Hypercom Changes

George Wallner will assume the title of president and CEO of Hypercom this morning while Albert Irato will become chairman of the board of directors. Wallner, who had been chairman and chief technologist, founded Hypercom and has been its chief architect over the years. With this organizational change, he will be responsible for all business activities of the company. Wallner will continue to directly oversee research and development activities. Irato, who is 61, had been president and CEO since 1992, steps into the chairmanship role as part of a succession plan. He will continue to provide counsel and support to the CEO. In addition to these changes, Hypercom is combining its US/Canada POS group with its International POS operations to create Hypercom Global POS, a streamlined organization that will be responsible for all payment product sales and support.

Hypercom Korea

KS VAN, Korea’s leading service provider for issuer and acquirer banks, confirmed yesterday it will deploy 20,000 Hypercom ‘T77G-GS’ high-performance card payment systems to support 18,000 retail merchants throughout Korea. Hypercom’s card payment systems will process approximately 3 million credit, debit and smart card payment transactions per month. The deployment represents one of the largest ever conducted in the South Korean marketplace. It is expected to be completed within 12 months of a phase-one pilot program consisting of 2,000 terminals.

PKI Smart Cards

eFed, government’s premier Commercial-Off-the-Shelf-Web-based procurement solution; Entrust Technologies Inc., global leader in solutions that bring trust to e-business; and NDS Americas Inc., a world leader in advanced smart card-based security and technology, yesterday demonstrated the first fully integrated smart-card-based PKI procurement solution for the federal marketplace. The demonstration is a key part of a total government initiative, led by the three, to integrate smart card-based authentication, authorization, confidentiality, and accountability into a total PKI procurement solution.

The demonstration incorporates integration of the cryptographic smart card within the PKI to establish trust relationships, use of X.509 certificates for strong mutual authentication of buyers and sellers, and secure payment transactions using the government smart purchasing card and applications. Moreover, it shows that it is possible, today, to meet the guidelines set forth in the Paperwork Reduction Act and other US Government initiatives.

eFed also announced that it had chosen Entrust Technologies Inc. and NDS Americas as strategic partners in support of its combined efforts to demonstrate enhanced security in electronic transactions over the internet. The three strategic partners will provide highly secure and scaleable solutions for government as well as private enterprise applications.

The demonstration and announcement occurred at e-GOV, a government-focused electronic commerce conference and exposition held at the Washington Convention Center in downtown Washington, D.C. throughout this week

“With our strategic partners, we have successfully demonstrated that PKI is a viable solution for the government’s need to greatly improve security for electronic transactions over the Internet,” said Bob Sturm, Vice President of Business Development for EPI, the developers of eFed. “As government moves more towards using the Internet for all forms of electronic business transactions, it is important that agencies have a reliable and proven method of assuring that buyers are who they say they are and that financial transactions are transmitted with the appropriate level of security required by both civilian and DoD agencies.”

“This is the first real life implementation of an integrated Smart Card and PKI procurement solution,” said Gary Moore, Entrust’s Federal Technical Advisor. “The solution provides a range of implementation capabilities from Web based certificates to fully managed PKI certificates and addresses low value to very high value transactions. We are pleased to be working with both partners to provide strong and portable authentication means to the procurement process.”

“Smart card technology is an important enabler for public key authentication because of its portability and use of a secure active device”, said Moshe Kranc, Director of New Product Development for NDS Ltd. “The evolution of smart card technology, with its use of plug-compatible COTS components that interoperate with industry-standard PKI platforms, provides government IT decision-makers with a portable digital trust model, including certificate-infused smart cards, to secure transactions conducted over the open Internet.”

Concurrent with demonstrating the PKI capabilities in the next generation of eFed, EPI also announced two additional features of the next version of the software. They are to add level 2 and level 3 support for financial transactions and to ensure a new level of data interoperability among government agencies.

“We are pleased to be taking a leadership role in three important areas of e-commerce,” Sturm said. “We see managing the purchase card transaction lifecycle, providing enhanced levels of security and ensuring data interoperability as three key areas to the future success of all e-commerce.”

eFed is the only off-the-shelf web-based procurement solution that makes it fast and easy for federal, state and local and commercial buyers to compare and purchase products and services with maximum accuracy and minimum risk. With 35% of the federal government deployments, eFed is the market leader in federal government Internet procurement software and may be purchased off of the GSA Schedule, NASA SEWP II-UNISYS and NAVY ITSS-SAIC contracts.

