Citibank has expanded its relationship with AZ-based Primary Payment Systems, majority-owned by Concord EFS, to deploy “DEPOSIT CHEK” in Citibank’s U.S. retail banking markets. The service expansion at Citibank, which has been a Primary Payment Systems client since 1997, will be completed during the second half of 2002.
Atlanta-based eDebt launched eManager, a recovery management advisory service available to creditors and portfolio buyers on an outsourced basis. eManager supports all aspects of recovery strategy, account placement and provides hands-on management of agencies. It also provides pre- and post charge-off account compliance reviews, performance reporting, agency audits and specialty account monitoring.
FDC’s Global Cash Access and its QuickPlay Infonox subsidiary have inked a deal to deploy Infonox’s Active Payment Platform to enable casino customers to use their ATM cards at the slot machine. The Active Payment Platform has been extended to not only manage the EFT side of transactions but also to operate the entire monitoring and configuring of the transaction system. Key requirements in such a system, including message and data encryption, key management, POS and server configuration and management as well as back-end systems such as dispute resolution, transaction tracking and reporting, reconciliation, and settlement are all handled by the Infonox APP.
Hotel Reservations Network the leading provider of discount hotel accommodations worldwide, and MasterCard International announced a strategic alliance, naming the payments association the preferred global payment brand for three of its wholly-owned hotel booking sites, [http://www.hoteldiscount.com] , [http://www.180096hotel.com] , and [http://www.travelnow.com] .
Under the terms of the agreement, MasterCard and HRN will jointly develop and promote special hotel offers available exclusively to MasterCard cardholders. The first promotion currently underway, for example, offers consumers a rebate of $25 when using a MasterCard card to purchase a minimum 3-night stay at any of the 4,500 global partner properties available online through HRN. HRN is the Internet’s largest source of discount accommodations worldwide, providing access to more than 4,500 premiere properties in more than 178 major destinations in North America and Western Europe.
“MasterCard enjoys a long and successful history of bringing the benefits of our global brand to our cardholders, member financial institutions and merchants, such as Hotel Reservations Network,” said Fred Gore, senior vice president of North America Acceptance, MasterCard International. “Our alliance with HRN will provide MasterCard cardholders a vast, worldwide selection of differentiated lodging properties and a consistent value when they pay with their MasterCard card on the Internet.”
“The agreement is a great opportunity for MasterCard cardholders to take advantage of HRN’s incredible hotel values in great locations, as well as our availability of rooms during popular sold-out periods,” stated Bob Diener, president of Hotel Reservations Network. “We are happy to be able to help travelers lower their costs, not only by offering the lowest available rates, but also by extending MasterCard cardholders the first of many exclusive promotions, a further $25 rebate on any stay of 3 nights or more when they use their MasterCard card.”
As part of the agreement, HRN will promote MasterCard as its preferred payment brand through its communications vehicles to consumers, including point-of-sale materials as well as through its websites. In addition, MasterCard will promote HRN’s 4,500 properties on its website.
The alliance with HRN represents a key addition to MasterCard International’s travel category strategy. Over the past five years, MasterCard has created an impressive network of partners that provide consumers with a wide variety of options when purchasing travel, both online and at the retail merchant. This latest agreement solidifies MasterCard’s continued commitment to working with the travel community to uncover new ways to deliver MasterCard cardholders greater choice and value.
About Hotel Reservations Network
Hotel Reservations Network, a majority-owned subsidiary of USA Networks, Inc.’s (Nasdaq: USAI) Interactive Group, is the leading provider of discount hotel accommodations worldwide, providing service through its own Web sites (http://www.hoteldiscount.com , [http://www.180096hotel.com] , [http://www.condosaver.com] , [http://www.travelnow.com] , [http://www.acenethotels.com] , and [http://www.allluxuryhotels.com] ), more than 23,000 affiliated Web sites, and three toll-free call centers (1-800-96-HOTEL). HRN provides travelers with a one-stop shopping source for hotel pricing, amenities and availability. HRN also specializes in providing travelers with accommodations for sold-out periods.
About MasterCard International
MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCard, Cirrus and Maestro. More than 1.7 billion MasterCard, Cirrus and Maestro 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 a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCard’s award- winning Priceless advertising campaign is now seen in 80 countries and in 40 languages, giving the MasterCard brand a truly global reach and scope. With more than 22 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. At September 30, 2001, gross dollar volume exceeded US$704 billion. MasterCard can be reached through its World Wide Web site at [http://www.mastercard.com] .
