Cap One Financial Literacy

Consumer Action and Capital One announced the launch of Money Wi$e, a national financial literacy partnership. Money Wi$e is the nation’s first program to combine free, multilingual financial education materials with community training and seminars.

Survey Says: Americans Need More Financial Information

A recent survey* conducted for Capital One and Consumer Action showed that while nearly two-fifths (37 percent) of adults worry about being denied credit in the future, almost two-thirds (65 percent) have not obtained a copy of their credit report during the last year. Further, 60 percent of respondents are not aware of free community resources to help manage personal finances, but 45 percent said they would use them if made available.

“Unfortunately, most adults ‘learn as they go’ when it comes to handling personal finances,” said Diana Don, Director of Financial Education at Capital One. “This approach often results in missteps that can lead to lifelong financial problems. We’re delighted to be partnering with Consumer Action to help consumers learn how to better control their financial futures.”

According to Consumer Action Executive Director Ken McEldowney, the Money Wi$e program is designed to address consumers’ greatest needs. “Managing finances is a challenge for many individuals,” said McEldowney. “We’re thrilled that Capital One is willing to step up to give people the tools they need to make smart financial decisions.”

Survey results also reinforce a need for education among non-English speaking groups. For example, 62 percent of Spanish-speaking adults surveyed worry about being denied credit in the future, but only 25 percent have obtained a copy of their credit report during the last year.

Materials Focus on Top Problem Areas

The Money Wi$e series of simple, straightforward brochures is produced in five languages (English, Spanish, Vietnamese, Korean, and Chinese) and will be made available to more than 6,500 community organizations nationwide, as well as directly to consumers at [http://www.consumer-action.org][1] and [http://www.capitalone.com][2].

The first brochures focus on the top problem areas: “Understanding Credit” (see below), “Money Management,” “Basic Banking,” and “Going from Bad Credit to Good Credit.”

“Providing information in multiple languages enables us to reach a wider circle of people,” said McEldowney. “For many of these individuals, education is especially important since they may be dealing with not only a language barrier but also with unfamiliar systems or practices.”

Top 5 Credit Tips

From “Understanding Credit,” a Money Wi$e publication

From Consumer Action & Capital One

Check it. Review your credit report at least once a year to check for errors or fraudulent activity. The three largest credit bureaus are: Equifax, Experian and Trans Union.

Fix it. Contact the three credit bureaus and your lenders to correct mistakes on your credit report.

Use it. Demonstrate wise use of credit — especially when you’re establishing credit for the first time. Make purchases regularly and pay your account.

Watch it. To maintain good credit, keep your balance well under your credit limit and pay your bills on time.

Control it. Moderation is key. People with good credit only have a few loans or credit cards. Don’t max out your credit.

Money Wi$e: Materials, Training and Seminars

The materials will be available directly to consumers online at [http://www.consumer-action.org][3] or [http://www.capitalone.com][4] , or by sending a self-addressed, stamped envelope to: Consumer Action Money Wi$e, 717 Market Street, Suite 310, San Francisco, CA 94103. Consumers can find information about local counseling sessions and workshops by calling Consumer Action at 415-777-9635.

Trained by Consumer Action, and equipped with materials and a training/curriculum manual, Capital One employees will begin to volunteer near the company’s headquarters in Virginia to teach financial education to the public. Capital One will give associates two days off each year for volunteering their time to the Money Wi$e program.

About Capital One

Headquartered in Falls Church, Virginia, Capital One Financial Corporation (NYSE: COF) is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products. Capital One’s subsidiaries collectively had 40.1 million customers and $38.5 billion in managed loans outstanding as of September 30, 2001. Capital One, a Fortune 500 company, is one of the largest providers of MasterCard and Visa credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 500 index.

About Consumer Action

Consumer Action is a non-profit, membership-based organization founded in San Francisco in 1971. Consumer Action serves consumers nationwide by advancing consumer rights, referring consumers to complaint-handling agencies and publishing multilingual educational materials. Consumer Action also advocates for consumers in the media and before lawmakers and compares prices on credit cards, bank accounts and long distance services.

*Survey conducted by International Communications Research

[1]: http://www.consumer-action.org/
[2]: http://www.capitalone.com/
[3]: http://www.consumer-action.org/
[4]: http://www.capitalone.com/

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Household Behavior Database

Experian, a leading provider of global information solutions, launched Quick Predict, an automated segmentation methodology that efficiently predicts household behavior. Quick Predict develops strong and accurate customer predictive models, using attitudinal and lifestyle data extrapolated from Experian’s BehaviorBank database, one of the largest repositories of consumer-supplied lifestyle data with coverage on more than 35 million households.

