Morgan Beaumont to Acquire FSI

Morgan Beaumont has signed a LOI to acquire Kentucky-based Financial Services International for $600,000 in cash and stock. Closing of the acquisition is contingent upon successful completion of an audit of FSI financial statements as well as Morgan Beaumont’s board of directors’ approval. Morgan Beaumont, Inc. owns and operates the SIRE Network, a national network of stored value and debit card load stations located throughout the US. Financial Services International, Inc. specializes in membership services centered on stored value debit cards.

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ActivCard Juggles Management; Cuts its Workforce

ActivCard reports revenue for the first quarter was $9.2 million, a 25% gain over one-year ago. Net loss was $25.4 million, compared to $9.1 million for 1Q/04. During the quarter, ActivCard
signed 162 new customers, including: Progressive Insurance, NY Life
Insurance, Nissan Europe, and the U.S. Institute of Defense and Analysis. The Company also announced that Frank Bishop, SVP Sales and Marketing, will be leaving. Ben Barnes, ActivCard’s CEO, will be acting head of worldwide sales and marketing until a replacement is hired. Additionally, ActivCard has appointed Craig Reichenbach as VP of its U.S. Government Division, replacing Greg Dicks. ActivCard also recently announced a reduction of approximately 10% of its workforce to
improve its cost structure. For complete details on ActivCard’s first quarter performance, visit CardData (www.carddata.com).

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U.S. Bank Acquires Genpass

Genpass, which operates the MoneyPass, Moneymaker and MONEY BELT EFT Networks, has been sold to U.S. Bank for an undisclosed price. The deal adds 30,000 ATMs to U.S. Bank’s portfolio, making it the second-largest, third-party ATM processor in the USA, next to First Data. U.S. Bancorp currently operates 4,654 ATMs and supports more than 7,700 ATMs through its Elan Financial Services subsidiary. PA-based Genpass has 360 employees and serves more than 1,000 financial institutions and ISOs. The Company was formed in July 2000 by GTCR Golder Rauner and Bipin Shah, a driving force behind the MAC ATM network. The business started with the acquisition of the ATM business of Affiliated Computer Services for $180 million. GTCR also has investments in TNS, VeriFone, Syniverse, TransFirst and Retriever Payment Systems. Citigroup Global Markets served as financial advisor to Genpass and Kirkland & Ellis provided legal counsel. (CF Library 7/5/00)

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Anti-Pharming Solution Gains Ground

NY-based Cyota has introduced a pioneering solution designed to fight pharming, also known as DNS poisoning or spoofing, a new type of online fraud attack. Thirteen of Cyota’s existing anti-phishing clients have already deployed the anti-pharming solution over the past eight weeks, including one major British bank, two large U.S. banks, three U.S.-based credit unions and several major global banks. The anti-pharming solution is part of Cyota’s “Fraud Action” service, launched in January 2004. Cyota says its Anti-Fraud Command Center has shut down more than 7,000 spoofed sites in 65 countries, and lowered the typical lifespan of an attack to five hours from an industry average of six days.

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AOL Latino Launches a Prepaid Card

AOL Latino has launched the “AOL Latino Internet Prepagado” prepaid card via 7-Eleven stores nationwide. The starter kit includes a CD to install AOL Latino and gives 400 minutes of Internet access for only $9.99. The Tarjeta de Recarga (Bilingual Refill Card) is available for only $8.99 and members get up to 375 minutes to access the AOL service. 7-Eleven, Inc. operates or franchises approximately 5,800 stores in the US and Canada and licenses approximately 22,000 stores worldwide, with total sales of more than $41 billion in 2004. AOL Latino is the only bilingual Internet service provider for U.S. Hispanics.

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Samsung Card Closes a Cross-Border Card ABS

Samsung Card Co. has closed a US$300 million securitization
of credit card receivables. It is the first Korean cross-border credit card ABS deal in 2005. The Notes are rated “AA-” by Standard and Poor’s and “Aa3” by Moody’s Investors Service Limited. ING Wholesale Banking’s Asian Securitization Group is the sole arranger, structuring agent and lead manager of the transaction. Samsung Card is one of the two largest
credit card companies in Korea.