Sanchez Computer Associates Inc., announced that Sumitomo
Mitsui Banking Corporation, the world’s second largest banking
corporation, has successfully converted its global corporate banking customer
and deposit operation in Brussels to a Sanchez Profile integrated and real-
time banking solution. Sanchez has now replaced legacy core processing
components of SMBC’s international corporate banking systems in New York,
London and Brussels as part of the bank’s ongoing Global Information System
(GIS) initiative begun in 1998.
“Sanchez’ Profile banking solution provides us with a highly flexible and
scalable customer-centric solution that enables the real-time integration of
our corporate banking platform,” said Peter McCormick, SMBC’s CIO. “Combined
with Sanchez’ broad functionality, such as the software’s multi-currency
capabilities, Profile has proven it can support the corporate banking
requirements of our GIS initiative.”
“Global corporate banking requires integrated solutions with the capacity
to support high transaction levels in real time under multi-currency
conditions,” said Grace Chen, vice president and product manager of Sanchez’
Profile banking solutions. “SMBC’s success with Profile emphasizes the real-
time strength of our software. Add Profile’s customer-centric design, product
flexibility and the ability to integrate to other third-party processing
applications, and you have a tremendously strong core processing solution for
global corporate banking.”
SMBC, the newly merged entity of Sumitomo Bank and Sakura Bank (April
2001), acquired a license for Sanchez’ Profile banking solution in 1998 as
part of then Sumitomo Bank’s GIS initiative. In each of SMBC’s global
corporate banking offices, the bank provides international financing services
primarily to Japanese industrial and services companies. Sanchez successfully
converted SMBC’s New York City office in 1999, London in 2000, and the
Brussels, Belgium office went live earlier this month.
SMBC processes its North American and European corporate accounts at a
host site in New Jersey running on IBM’s powerful line of Unix-based, pSeries
eServer computers. Each corporate banking office uses Profile for Windows(R)
as the branch front-end processor. Each office is networked to the host
facility. As part of the GIS initiative, Profile’s open architecture supports
real-time interfaces to a third-party lending system, payment system, some
legacy system components and an Oracle(R) general ledger system.
“In a global corporate banking environment, there is a tremendous amount
of transaction activity associated with each account on a daily basis,” said
Jim McHale, Sanchez implementation manager for SMBC. “Inherently, SMBC’s
business requires fast, real-time processing as well as account, customer and
third-party system integration. By design, Profile excels under these
The next phase of SMBC’s GIS rollout calls for Sanchez to implement
Profile solutions for SMBC’s global offices in Dusseldorf, Germany; Los
Angeles and Paris.
Sanchez is a global leader in developing and marketing scalable and
integrated software and services solutions that provide retail banking,
brokerage and customer integration for financial institutions. The Sanchez
integrated suite of products empowers financial institutions to accelerate
business transformation and achieve a competitive advantage by lowering
operating costs, reducing technology risks and improving customer management.
The Sanchez suite includes the following main products: Sanchez Profile(R),
the highly flexible, multi-currency, multi-language, customer-centric,
enterprise banking and brokerage application and transaction processor;
Sanchez Xpress(TM), a customer integration solution that connects all of an
institution’s customers to any delivery channel through to any back-office
product processing system in real time; and Sanchez Webclient(TM), a Web-
based, Internet front-end processor for retail and commercial banking
applications. Sanchez also offers e-PROFILE(R), a vertical services provider
(VSP) for the financial services industry that provides integrated end-to-end
operations and technology solutions that enable top-tier financial services
companies to offer on-line financial services to their customers. e-PROFILE
is a majority-owned subsidiary of Sanchez and maintains its headquarters in
Malvern, Pa. and an operations center in Seven Fields, Pa., a suburb of
Pittsburgh, Pa. Sanchez maintains its corporate headquarters in Malvern, and
runs its international operations from Chester in the United Kingdom. For
more information, visit Sanchez on the Web at , or send
e-mail to [email protected]
About Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation Group offers a broad range of
financial services centered on banking. The Group is also engaged in the
leasing, securities, credit card, investment, mortgage securitization, venture
capital and other credit related businesses. Sumitomo Mitsui Banking
Corporation was created on April 1, 2000, from the merger of The Sumitomo Bank
Limited and The Sakura Bank Limited. Based on asset size, SMBC is the world’s
second largest bank holding company.