“Quick Predict extends the range and domain of behavioral and primary research information and makes it actionable. Because it’s completely automated, it’s a cost-effective solution that allows marketers to leap from intuitive selects to more precise segmented lists,” said Deborah Zuccarini, executive vice president and chief marketing officer for Experian’s marketing solutions business unit. “Quick Predict rapidly provides predictive information about current and potential customers — down to their likeliness to buy a red widget over a blue widget or to prefer fast food over gourmet, for example.”

Marketers can use Quick Predict to understand how survey information taken from a sample of their customer base is likely to be represented universally. With survey information from a small customer sample, Quick Predict can create propensities which companies can use to predict responses. Based on lifestyles, past behaviors and product interests of those in the customer sample, Quick Predict can determine the likelihood of households across the country to behave in specific ways.

“Quick Predict allows marketers to bridge the gap between their proprietary market research and large scale communication activities,” continued Zuccarini. “Quick Predict assigns each record on our INSOURCE(SM) consumer database with propensity codes, predicting the likelihood of each individual household to behave in certain ways.”

Quick Predict customer models can also help marketers determine appropriate channel contact and customer relationship management (CRM) strategies. Quick Predict can forecast responsiveness across multiple channels, including e-mail, Web site, call center and point of sale, so marketers can determine how offers or campaigns will impact customer-channel contact strategies throughout the campaign cycle.

About Experian

Experian enables organizations to find the best prospects and make fast, informed decisions to improve and personalize relationships with their customers. It does this by combining sophisticated and intelligent decision-making software and systems with some of the world’s most comprehensive databases of information on consumers, businesses, motor vehicles and property. Through multi-channel delivery of its Web-based products and services, Experian enables its clients to conduct secure and profitable e-business and develop state-of-the-art Customer Relationship Management (CRM) systems for communicating and building relationships with customers. Experian is a subsidiary of GUS plc and has headquarters in Nottingham, UK, and Orange, Calif. Our 12,000 people support clients in more than 50 countries. Annual sales are approximately $1.5 billion

For more information, visit the company’s Web site at [http://www.experian.com][1] .

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

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Debit Projections

The Chief Debit Officer for MasterCard International and CEO of Maestro International said yesterday that debit card usage is expected to surpass credit within the next decade. However Ann Camarillo, noted that despite the 30%+ annual growth in volume and transactions, debit is still in the growth stage of its life cycle. A recently completed independent study for MasterCard showed that cash and checks still comprise approximately 66% of all payments. Research has shown consumer perceptions for debit cards have conventionally driven usage to primarily grocery and fuel station purchases but, consumers are planning to use debit cards for a range of different merchant categories, such as doctors’ office services where other forms of consumer payments have traditionally been the dominant choice.

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GEMPLUS 3Q/01

Gemplus International S.A. reported results for the third quarter ended
September 30, 2001.

Revenue for the third quarter was 226 million Euros, which is down 27% from
the
same quarter a year ago, and down 10% compared to the second quarter 2001.
Telecommunications declined 37% from year ago levels and accounted for 64% of
group revenues. Network Systems grew 22% and accounted for 24% of group
revenues. Excluding the SkiData business, which was divested during the
quarter, Network Systems grew 44% over the third quarter of last year. Other
revenue, which consists of Plastic Magnetic Striped Cards, Contactless Cards
and TAG declined.

Operating loss was 55.3 million Euros, compared with an operating profit of 32
million Euros for the same quarter a year ago. Excluding the 18.1 million Euro
charge for the Humetrix lawsuit, the operating loss was 37.2 million Euros.
Net income for the third quarter was 6.6 million Euros, or 0.01 Euro per fully
diluted share. Net income includes a combined after tax capital gain of 58.4
million Euros from the divestitures of SkiData and the TAGs business as
well as
an 18.1 million Euro charge for the Humetrix lawsuit. Net loss for the
quarter,
excluding these exceptional items, was 29.7 million Euros, or a 0.05 Euro loss
per diluted share.

According to the company, the third quarter results reflect three key themes:
the unfavorable impact of the continuing weak SIM market, a substantial
reduction in the level of operating expenses, and encouraging mid-to-long term
prospects strengthened by recent developments in both its Telecommunications
and Financial Services businesses.

“Early signs that the SIM card market may be stabilizing encourage us,” said
Antonio Perez, President and CEO. “This is an extremely important segment for
Gemplus. We are also pleased with the continued progress of our Financial
Services business, although we are watching the US economy very closely.
Furthermore, the recent heightened interest in Security and National ID cards
could be a major growth engine for us over the intermediate and longer term.”
He noted, however, “Business conditions in our specific markets and the added
uncertainty in the world economic environment make it too difficult to provide
meaningful guidance for the fourth quarter or for 2002.”

