iMergent Boosts Guidance for Fiscal 2007

UT-based iMergent has raised its “Net Dollar Volume of Contracts Written” to grow by 35% compared to fiscal 2006 from 25% to 30% previously predicted. Net dollar volume of contracts written is not equivalent to revenue recognized in accordance with US GAAP. This non-GAAP metric represents cash contracts written plus estimates of future cash collections on financed contracts, net of estimated customer returns. iMergent provides eCommerce solutions to entrepreneurs and small businesses enabling them to market and sell their business products or ideas via the Internet.

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Oberthur Card Systems Names a new CEO

Oberthur Card Systems has named Philippe Geyres as CEO as of January 2nd. Geyres started his career with IBM before joining Schlumberger in 1980. In 1983, he joined Thomson Semiconductors, (which
became SGS-Thomson and then STMicroelectronics), where he managed
business units and later group products. In 2004, he was appointed EVP/Home Personal Communication Group, member of the executive
committee, in which capacity he was responsible for group products in
the areas of telecommunications applications (infrastructure and
equipment) and consumer electronics. With sales of 500.8 million Euros in 2005, Oberthur Card Systems is one of the world’s leading providers of card-based solutions, software and applications including SIM and multi-application smart cards as well as services ranging from consulting to personalization.

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Ceridian Names Two Top Senior Executives

Ceridian has named Perry Cliburn as its new EVP/CTO and Kairus Tarapore as its new EVP of Human Resources. Cliburn formerly was senior vice president and Chief Information Officer for Hewitt Associates, Inc. Prior to Hewitt he held senior technology leadership positions at First Data and Arthur Andersen. Cliburn replaces Robert Severson, Ceridian’s senior vice president of corporate technology, who is retiring at the end of 2006. Tarapore formerly was senior vice president of Global Quality for GE Fleet Services. In previous roles at GE, he served in a number of human resource leadership roles in the United States, Canada and India. Ceridian Corporation (www.ceridian.com) is an information services company serving businesses and employees in the United States, Canada and Europe.

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PSCU InfoLinkPlus Deploys TriCipher TACS

PSCU Financial Services has entered into an agreement to deploy the TriCipher “Armored Credential System” solution as part of its “InfoLinkPlus” service. TACS provides consumers strong digital identity protection when viewing credit card account information online via InfoLinkPlus. PSCU Financial Services is owned by more than 500 member credit unions representing over 10 million cardholder accounts and more than 400,000 online bill payment subscribers. TriCipher, Inc. provides Future Proof Risk Based Authentication. The TriCipher Armored Credential System(TM) (TACS) is the first authentication system that enables companies to deploy and manage multiple types of credentials from a single infrastructure.

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Oyster and Barclaycard VISA to Combine

Cubic has struck an exclusive deal with Barclays Bank for development of a new card that will host both “Oyster” and “Barclaycard VISA” on one piece of plastic in early 2007. The new card will see Oyster included for the first time on a dual interface card. The contact interface will manage Barclaycard payments while the contactless interface will have two separate and distinct functions: Oyster for transit, and a low value, contactless payment capability. Cubic Transportation Systems is the proud recipient of the Frost & Sullivan 2006 Industry Innovation & Advancement of the Year Award.

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Oberthur Card Systems Names a New CEO

Oberthur Card Systems has named Philippe Geyres as CEO as of January 2nd. Geyres started his career with IBM before joining Schlumberger in 1980. In 1983, he joined Thomson Semiconductors, (which became SGS-Thomson and then STMicroelectronics), where he managed business units and later group products. In 2004, he was appointed EVP/Home Personal Communication Group, member of the executive committee, in which capacity he was responsible for group products in the areas of telecommunications applications (infrastructure and equipment) and consumer electronics. With sales of 500.8 million Euros in 2005, Oberthur Card Systems is one of the world’s leading providers of card-based solutions, software and applications including SIM and multi-application smart cards as well as services ranging from consulting to personalization.

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Morgan Stanley to Spin-Off Discover Next Year

Morgan Stanley also announced this morning plans to spin-off Discover by the third quarter of next year. The nation’s fourth largest payment card network has made big progress in past few months inking several acquiring deals with major firms and expanding its acceptance outside the USA. Morgan Stanley’s last CEO, Philip Purcell, wanted to spin-off Discover early last year. Last year, the move could produce a business with a market value between $10 billion and $15 billion. However, the success of the MasterCard IPO may drive Discover’s market cap higher. Discover had 2006 annual net revenues of $4.3 billion and generated strong pre-tax profits of $1.6 billion in 2006. DISCOVER PROFITS 3Q/05: $ 65 million 4Q/05: $479 million 1Q/06: $541 million 2Q/06: $368 million 3Q/06: $199 million Source: CardData ([www.carddata.com][1])

