Global Payments 4Q/01

Atlanta-based Global Payments reported that fourth calendar quarter revenue grew by 41% to $115.6 million compared to normalized revenue of $81.8 million in the prior year. For the quarter ending Nov 30th, the company had net income of $11.6 million compared to normalized net income of $8.2 million in the prior year for a 43% increase. During the quarter, the company converted the CIBC merchant portfolio to its back-end processing platform and completed a planned facility closure and related front-end platform conversion in the USA. For complete details on Global’s latest results visit CardData (www.carddata.com).

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CardReady & Aeroflot

Single Source Financial Services Corporation, a financial services provider — announced that its affiliate, CardReady International, Inc. has contracted with a Russian airline, Aeroflot, to provide its Los Angeles office with credit card processing services for the entire state of California.

Arnold F. Sock, chief executive officer of Single Source Financial Services Corporation commented, “This agreement with Aeroflot represents an approximate volume of $2 million in credit card processing transactions annually, which translates to a significant increase in revenues for both CardReady and Single Source. Single Source currently places its merchant clients with CardReady for credit card processing services, with the goal of exercising an option to acquire CardReady when it meets targeted revenue milestones. This agreement with Aeroflot is an important step in the realization of this goal. Further, we hope that this relationship will produce future opportunities with additional offices in the Aeroflot organization for CardReady.”

Aeroflot

Aeroflot flies to 121 destinations in 63 countries, comprising 68% of all the international air routes used by Russian airlines. In the year 2000, Aeroflot carried 5.1 million passengers and 107.4 thousand tons of mail and cargo. The Los Angeles office of Aeroflot provides ticketing services for the entire state of California.

Single Source Financial Services Corporation

Single Source Financial Services Corporation provides financial products and services to small and mid-sized businesses. The Company’s initial business focus is the selling and leasing of credit card processing equipment, as well as the selling of third party processing services, to “brick and mortar” and Web-based merchants.

CardReady International, Inc.

CardReady International Inc., a “third-party” credit card processor, currently provides merchant credit card processing services to small and mid-size businesses. As such, CardReady is responsible for the acquisition of merchant processing relationships on behalf of banking institutions.

For more information, visit [www.mysinglesource.com][1] or [www.magnumfinancial.com][2].

[1]: http://www.mysinglesource.com/
[2]: http://www.magnumfinancial.com/

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Casino Team Monitoring

Diebold has joined forces with Global Cash Access, the largest deployer of automated teller machines in casinos, to bring increased monitoring capabilities to more than 1,000 ATMs using its patented Diebold Advisor service. Diebold Advisor is a highly automated system that monitors every aspect of an ATM’s status, including events such as low cash or receipt paper levels and problems with card readers. It can also identify potential operational difficulties, allowing corrective action that may prevent the ATM from going offline.

![][1] Through Diebold Advisor, ATM status information is transmitted to the Diebold Customer and Technology Support Center. Based on a predefined set of rules, Diebold Advisor automatically contacts the appropriate service provider and tracks the progress of the repair. Trouble report messages are sent via pager, fax, e-mail, voice response system or DECAL (Diebold’s proprietary electronic customer access link, which allows customers to monitor and generate service calls from any computer with an Internet browser). If the service provider does not acknowledge receipt of the message within a defined time frame, Diebold Advisor can automatically escalate the request to a higher level and continue to do so until a response is received.

“GCA is committed to providing the most highly reliable and technologically advanced ATMs to the gaming industry,” said Jeffrey Crisp, ATM operations manager, Global Cash Access. “Diebold Advisor allows us to take this commitment to the next level by more quickly detecting, solving and preventing issues at the ATM.”

Formed in 1998 as a joint venture of First Data Corp. (NYSE: FDC) and M&C International, Inc., Global Cash Access is the leading provider of cash access, financial management and customer relationship marketing technologies to the gaming industry. With the gaming industry’s largest patron database, Global Cash Access uses Internet technologies to deliver products and services to more than 1,000 gaming properties throughout the US, Canada, Caribbean and Europe. GCA processes more than $11.5 billion in funds transfers every year through approximately 200,000 ATM, credit and debit cash advance and check guarantee transactions daily — which is more than 75.5 million transactions annually.