Stabilizing GSM SIM card business, continued progress of Financial
Services, strong performance of the Americas.

The company noted that it is seeing early indications of stabilization in the
GSM SIM market. The company also expects operator inventory levels to be in
balance with end user demand at the end of the year. While this is unlikely to
cause a dramatic increase in GSM SIM card orders this fourth quarter, this can
be viewed as a positive development for 2002.

Regional growth rates were down across all geographies with the exception of
the Americas region, where the 32% increase in revenue was fueled by progress
in the Financial Services multi-application (MAP) card business.

Despite the delay of some shipments into the fourth quarter, as we anticipated
in our September 27 announcement, the Financial Services multi-application
card
(MAP) business still grew 44%. Although the weakening US economy could further
impact growth rates, Gemplus continues to believe that it is gaining market
share in the very important U.S. market.

Substantial improvement in operating expenses and asset
performance.

The actions taken this year to improve financial competitiveness and enhance
strategic corporate focus enabled the company to reduce operating expenses by
15% from the second quarter. This is the lowest level of expenses since Q3 of
last year. Perez stressed, “In addition to the divestiture of the SkiData and
TAG businesses, earlier this year, the continuing implementation of the
restructuring program is well on its way to achieving our 40 million Euros in
annual cost savings objective.”

Furthermore, inventory levels declined 21% during the quarter, as shipments
exceeded receipt of material and as a result of the SkiData divestiture.
Accounts Receivable Days Sales Outstanding (DSO) also declined. The company
finished the third quarter with a 503 million Euro cash balance. Perez noted,
“A full-fledged competitive advantage in itself, our strong cash position
provides enormous flexibility during challenging market environments such as
these.”

Encouraging mid-to-long term prospects strengthened by recent
developments in both the Telecommunications and Financial
Services.

Perez cited plans by two major US mobile operators to offer GSM and GPRS
service in the U.S. “These developments combined with recent indications that
GPRS service will be available in several regions of the world by mid-2002
signal a potential return to much healthier SIM card sales growth rates next
year. Furthermore, our MAP business continues to grow, particularly in the
US.”

In closing, Perez stated, “With this as a backdrop, we have been able to
reduce
our level of operating expenses, improve our asset performance and enhance our
strategic focus. These combined actions should help us speed our return to
profitability as the market improves.”

GEMPLUS: the world’s number one provider of solutions empowered by Smart Cards
(Gartner Dataquest 2001).
Gemplus helps its clients offer an exceptional range of portable, personalized
solutions that bring security and convenience to people’s lives. These include
mobile Internet access, inter-operable banking facilities, e-commerce and a
wealth of other applications.

Gemplus is the only completely dedicated, truly global player in the Smart
Card
industry, with the largest R&D team, unrivalled experience, and an outstanding
track record of technological innovation.

Gemplus trades its shares on Euronext Paris S.A. First Market and on the
Nasdaq
Stock Market(R) as GEMP in the form of ADSs. Its revenue in 2000 was 1.205
billion Euros. It employs 7800 people in 37 countries throughout the world.

Gemplus: Your Passport to the Digital Age
http://www.gemplus.com

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TRM 3Q/01

OR-based TRM Corporation reported third quarter revenue of $19.8 million up 3% from the third quarter of 2000. The net income loss for 3Q/01 was $1,090,000 compared to $1,067,00 for 3Q/00. The TRM e-commerce unit generated a pre-tax loss of $0.8 million for the quarter. As of Sept. 30th, the company has installed 1,939 ATMs in the U.S. and the U.K. and 31,566 CopyCenters in North America and Europe. TRM has completed an agreement to restructure its French operations by selling all of the assets of its French subsidiary to a new company formed by the local management. For complete details on TRM’s 3Q/01 results visit CardData ([www.carddata.com][1]).

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

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Clear Blue Discover

Riding the wave of translucent credit cards, Discover launched this month a clear, blue ‘Platinum’ card. The card, promoted as “Very Now” and “Very Cool”, is clearly playing off of the American Express smart ‘Blue Card’ and the Providian’s clear ‘smart VISA’ cards. Discover has yet to launch a smart card, but this year has adopted the motto: “For the Slightly Smarter Consumer”, according to CardWatch ([www.cardwatch.com][1]). Like other current offers, the Discover clear blue ‘Platinum’ card is offering a 0% APR for new purchases and balance transfers. The 0% rate is applicable until next June. Capital One is currently offering a 0% APR through July, while Citibank has also extended its 0% interest rate on balance transfers through next July. According to CardWatch, the most aggressive offer in the marketplace from a major issuer comes from Chase, which is offering a 12-month 0% APR on balance transfers.

