GOL SMILES

GOL Linhas Aereas Inteligentes low-fare airline subsidiary, VRG Linhas
Aereas, has signed an operating agreement with Bradesco and Banco do
Brasil (“Financial Institutions”) for the issue and administration of
co-branded loyalty credit cards, including the SMILES brand loyalty
program. Under the Operating Agreement, GOL will initially receive
approximately R$252.0 million for the acquisition of miles from the
SMILES program and the Financial Institutions’ rights to access and use
the registration database and a share of the revenue from the credit
cards issued, 60% of which will be paid by July 31, 2009, 22% by January
31, 2010, and 18% in monthly installments during the first five years.
SMILES has more than 6.2 million clients and up to 100,000 new
registrations monthly.

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FEIB & AIG

American International Group (AIG) has agreed to sell the assets of AIG
Credit Card Company (Taiwan) to Far Eastern International Bank for
undisclosed terms. For the transaction, ABN AMRO Bank, Hong Kong Branch,
acted as financial advisor and Linklaters LLP and Russin & Vecchi served
as legal counsel to AIG, which offers its insurance and financial
services in more than 130 countries and jurisdictions. Subject to the
approval of the Financial Supervisory Commission of the Republic of
China, Far Eastern International Bank is expected to be in control of
AIG Credit Card Company by the third quarter of 2009.

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ADVANTAGE HIZZ

HSBC Bank has selected On Track Innovations’ contactless payment
product suite for its “Advantage Hizz” (Fast Advantage) MasterCard
“PayPass” program. HSBC is deploying “Advantage Hizz” to offer customers
a contactless payment solution without the need for a signature nor
password on purchases of less than 35 Turkish Lira. In addition to
offering its customers the traditional payment card, HSBC is also
providing a contactless key fob and sticker for acceptance in 4,000
quick-serve restaurants, convenient stores, book & music stores,
accessory stores, groceries and supermarkets. Adhering to multiple
surfaces, the contactless sticker and fob meet all payments industry
security requirements with the speed and convenience of contactless
transactions. Providing contactless microprocessor-based smart card
solutions since 1990, OTI applications are deployed for homeland
security, payments, petroleum payments and other applications around the
world.

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ABM & FEES

The Association of Banks in Malaysia (ABM) announced its commercial
banks are now required to reduce late payment credit card charges from a
maximum of RM75, to which the penalty was recently reduced from RM100,
to a maximum of RM50. Under the new regulation, cardholders are required
to pay a minimum of RM5, which was reduced from RM10, or 1% of the total
balance outstanding on the statement date- whichever is higher- up to
no more than RM50 for late charges. Additionally, credit card users
will now be allowed a minimum three-day grace period from the due date
of payment.

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AirPlus International Promotes 3 Executives

Corporate travel payment solution provider AirPlus International has promoted Aaron Kelling to EVP, Strategic Partnerships.
Alexander Houston to EVP, Sales and Kathy Cantwell has been promoted to VP, Client Services. Formerly serving as AirPlus Vice
President, Sales and Account Management for the Northern US and Canada,Kelling will now have responsibility for the entire US market.
Prior to joining AirPlus Kelling was with American Express as
Director of Business Development as well as with Galileo International in
various roles including Director of Global Strategic Sales. During his time
with Galileo, Kelling was prominently featured in an article for Forbes
magazine entitled, “Life of a Salesman.” Formerly serving as Vice President Sales for the southern US region, Houston is well-rounded and possesses over 30 years of diverse travel
industry experience and is an active participant in industry
associations and events. Cantwell, formerly Director, Customer and
Agency Relations, has 20 years of travel industry experience in both
technology and international integration capacities and joined AirPlus
during its initial launch in the US market just over five years ago.

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EDB & HANDELSBANKEN

Handelsbanken is making available its geographic blocking service,
allowing customers to protect their payment cards from the most common
forms of fraud. Developed by EDB, the regional blocking service allows
users to verify geographic areas in which they want to validate the use
of their Visa and MasterCard. In doing so, customers are allowed to tick
the regional choices displayed through their internet banking and unlock
a new region whenever traveling. EDB IT group, which expects most banks
in Norway to launch the geographical blocking service in the near
future, offers solutions in 13 countries through its 6,200 employees
while Handelsbanken operates 700 branch offices across the Nordic region.

