Jack Prim Named to the Jack Henry Board

Jack Henry & Associates has appointed CEO Jack Prim to the Board of Directors to fill the vacant seat on the Board caused by the death of founder Jack Henry in April. Prim has served as CEO of the Company since July 1, 2004. He began his career in the financial industry in 1977 as a sales representative. In 1985 he was hired by Broadway & Seymour, Inc. and in 1994 was named vice president of Client Services. When Jack Henry acquired BSI’s Community Banking Division, he became general manager of Jack Henry’s OutLink Services division. Five years later he was named general manager of E-Services, a business unit formed to combine electronic processing and outsourcing services to Jack Henry’s customers. Prim was appointed chief operating officer in 2001, where he focused the company’s operations, customer satisfaction and a consistent growth pattern, named president in 2003 and became CEO in 2004.

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MASTERCARD & PLACIDO DOMINGO

Mastercard Worldwide has signed a partnership agreement with
Maestro Placido Domingo to sponsor his âœAROUND THE WORLDâ
tour. From the summer of 2007 until the Summer of 2009, the tour will
consist of concerts in Lisbon, Wiesbaden, Athens, Boston, Mass.,
USA; Sunrise, Fla., USA; Abu Dhabi, United Arab Emirates; and Zurich,
Switzerland. As part of the concerts, Domingo will engage artists with
local appeal to join him on stage and to host a Gala dinner after each
performance. MasterCard cardholders will receive discounts on purchased
tickets and will have the opportunity to buy tickets during a pre-sale
for selected shows. Mastercard processes over 16 billion transactions a
year serving consumers and businesses in more than 210 countries and
territories.

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CORPORATION BANK SMS SERVICE

Corporation Bank has introduced SMS “Pay-by-Mobile-Service” in India, a
country with an increasing mobile market. The Indian mobile market is
currently at 185 million, growing at a rate of 7 million per month, and
projected to be the 3rd largest market in the world by 2010 at 300 million
users. Any of the banks’ customers who are issued a ATM card
or a Corp Convenience Debit card can register for the service, offered
through
PayMate, at one of the institution’s ATMs. Upon registration, the user
is issued a
4-digit PIN though an SMS on the registered mobile phone to authenticate
all
future transactions. This allows the customer to shop online and over
the phone from
over 3,000 merchants with secure verification through the fixed mobile
number,
16-digit private encryption key storage, alpha code, 4-digit PIN and
confirmatory SMS.

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AmEx’s Bonus Points Mall Offers Incentives

American Express is offering a special promotion for cardmembers to earn additional Membership Rewards Points when they shop through the “Bonus Points Mall” website during the month of August. Shoppers enrolled in the Membership Rewards program can earn an additional 500 Membership Rewards bonus points (up to 1,500 bonus points total) each time they spend $100 or more at any one retailer at BonusPointsMall.com between August 1 and August 31, 2007. The Membership Rewards program from American Express has more than 140 redemption partners. The program allows Cardmembers to earn one point for virtually every dollar charged on eligible, enrolled American ExpressCards. Membership Rewards points are redeemable in a wide selection of reward categories, including travel, retail merchandise, entertainment, shopping and recreation gift certificates, experiences, financial services and charity rewards.

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Cabela’s Q2 Credit Card Outstandings Up 23%

The World’s Foremost Bank, a subsidiary of Cabela’s, the “World’s Foremost Outfitter,” reported that its average VISA credit card loans increased 23% in the second quarter compared to one-year ago. With an estimated 1.6 million cardholders for its “Club VISA,” WFB posted managed card loans of $1.607 billion for 2Q/07. For the second quarter, the nation’s 23rd largest issuer, also reported interest income of $43.7 million, interchange income of $16.3 million and other credit card fee income of $6.0 million. Over the past year Cabela’s has introduced a loyalty card and a debit card with rewards. One-year ago, U.S. Bank and Cabela’s introduced the “Cabela’s VISA Check Card,” offering reward points for signature purchases. The “Club VISA” offers 2% back on all Cabela purchases and 1% on other purchases. The U.S. bank-issued “VISA Check Card” offers one point for every $2 spent at Cabela’s stores and one point for every $3 spent at other merchant locations. For complete details on Cabela’s/World’s Foremost Bank latest performance, visit CardData ([www.carddata.com][1]).

WFB AVG CARD LOANS
2Q/06: $1295 million
3Q/06: $1394 million
4Q/06: $1484 million
1Q/07: $1584 million
2Q/07: $1607 million
Source: CardData (www.carddata.com)

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

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VeriSign Certifies NetSpend for Card Networks

NetSpend has passed a second annual security audit by VeriSign Global Security Consultants to achieve compliance with VISA’s and MasterCard’s requirements for participation in their financial networks. NetSpend has assembled a comprehensive approach to information security. It has over 35 different policy documents and uses in excess of twenty different software tools to manage its overall information security processes. NetSpend Corporation is a provider of prepaid debit cards. VeriSign operates digital infrastructure services that enable and protect billions of interactions every day across voice and data networks.

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Sub-Prime CompuCredit Posts an $11MM Q2 Loss

Atlanta-based sub-prime card specialist CompuCredit reported a net GAAP loss for the second quarter of $11.0 million, compared to a net loss of $2.5 million in the first quarter and net income of $28.3 million for 2Q/06. However, total managed receivables soared by 44% year-on-year for the second quarter ending at $3,897,701,000. CompuCredit cited a $16 million after-tax ABS loss as the reason for the decline in net income. As of June 30th, CompuCredit had 4,999,000 accounts, compared to 3,659,000 in 2Q/06. The card issuer says the account expansion came from organic growth and its Barclays portfolio acquisition of 500,000+ accounts. The adjusted charge-off rate was 9.2% in the second quarter, as compared to 12.5% for 1Q/07 and 8.3% in the year ago quarter. As of June 30th, the 60-plus day delinquency rate was 13.2%, as compared to 12.8% for 1Q/07 and 11.5% for 2Q/06. For complete details on CompuCredit’s second quarter performance, visit CardData ([www.carddata.com][1]).