About Entrust Technologies

Entrust Technologies Inc. is the global leader in providing products and services that allow e-businesses to manage trusted, secure electronic transactions over today’s advanced networks, including the Internet, extranets and intranets. Since 1994, Entrust Technologies has been providing award-winning solutions to global enterprises, government entities, small to mid-sized businesses and individuals. Over four million Entrust Technologies users have been licensed with digital certificates to date. Entrust Technologies Inc. is headquartered in Plano, Texas with offices in Canada, the United States, the United Kingdom, Switzerland, Germany and Japan. For additional company information please visit http://www.entrust.com.

About NDS

NDS provides open solutions that enable the delivery of entertainment and information to TVs and PCs. The company supplies the leading technology, products and services to enable businesses to profit from the emergence of interactive digital television and its intersection with the Internet via data broadcasting and e-commerce. NDS’ solutions are built on its recognized leadership in smart-card based security, encryption, video compression and digital software control and management systems and are supported by its extensive systems integration and customer support capabilities.

NDS, headquartered in the UK with offices world-wide, is providing its advanced technologies, products and services to many of the current and planned cable, satellite and terrestrial broadcasting systems around the world. Over 12 million subscribers around the globe use NDS conditional access systems to receive Pay-TV satellite and cable services. The company continues to make a major commitment to R&D, with over 700 of its 1,500 plus employees dedicated to its pioneering development work at research centers in Israel, the U.S. and the UK. NDS is a subsidiary of News Corporation (NWS), a leading global media company. NDS is on the World-Wide-Web at: http://www.ndsworld.com.

More information about AccessGear(TM) is available at www.securegear.com, or send an email inquiry to [email protected] NDS Americas, Inc., located in Newport Beach, CA, handles relationships with a wide range of customers and partners in the United States.

About eFed

eFed is engineered by EPI, a privately-held company based in Reston, Virginia. Top EPI executives were among the first pioneers of electronic commerce in the federal marketplace having developed the first Web-based electronic system including EDI integration for government procurement in 1994. Further information about eFed is available by contacting Lorie Townshend at 877-333-3665 or visit us at www.elpress.com.

eFed is a trademark of EPI. Entrust is a registered trademark of Entrust Technologies in certain countries. All Entrust product names are trademark of Entrust Technologies. AccessGear is a trademark of NDS Ltd. All other company and product names may be trademarks or registered trademarks of their respective owners.

WWW Commerce

Explosive growth of the Internet will thrust Internet purchases sky high. In recent market research, International Data Corporation reports the amount of commerce conducted over the World Wide Web will top a staggering $1 trillion by 2003.

“Because of the increase in the number of people who make purchases over the Web, the growth of the average transaction size, and the adoption of the Web as a viable vehicle for business procurement, Internet commerce will grow substantially,” said Carol Glasheen, director of primary research and market models at IDC.

According to IDC, the number of users who make purchases over the Web will jump from 31 million in 1998 to more than 183 million in 2003. Furthermore, there is ample opportunity to expand the 183 million as it will represent only 36% of all Web users.

Although the number of Web users is increasing in many foreign countries, Internet commerce is currently U.S.-centric. In 1998, 56% of Web users resided outside the United States; however, non-U.S. Internet commerce accounted for only 26% of worldwide spending. By 2003, IDC estimates 65% of Web users will be international, and the United States will account for less than half of worldwide Internet commerce.

“There are several reasons for the U.S. focus today,” Glasheen said. “For example, home PC penetration and the percentage of business PCs that access the Internet are much lower outside the United States. Additionally, the smaller number of users and slightly smaller transaction sizes outside the country generate smaller amounts of commerce. But this is changing as Europe and other regions quickly accept the Web.”

