Technologies, the world’s leading supplier of integrated
circuits for chip cards, announced that it is supplying secure
microcontroller chips used in smart cards now being issued by the U.S.
Department of Defense (DoD). The Infineon chip is a component of the only
currently available smart card that meets the stringent requirements specified
by DoD, including FIPS 140-1 Level 2 Certification by the National
Institute of
Standards and Technology (NIST). The DoD Common Access Card (CAC) is being
rolled out as the single standard means of physical identification, building
access and computer network access for approximately four million civilian and
military employees and outside contractors.

Infineon manufactures the secure microcontroller used by SchlumbergerSema in
the smart cards provided to the DoD by Electronic Data Systems Corporation
(EDS) under a contract awarded as part of the Defense Manpower Data Center’s
Common Access Card (CAC) program.

In smart cards like those used in the CAC program, the secure microcontroller
works like the processor of a personal computer to run the operating system
application software. The microcontroller has advanced security capabilities
built-in, such as support for Public Key Infrastructure (PKI) and digital
signature technology. These features work with other elements on the smart
to protect stored data and to ensure that only the individual owner of a card
is able to use its features. In addition to the microcontroller, the card
contains a magnetic stripe, a linear bar code, a 2D bar code, a photograph,
several anti-counterfeit security features.

The CAC program specifies smart card technology that is based on the open-Java
platform and meets the stringent requirements of Federal Information
Standards (FIPS) 140-1 Level 2 certification. This provides both high-level
security capability and the flexibility for the DoD to add additional
application programs to the smart card in the future.

‘With our 15-year history as a supplier of chip card ICs and leading position
as a supplier of secure ICs for identification and authentication, Infineon
one of a few companies to consult with DoD officials as they planned the
implementation of the CAC system,’ said Joerg Borchert, vice president of the
security & chip card business group of Infineon Technologies North America
Corp. ‘We are now very honored that our microcontrollers are used in DoD smart
cards that are fully compliant with the smart card security requirements
defined by the U.S. government for this project.’

‘Since entering the chip card IC market, Infineon has acquired extensive
in all the security areas associated with this technology,’ said Dr. Soenke
Mehrgardt, Chief Technology Officer at Infineon Technologies. ‘The confidence
of the DoD in our security chip card controllers as well as the fact that our
latest chip card controller last week won the prestigious ´Sesames 2001´ award
for the best technological innovation within the chip card industry reinforces
Infineon’s leading position in the market for security semiconductor

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system
solutions for applications in the wired and wireless communications markets,
for security systems and smartcards, for the automotive and industrial
as well as memory products. With a global presence, Infineon operates in
the US
from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from
Tokyo. In the fiscal year 2000 (ending September), the company achieved sales
of Euro 7.28 billion with about 29,000 employees worldwide. Infineon is listed
on the DAX index of the Frankfurt Stock Exchange and on the New York Stock
Exchange (ticker symbol: IFX). Further information is available at



Home Capital Group Inc. (TSE:HCG.B) announced results for the third quarter.
These results were generated by the
Company’s wholly owned subsidiary, Home Trust Company.

– This represents the 25th consecutive quarter in which earnings have
exceeded those of the previous quarter.

– Home Trust’s core residential first mortgage business demonstrated
steady growth throughout the quarter as housing demand stayed strong
and interest rates remained favourable.

– The Company completed its fourth sale of mortgage-backed securities,
in the amount of $20.3 million.

– In September, Home Capital completed the sale of 1.4 million Class B
subordinated voting shares.

– The Company is confident in its ability to continue its strong
earnings trend.



Net Earnings Increase for 25th Consecutive Quarter

Home Capital Group Inc. continued to perform strongly through the third
quarter of 2001, achieving outstanding increases in net earnings, earnings per
share and growth in total assets. The Company, through its wholly-owned
subsidiary Home Trust Company, has now achieved consistent quarter-over-
quarter increases in earnings for 25 consecutive quarters.

Quarterly Earnings Increase 50%

Net earnings for the three-month period ended September 30, 2001 rose
50.0% to $3,982,082 from $2,654,389 for the same period a year earlier.
Earnings per share were $0.26, a significant increase of 44.4% over $0.18 in
the third quarter of 2000. Return on equity climbed to 25.1% in the third
quarter, up from 23.3% recorded last year.

For the nine months ended September 30, 2001, net earnings rose 44.0% to
$10,745,984 from the $7,461,379 recorded for the first nine months of 2000.
Net income per share increased from $0.51 to $0.72, and on a fully-diluted
basis from $0.49 to $0.66.

Strong Performance in a Challenging Economy

Despite the tragic events of September 11 and the resulting economic
fallout, Home Capital has continued to meet its performance targets. An
initial drop in mortgage applications was quickly followed by a return to
normal levels of activity. Home Trust’s core residential first mortgage
business demonstrated steady growth throughout the quarter as housing demand
stayed strong and interest rates remained favourable.