Diebold, Incorporated is a global leader in providing integrated self- service delivery systems and services. Diebold employs more than 12,000 associates with representation in more than 80 countries worldwide and headquarters in North Canton, Ohio, USA. Diebold reported revenue of $1.7 billion in 2000 and is publicly traded on the New York Stock Exchange under the symbol ‘DBD.’ For more information, visit the company’s Web site at [http://www.diebold.com][2].

[1]: /graphic/globalcashaccess/gca.gif
[2]: http://www.diebold.com/

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CARDBASE RETURNS

CardBASE Technologies announced, that a
scheme of arrangement has been approved by the High Court, taking the
company successfully out of examinership with immediate effect.
The latest tranche of fundraising totalling IR£4.3 million, from a number of
investor groups, including ICC Software Partners and Eastbound (A Denis O’
Brien investment company) is now in place to take the company through to
positive cash flow and profitability for 2002.

The scheme, as approved by the Court, makes provision for existing
shareholders to subscribe for new shares at the same price as the new
investors.

ABOUT CARDBASE TECHNOLOGIES

CardBASE Technologies® a leading provider of smart card solutions for secure
e-commerce, is a European company serving world markets from its
headquarters in Ireland and offices in the United States and Africa. Since
its foundation in 1993, CardBASE Technologies has been providing innovative
smart card management systems for the Internet, Banking, Financial and
Airline markets. CardBASE world wide customers include British Airways,
ValuCard Nigera Plc, and Visa International.

The CardBASE solution supports Multiple Application Smart Cards, Card
Personalisation, Card Management, Transaction Processing and Settlement.
CardBASE solutions have been specifically designed to support the Visa
International led Common Electronic Purse Specification (CEPS), EMV and the
Public Key Infrastructure (PKI) standards.
CardBASE’s website is www.cardbase.com

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Campus UPOS Deployment

QI Systems, Inc. has been retained by a major San Francisco-based system integrator and consulting company to develop and incorporate their SmarTe Campus Solution into QI’s Unattended Point Of Sale payment terminals for two large college campuses in Northern California, with a total student body of approximately 50,000.

In the first phase of the project, QI is installing its UPOS payment terminals for soda vending machines, copiers and value reload stations. QI anticipates beginning the second phase of the project during the Spring of 2002, which will include the installation of UPOS payment terminals for snack vending machines, network printing and pay and display parking. In addition, the system integrator and consulting firm expects to expand their installation of similar systems into six additional colleges in California by the end of 2002.

Mesbah Taherzadeh, President and CEO of QI Systems, Inc., stated, “Our new strategic relationship with this leading consulting company opens the door for even greater growth in the huge college campus market. We are optimistic in quickly gaining momentum in this target market and the overall UPOS market, which has an estimated 35% annual growth rate, because of the advantageous features of our industry standard-setting products. Our smart card readers can read different types of cards and also have an unprecedented upgrade capability compared with what is commonly available in the market today.”

QI Systems, Inc. ([www.qisystems.ca][1]) designs hardware and software for the rapidly expanding cash card industry. It is a leader in supplying solutions for smart card vending with products in use in Canada, the U.S., Venezuela, Hong Kong, the UK, and Norway. QI’s SmartVend technology enables debit card purchases by consumers from a wide range of vending machines types. The SmartVend system is currently being used in conjunction with many card schemes, including VisaCash, Mondex (Multos), CANTV (Venezuelan phone card), Telus SmartONE card and others. Due to the modular structure of SmartVend, multiple card schemes can be run in parallel in the same unit with new schemes added at a later date. QI’s SmartVend systems have been installed in Coca-Cola and Pepsi vending machines, coffee, snack and sandwich machines, laundromat machines, copiers, newspaper vending boxes for such publications as USAToday and in parking machines.

[1]: http://www.qisystems.ca/

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MBNA 4Q Outlook

Super-prime and affinity credit card specialist MBNA reported this morning that as of December 18th, total managed loans increased $4.1 billion over the third quarter. At the end of November, MBNA had added 2 million new cardholders or 1.7 million new accounts during the fourth quarter. MBNA noted today it has received the endorsement of 33 new sports-related organizations this year and now has more than 600 total sports-related affinity card programs. More than 7.5 million sports sector cardholders carry $9 billion in loan balances on MBNA products. The affinity card king last week snagged the PGA TOUR card program from First USA and also recently signed the Seattle Mariners. Other sports affinity card programs signed this year include the Oakland Athletics, the Milwaukee Bucks, the San Antonio Spurs, and the United States Tennis Association. MBNA has renewed 18 agreements with sports organizations in 2001 including the Cincinnati Reds, the Philadelphia Flyers, the National Hockey League, NASCAR, National Hot Rod Association, the PGA of America, and Major League Baseball. MBNA also markets its card products to the college sports fans of more than 700 colleges and universities. Totally MBNA has about 5,300 affinity card programs in the USA, the UK, Ireland, and Canada. For complete details on MBNA’s 3Q/01 performance visit CardData ([www.carddata.com][1]). (CF Library 12/13/01)