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NAB & VESECURE

To improve the customer experience for telephone banking and enhance
security, Telstra has deployed the Salmat VeCommerce “VeSecure” voice
biometric solution at the National Australia Bank. Improving
privacy with no need for PINs nor passwords, “VeSecure” deployment
follows the recent NAB “VeConnect” implementation single point of
telephone contact for customer inquiries as part of the Bank’s ongoing
customer service initiative. Allowing users to register their
‘voiceprint’ by speaking their individual account number, the customers’
identity is then verified for “VeSecure” voice recognition secure
telephone banking. Chosen for its proven track record and speech-enabled
solutions, Salmat VeCommerce customer interactions are designed for
improved efficiency, increase revenues and security, for which Telstra
provides first level support, while National Australia Bank offers
comprehensive and integrated financial products and services.

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GE & BAC

GE Capital Global Banking has increased its ownership in BAC-Credomatic
GECF from 49.99% to 75%, which itself owns the retail bank BAC
International Bank and Credomatic operations throughout Central America.
With BAC Credomatic Holding retaining 25%, terms under the increased
share in BAC-Credomatic GECF were not disclosed. BAC was established in
1952 to serve Central Americas countries, has $7.5 billion in assets and
$4.7 billion in deposits while GE Capital’s Global Banking business
reaches customers in 26 countries, offering credit cards, personal
loans, auto financing, savings products and many other financial
products.

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Business Owner Anxiety Lessens During June

Nerves appear to be quieting among small business owners as the mood on
the economy held steady in June. About 42% of small business owners say
they have experienced temporary cash flow issues in the past 90 days,
down from May’s record high of 49%. The Discover “Small Business Watch”
index rose to 80.9, up from 78.1 in May. Nearly 60% of small business
operators rate the economy as poor, down 1% from May, while 8% rate the
economy as excellent or good, and 30% called it fair.
Discover also found that 51% of small business owners say they plan to
decrease spending on business development over the next six months, down
from 53% in May; 22% plan to increase spending, and 24% are not planning
any spending changes. Additionally, the monthly Discover survey found
that 45% of small business owners said they used personal savings as the
source of financial capital for starting their businesses followed by:
19%, bank loans; 16%, funding from family and friends; 8%, credit cards;
4%, second mortgage or equity loan; and 8% answered “Some other way.”

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AIRPLUS EXECS

Effective immediately, AirPlus International corporate travel payment
solutions has promoted Alexander Houston to Executive VP, Sales and
Kathy Cantwell to VP, Client Services. Formerly as VP, Sales for the
southern regional US, Houston brings to his new role over 30 years’
industry experience while Cantwell comes to the role with 20 years’
experience, most recently as Director, Customer and Agency Relations.
Cantwell’s background is in technology and international integration
capacities and has been with AirPlus for 5 years. The international
corporate payment provider serves 32,000 customers worldwide with its
business travel payment solutions, which include central bill accounts,
corporate cards and online management tools.

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MAY LEI

The Conference Board Leading Economic Index (LEI) for the Euro Area
increased 1.9%, a figure having plummeted over 15% between June of 2007
and December of 2008, while The Conference Board Coincident Economic
Index (CEI) decreased .1% in May. With the 1.9% increase in May, The
Conference Board LEI for The Euro Area now stands at 95.4 (2004 = 100),
which increased 1.6% in April and stayed flat in March, while the CEI
now stands at 101.6 (2004 = 100), which decreased 0.4% in both April and
March. With these positive LEI results for the month, the index is
reportedly out of recession territory thanks in part to gains seen in
all categories and first time increases in Germany, France and Spain.

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MAY DEBT

Growth in credit card outstandings remains in a holding pattern for the past eight months, hovering around GBP 53 billion. Year-on-year, credit card loan growth is down 5.0% (seasonally adjusted). According to the The Bank of England, net credit card was GBP 54.4 billion in May. However, the amount outstanding of credit card lending increased by GBP 1.5 billion following the de-securitisation of a credit card portfolios from a U.K. bank to associated non-resident companies. Overall, the increase in total net lending to individuals in May (GBP 600 million) was lower than the April increase (GBP 1.1 billion) and below the previous six-month average. The twelve-month growth rate continued to fall, by 0.3 percentage points to 1.4% and the three-month annualized growth rate decreased by 0.3 percentage points to 0.6%. Total consumer credit increased by a net GBP 0.3 billion, in line with the previous six-month average. The annual growth rate of consumer credit continued to fall, to 2.3%; but the three-month annualized growth rate increased by 0.3 percentage points to 0.9%.

NOTE: Chart does not include about GBP10 billion from specialist lenders, retailers, and insurance companies. SOURCE: Bank of England

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