Total assets continued to grow during the quarter, reaching $1.1 billion
by September 30, 2001. This represents an increase of 31.2% over total assets
on September 30, 2000.

Home Trust VISA Expands Cardholder Base

The number of cardholder accounts passed the 20,000 mark in early July
and reached 24,238 on September 30, 2001. This represents an increase of 4,798
cardholders, or 25% in the quarter. The total value of receivables almost
doubled during the quarter, from $5,704,195 at the end of the second quarter
to $10,102,761 on September 30. The Company is very encouraged by the market
acceptance of this service and has market tested several variations of secured
and unsecured VISA card products. A portion of our unsecured credit card
portfolio has performed below expectations and revised underwriting guidelines
have been implemented to correct this unsatisfactory performance. It will be
necessary to accommodate some writeoffs over the next two quarters until this
portion of the portfolio is eliminated, however the amounts will not
materially detract from the Company’s overall financial performance.

Going forward, the Company intends to repatriate some administrative
functions that had previously been outsourced. These would include credit
adjudication, payment processing, and collection of overdue accounts. By
moving these activities in-house, the Company expects to achieve significant
cost savings and improved efficiencies. We anticipate that card operations
will become profitable in 2002.

Company Launches Retail Credit Services

Late in the second quarter, a unit was established to provide financing
for customers purchasing products from established merchants. Employees well
experienced in this segment of lending were recruited and results to date have
been most encouraging. After four months of operations, receivables have
reached $2.2 million and Retail Credit Services is making a positive profit
contribution to the Company before provisions for losses. Delinquency in the
portfolio is minimal with no losses to report.

Company Completes Largest Sale of Mortgage-Backed Securities

During the quarter, Home Capital successfully completed the sale of more
than $20 million in mortgage-backed securities, its largest sale to date. The
Company views securitization as a promising and growing line of business. What
began as a pilot project has now become a sustainable, ongoing business

Company Maintains Conservative Approach to Risk

Net impaired loans as at September 30, 2001 represented 0.52% of total
loans outstanding, a slight increase compared to 0.50% on September 30, 2000.
This increase is due primarily to arrears in British Columbia. The
collection/foreclosure process in that province extends the resolution period
to twelve months, resulting in expanding arrears totals. Losses are not being
incurred and are not expected on the files under collection. The Company
continues to closely monitor impaired loans.

The Company has increased the general allowance to $5.2 million which
represents 89.5 basis points of risk-weighted assets at September 30, 2001,
compared to the $3.9 million and 81.7 basis points provided in September of
the previous year. This brings the Company close to its year-end goal of
increasing the general provision to 90 basis points. Home Capital will
continue to maintain this conservative approach, and plans to further enhance
the general provision to 100 basis points of risk weighted assets by December
31, 2002.

Home Capital Successfully Completes Issue of Class B Shares

In September, Home Capital successfully completed the sale of 1,400,000
Class B subordinated voting shares. The Class B shares were issued under a
short form prospectus dated August 29, 2001, and were sold through Sprott
Securities Inc. for gross proceeds of $13,440,000. The net proceeds of the
offerings were used to strengthen the capital base of Home Trust Company, to
facilitate future mortgage lending, and for working capital and other general
corporate purposes.

New Initiatives Improve Service and Efficiencies

Subsequent to the third quarter, Home Capital Group successfully
completed the implementation of a new banking and mortgage computer system,
with an improved mortgage origination system to accommodate increased business
volumes. The benefits will be improved efficiencies, faster response time and
enhanced customer service.

Company Announces Quarterly Dividend

The Board of Directors declared a quarterly dividend of $0.025 per share
payable on December 1, 2001 to shareholders of record at the close of business
on November 15, 2001.

Outlook Remains Excellent

The outlook for the fourth quarter for Home Capital Group is excellent.
Demand for our products remains constant and we continue to carefully manage
the risk profile of our portfolios. We are confident in our ability to
continue our strong earnings trend.


President & Chief Executive Officer

October 30, 2001



SchlumbergerSema announced
that Smart Communications has chosen its new-generation Simera Classic 64K
Java SIM smart cards as the platform to
increase market share with a growing portfolio of data services.

Smart Communications is the Philippines’ leading digital wireless operator
with over 4.7 million subscribers on its GSM network. Its network services
cover the mobile waterfront, and it has been particularly successful in
leveraging the data messaging capabilities of short message services (SMS)
and the power of the SIM toolkit to give mobile consumers friendly and
simple access to a wide range of centralized information content.