COMPUCREDIT NET INCOME SNAPSHOT
2Q/06: $28.3 million
3Q/06: $38.8 million
4Q/06: $ 9.7 million
1Q/07: (-$ 2.5 million)
2Q/07: (-$11.0 million)
Source: CardData (www.carddata.com)

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

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MasterCard Teams with Maestro Placido Domingo

MasterCard has teamed with world renowned “Maestro” Placido Domingo, to be the presenting sponsor of his “AROUND THE WORLD” tour. MasterCard, as a presenting sponsor, will receive benefits including hospitality, advertising and the opportunity to deliver “Priceless” experiences. MasterCard cardholders will receive discounts on purchased tickets and will have the opportunity to buy tickets during a pre-sale for selected shows. The famous tenor will travel the world one more time and perform numerous concerts around the globe, starting this summer and culminating in 2009. Concerts in Lisbon, Wiesbaden and Athens have already been held with the next concerts scheduled for Boston, Mass., USA; Sunrise, Fla., USA; Abu Dhabi, United Arab Emirates; and Zurich, Switzerland.

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Coinstar Second Quarter Revenues Climb 5%

WA-based Coinstar reported that second quarter revenues grew 5% to $137.4 million. However, net income slipped 21% to $3.3 million. The Company posted adjusted earnings of $0.21 per share, 9 cents better than estimates. Included in GAAP net income for the second quarter were certain non-cash charges including $1.8 million in amortization of intangible assets, $1.6 million in non-cash stock based compensation, and $0.9 million related to the Companyâ™s portion of non-cash losses associated with investments in DVD kiosk companies and amortization of financing fees. Excluding these items, net of taxes, Coinstar reported adjusted net income of $5.8 million. Coinstar noted that coin processing, DVD kiosks and e-payment all made significant progress during the period, although its entertainment category continued to face challenges. The Company reported that its installed base of coin machines hit 14,200 at mid-year, compared to 13,100 one-year ago. Coin-to-Card, e-payment and e-certificate enabled machines topped 8,900 as of June 30th, compared to 6,700 for 2Q/06. For complete details on Coinstar’s second quarter performance, visit CardData ([www.carddata.com][1]).

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

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Cardways Find Gift Cards Peak for Birthdays

A survey commissioned by Cardways.com reveals that 81% of men and women prefer to receive gift cards for their birthday. Birthdays are the No. 1 occasion driving gift card sales. Nearly 90% of people agree the primary reason for purchasing gift cards is the desire for the recipient to get what they want and 55% purchase gift cards to avoid worrying about the gift’s color or size. The survey also noted that of the 81% who chose gift cards for the top birthday gift, respondents ages 35-54 favor them most. Across all age groups, women prefer gift cards more than men and that men are nearly twice as likely as women to spend more money on a spouse or significant other while women are more likely to spend more on children or grandchildren. According to financial research and advisory firm, TowerGroup, combined 2006 gift card sales in the U.S. reached approximately $80 billion. Cardways.com offers online gift card and personalized greeting cards.

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AEX Commercial Financing Offers Alternatives

AEX Commercial Financing Group announced that it has published a specialized website to focus on the unique problems associated with business cash advance and credit card processing programs. The AEX business financing website provides solutions for implementing cost improvements to credit card processing and working capital management functions. The new AEX working capital and business cash advance site describes ten common business financing problems experienced with credit card financing and credit card processing. AEX Commercial Financing Group specializes in difficult commercial loan situations and provides business financing throughout the United States.

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Hypercom Revenues Up 2%; Gross Profit Sinks

Hypercom posted a 2% increase in revenue for the second quarter compared to the year-ago quarter and a net loss of $5.7 million compared to $6.3 million in net income for 2Q/06. Gross profit fell more than 200% to $8.7 million. The profit drop was attributable to charges for non-PCI compliant products and components; a product warranty settlement paid to a European customer; costs associated with the transition to contract manufacturing; and a write-off of capitalized software. Hypercom said that global price pressure has reduced average selling prices in virtually all terminal categories. The Company also noted that it faced a change in the mix of product sales from older, cost-reduced, high margin “T7Plus” terminals, to lower margin, newer terminals such as the “T2100” and “L4100.” New terminals have traditionally been introduced at higher cost with the assumption that they will be cost engineered over time, raising gross margins. During the second quarter, Hypercom introduced a new global countertop terminal family comprised of six 32-bit, PCI PED-approved, multi-application payment terminals; featuring a common form factor with the highest security, largest memory, “Apriva” “Class A” certified the “Optimum M4100” on Apriva’s “Intelligent Gateway”; and introduced the “SmartPayments Payment Processing Suite,” an electronic payment processing solution that integrates into PC-based POS systems without any integration requirements related to POS hardware, allowing for Microsoft Windows-based POS systems to accept all forms of electronic payments. For complete details on Hypercom’s second quarter results, visit CardData ([www.carddata.com][1]). (CF Library 3/20/07)

HYPERCOM REVENUE HISTORICAL
2Q/05: $60.2 million
3Q/05: $66.5 million
4Q/05: $68.1 million
1Q/06: $61.0 million
2Q/06: $66.1 million
3Q/06: $56.7 million
4Q/06: $64.8 million
1Q/07: $64.8 million
2Q/07: $67.5 million
Source: CardData (www.carddata.com)

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

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