Diebold Q4 ATM Orders Essentially Flat

Diebold posted fourth quarter revenue of $825 million, up 2% from 4Q/05. Sales for the Company’s ATM business rose 2.4% to $550 million and sales for its security business increased 15.8% to $220 million. Net income for Q4 was $27 million, compared to net income of $29 million in the third quarter, but 160% higher than the year-ago quarter when profits were impacted by restructuring charges. Total orders for financial self-service and security products and services were essentially flat compared to the prior year period due to continued softness in the Americas market but offset by stronger EMEA orders. The Company expects full-year 2007 revenue for its ATM business to grow between 2% and 3% while its security business is expected to grow between 8% and 12%. For complete details on Diebold’s fourth quarter results, visit CardData ([www.carddata.com][1]).

DIEBOLD REVENUE HISTORICAL
4Q/05: $810.6 million
1Q/06: $623.7 million
2Q/06: $726.4 million
3Q/06: $730.7 million
4Q/06: $825.4 million
Source: CardData (www.carddata.com)

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

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EGG & CITI

Citigroup has signed a deal to acquire Egg Banking from Prudential for GBP 575 million. Egg has 2.9 million Egg customers and will quadruple Citi’s UK credit card customer base. Egg lost GBP 39 million in the first half of 2006, compared to a profit of GBP 13 million in the first half of 2005. During the same period in 2004 Egg had a GBP 34 million profit in the UK. Egg, launched in 1998, also offers online payment and account aggregation services, personal loans, savings accounts, mortgages, insurance, and investments. Egg has a rocky experience in the credit card market. In July 2004 Egg announced it was exiting the credit card business in France after racking up nearly $178 million on losses for its “la Carte Egg VISA” in the prior five quarters. Prudential explored the sale of Egg in 2004 and 2005 when it owned 79% of the Company. However, Prudential subsequently took 100% control in 2005. The transaction is expected to close in the next 60-90 days. (CFI Library 2/2/04; 10/4/04)

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Top Card Issuers’ Loans Expand 6.5% in 2006

Credit card outstandings among the top five U.S. issuers, holding more than $575 billion in total card loans, grew by an average of 6.5% in the fourth quarter. The nation’s top issuers’ growth was led by American Express with Citigroup ranking at the bottom. AmEx posted a 17% increase in U.S. credit card loans hitting $53.6 billion at year-end 2006. Citi’s U.S. bank credit card outstandings dipped nearly 2% to $111.6 billion. However, Citi’s U.S. private label portfolio expanded by 16% last year. Bank of America and Chase, which includes some international cards, both gained more than 7% last year. BofA’s Card Services includes U.S. Consumer and Business Card, Unsecured Lending, International Card Operations and Merchant Services. Chase’s fourth quarter included 9 million accounts from the acquisition of the BP and Pier 1 Imports private label portfolios. For the latest fourth quarter portfolio figures, visit CardData ([www.carddata.com][1])

TOP 5 U.S. ISSUER OUTSTANDINGS*
ISSUER 4Q/06 3Q/06 4Q/05 Y/Y CHG
BofA $203.4 $194.9 $189.2 +7.5%
Chase $152.8 $143.8 $142.3 +7.4%
Citi $111.6 $110.3 $113.7 -1.8%
AmEx $ 53.8 $ 49.5 $ 46.0 +17.0%
Cap One $ 53.6 $ 51.1 $ 48.7 +10.0%
TOTAL $575.2 $549.6 $539.9 + 6.5%
* BofA & Chase include international;
Citi, AmEx and Cap One are U.S. only.
Source: CardData (www.carddata.com)

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

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Cash Now to Acquire Global Visions

Cash Now has executed an agreement in principle to acquire CA-based company Global Visions, a developer and worldwide wholesale marketer of prepaid financial service products and e-wallet-type services. The deal is comprised of cash and stock. Cash Now provides a Web-based payday-lending portal, offering the payday loan license program, “Payday Express;” and a payday loan and check cashing license known as “Check Express.”

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Citi to Acquire U.S.’s Egg Bank for $1.1B

Citigroup has signed a deal to acquire Egg Banking from Prudential for $1.13 billion. Egg has 2.9 million Egg customers and will quadruple Citi’s UK credit card customer base. According to CardFlash International, Egg lost $76 million in the first half of 2006, compared to a profit of $25.5 million in the first half of 2005. During the same period in 2004 Egg had a $66.6 million profit in the UK. Egg, launched in 1998, also offers online payment and account aggregation services, personal loans, savings accounts, mortgages, insurance, and investments. Egg has a rocky experience in the credit card market. In July 2004 Egg announced it was exiting the credit card business in France after racking up nearly $178 million in losses for its “la Carte Egg VISA” in the prior five quarters. Prudential explored the sale of Egg in 2004 and 2005 when it owned 79% of the Company. However, Prudential subsequently took 100% control in 2005. The transaction is expected to close in the next 60-90 days. (CFI Library 2/2/04; 10/4/04)

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GE Money Renews Linens ‘n Things Store Card

Linens ‘n Things and GE Money’s Retail Consumer Finance unit have agreed to continue their credit card agreement, established in 2002. Under the renewal agreement, Linens ‘n Things will promote the Linens ‘n Things credit card in its internal and external marketing activities. GE Money will be responsible for managing the credit card program, providing customer service, billing, database management and analytics support, and credit management. The card loyalty program offers cardholders a broad range of benefits including a rewards program with a first purchase incentive, exclusive offers and discounts throughout the year and $10 reward certificates for every $250 spent.