IDC’s report, The Global Market Forecast for Internet Usage and Commerce (IDC #B19262), sizes the market for Internet commerce, including the number of users and devices accessing the Web, the value of commerce transactions per user, and the number of pages on the Web from 1995 to 2003. The forecast is segmented by region (the United States, Canada, Western Europe, Asia/Pacific, Japan, and the rest of world) and user segment.

The market sizings and forecasts included in the report come from IDC’s Internet Commerce Market Modela, which is based on more than 40,000 primary research interviews annually in 31 countries and on IDC’s supply-side forecasts for PCs, network computers, modems, and other technologies. This model offers a unique perspective on the Internet and provides a detailed understanding of Web demographics and behaviors.

To order a copy of the report, contact Sue Beauregard at 1-800-343-4952, ext. 4774 or at [email protected]

About IDC

International Data Corporation is the information technology industry’s most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC provides data, analysis, and advisory services to the world’s leading IT suppliers as well as IS professionals in finance,

insurance, entertainment, advertising, consumer goods, and publishing. IDC’s research and opinions are based on the results of more than 300,000 end-user surveys, in-depth competitive analysis, broad technology coverage, and strategic analysis. IDC is committed to providing global research with local content through its 500 analysts in more than 40 countries worldwide. Additional information on IDC can be found on its Web site at http://www.idc.com.

TPII Supports Visa Cash In Tokyo

IFS International announced that its TPII software has been licensed to provide the EFT management system to support the use of Visa Cash smart cards for Visa International’s large-scale smart card program in Tokyo, Japan.

Located in Shibuya, a major shopping and entertainment district of Tokyo, the program will initially allow cardholders to use disposable and reloadable Visa Cash cards and a multifunction card combining a reloadable Visa Cash function and a Visa Smart Credit application.

The TPII system in Shibuya is now in live production on behalf of Visa International and the Shibuya Smart Card Society whose members include 10 Visa member credit card companies and 10 Japanese banks. It is anticipated that 100,000 Visa Cash Cards and multifunction cards will be issued over an 18 month period and the cardholders will be able to make low-value purchases at over 2,000 locations in the district.

Mr. Hitoshi Kondo, Vice President of Visa International in Japan, stated, “IFS’ TPII system provided the functionality that was needed to allow our members’ Visa Cash card holders to conveniently reload currency on their cards. The TPII system also allowed members the freedom to select the load device manufacturer of choice providing access to customer operated reload machines suited for specific environments. We are pleased with the overall performance of the system and IFS’ willingness to participate in this project.”

IFS International, Inc. and Network Controls International, Inc. are divisions of IFS International, Inc. which has headquarters in the USA and subsidiary offices in the USA, UK, Singapore, Australia and Germany.

IFS International, Inc. develops, markets, and supports software products for the Electronic Funds Transfer (EFT) market. IFS International’s TPII suite of software products provide support for ATM, POS, network switches, smart-card, card management, bank teller platform, home banking and call-centre solutions. NCI, Inc. provides complementary products, such as NCI Business Centre, an enterprise-wide retail bank branch solution designed to deliver traditional and Internet/Intranet based transactions.

Singapore Taxis

Hypercom Corporation announced this week that it is deploying its Ascendent Advanced Transaction Processor software with credit card authorization interfaces to support customer card payments for Comfort Transportation PTE Ltd.’s fleet of 10,000 taxis. Hypercom’s Ascendent ATP and credit card authorization module will allow Comfort Transportation customers to pay for trip fares with both smart cards and credit cards, a solution that no other cab company in Singapore offers. Comfort Transportation is the largest taxi company in Singapore. Hypercom is a global provider of electronic payment solutions.

Hypercom’s Ascendent ATP software will provide authorization processing for American Express, JCB, Diners Club, VISA, MasterCard, the Comfort Transportation corporate card and ATM cards, giving customers a convenient payment solution.

“Ever-increasing competition in the transportation industry demands that a company have a distinct advantage over its competitors,” said Tay Huey En, senior manager, Comfort Cablink. “With Hypercom’s Ascendent software, we can offer our customers both credit and smart card payment transactions. These are options that no other cab company in Singapore offers.”