The roll-out of the Malaysian Government Multi-Purpose Card (GMPC) was
signalled today at a ceremony at the IRIS Smart Technology Complex, located in
Technology Park Malaysia, a designated Multimedia Super Corridor (MSC) area in
Kuala Lumpur, during which the first batch of enhanced-capability-certified
GMPC cards from IRIS were handed-over to YAB Dato Seri Dr Mahathir bin Mohamed,
the Prime Minister of Malaysia.
The GMPC, which includes the Proton technology, is the first nationwide
government-sponsored multi-application smart card roll-out in the world. Proton
World’s representative in Malaysia, Triumphant Launch Sdn. Bhd., (its
joint-venture with ERG Group) co-ordinated the contribution of the Proton
application to the GMPC with Malaysian Electronic Payment Systems (MEPS) the
Proton licensee in Malaysia, and IRIS technologies, the GMPC consortium member
responsible for providing the smart card system, and Dr Armand Linkens, the CEO
of Proton World, was present at the ceremony.
The GMPC replaces the Malaysian national identity card and driving licence. The
third application on the card is passport information, allowing Malaysian
citizens the option of using automatic gates at Kuala Lumpur airport when
departing from and returning to Malaysia. The fourth government application is
a national health application, which identifies Malaysian citizens entitled to
free or subsidised health care provided by the government.
The non-government applications on the GMPC are a Proton e-purse that is
branded locally as “MEPS Cash”; an ATM cash withdrawal application and a
digital signature application based on the Public Key Infrastructure (PKI).
In addition to the applications outlined above, the GMPC also contains two
biometrics; a digitised colour photo of the cardholder’s face and two digitised
As the primary use of the GMPC is as a national identity card, the Malaysian
government insisted that all the security personalisation of the card be done
on government premises. The result is that the government’s National
Registration Department now operates what is one of the most advanced and
diverse smart card personalisation centres in the world, capable of
personalising 12,000 cards a day. This centre combines the Proton application
personalisation with the personalisation of the government applications as well
as the card surface printing, and is the first Proton World-certified
personalisation centre in Asia.
Proton was chosen as the common payment mechanism for the two MSC flagship
smart card systems – GMPC and PMPC (the Payment Multi-Purpose Card, to be
launched separately by MEPS), as it provided the most secure solution in terms
of the card security as well as the overall system security. It also has a very
sound back-end system, operated by MEPS, which can detect unauthorised purse
incrementing. This feature, coupled with the system’s unique security
architecture, gives the financial community the necessary level of comfort in
the unlikely event of the card security system being compromised. The Proton
system has also been widely deployed and has the best potential for
accommodating emerging technical innovations which will enhance both the
security of the system as well as the utility of the cards. Finally, the Proton
system, a spearhead implementation of the Open Platform 2.1 standard, has the
best technological and commercial roadmap to adopt global open standards.
To overcome the anticipated difficulties of introducing such a
technologically-sophisticated card to the Malaysian public, the government has
intervened directly, for example charging the same fees for GMPCs as
previously charged for paper documents; paying for a comprehensive publicity
campaign to introduce the GMPC to the public; prioritising the identification
of new uses for the GMPC and deploying them as soon as possible and equipping
all government offices that will use the GMPC with card readers and other
devices as required.
No further paper identity cards will be issued after 31 July 2001 the entire
system will migrate to the GMPC, and it is anticipated that 600,000 GMPCs will
be in circulation by the end of 2001, rising to 19 million GMPCs by the end of
2008. A government amendment to the National Registration Act formally
recognised the GMPC as the national identity card of Malaysia in June 2001.
Armand Linkens, CEO of Proton World, said ” Governments of many countries
around the world are talking about projects like the Malaysian GMPC, and
everyone is talking about multi-application smart cards. The Malaysian
government, under the leadership of YAB Dato Seri Dr Mahathir bin Mohamad, has
turned talk into action. IRIS has proved second to none in delivering a very
complex multi-application smart card system. The GMPC project is a classic
example of how Proton World sees the future of smart cards evolving, and I am
confident that it will serve as a model to many other governments.”
