad USB usage at a growing list of sites using its Bank Eyes Only system.

The $59.95 eCashPad USB is a full-service credit card, ATM card and Smartcard hardware device that can be attached to a laptop or desktop computer with a USB port and enables Internet users to avoid giving their credit card data to web merchants. Instead, consumers’ credit card data is processed by eConnect’s Bank Eyes Only system.

When consumers swipe their credit card in the reader, the transaction is received by eConnect and the VeriSign gateway for credit card authorization.

Because the Bank Eyes Only transactions are considered as credit card-present payments by participating banks, they result in reduced charge-backs because they result in fewer disputed purchases. Such transactions also are fast and safe both for the consumer who originates a transaction and for the web merchant who receives the payment.

Sygenics.com provides web merchants with a quick and easy integration of the Bank Eyes Only system at the merchants’ web site.

eConnect has been in ongoing discussions with an ATM card network to begin a PIN pilot in early first quarter 2002. It also has engaged a member bank to sponsor merchants to participate in a pilot of online debit with ATM card and PIN payments using the eCashPad USB system.

eConnect expects to launch a Smartcard loyalty program with participating brick-and-mortar merchants who also operate e-commerce web sites. Under the program, consumers will receive loyalty points from web merchants to use their eCashPad USB at the merchants’ web site to effect a safe and efficient credit card-present Bank Eyes Only transaction.

The goal of the Smartcard loyalty program is to encourage Internet consumers to use their loyalty points at the merchants’ walk-in stores and to continue to shop at the merchants’ web sites using eCashPad USB-originated payments.

eCashPad & VeriSign

VeriSign, Inc., the leading provider of Internet trust services, announced that eConnect, developer of eCashPad payment technologies, has signed an agreement with VeriSign to provide gateway services for its credit transactions and PIN entered debit transactions.

eConnect’s eCashPad terminal, similar to a supermarket swipe card terminal, will enable customers to make Internet purchases using credit cards or PIN entered ATM cards. The information in these transactions is encrypted and sent directly to the eConnect Bank Eyes Only System through VeriSign’s payment services gateway. No personal card data is stored at the merchant’s Web site.

Under the terms of the agreement, Web merchants wishing to be paid through an eCashPad “card present” credit transaction or PIN entered debit transaction, will first sign on with VeriSign which will then provide payment gateway services for eConnect’s “card present” originated transactions.

“VeriSign provides secure payment gateway services for the broadest range of Internet payment solutions,” said Chris Wynne, vice president of VeriSign’s payment services business. “We’re excited to work with eConnect to enhance its eCashPad services and enable more people to use the Internet with confidence.”

“This agreement gives eConnect the industry’s strongest gateway partner to ensure the security of our customers’ transactions as eConnect signs on Bank Eyes Only merchants,” said Thomas S. Hughes, chairman and CEO of eConnect. A Bank Eyes Only transaction is when no personal financial card data is stored at the merchant’s Web site.

eConnect’s eCashPad is a secured payment-processing device which connects to most computers and is designed to allow easy and secure credit card present transactions on the Internet. At $59.95, the eCashPad device represents a fundamental shift in Internet commerce whereby home devices will enable card present credit card payments and ATM card with PIN entry cash payments.

VeriSign delivers a real-time, highly scalable and reliable Internet payment platform that enables companies to authorize, process, and manage multiple payment types (including credit cards, debit cards, purchase or procurement cards, Internet checks and automated clearing house transactions), multi-currency options, and different payment models online. To safeguard the transmission of data, VeriSign uses the latest secure SSL encryption technology to ensure data safety.

About eConnect

Based in San Pedro, Calif., eConnect Inc. is focused on delivering next-generation e-payment solutions. The company develops proprietary hardware, software and transaction processing services.

About VeriSign

VeriSign, Inc. is the leading provider of trusted infrastructure services to Web sites, enterprises, electronic commerce service providers and individuals. The company’s domain name, digital certificate and payment services provide the critical Web identity, authentication and transaction infrastructure that online businesses require to conduct secure e-commerce and communications. VeriSign’s services are available through its Web sites (http://www.verisign.com) or through its direct sales force and reseller partners around the world.