“Sophisticated merchants and financial institutions recognize that the need to offer innovative, value-added solutions at the point-of-sale has never been stronger,” said Jairo E. Gonzalez, president, Hypercom International. “We applaud Comfort Transportation’s effort to do just that. Their selection of Hypercom’s ‘next generation’ products that support smart cards and other new payment applications is a clear endorsement of our solutions.”

Hypercom’s Ascendent ATP is a fast, efficient high-performance server-based transaction authorization software solution designed to maximize customer options and streamline end-to-end on-line transaction processing. Ascendent ATP authorizes, captures, reformats and routes critical data that gives acquirers and merchants feature-rich transaction processing. Hypercom Ascendent software supports Microsoft Windows NT(TM) and various UNIX implementations such as Sun Solaris, and allows transaction processors to preserve host integrity while adding more applications and transaction types. Hypercom’s approach lets merchants quickly offer new functions and advanced payment products such as chip cards or value-added services, such as loyalty programs.

Singapore-based Comfort Transportation has played an instrumental role in transforming Singapore’s taxi industry from freewheeling pirate taxi outfits in the early 1970s to a well-organized commuting system today. With its fleet of 10,000 taxis, Comfort Transportation is Singapore’s largest cab company, transporting over 350,000 passengers daily and commanding 60% of the local market. Comfort’s large taxi fleet generates economies of scale that have made possible continual customer service improvements, including cost-effective investments in state-of-the-art computer equipment such as the revolutionary Comfort CabLink automated booking system.

Hypercom Corporation (NYSE:HYC) is a global provider of electronic payment solutions, including multi-functional point-of-sale terminals, peripherals, network products, Ascendent payment and transaction software and Internet-based and electronic commerce payment solutions. On a global basis Hypercom delivers the services and technology infrastructure required to quickly integrate and deploy new payment applications. These applications provide competitive value-add programs, improved business performance and low total cost of ownership.

Headquartered in Phoenix, Arizona, Hypercom markets its products in more than 70 countries through a global network of affiliates and offices in Argentina, Australia, Brazil, Chile, China, Hong Kong, Hungary, Japan, Mexico, Russia, Singapore, Sweden, the United Kingdom and Venezuela. Hypercom’s Internet address is www.hypercom.com.

ICE5000 & Mobitex

BellSouth Wireless Data announced this week that the Hypercom ICE 5000 Mobile, a touch-screen wireless point-of-sale terminal, is now enabled for use with Mobitex, the core of the nationwide BellSouth Intelligent Wireless Network. The compact, portable ICE 5000 Mobile can wirelessly process credit, debit and smart card transactions from various places, without depending on phone lines.

The ICE 5000 Mobile, a member of Hypercom’s ICE (Interactive Consumer Environment) family of terminals, features a user-friendly, touch-screen interface that supports traditional electronic payment functions. A range of new value-added transactions, including customer loyalty programs and electronic receipt capture, are also available. The terminal is equipped with a wireless modem, which enables the transmission of information over the nationwide BellSouth Intelligent Wireless Network. Based on the de-facto international standard for wireless data communications, the core of the BellSouth Intelligent Wireless Network provides extensive and seamless coverage nationwide, high reliability, low latency, industry-leading battery saving protocols and other key features. “The BellSouth Intelligent Wireless Network and Hypercom ICE 5000 Mobile give merchants a powerful wireless solution that helps them unlock new sales opportunities by bringing payment directly to the customer,” said Janet Boudris, senior vice president, strategic marketing, BellSouth Wireless Data. “With coverage currently available in ninety-three percent of the urban U.S. business population, merchants using the ICE 5000 Mobile terminal have the flexibility to conduct business throughout the country.” To process a payment, an ICE 5000 Mobile user simply selects the transaction type (debit, credit or smart card) on the terminal’s graphic touch screen, swipes the payment card, enters the information, then turns the terminal to the customer, who enters a PIN number or signs on the screen. The information is wirelessly transmitted over the nationwide BellSouth Intelligent Wireless Network, and approval is received within seconds. “Using the Hypercom ICE 5000 Mobile, merchants can streamline their remote transaction processing, improve customer service, and reduce operating costs,” said John Marshall, senior vice president, sales, Hypercom.