Colin Simpson, Managing Director of Triumphant Launch Sdn. Bhd., said “This is
an historic occasion in the development of multiple-application smart cards,
and I congratulate everyone involved in making it happen. The GMPC project is
an excellent demonstration of Triumphant Launch’s co-ordination skills in
cutting-edge technology projects.”
Eddy Cheah, Project Director at the GMPC consortium, said “By embarking in
1997 on what was then a leading edge technology development, Malaysia has shown
that a small developing country is capable of deploying projects of worldwide
technological significance, as long as it is prepared to take calculated risks.
Malaysia had the advantage of a well-accepted and well-managed nationwide
identity card system. By mandating the conversion of the paper-based ID card to
a smart card, the Malaysian government and its Multimedia Development
Corporation (MDC) laid the foundations for a successful development and
deployment of the GMPC.”
Tony Lee, Technology Director at IRIS Technologies, said “IRIS has been able
to acquire significant core technological competencies in smart card technology
as a result of the GMPC. I believe that what we have managed to achieve here in
Malaysia with the GMPC will provide a valuable model for other developing
countries which are aspiring to achieve similar levels of technology transfer
IRIS Technologies (M) Sdn Bhd (IRIS) in 1994 became the first company in Asia to
set up fully-integrated manufacturing facilities for contact and contactless
smart cards, contactless document inserts, and assembled smart card modules in
tapes and reels. IRIS pioneered contactless technology for manufacturing
microprocessor chip based smart card inserts (substrate), as in the
tamper-proof Malaysian passport – the first of its kind in the world. Also
unique to IRIS are its antenna design for microchips to communicate with
readers from a variety of distances, and its own operating system, the M-COS,
which can drive both contact and contactless microprocessor-based smart cards.
IRIS Technologies (M) Sdn Bhd owns copyright of the proprietary Image Retrieval
and Identification System (IRIS – the origin of its name), and the rights to
manufacture products using IRIS core technology. IRIS is the smart card and key
technology supplier to the Malaysian government’s GMPC project. As part of the
GMPC development, IRIS developed unique devices like the Chip Data Verifier
(CDV), the Mobile CAD and Government/banking terminals accepting the GMPC.
IRIS is majority-owned by Malaysian individuals and companies. It is
headquartered in Kuala Lumpur, Malaysia; where its offices in Technology Park
is at the heart of Malaysia’s MSC.
Merchant Data Systems has executed an agreement with Chase Manhattan Bank and Chase Merchant Services to process through First Data’s alliance platform. MDS also announced that Newtek Capital has an investment via a portfolio purchase through Newtek’s Florida-based certified capital company. Recently, MDS signed a contract with another Newtek partner company, Universal Processing Services, to offer its transaction processing to all of Universal. MDS offers merchants an array of services including credit and debit card processing, electronic benefits transfers, equipment sales, leasing and rental programs, 24-7 customer service, supplies and technical support. MDS intends to convert most of its current merchants to the Chase-First Data Platform, enabling merchants to process transactions all over the U.S.
Coinstar Inc. announced the nomination of Keith Grinstein, Fran Conley and Ronald Woodard to its board of directors, as well as a new date for its annual meeting.
The three nominees would replace Robert O. Aders, William D. Ruckelshaus and Coinstar founder and chairman Jens Molbak, whose terms expire this year.
“Over the past eleven years, I have enjoyed building Coinstar into a vibrant company,” said Coinstar chairman Jens Molbak. “Going forward, I have made a personal decision to spend more time with my family. The current management team has done a tremendous job running the business since I stepped down as CEO more than a year ago. Coinstar has a bright future with exciting growth opportunities and I look forward to continuing to serve Coinstar as a consultant.”
Mr. Molbak has decided to step down as chairman effective June 20, at which time board member Ronald A. Weinstein will assume the role of chairman.
The nominees would bring a strong and diverse mix of experience to Coinstar’s board. Mr. Grinstein is vice chairman of Nextel International. He is also a partner at two Seattle-based venture capital companies, Second Avenue Partners and Madrona Investments. His past experience includes work at AT&T Wireless Services (formerly McCaw Communications), where he served as president and CEO of the Aviation Communications Division. Mr. Grinstein currently serves on the board of directors for several public and private companies including The Ackerley Group, Car Toys, F5 Networks, Nextel International, and Terabeam.