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AmEx Transactions to Fund the RMHC

American Express is now making a $0.01 donation per transaction to the Ronald McDonald House Charities for transactions between May 8th and June 19th. The “Make Room to Heal” campaign aims to raise up to $600,000 for Ronald McDonald House Charities. RMHC has more than 245 Houses with 6,000 bedrooms available around the world for seriously ill children and their families. Ronald McDonald House Charities, a non-profit, 501(c)(3), have awarded more than $400 million in grants and program services to support children around the world. American Express Company is a diversified worldwide travel, network and financial services provider founded in 1850.

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Provident Bank & Trust Signs a First Data Deal

Provident Bank & Trust has signed a payment processing agreement
with First Data. FDC operates Processing Center, S.A. in Panama. PROCESA uses First Data’s “VisionPLUS” transaction processing platform
to provide a wide range of payment services for credit, prepaid, gift
and corporate cards. PBTBL is a principal member of VISA and MasterCard International since 2000.

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Bloomberg Eurozone Retail PMI Remains Weak

The latest Bloomberg Eurozone “Retail Purchasing Managers’ Index” indicates that month-on-month sales at Eurozone retailers continued to fall in April. Last month, the Eurozone “Retail PMI” registered 48.7 and remained below the no-change mark of 50.0 for the fourth month running and for the eighth time in the past nine months. Of the three major Eurozone nations that comprise the survey, France and
Italy remained the worst performers. The Italian retail sector
registered the sharpest drop in sales and French retail sales also declined. Meanwhile, German retail sales grew for the fifth time in the past six months. The index, compiled exclusively for Bloomberg by NTC Research Ltd, questions more than 1,000 retail executives in Germany, France and Italy.

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Hypercom Revenues Climb 10% in 1Q/05

Hypercom reported a nearly 10% increase in net revenue for the first quarter, however, gross profit declined more than 9% due to $3.7 million in special charges. First quarter revenue was $54.5 million, compared to $49.6 million for 1Q/04, driven by increased POS terminal sales in the U.S. and Asia-Pacific. Gross profit declined from $20.5 million for 1Q/04 to $18.6 million. During the quarter, Hypercom took special charges for warranty related reserves related to older POS equipment, reserves for slow-moving or obsolete inventory and its U.K. lease portfolio. The Company closed the first quarter with a sales backlog of $36.8 million versus $35.4 million at year-end. Hypercom says it is still conducting a business review and may take additional charges of about $2.5 million during the second quarter. For complete details on Hypercom’s first quarter performance, visit CardData ([www.carddata.com][1]).

HYPERCOM REVENUE HISTORICAL
1Q/04: $49.6 million
2Q/04: $63.1 million
3Q/04: $62.8 million
4Q/04: $79.7 million
1Q/05: $54.5 million
Source: CardData (www.carddata.com)

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

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ALTERNA MASTERCARD

MBNA Canada has been selected by the newly-formed Alterna Savings to issue two MasterCards. CS CO-OP and Metro Credit Union merged last month to create Alterna Savings and Credit Union Limited, Ontario’s newest financial institution. Alterna will offer MBNA’s “Platinum Plus MasterCard” and the “WorldPoints MasterCard.” Alterna Savings has 190,000 members and 24 branches. MBNA Canada is the second largest MasterCard issuer in the country with nearly 500 agents or partners.

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SDIA Endorses Heartland Payment Systems

The South Dakota Innkeepers Association has selected New Jersey-based Heartland Payment Systems as their preferred provider for payment processing services. The partnership offers SDIA members credit/debit card and payroll processing services, including a simplified credit card processing price structure with fully disclosed, competitive pricing. The SDIA is a non-profit incorporated association governed by a board of directors to foster and promote lodging and tourism in South Dakota. Heartland Payment Systems Inc. delivers credit/debit card processing and payroll solutions to more than 90,000 small to medium-sized merchants throughout the United States.

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