CIBC CARD DIVIDENDS

In 2001, CIBC Dividend and Dividend Platinum
VISA credit card customers earned over $30 million as part of CIBC’s fourth
annual Dividend Dollars pay-out.

CIBC Dividend Card and Dividend Platinum Card customers earn cash-back
every time they use their card to make a purchase. The savings accumulate, and
each December, a cash rebate is credited to their Visa statement.

Since the inception of the CIBC Dividend Card and Dividend Platinum Card
in 1998, cardholders have earned more than $75 million in Dividend Dollars.
“Since 1998 cardholders have received significant savings at a time of year
when everyone likes to see a credit on their monthly statement,” says Ernie
Johannson, vice president, marketing and business development for CIBC’s
credit card division.

CIBC is Canada’s leading credit card issuer, offering the broadest range
of choice and value. CIBC provides a full range of products and services
through its comprehensive electronic banking network, branches and offices
across Canada, in the United States and around the world.

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Card Stocks

American Express was the fourth worst performing stock among the 30 “blue chip” companies in the ‘Dow Jones Industrial Average’ with a 34% decline in 2001. However, all of the credit card monoline stocks hit new lows after September 11, but most have recovered well. Metris/Direct Merchants Bank has rebounded by 90% while MBNA and Capital One are up nearly 50%. Providian has slowly stabilized, trading up 78% since the collapse of its stock following the 3Q/01 earnings report.

COMPANY 01-LOW 12/31 CHG
Metris $13.50 $25.71 +90%
Providian $ 2.00 $ 3.55 +78%
MBNA $23.43 $35.20 +50%
Capital One $36.40 $53.95 +48%
American Express $24.20 $35.69 +47%
NextCard $ 0.41 $ 0.52 +27%
Source: CardData (www.carddata.com)

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Ten Year High

Credit card profits for 2001 hit their highest level in more than ten years due to the dramatic drop in cost-of-funds and rising fee income. The average pre-tax, return-on-assets for credit card portfolios last year is projected to reach 4.0% compared to 3.6% for 2000. CA-based R.K. Hammer Investment Bankers reported that chargeoffs will also hit a ten year high during 2001 but the effect is offset by the reduced funding costs and higher fees.

U.S. Bank Credit Card Profitability Historical
(VISA, MasterCard, and Discover)
YEAR INC OX CO COF ROA
1989 21.3% 5.5% 3.8% 7.9% 4.1%
1990 20.9% 5.1% 4.3% 7.8% 3.7%
1991 20.5% 4.8% 4.7% 7.6% 3.4%
1992 19.4% 4.9% 4.9% 6.5% 3.1%
1993 18.6% 4.7% 4.6% 6.0% 3.3%
1994 18.5% 4.5% 4.4% 5.7% 3.9%
1995 18.0% 4.2% 4.1% 6.1% 3.6%
1996 17.9% 4.3% 4.2% 6.1% 3.3%
1997 17.4% 4.3% 4.6% 5.9% 2.6%
1998 17.3% 4.4% 4.7% 5.7% 2.5%
1999 17.9% 4.5% 4.4% 5.9% 3.1%
2000 18.4% 4.5% 4.3% 6.0% 3.6%
2001 18.8% 4.7% 5.1% 5.0% 4.0%
INC-total income; OX-operating expense; CO-charge-offs;
COF-cost-of-funds; ROA-net pre-tax return-on-assets
Source: R.K. Hammer Investment Bankers

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HOLIDAY VOLUME

With the 2001 Christmas shopping season coming
to a close, Moneris Solutions, Canada’s largest processor of credit and debit
card transactions, reports that December 21, the last Friday before Christmas,
was the busiest shopping day of the year so far. In total, Moneris processed
more than 7.2 million Visa, MasterCard and INTERAC Direct Payment transactions
that day. The number of sales transactions processed on Friday was 3% higher
than the number processed on Saturday December 22 – the day most often
predicted to be the busiest shopping day of the year. During Friday’s peak,
Moneris processed over 470 transactions per second!

The number of sales processed on Friday also represented a 6.6% increase
over the number processed during last year’s busiest day. This is further
evidence of the rapid expansion of the Canadian electronic transaction-
processing sector — which is currently a $220 billion market.

“Moneris Solutions is the first company to enable Canadian businesses to
process all their credit and debit card sales through one supplier – we met
the challenge of processing well over 7 million transactions securely and
flawlessly, and that was well appreciated by retailers and customers across
the country,” said Jim Baumgartner, President and CEO, Moneris Solutions Corp.
“Moneris streamlined the holiday frenzy for retailers, kept the customer line
moving and helped to reduce holiday stress.”

In the past, retailers had to handle Visa and MasterCard processing
through separate financial institutions. Now thanks to Moneris, a Canadian
company, headquartered in Toronto, ON, retailers can have a convenient one-
stop integrated solution to handle Visa, MasterCard and INTERAC Direct
Payment. The same system can handle loyalty programs, electronic gift cards
and wireless payment processing, as well as deliver enhanced on-line reporting
functionality.

About Moneris Solutions Corp.:

Moneris Solutions is Canada’s leading technology and merchant processing
company. Moneris was formed in December 2000 as a result of a 50:50 joint
investment between the RBC Financial Group and Bank of Montreal. Moneris
provides businesses with technologically advanced, easy to use, point-of-sale
solutions designed to electronically process and authorize credit and debit
card transactions, including customized loyalty card transactions. Moneris’
leading-edge technology allows merchants to streamline payment processing and
improve business efficiency. In less than a year, Moneris has become Canada’s
largest and one of North America’s largest merchant payment processing
companies. Moneris serves more than 300,000 North American customers and has a
staff of 900 employees. With head offices in Toronto, Ontario, the company
also has offices in Chicago, Illinois and Montreal, Quebec. For more
information, please visit www.moneris.com.

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COST OF CHANGE

Gemplus said this week that it will take a 4Q charge of 25 million Euro to
cover the cost of replacing its chairman and CEO. Last week, the smart card
manufacturer announced that Antonio Perez has decided to resign as CEO and
Marc
Lassus, founder and chairman, will step down in January. Under terms of deal,
Perez will return 12 million Gemplus shares and will receive $1 million in
severance pay. Gemplus says the cost of the Perez deal will be
approximately 12
million Euros. Lassus will receive a payment of $12 million. Ronald
Mackintosh,
an existing member of the board of directors, has been named as CEO and
Chairman of the Executive Committee. The board has elected Hasso Von
Falkenhausen to the board and designated him as Chairman commencing on January
10.

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