Ms. Conley is founder and president of Roanoke Capital, a financial consulting firm, and a general partner of Roanoke Investors Limited Partnership. Prior to founding Roanoke Capital in 1982, Ms. Conley held a variety of positions at Rainier National Bank, including senior vice president and chief administrative officer of the bank’s Washington Division. She currently serves as a director for REI and Cutter & Buck.
Mr. Woodard is president and CEO of MagnaDrive Corporation. Mr. Woodard co-founded MagnaDrive after a 32-year career with the Boeing Company where he held numerous positions including president of the Boeing Commercial Airplane Group. He currently serves on the board of directors for Atlas Air. “Coinstar’s board of directors is looking forward to adding this new talent to its board,” continued Molbak. “At the same time, I’d like to thank Bob Aders and Bill Ruckelshaus for their superb service to Coinstar.” Coinstar’s annual meeting has been rescheduled from September 20, 2001 to August 10, 2001.
About Coinstar Inc.
Coinstar Inc. (Nasdaq:CSTR) owns and operates the only nationwide network of supermarket-based machines that offer coin counting and other electronic services. Linked by a sophisticated interactive network, the company has more than 8,500 machines throughout North America as well as in the United Kingdom. Meals.com, the company’s majority-owned subsidiary, is an infrastructure provider that helps supermarket retailers and packaged goods manufacturers communicate directly to consumers through the use of online and in-store technologies.
Newtek Capital, Inc., a specialist in acquiring, developing and operating early stage high growth businesses, announced a major investment in Universal Processing Services, a full service integrator of electronic processing systems and solutions.
The $3.6 million investment was made through Newtek’s New York-based certified capital company. UPS offers credit card processing, debit and check card processing, smart card acceptance, customized gift card programs, electronic benefits transfers, check guarantee and conversion and automated teller machines. Ken Baldo, President of UPS, stated: “We make it our business to consult with every merchant to understand their needs and to demonstrate how our services can support their daily business critical operational requirements. As our industry changes, technology advances and competition increases, UPS and our processing specialists remain committed to offering the highest caliber of personalized services utilizing our state-of-the-art True Price Processing system.” Universal, headquartered in New York City, recently signed a contract to acquire a portfolio of high-end retail and restaurant accounts and expects to close in June. The funding by Newtek is expected to support the expansion of Universal’s marketing programs, corporate infrastructure and the hiring of key employees. Newtek received a 60% ownership interest along with 3 of 5 board seats for its investment.
About Newtek Capital
Newtek Capital, Inc. (www.newtekcapital.com) creates significant non-dilutive capital through the operation of seven CAPCOs in four states. Since 1998, Newtek has raised more than $119 million of certified capital and has made investments in 25 companies, 11 majority-owned or primarily controlled partner companies and investments in 14 other businesses. It operates as a holding company for a network of partner companies in a collaborative and coordinated effort to develop successful businesses in a number of emerging and technological areas.
Coinstar Inc. reported 1Q/01 revenues for the North American core business were $27.1 million in the first quarter of 2001, an increase of 29.4 percent from the first quarter of 2000. Comparable revenues (for machines installed in the same location for more than one year) increased 17 percent. Direct contribution increased 35.1 percent to $14.4 million, as the direct contribution margin expanded to 53.0 percent in the first quarter of 2001 from 50.7 percent in the first quarter of 2000.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 53.1 percent — to a record $8.1 million in the first quarter of 2001 — from $5.3 million in the first quarter of 2000. The company posted net income from the North American core business of $11,000, or breakeven, on a per share basis, compared to a net loss of $1.7 million, or $0.08 per share, in the same period last year. “We were free cash flow positive for the core business in the first quarter, and expect to be so for the remainder of the year,” said Diane Renihan, chief financial officer of Coinstar. “And, for the first time, our core business posted a net profit for the quarter — ahead of plan. We now expect to be profitable again, on a continuing basis, by the third quarter of 2001.”
“Our business has never been better,” said Rich Stillman, chief operating officer of Coinstar. “The first-quarter performance — including EBITDA growth of 53 percent — surpassed our own expectations. The strong volumes demonstrate the sustainable benefits of our advertising and promotional programs. Additionally, they provide evidence that the Coinstar service is non-cyclical. The solid direct contribution margin reflects the operating leverage in our business, as incremental revenues provide substantially higher unit cash flow. And, we have taken several steps to leverage the network through marketing and new product initiatives.”