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

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Toys R Us Gift Cards

The calendar tells the story. The holidays are here and shopping time is getting short. What can gift givers do to add a little something extra to that holiday gift? A Toys “R” Us gift card is the answer.

Toys “R” Us, Inc. announced a promotion with Walgreens that will allow consumers to purchase Toys “R” Us gift cards at all Walgreen locations throughout the United States.

“With the holiday season here, we are all in search for the perfect gift for that special someone on our list,” said Warren Kornblum, Executive Vice President – Worldwide Marketing and Brand Management. “This partnership with Walgreens provides Toys “R” Us and Walgreen shoppers with another convenient gift giving option. Having gift cards at all “R” Us locations as well as at Walgreens will give Mom, Dad, Grandma and Grandpa, and other family members another way to please the special child in their lives.”

Toys “R” Us Gift Cards are available in all of the 1,048 Toys “R” Us, Babies “R” Us or Kids “R” Us locations throughout the USA. This is the first time Toys “R” Us gift cards have been available through another retailer.

Toys “R” Us — The world’s leading resource for kids, families and fun currently operates 1,606 stores; 703 toy stores in the United States, 509 international toy stores, including franchise stores, 184 Kids “R” Us children’s clothing stores, 161 Babies “R” Us stores and 49 Imaginarium stores. The company also has Internet sites at [http://www.toysrus.com][1], [http://www.babiesrus.com][2] and [http://www.imaginarium.com][3].

[1]: http://www.toysrus.com/
[2]: http://www.babiesrus.com/
[3]: http://www.imaginarium.com/

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KEYCORP KOREA

Keycorp has sealed a deal for 1.1 million cards and modules to the Korean
consortium of Kookmin Bank, Korean Telecom Freetel and Mondex Korea.
The e-purse cards will use the ‘MULTOS’ operating system and an Infineon
processor. Under the $A6 million contract, the Keycorp smart cards will be
manufactured by Security Plastics in New Zealand. The cards will be used in
such applications as MasterCard’s ‘Mcard Select’, the Mondex e-purse
and a Korean National ID card.

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Browser-Free SSL

DE-based Electronic Payment Exchange this week introduced a method of transmitting Internet payments encrypted by ‘Secured Socket Layer’ that effectively separates ‘SSL’ from the web protocol it’s usually associated with. This enables merchants to send their transactions to EPX through an ‘SSL’ connection without having to wrap them in HTML code. The encryption also takes place at strictly a hardware level, rather than a web server level. To remove the task of encryption from the web server, EPX installed redundant ‘SSL’ accelerators specifically designed to encrypt and decrypt ‘SSL’. EPX’s front-end technology was designed to transmit ‘SSL’ transactions directly through these hardware devices, without using HTTP. Clients have the option of encrypting transactions with both ‘SSL’ and ‘Triple Data Encryption Standard’ for added protection.

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ePcard XML

GE Capital yesterday introduced a patented payment tool that automates settlement and reconciliation of transactions made through e-procurement systems. The company also confirmed Tuesday it is the process of cutting 3,000 jobs amid a restructuring of some businesses within its financial division. The new ‘ePcard XML’ system reduces errors and speeds up online purchasing by using machine-to-machine communication between the Oracle Procurement system and the MasterCard network. Currently most p-card transactions in e-procurement systems require the supplier to manually type the customer’s purchase order number at the point of sale. ePcard XML eliminates the need for suppliers to capture customer PO numbers. Instead, ‘ePcard XML’ automatically extracts the PO number from the e-procurement system, appends it to the MasterCard transaction record and transmits it to the customer’s accounting system for automated reconciliation. More than 800 online suppliers are enabled, currently settling orders worth several million dollars a month via ‘ePcard XML’.

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Incurrent TruSecure Certified

Incurrent Solutions, Inc., the leading provider of Internet-base d Cardmember Relationship Management solutions for the payment card industry, announced today that TruSecure Corporation has awarded Incurrent a TruSecure Service Provider Core Infrastructure Certification.

