Ernex Launches a New EFT Feature

Ernex has launched a new EFT feature designed to eliminate the manual reconciliation process for merchant gift card programs. With the new feature, merchants operating a gift card program can transfer funds into or out of a shared bank account managed by a corporate head office or collective of merchants. The head office can also easily debit or credit merchant accounts, in essence paying the locations for the value of gift cards redeemed at that location. Ernex provides real-time marketing solutions including privately branded and multi-merchant loyalty programs, stored-value gift cards, reward fulfillment
services and loyalty database hosting services. The Company is a division of Moneris Solutions Corporation.

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Global Axcess/NMS Revenues Up 74% in 2Q/05

Florida-based Global Axcess posted a 74% increase in second quarter revenues to $5.4 million. Net income for the second quarter was down 19% to $295,911. Net income one year ago was higher due to a one-time settlement gain of $304,000 but cash flow from operating activities tripled during the quarter. Global Axcess, through its wholly owned subsidiary, Nationwide Money Services, provides turnkey ATM management solutions. NMS currently owns and operates over 3,500 ATMs in its national network spanning 42 states and provides proprietary ATM branding and processing for over 70 financial institutions with approximately 650 branded sites nationwide. For complete details on Global Axcess’s second quarter results, visit CardData ([www.carddata.com][1]).

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

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Q Comm Restates Q1 and 04; 2Q/05 Delayed

Utah-based Q Comm International has restated its first quarter and 2004 results and expects to release its second quarter report on August 22nd. Q Comm has changed its revenue recognition policy on sales of consigned PINs based on a previously announced comment letter from the Securities and Exchange Commission (SEC) stating the revenue from sales of consigned PIN inventory should be recorded on a net basis rather than a gross basis. Based on this change, revenue for 2004 increased $9.9 million to $16.6 million from $6.7 million in 2003. In the first quarter of 2005, revenue increased $5.8 million to $8.5 million from $2.7 million in the first quarter of 2004. Due to the corresponding reduction in operating expenses for each of these periods, the adjustment in revenue recognition policy did not impact the Company’s assets, liabilities or equity. Q Comm International is a prepaid transaction processor that electronically distributes prepaid products from service providers to the point of sale.

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Mint Technology Signs Card Deal with Plastic Now

Mint Technology and People’s Trust have inked a distribution agreement with Plastic Now to create promotional prepaid MasterCard cards using Canadian household brand names. Plastic Now will initially purchase and distribute a minimum of 15,000 Plastic Now branded prepaid
MasterCard cards. Mint will provide Plastic Now with a turnkey prepaid
program with complete services, features and capabilities. Peoples Trust
of Vancouver will be responsible for card issuance under its agency
agreement with Horizon Plus Card Services Limited Partnership.

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TransLink Begins Field Testing Cubic System

TransLink has begun the first phase of the rollout of a new integrated
ticketing and revenue management system supplied by Cubic Transportation
Systems. The first stage of the pilot consists of five Queensland Rail
stations and one private bus operator conducting field testing for the
pilot. During the first stage, a select focus group will use the system,
employing contactless smart cards. Current paper tickets will also be
available to the general public. During the second stage of the pilot,
TransLink plans to issue more smart cards to a wider demographic
selection of volunteers to use the system and provide feedback. Cubic
was awarded a comprehensive contract in 2003 to design, build, operate
and maintain what will be Queensland’s first smart card-based integrated
ticketing system and regional services for public transport.

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Keycorp Invests $2.5MM into a MULTOS Company

Sydney-based Keycorp has agreed to acquire an interest in a new company being formed to drive the “MULTOS” scheme. The value of Keycorp’s investment would be US$2.4 million. The new company will be established by a group of strategic and financial investors including Keycorp, MasterCard International, Hitachi and venture capital group Oak Hill Venture Partners. The new company will acquire from MasterCard the intellectual property underlying “MULTOS” and the rights MasterCard has to perform or license Key Management services connected with the initialization of “MULTOS” cards and the delivery of applications to those cards. Keycorp was a founding member of the “MULTOS Consortium.”