In April 2001, the company announced its first national promotion of the year for the core business. In conjunction with Radio Disney, children who process $5 or more through a Coinstar machine will get a chance to win a trip for four to the Walt Disney World Resort in Orlando, Florida. In March 2001, Coinstar also signed a strategic alliance agreement with DataWave Systems (CDNX:DTV.V)(OTCBB:DWVSF) and Michigan National Bank to begin testing the sale of MasterCard branded prepaid cards through the Coinstar network. Coinstar plans to begin testing prototypes of the cash card system in the second quarter of 2001, followed by a small-scale pilot later in the year, which could lead to a full-scale roll out in 2002. Coins that Count(TM) — which uses the Coinstar network to accept donations on behalf of nonprofit organizations — continued to expand, raising over $400,000 in contributions in the first quarter of 2001, compared with approximately $1,300 in the first quarter of 2000. In April 2001, the company announced its partnership with The Leukemia & Lymphoma Society, which becomes Coinstar’s third national Coins that Count(TM) partner, joining the U.S. Fund for UNICEF and the American Red Cross.
North American Core Business Outlook
For the second quarter of 2001, the company expects revenues for its core business of $29 to $30 million, representing year-over-year growth of 18 to 22 percent. It also expects to generate a direct contribution margin of 54 to 55 percent and EBITDA growth of 60 to 70 percent, compared with the second quarter of 2000. For the full year, Coinstar is raising guidance for its core business. The company now expects revenues of $119 to $125 million, direct contribution of $64 to $69 million, EBITDA of $31 to $35 million, and net income between a loss of $1 million and a profit of $3 million.
Coinstar International. First quarter 2001 revenues for the United Kingdom operation nearly tripled. As announced on May 1, Coinstar plans to expand its service in the U.K. after reaching rollout agreements with two of the country’s largest supermarket retailers: Asda Stores, a subsidiary of Wal-Mart, and Sainsbury’s Supermarkets. “The U.K. represents an exciting expansion opportunity that leverages our existing infrastructure in the United States,” said Stillman. “Coinstar has attracted two excellent partners with a combined market share of 40 percent. With their support, we fully expect to repeat the success Coinstar has enjoyed in the United States.”
Meals.com. Coinstar’s 89 percent-owned subsidiary, Meals.com, posted revenues of $335,000 in the first quarter of 2001, compared with $14,000 in the year-ago period. Meals’ cash balance as of March 31, 2001 was $4.5 million. During the first quarter, Meals has continued to demonstrate its ability to help retailers and packaged goods manufacturers increase sales and profits. Using the Meals system, Ukrop’s Super Markets has experienced same store sales increases of approximately one percent, which translates to about $1 of incremental profit per household, per month.
On a consolidated basis, revenues increased 30.8 percent to $27.5 million in the first quarter of 2001. EBITDA increased 51.3 percent year-over-year. The company reported a net loss of $4.0 million, or $0.20 per share, compared with a net loss of $3.9 million, or $0.20 per share, in the first quarter of 2000.
STRATEGIC ALTERNATIVES ANALYSIS
Coinstar’s board of directors has completed the initial phase of its strategic alternatives analysis with J.P. Morgan. Based on a number of factors, including Coinstar’s strong operating performance and the analysis provided by J.P. Morgan, the board has determined that the long term interests of Coinstar shareholders are best served by Coinstar continuing as an independent public company executing management’s strategic plan. J.P. Morgan will continue to work on Coinstar’s behalf to consider strategic alternatives for Coinstar’s Meals.com subsidiary.
About Coinstar Inc.
Coinstar Inc. (Nasdaq:CSTR) owns and operates the only nationwide network of supermarket-based machines that offer coin counting and other electronic services. Linked by a sophisticated interactive network, the company has more than 8,500 machines throughout North America, as well as in the United Kingdom. Meals.com, the company’s majority-owned subsidiary, is an infrastructure provider that helps supermarket retailers and packaged goods manufacturers communicate directly to consumers through the use of online and in-store technologies.
For more details on Coinstar’s 1Q/01 results visit CardData ([www.carddata.com]).