TruSecure Corporation is a worldwide leader in security assurance solutions for eBusiness corporations and is the only company providing independent testing and verification of all the dimensions of a service provider’s offerings. TruSecure’s certification process required five months of on-site scrutiny, and included detailed assessments of core router and management stations, physical security reviews, reviews of policies, procedures and architecture; evaluations and recommendations on overall network architecture and connectivity, including backup/failover systems, redundancy and environment al controls; and validation of policy compliance in human resources, Internet security, administration, remote access, helpdesk and physical security.

TruSecure measured Incurrent against 64 essential practices (for which there are 96 validation metrics) as part of this certification process.

TruSecure’s comprehensive report, evaluating the strengths and weaknesses of Incurrent’s hosting environment formally concluded that there were no weaknesses in the operation or its procedures. Incurrent’s information security operations were pronounced and certified as secure. TruSecure’s Service Provider Core Infrastructure Certification is valid for one year.

In order to maintain this certification, Incurrent will undergo quarterly vulnerability assessments by TruSecure and an annual re-certification audit.”If you’re going to host and operate mission critical business platforms for the largest financial institutions in the world, you have to be proactive in managing information security. You have to meet the highest standard,” said Loren Hulber, President and CEO of Incurrent.

“Earning the TruSecure certification validates Incurrent’s efforts to deliver world-class service to world class customers.”

About Incurrent Solutions

Founded in 1997, Incurrent Solutions ([www.incurrent.com][1]) provides advanced Internet, voice and wireless services to card-issuing banks and transaction processors. Incurrent’s clients include Sears Roebuck, NextCard, Certegy (formerly Equifax Card Services), Fiserv, Fleet Credit Card Services, Metris Companies, and other major card issuers. Incurrent has seen the volume of its clientele’s total cardmember base grow from 15 million to 100 million, reflecting a rapidly growing industry need for its services.

CardSite, Incurrent’s cutting-edge, Internet-based CRM solution, enhances cardholder experience and cultivates account loyalty at a cost significantly lower than traditional customer interaction methods. Cardholders enjoy real-time access to account information, statements, bill payment, secure e-mail, reports, searches, interactive sessions, and other service-enhancing tools for web, wireless and voice channels.

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

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@pos 4Q Estimates

@pos.com, Inc. ([www.atpos.com][1]), a leader in secure, interactive electronic transaction technologies, announced that it expects revenue in the range of $4.2M and $4.6M in the second fiscal quarter ended December 31, 2001. When combined with first quarter fiscal 2001 revenue of $2.8M, year-to-date revenue is expected in the range of $7.0M and $7.4M for the period ending December 31, 2001. This is in line with previous guidance indicating that the Company expected to complete projects totaling $6M to $7M in revenues prior to the end of the second fiscal quarter.

The Company expects net operating losses for the second fiscal quarter ending December 31, 2001 to be in the range of $.8M to $1.0M. Gross margins will be approximately 38% to 40%, in line with levels achieved in the first quarter. Operating expenses are expected to increase sequentially by approximately $.8M, as previously announced, primarily as a result of the Crossvue acquisition on September 28, 2001. When combined with first fiscal quarter operating losses of $602,000, the Company expects year-to-date operating losses of $1.4M to $1.6M for the six months ending December 31, 2001.

The Company currently forecasts a significant decline in third quarter revenues from the previous quarter, but believes that this forecast may be improved by contracts under negotiation. This decline largely reflects cutbacks and deferrals of capital spending in the retail industry. The Company expects the third fiscal quarter will represent a low point for shipments and that the overall outlook should improve in the fourth fiscal quarter.

In light of the expected weakness in third quarter revenue, Company management announced it will explore options to reduce expenses and raise equity to meet anticipated capital requirements.

About @pos.com

@pos.com (OTCBB:EPOS) is a leader in secure, interactive electronic transaction technologies. The company provides signature capture products, web-enabled payment platforms, smart card interfaces, encryption engines supporting DES and Triple DES, and an extensive suite of software tools. With complete end-to-end solutions, @pos.com offers internet-based, hosted services, under its Crossvue brand, for loss prevention and electronic receipt storage and retrieval. @pos.com currently services the retail, government and banking market for applications that include electronic signature capture, debit and credit payments. For more information, see [www.atpos.com][2].

[1]: http://www.atpos.com/
[2]: http://www.atpos.com/

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