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Citizens Bancshares Launches MC Biz Debit

Atlanta-based Citizens Bancshares has launched a line of MasterCard Business Debit Cards. CTBusiness Debit Cards allow businesses purchasing power without the hassle of writing a check. This Business Debit Card can be used any place that accepts MasterCard and doubles as an ATM card. CTBusiness Debit Cards feature no monthly maintenance fees, access to five debit cards per account and free access to all Citizens Trust Bank ATM’s. Citizens Bancshares’ subsidiary Citizens Trust Bank has assets of more than $340 million.

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FIME and FEIMA Support JCB J/Smart

FIME and its Asian branch, FEIMA, now supports “JCB J/Smart” interoperability testing between cards and terminals. “J/Smart” is JCB’s own credit application for smart cards compliant with EMV. FIME and FEIMA have a terminal platform that represents about 60% of the
EMV terminals now in the field, which is regularly updated with new
terminal models. JCB is actively participating in the on-going EMV migration in the global market, and has upgraded the “J/Smart” certification process to expand “J/Smart” cards around the world. In addition, JCB last year acquired one-third ownership of EMVCo in order to maintain the EMV specification standards for international interoperability of smart card payment systems.

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CTFS 2Q/05

Canadian Tire Financial Services reported that its net managed credit
card receivables for the second quarter increased 19.8% year-over-year
to $3.1 billion. The average credit card balance in the second quarter
hit $1661, up 20% from one-year ago, largely driven by its “Options
MasterCard” product. For the prior quarter, the average credit card
balance came in at $1609. Financial Services’ pre-tax earnings of $43.4
million were up 9.6% from the second quarter of 2004. Canadian Tire’s
MasterCard receivables represent approximately 91% of CTFS’ total
managed portfolio. CTFS’ retail credit card and personal loan
receivables make up the remaining nine percent of the portfolio. CTFS,
in conjunction with BMO Bank of Montreal, markets the “Commercial Link
MasterCard” while the receivables are owned and managed by BMO Bank of
Montreal. For complete details on Canadian Tire Financial Services’
second quarter performance, visit CardData (www.carddata.com)

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Asia Pay Processing Revenues Up 21%

Asia Payment Systems reports that processing volume increased by 21% to just over US$9 million on 42,500 transactions. With the addition of new clients and its involvement with Et-china, Asia Pay anticipates very strong growth in coming months as it rolls out the next stage of its China development plan. The Asia Pay’s proprietary system processes domestic and international debit and credit cards using a combination of proprietary advanced technologies and rigorous security procedures. Asia Pay aims to become a provider of world-class third-party processing services to bankcard-accepting merchants and issuers throughout Asia.

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Morgan Beaumont Revenue Triples Sequentially

Florida-based Morgan Beaumont reported net revenue for the second calendar quarter of $481,611 compared to $149,838 in the prior quarter. The year-over-year and sequential revenue increase is primarily due to the addition of new card products, an increase in prepaid card sales and related usage and transaction fees, and telecommunications services including prepaid phone cards. Morgan Beaumont, Inc. provides stored value and debit card solutions and owns and operates the SIRE Network, a national network of stored value and debit card load stations located throughout the United States.

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Infineon Transfers its RFID Software Solutions

Infineon Technologies has transferred its activities in the
area of RFID software solutions as part of a management buy out to RF-iT Solutions. The patents, trademarks, licenses, development hardware and software, as well as current customer projects and RFID demonstration applications have been transferred to RF-iT Solutions. The newly formed RF-iT Solutions will take over all activities related to RFID system solutions, including the “You-R OPEN” software. The 40 employees who were previously involved in RFID chip activities at Infineon’s development center will remain with Infineon. RF-iT Solutions is based in Austria.

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