Coinstar Inc. announced plans to rollout the Coinstar service in the United
Agreements have been reached with Asda Stores, a subsidiary of Wal-Mart, and
Sainsbury’s Supermarkets. Combined, Asda and Sainsbury’s operate 680 stores in
the United Kingdom and have a market share of nearly 40 percent.
Today’s rollout announcement was prompted by consumer demand for the Coinstar
service. Coinstar installed its first machines in the United Kingdom just two
years ago as part of an eight store pilot test. Strong initial customer
response prompted Coinstar to install nineteen more pilot machines in 1999 and
“The United Kingdom represents a great expansion opportunity for Coinstar,”
said Alex Camara, managing director of Coinstar’s United Kingdom business.
“With signed contracts from two of the country’s leading retailers, we fully
expect to repeat the success Coinstar has enjoyed in the United States.”
“We know the United Kingdom is a very attractive market for Coinstar based on
the results achieved during our two year pilot,” said Rich Stillman, chief
operating officer of Coinstar. “Additionally, because much of the U.K.
infrastructure is located at our Bellevue headquarters, Coinstar is able to
further leverage its U.S. operation.”
About Coinstar Inc.
Coinstar Inc. (NasdaqCSTR) owns and operates the only nationwide network of
supermarket-based machines that offer coin counting and other electronic
services. Linked by a sophisticated interactive network, the company has more
than 8,500 machines throughout North America as well as in the United Kingdom.
Meals.com, the company’s majority-owned subsidiary, is an infrastructure
provider that helps supermarket retailers and packaged goods manufacturers
communicate directly to consumers through the use of online and in-store
Concord EFS, Inc., a leading electronic commerce provider, announced it has expanded the deposit risk management services it offers through its majority-owned subsidiary, Primary Payment Systems, Inc. In April 2001 Concord increased its ownership position in Primary Payment Systems to 85% through the purchase of newly issued shares, which largely funded Primary Payment Systems’ acquisition of Wally Industries, Inc. (doing business as WJM Technologies), the industry leader in new account fraud detection systems. The combined company’s risk management products will provide the financial services and retail industries with comprehensive tools to reduce deposit account and securities account fraud and its related expense. Primary Payment Systems’ products are marketed to financial institutions directly and through Concord’s STAR(SM) network, the largest PIN-secured debit network in the U.S. The incremental investment was not material to Concord’s financial statements.
! Primary Payment Systems operates and safeguards a national financial institution-owned database, currently composed of 145 million deposit accounts, which provides participating financial institutions with information on potentially fraudulent checks or high-risk accounts. WJM provides front-end tools to help financial services and other firms identify potentially fraudulent accounts before they are opened and activated. Through its Early Warning(R) software product, WJM currently screens over 70% of all new banking customer relationships in the U.S. With the addition of WJM’s systems and information, Primary Payment Systems now offers the three types of database information important to fraud reduction: accounts, transactions, and people. “Deposit account fraud creates enormous expense for the financial services industry, but most risk management services have traditionally focused on loan risk rather than deposit risk,” said Edward A. Labry III, Concord president. “Primary Payment Systems compiles, protects, and facilitates access to financial institutions’ pooled account information to help them avoid fraud losses. With WJM’s systems, this service becomes even more proactive, providing participants with the most complete information available to help them manage their account risk. These enhancements are part of our ongoing initiatives in Concord Network Services to bring new and improved deposit-based services to financial institutions nationwide.”
About Concord EFS, Inc.
Concord is a vertically-integrated electronic transaction processor, providing transaction authorization, data capture, settlement and funds transfer services to financial institutions, supermarkets, petroleum retailers, convenience stores, and other independent retailers. Concord’s primary activities include Payment Services, providing credit, debit, check authorization, and electronic benefits transfer (EBT) processing services to selected retail segments; and Network Services, providing gateway processing, ATM driving, online and signature debit card processing, risk management, and network access to the financial services industry under the STAR(SM) brand. Concord currently provides processing services and network access to approximately 6,500 financial institutions nationwide. Concord holds a majority interest in Primary Payment Systems, Inc., which provides risk management services to financial institutions, credit card issuers, securities and brokerage firms, and retailers. Concord acquired an initial 74% interest in Primary Payment Systems through its acquisitions of Cash Station, Inc. in 2000 and Star Systems, Inc. in 2001. Concord news releases, links to SEC filings, and other information are available on its corporate web site at [www.concordefs.com].