“Because the core technology of the nationwide BellSouth Intelligent Wireless Network ensures speedy and reliable transmission, merchants will always be ready to take advantage of the power of wireless point-of-sale.” About BellSouth Wireless Data BellSouth Wireless Data, L.P., headquartered in Woodbridge, N.J., is an expert in providing proven wireless data communications solutions that eliminate the barriers between critical information and mobile users. The company, a winner of the prestigious Sears Innovation Source of the Year and Partners in Progress awards, delivers a competitive advantage and increases personal productivity for aggressive, innovative companies and individuals leveraging communications technologies to meet their strategic goals. BellSouth Wireless Data operates its wireless data service throughout the United States, covering more than 93 percent of the urban business population located in 492 Metropolitan Statistical Areas (MSAs) and non-MSAs with a total population of 200 million people.. BellSouth Wireless Data is a subsidiary of BellSouth Corporation. BellSouth Corporation provides telecommunications, wireless communications, cable and digital TV, directory advertising and publishing, and Internet and data services to nearly 34 million customers in 19 countries worldwide. E-mail: [email protected] Web site address: www.bellsouthwd.com..

About Hypercom Corporation:

Hypercom Corporation (NYSE: HYC) is a global provider of electronic payment solutions, including multi-functional point-of-sale terminals, peripherals, network products, Ascendent payment and transaction software and Internet-based and electronic commerce payment solutions. On a global basis Hypercom delivers the services and technology infrastructure required to quickly integrate and deploy new payment applications. These applications provide competitive value-add programs, improved business performance and low total cost of ownership.. Headquartered in Phoenix, Arizona, Hypercom markets its products in more than 60 countries through a global network of offices and affiliates in Argentina, Australia, Brazil, Chile, China, Hong Kong, Hungary, Japan, Mexico, Russia, Singapore, the United Kingdom and Venezuela. Hypercom’s Internet address is www.hypercom.com..

New AmEx Deals

American Express confirmed Monday that is has signed an agreement with Millennium BIG Bank SA to issue American Express cards in Poland. The new Polish card will be denominated in Polish Zloty. Millennium BIG Bank currently has 57 branches and expects to open about 200 additional branches by 2002. Meanwhile Credit Saison has launched its second co-branded American Express card in Japan. The new ‘WOWOW Saison American Express Card’ is the result of a partnership between Credit Saison and Japan’s Satellite Broadcasting Services. Credit Saison also issues the ‘Yucho Saison American Express Card’, a co-branded card with the Japanese Ministry of Posts and Telecommunications. Credit Saison was the first Japanese credit card issuer to offer cards on four networks including VISA, MasterCard, JCB and American Express. The firm has about 11.4 million cards-in-force in Japan.

ICE 5000 in Brazil

Hypercom Corporation previewed an ICE 5000 interactive, touch-screen terminal device that will allow consumers throughout Brazil to access, view or print personal checking, savings or investment account information, as well as transfer or download funds to smart cards. Designed specifically for banks that want to provide fast, convenient access to their customers virtually anywhere and anytime, the compact Hypercom solution can be deployed on a large-scale basis in shopping malls, airports, train and bus stations and other high-traffic areas.

“Hypercom’s ICE 5000 banking inquiry and transfer system will for the first time allow banks to deploy compact customer banking devices virtually anywhere, and that’s a win-win for the banks and their customers,” said Jairo E. Gonzalez, president, Hypercom International. “We believe this Hypercom solution will dramatically enhance consumer banking in Brazil by providing greater accessibility and convenience.”

Hypercom’s ICE 5000 banking system incorporates a powerful, multi-function touch-screen terminal with high-speed thermal printer, paper cutter, and Hypercom’s new FastPOS(TM) 9600 bits per second (bps) modem. Hypercom’s ICE 5000 provides a highly interactive and intuitive user interface that allows the support of complex transactions with minimum user training. When used in conjunction with the recently released Hypercom(R) Ascendent(TM) Server Environment, the ICE 5000 also supports online advertising and electronic signature and receipt capture, storage and retrieval.

Hypercom Corporation (NYSE:HYC) is a global provider of electronic payment solutions, including multi-function point-of-sale terminals, peripherals, network products, Ascendent(TM) payment and transaction software and Internet-based and electronic commerce payment solutions.