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Ameribanc National to Offer Catuity Products

Catuity has launched a national reseller gift card program with Chicago-based Ameribanc National, a firm that offers a free “Hypercom T-4100” terminal to merchants and that actively market a flat-rate, no-risk gift card program. Ameribanc has specialized in selling value-added services on a free, 32-bit terminal since 2003 and today has more than 12,500 merchants in their portfolio. Catuity is one of the few processors to support loyalty and gift card programs on the 32-bit terminal platform. Catuity retailer clients have more than four million cardholders participating in its loyalty and gift card programs.

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CyberSource 4Q/06 Revenues Leap by 40%

CyberSource reported that fourth quarter revenue climbed 40% to $20.9 million and that net income more than doubled to $12.5 million. During the quarter CyberSource signed over 1,800 new customers including: Abe’s of Maine, Iron Mountain Information Management, Next Day Blinds, Shell Global Solutions, Sonoco Products Company and the Smithsonian Institute. Net new customers added this quarter increased the company’s total customer count to over 18,000. Approximately 150 customers selected CyberSource for merchant acquiring account services during the quarter. The company now has about 1,400 acquiring customers. Also, CyberSource UK customers processed a record 39.5 million transactions in the fourth quarter. For the next quarter, total revenue is expected to be $20.6 million. For complete details on CyberSource’s fourth quarter results, visit CardData ([www.carddata.com][1]).

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

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Experian Introduces BizGo in the U.S.

Experian Group has introduced “BizGo”, a mobile application that provides instant access to critical business information. The “BizGo” application allows users to verify a company’s current information and check its overall credit standing from a Web-enabled cell phone, PDA or other hand-held devices. “BizGo” is powered by Experian’s commercial credit database of more than 19 million businesses. The mini-report provides high-level company data, including key facts such as a business’s address and phone number, the number of years in business, annual sales, SIC code and employee count – as well as information regarding bankruptcies, liens, collections or judgments. Reports are just $2.95 each, and clients can view the last 15 reports pulled for up to seven days from the purchase date.

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Fair Isaac’s Profit Rises 9%; Heads to China

Credit scoring king Fair Isaac posted fourth calendar quarter revenues of $208.2 million, a 3% gain over the prior year period. Net income rose more than 9% year-on-year to $31.2 million, due to some tax benefits. However, the Company says it is not satisfied with its rate of revenue growth as prior adjustments have been slower to take effect than anticipated. Scoring Solutions revenues decline 3% to $45 million in the quarter primarily due to a decrease in revenues derived from its “PreScore Service.” Strategy Machine Solutions revenues declined 1% to $111 million in the quarter due to a decline associated with mortgage, originations, and precision marketing products offset by an increase in revenues from fraud, customer management, and collections and recovery solutions. Professional Services revenues increased 17% to $38 million in the quarter. Analytic Software Tools revenues increased 20% to $14 million Fair Isaac expects revenues for next quarter to be approximately $215 million. The Company is still searching for a new CEO. Also, Andrew Cecere has stepped down as a board member, effective immediately, in order to devote more time to his new role at U.S. Bancorp. Additionally, Fair Isaac announced today that it is opening an office in China. For complete details on Fair Isaac’s latest results, visit CardData ([www.carddata.com][1]).

FAIR ISAAC REVENUE HISTORICAL
4Q/05: $202.8 million
1Q/06: $208.2 million
2Q/06: $207.1 million
3Q/06: $207.3 million
4Q/06: $208.2 million
Source: CardData (www.carddata.com)

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

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Shift4 and 1TouchSoftware Target Restaurants

Shift4 and 1TouchSoftware Solutions have partnered to offer payment processing for independent and multi-unit, quick- and table-service restaurants. Both companies leverage technologies and proven Internet architecture to help restaurateurs reduce the liability associated with holding sensitive credit card data while keeping them in compliance with the latest cardholder regulations. 1TouchSoftware Solutions is a provider of integrated enterprise restaurant management and marketing software solutions. Shift4 is a developer of secure financial transaction processing software and enterprise payment solutions for the hospitality, retail, foodservices, auto rental and e-commerce markets.

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