Passport Competition

Microsoft’s new ‘Passport’ identity verification service is picking up stiff competition as the ‘Liberty Alliance Project’ gathers major support. Yesterday, the consortium announced that MasterCard has joined following the recent enlistment of American Express. The group, led by Sun Microsystems, is an alliance formed to create open, federated, single sign-on identity standards for the digital economy via any device connected to the Internet. Other founding members and members of the management board include: AOL Time Warner, France Telecom, General Motors, Hewlett-Packard Company, MasterCard International, Bell Canada, Global Crossing, Nokia, NTT DoCoMo, Openwave Systems, RealNetworks, RSA Security, Sony Corporation, Sun Microsystems, United Airlines and Vodafone. Other companies considering participation include: ActivCard, Gemplus, and Schlumberger. Microsoft claims its has 200 million ‘Passport’ users worldwide, mostly driven through its Hotmail e-mail service. However it has drawn little support from other companies. Reportedly the ‘Liberty Alliance’ is attempting to recruit Microsoft’s participation, despite being rebuffed by the software giant.

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Platinum Phone Cards

The Auxer Group, Inc. announced that its subsidiary, CT Industries, Inc., formerly introduced its line of prepaid calling cards under the new Platinum Series.

The line has been introduced with four products: African Talk, Kamustahan, One Cent America, and El Sol Mexicano. The Platinum Series currently focuses on Asia, Mexico, Africa and the domestic markets. The line is expected to expand to six products in January. The Company has been working on forming its network of tier one carriers, as well as strengthening its customer service team and its customer base during the year 2001.

ABOUT THE COMPANY

The Auxer Group is a holding company that consists of two groups; a Telecommunications Group and an Automotive Group. The Telecommunications Group is focused on distribution of prepaid products, which includes The X-Factor(TM) and One Cent America(TM). The Automotive Group is focused on aftermarket wholesale and distribution of automotive and marine products and parts, which includes Easy Test(R) and Garry’s Royal Satin(TM).

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SMARTVEND DEAL

QI Systems Inc. announced that a major Canada-based food service company
servicing hospitals in
Ontario and Quebec has retained QI Systems to develop, design and install its
SmartVend Solution System into its entire operation.

In the first phase of the project, QI is installing its Smart Card Scheme,
Value Reload Stations and Payment Terminals to be connected to cash registers
at a food court in a major Montreal area hospital. Upon successful
installation
of the first phase, similar systems are expected to be installed in more than
30 additional hospitals throughout Ontario and Quebec.

Mesbah Taherzadeh, president and CEO of QI Systems Inc., stated, “We are
pleased to penetrate the huge food service market with such a major contract
that offers unlimited access and opportunities for additional sales. In
addition, we are delighted to have been contacted by this industry leader in
the food service market for our solutions and products, which demonstrates
that
we have already achieved credibility and a reputation for quality in a
relatively short time. We look forward to building on our sales momentum as we
build-out our salesforce, which will fuel even greater growth.”

QI Systems Inc.
(http://www.qisystems.ca) 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.

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Penske Gift Cards

Penske Auto Centers announced the launch of the Penske Auto Center Auto Cash Gift Card. In making the announcement, Jim Wheat, President and CEO stated, “This cash card provides an excellent alternative gift idea for our customers nationwide. Virtually everyone has been faced with the dilemma of what to get for the person who has everything. This cash card provides our customers with a high-value, high- quality solution to gift buying.”

In addition, the cash card provides parents of college students with peace of mind. Parents can purchase and replenish the vehicle maintenance cash card for their college students. While travelling back and forth to school, students will be able to take advantage of the many services and products offered by Penske Auto Centers as the card is honored at the more than 630 Penske Auto Centers nationwide. And for those individuals that travel extensively, the vehicle maintenance cash card can be considered as “travel insurance,” as they no longer will need to worry about servicing their vehicle while on the road.

“Let’s face it, a key factor for most consumers when making a gift buying decision is the value of the gift and the convenience of the purchase experience,” said Wheat. “When we looked at implementing this vehicle maintenance cash card throughout our service centers, research indicated that most individuals use a cash card’s value within the first 90 days of purchase,” said Wheat. “I’m confident that this cash card will be well- received by our customers.”

The Penske Auto Center Auto Cash Card is available in any dollar amount and can be used toward the purchase of the many services and products offered nationwide. Those services include:

* Speedlane Oil changes featuring Mobil Oil — Guaranteed in 30 minutes or its free
* Protech — antifreeze/coolant fluid replacement
* Transmatic — automatic transmission fluid replacement
* MAXAir R-134 — air conditioning recharging
* PowerMaster — fuel system cleaning
* Ride Control — tires, alignment, brakes, shocks, struts, etc.
* Auto Energy — an array of batteries and alternators

Penske Auto Centers LLC is the largest independent tire dealer in the United States with over 630 locations nationwide and more than 4,000 employees committed to being the leader in preventative automotive maintenance. In addition to its strong presence in the marketplace for tire sales, other services offered by Penske Auto Centers include 30-minute oil changes, wheel alignments, ATF fluid exchanges and brake service, just to name a few. Integral to the Company’s overall success are its long-term growth strategy and strategic partnerships with organizations such as Kmart, Goodyear, Mobil, NAPA, Snap-on, Safety-Kleen and Exide Battery Company. For more information go to [http://www.penskeautocenters.com][1].

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

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Bankplus Update

A former specialist in sub-prime credit cards was awarded attorneys’ fees and costs from a former partner yesterday. Los Angeles-based Bank Plus/Fidelity Federal Bank said an arbitrator in the proceeding between Nationwide Capital Company and Fidelity has issued an award denying Nationwide’s claims and awarding Fidelity $184,000 for attorneys’ fees and costs in relation to Fidelity’s counterclaim for breach of the arbitration provision of the now terminated affinity credit card agreement between the two parties. The bank dumped its card portfolio last year. (CF Library 7/5/00)

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iPIN Modules

iPIN unveiled two new product modules, the ‘e-Payment Business Intelligence Module’ and the ‘Multiple Payment Instrument Module’ this week. The ‘e-Payment Business Intelligence Module’ is a tool that helps companies track the success and return on investment of their e-Payment initiatives that enable consumers to make purchases via wireless and fixed devices. The module also evaluates online consumer buying behavior, monitors consumers with high product return rates, and identifies merchant segments that have the most initial activity. The ‘iPIN Multiple Payment Instrument Module’ has been enhanced to allow for direct integration with the iPIN secondary user functionality. The MPI is a tool that allows consumers to manage the usage of multiple funding accounts, such as debit, credit, and pre-paid, within a single application.

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Gemplus Shakeup

Smart card manufacturer Gemplus announced late Wednesday it is replacing its chairman and CEO. The French firm confirmed that Antonio Perez has decided to resign as CEO and Marc Lassus, founder and chairman, will step down next month. 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. From 1987 through 2000, Von Falkenhausen guided and supervised the plastic card related products and services business of DataCard. Between 1990 and 2000, Mackintosh served in a number of executive capacities of Computer Sciences Corporation, most recently as President and Chief Executive of CSC’s European Group. Gemplus reported third quarter revenue of 226 million Euros, a 27% drop from the same quarter a year ago. The 3Q/01 operating loss was 55.3 million Euros, compared with an operating profit of 32 million Euros for the same quarter a year ago, according to CardData (www.carddata.com). The RAM Report (www.ramreport.com) recently reported that Gemplus is planning to cut 450 job cuts in France and 1,500 worldwide out of its total global workforce of 7,000.

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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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