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

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InteliData 4.0

InteliData Technologies Corporation announced the launch of its 4th generation online credit card management solution.

InteliData Card Solutions Version 4.0 builds powerful new features onto its already robust solution.

With InteliData’s Card Solutions 4.0, card issuers can take full advantage of new features, which substantially enhance their cardholder’s experience while reducing customer service costs and increasing revenue. Cardholders manage their accounts online avoiding time-consuming phone calls to customer service representatives.

The cardholder is empowered to perform a wide variety of account activities 24×7, across multiple channels. By substantially improving the service and delivering value, Card Solutions continues to create card issuer benefits; increased brand loyalty and an overall reduction in transaction costs. Cardholders have easy access to current and past statement activity (including balances), can easily sort transactions, pay bills online, establish cardholder defined account e-alerts, transfer a balance, request a credit line increase or cash advance, among others.

“The new InteliData Card Solutions 4.0 accentuates products and services that are already the most flexible and customizable in the marketplace,” said Charles A. White, Vice-Chairman of InteliData. “We continually expand our offerings to allow card issuers to give their customers easy to use customer services while saving the card issuers operational costs.”

About InteliData

With a client list that includes 21 of the top 50 banks, InteliData offers Spectrum certified EBPP products to banks, credit unions and financial institution processors. InteliData’s products offer a complete end-to-end solution for distributing e-bills and e-payments through multiple delivery channels, delivering e-bills to consumers, and enabling payment of bills through multiple payment processors. InteliData’s Internet banking and card products provide large financial institutions with unsurpassed scalability, flexibility and security in supplying real-time, Internet based banking and card services to their customers. Headquartered in Reston, Virginia, USA, InteliData is publicly traded (NASDAQ:INTD) and its business partners include Spectrum EBP, ALLTEL, FDR and other industry leaders. For more information, visit the company’s web site at [www.intelidata.com][1].

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

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Active P-Card Control

Starting in mid-December, the PNC Bank ‘VISA Purchasing Card’ will give companies the ability to require online approval of card purchases before they are made. PNC has become the first company to offer the Works ‘Procisa Active Card Control’ enhancement to its P-card program. The new feature also will help PNC Bank clients automate and streamline back-office processes related to reconciling purchasing card transactions. These processes will include invoice reconciliation, itemization of card purchases into appropriate general ledger codes and the ability to export card spending data into back-office financial applications. The solution was developed by Austin, TX-based Works Operating Company.

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CELL BANKING

IndusInd Bank and cellular service provider, Fascel Ltd, have renewed an
agreement to provide mobile banking. Customers using Fascel’s ‘CelForce’ phone
service in the western Gujarat state will continue to be able to access
IndusLnd
bank services using SMS. More than 250,000 customers can make contact from
more
than 124 towns in the Gujarat area.

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September Card Debt

Americans tacked a mere $1.4 billion onto revolving credit during September compared to $4.2 billion last September. Since the first of this year, total revolving credit, mostly credit card debt, has grown by $31.2 billion compared to $44.3 billion for the same period last year. However, more than 90% of the growth this year occurred between January and May. Since June revolving credit has grown only $1.2 billion, according to preliminary figures released Wednesday afternoon by the Federal Reserve. This confirms that consumers hit the brakes with credit card debt in June. The rapid rise in home equity loans may also be a factor as consumers migrate higher priced credit card debt to second mortgages which are hovering at interest rates around 7%. The effect of the September 11th events undoubtedly played a role in the soft September figures as credit card volume collapsed by 20% in the week following the terrorist attacks. According to the Federal Reserve, revolving debt stood at $701.5 billion during September. At the end of September, American consumers were $1.597 trillion in debt, exclusive of home mortgages.

REVOLVING CREDIT HISTORICAL
($billions)

Sep01 Aug01 Jul01 Jun01 May01 Apr01 Mar01
%GRWTH: 2.5% 3.3 -3.7 2.1 4.5 14.2 11.9
$OWED: $701.5 700.1 698.1 700.3 699.0 697.6 688.2

Feb01 Jan01 Dec00 Nov00 Oct00 Sep00 Aug00
%GRWTH: 20.8% 11.6 5.0 10.9 4.7 7.8 12.6
$OWED: $681.4 670.3 663.4 660.6 654.8 649.3 645.1

Source: Federal Reserve; revised figures as of 11/07/01;
For complete historical data visit www.carddata.com.

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