On a global basis Hypercom delivers the services and technology infrastructure required to quickly integrate and deploy new payment applications. These applications provide competitive value-added programs, improved business performance and low total cost of ownership.

Headquartered in Phoenix, Arizona, Hypercom markets its products in more than 70 countries through a global network of affiliates and offices in Argentina, Australia, Brazil, Chile, China, Hong Kong, Hungary, Japan, Mexico, Russia, Sweden, Singapore, the United Kingdom and Venezuela. Hypercom’s Internet address is [www.hypercom.com][1].

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

Fee Feeding

According to another study, to be released next month, fee-based revenues earned by banks worldwide will surpass interest earnings within 3 years. Currently the growth in fee income within the bank credit card industry is outpacing the growth in card interest revenues. The forthcoming study by Killen & Associates projects the growth of the Internet and advances in on-line interconnected financial services will further drive the new market for fee-based services. Killen says banks will still conduct their bread-and-butter business, taking in moneys on deposit and making loans, but customers, both corporate and retail, will see new and expanded fee-based service offerings. These will be in on-line cash management, investment, asset management, credit card, EBPP, mortgage, and retail investment services, as well as in upgraded and expanded trade payment and letter of credit products and services. Killen concludes that the risk-reward model for fee-based income far surpasses that of the loan marketplace.

Fun Miles Works

Convincing employees about the value of merchant loyalty programs can provide a giant boost for program success, Fun Miles Antilles Acting Managing Director Udi Lesser told attendees of an industry conference last week. “If your employees are personally convinced that your company’s product is the best–and that your loyalty program provides value for your customers–they can do miracles,” said Lesser in a training and motivation speech entitled Using Employees to Promote Your Loyalty Program.

Lesser advised merchants to devise comprehensive loyalty program implementation plans prior to beginning, with goals for the programs clearly spelled out. A key plan element is obtaining employee buy-in. Lesser indicated that merchants’ own employees should be the first members of their loyalty programs. He said, “If the merchants’ employees are receiving value from their own programs, they will be motivated to communicate that value to their customers.”

Fun Miles installed the first customer loyalty management system in the Caribbean in late 1998, using Hypercom’s Ascendent(TM) Loyalty Management System (LMS) and card payment terminals. The Fun Miles loyalty program uses magnetic stripe cards at participating merchants’ points of sale to credit consumers with accumulated loyalty points they can redeem towards discounts on airline tickets and other promotional items.

Fun Miles Antilles was founded in 1998. Headquartered in Curacao, Fun Miles Antilles is a program that enables Netherlands’s Antilles merchants to reward their customers with discounts on travel and travel-related expenses.

Hypercom Corporation (NYSE: HYC) is a global provider of electronic payment solutions, including multi-function point-of-sale terminals, peripherals, network products, Ascendent payment and transaction software and Internet-based and electronic commerce payment solutions. On a global basis Hypercom(R) delivers the services and technology infrastructure required to quickly integrate and deploy new payment applications. These applications provide competitive value-added programs, improved business performance and low total cost of ownership.

Headquartered in Phoenix, Arizona, Hypercom markets its products in more than 70 countries through a global network of affiliates and offices in Argentina, Australia, Brazil, Chile, China, Hong Kong, Hungary, Japan, Mexico, Russia, Singapore, Sweden, the United Kingdom and Venezuela. Hypercom’s Internet address is [www.hypercom.com][1].

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

Debit SET

Dutch consumers will be the first in Europe to use debit cards for secure shopping over the Internet when a new service goes live later this week. Operated by Interpay, a cooperative owned by Holland’s banks, the ‘I-Pay with SET’ system uses an enhanced version of the international SET protocol to authenticate Internet merchants and customers to each other, and to protect both debit and credit card numbers. The standard protocol supports only credit cards. The new payment system, which is enabled by PKI security technology provided by Entrust Technologies, is expected to have as many as two million users by the end of 2000. Participating merchants will advertise on a special Web site. SET has had a patchy start in Europe, however Interpay executives believe that by supporting both debit and credit card transactions, Interpay is going to be a real catalyst for growth. Merchants in 18 European countries are already SET-enabled.