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

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Discover Profits Triple Y/Y; Sink Sequentially

Morgan Stanley reported this morning that its Discover unit posted pre-tax profits of $199 million for 4Q/06, triple its profits from one-year ago. However, sequentially, profits sunk from $368 million. Discover reported that net revenues rose 39% from a year ago to $963 million. Net sales volume was $24.5 billion, a 13% increase from a year ago, reflecting increased cardholder usage and the acquisition of the “Goldfish” credit card business. Managed credit card loans of $50.3 billion were up 7% from a year ago and up 1% from the end of the third quarter. Managed merchant, cardholder and other fees were $542 million, up 4% from a year ago. The managed credit card net charge-off rate was 4.15%, 161 basis points lower than last year’s fourth quarter, but 34 basis points higher than this year’s third quarter. The managed credit card over-30-day delinquency rate was 3.51%, 10 basis points higher than the third quarter of 2006, and the over-90-day delinquency rate increased 6 basis points over the same period to 1.65%. For complete details on Discover’s fourth quarter performance, visit CardData ([www.carddata.com][1]).

DISCOVER CARD PORTFOLIO SNAPSHOT
($ billions; accounts/actives millions)
4Q/05* 1Q/06* 2Q/06* 3Q/06* 4Q/06* Y/Y CHNG
Outstandings: $46.9 $47.8 $48.5 $49.6 $50.3 +7%
Volume: $26.1 $26.8 $28.5 $30.2 $29.1 +11%
Accounts: 45.5 46.1 45.9 45.6 45.3 NC
Actives: 19.2 19.6 19.6 19.6 19.8 +3%
Chargeoffs: 5.76% 5.06% 3.30% 3.81% 4.15% -161bps
Delinquency**:3.98% 3.45% 3.29% 3.41% 3.51% -47bps
Yield: 11.94% 12.13% 12.69% 12.38 12.23 +29bps
Notes: 4Q/05 ended 11/30/05; 1Q/06 ended 2/28/06; 2Q/06
ended 5/31/06; 3Q/06 ended 8/31/06; 4Q/06 ended 11/30/06
** delinquency is 30-90 days and excludes 90+ days. Includes both
domestic and international cards.
Source: CardData (www.carddata.com)

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

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Moneris Solutions Lands the Sears Centre

IL-based Sears Centre has awarded its credit and debit card processing business to Moneris Solutions. Operated by CCO Entertainment, Sears Centre is a multi-purpose family entertainment, cultural and sports center that will host more than 142 events each year. Under the three-year agreement, Moneris Solutions will provide credit and debit card processing for Sears Centre’s ticket and concession sales. Moneris Solutions, Inc. (www.monerisusa.com) has a 30-year history as one of North America’s largest electronic transaction processors, delivering advanced payment card processing capabilities through point-of-sale hardware, payment processing software, e-commerce solutions and a gift and loyalty program. The Sears Centre is a state-of-the-art, multi-purpose arena located in the Northwestern suburb of Hoffman Estates, IL suitable for world-class entertainment including concerts, family shows, sporting events, and much more with capacities ranging from 3,000 (theater set-up) to 11,000 for end stage events.

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Small Business Optimistic Despite Hurdles

MasterCard released a survey which shows that small business owners feel optimistic about the upcoming year. The annual “Global Small Business Survey” of 4,000 business owners found that nearly one half of all small business owners think they have a lot of personal control to decide the future direction of their business. Small business owners in Mexico are the most likely of any region to say that the current small business climate is more favorable than it was one year ago and will be more favorable a year from now than it is today. Australian small business owners are evenly split on the climate for the upcoming year, while owners in France, the UK and Hong Kong are more pessimistic about their future business climate. Globally, small business owners work an average of 54 hours a week and spend an average of 18 hours a week doing administrative tasks.

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Contactless Support to Hit $870MM by 2011

A new study projects that spending on contactless payments hardware and software will reach $870 million by 2011, at a compound annual growth rate of 27%. London-based ABI Research says that transportation ticketing represents the majority of contactless payment adoption around the world, but that position will be overtaken by adoption of open systems payments within the next few years. ABI says contactless technology in Japan and South Korea is making the greatest headway. In North America, open system payments are driving the contactless adoption. In Europe contactless ticketing systems are also spurring interest in contactless payments. ABI notes that while mobile handsets will develop to enable contactless payments, ongoing debate over how payment applications will be deployed and managed on wireless handsets has delayed the roll-out of mobile handset contactless payments in the US and Europe.

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USAT Picks-Up a $8.4MM Private Placement

PA-based USA Technologies has received a private placement of $8.4 million. As part of the private placement offering, USA Technologies will issue to the investors warrants exercisable into 700,000 additional shares of common stock, at a price of $6.40 per share through December 31, 2011. William Blair & Company, LLC has acted as the exclusive placement agent. USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management.

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