With almost a hundred million SMS messages sent every day, the Philippines
is the SMS messaging capital of the world, and Smart already handles an
average of 45 million outgoing messages per day. By doubling the memory
available to subscribers for storing service application software, the
SchlumbergerSema Simera Classic 64K SIM gives Smart a powerful
differentiator in the data services arena. It provides the ideal proven
Java platform for Smart to build on its leading market position by
continuing to optimize the service perception of the customer, in turn
boosting revenues from the SMS channel.

Smart’s service portfolio is exceptionally broad, combining conventional
offerings – such as weather and traffic updates, news, mobile chat, exchange
rates, airline and entertainment schedules – with many novel services such
as prepaid reload and purchases through its ‘Smart Money’ service,
horoscopes and biorhythms. It even provides subscribers with recipe ideas
for an evening meal while they are out shopping. The Simera Classic 64K SIM
will double or treble the number of “easy-access” services that can be made
available to the subscriber, as well as supporting increasingly
sophisticated services which leverage its additional memory to provide high
levels of security and enhanced usability.

>From the subscriber’s point of view ‘more’ is definitely better when it
comes to mobile services. With Simera Classic 64K SIM, Smart’s subscribers
can multiply the number of services they can access, giving the operator a
real advantage. At the same time, the advanced Java Card(-compliant
technology positions Smart to rapidly take advantage of increases in
bandwidth as 2.5G technologies arrive, supporting over-the-air downloads to
make one-to-one marketing a practical reality.

The Simera Classic 64K SIM reflects the SchlumbergerSema commitment to
deliver state of the art mobile services and Java technology. Full
conformance to the latest standards for over-the-air downloading, source
code development, and applet loading and processing make the Simera Classic
64K SIM an ideal launch pad for more services and new subscriber servicing
strategies. To a proven and stable Java Card platform, it adds the power
and memory capacity to integrate the state-of-the-art security required for
a new generation of applications, such as m-commerce and the new generation
of location-based services.

In the highly competitive mobile marketplace where customer loyalty is a
distinct advantage, the ability to deliver imaginative and accessible new
services is critical to operators’ success. The higher memory capacity of
the Simera Classic 64K SIM is designed to support more and more
sophisticated applications to meet the demands of an increasingly discerning
subscriber base.

About SchlumbergerSema

SchlumbergerSema is a leading information technology services company
providing consulting, systems integration, managed services, business
continuity systems, products and IP network security solutions serving the
telecommunications, utility, finance, transport, oil and gas, and public
sector markets. With more than 30,000 employees in 130 countries,
SchlumbergerSema is one of two business segments of Schlumberger Limited, a
global technology services company. For more information about
SchlumbergerSema, visit

About Smart Communications

Smart Communications, Inc. is the leading wireless operator in the
Philippines providing a wide range of innovative services to the 5 million
subscribers on its GSM network. It is a wholly owned subsidiary of the
Philippine Long Distance Telephone Company (PLDT), the country’s largest
telecommunications and multimedia company. For more information, please



MIST Inc., a global leader
in wireless transaction technology, announced it has expanded its
offices to Tachikawa-city, Japan and signed an agreement to provide Oki
Electric Industry Co. Ltd., a leading manufacturer of telecommunication
systems, information systems and electronic devices, with customized security
technology for ATM financial transactions.

The three-part MIST/Oki agreement encompasses the licensing of customized
security technology, including research and development for software and
hardware as well as unit manufacturing. The technology will enhance security
for customers making ATM transactions.
“MIST’s expertise in the wireless industry will most certainly assist the
growing needs of the Asian market,” said Charles E. Lee, chief executive
officer and president of MIST Inc.
“The greatest advantage that MIST provides is a secure gateway and a
variety of
customized software applications and products. In our agreement with Oki, we
will provide additional security technology and support for ATM financial
The security technology is compatible with MIST’s FreedomGate(TM), the
multiple-transaction processing facilitator through which wireless
are completed. FreedomGate provides users with remote loading of software and
enables updates to each terminal at one time and from one location.
FreedomGate also provides a re-programmable security device and key injection
solution providing PIN changes at varying frequency to minimize security

“Oki, as Japan’s top ATM vendor, has been providing excellent products in the
ATM market,” said Haruo Kimura, general manager, terminal systems division of
Oki Electric Industry Co. Ltd. “This agreement will enable us to develop
secure and user-friendly ATMs to meet market needs.”

About MIST Inc.

MIST Inc., a leading provider of wireless transaction-enabling technologies,
designs, manufactures and distributes wireless and wired point-of-sale
solutions. The MIST “Freedom family” of wireless transaction terminals was
developed to complement its range of existing products.
The MIST FreedomGate(TM) provides gateway services with value-added options
such as messaging, time and attendance and e-commerce.
With facilities in Canada, the United States and Japan, MIST’s clients include
North American and international banks, financial institutions, credit and
debit card processors, as well as retail, hotel, restaurant, health care and
loyalty customers. For more information, visit Investors
may contact

About Oki Electric Industry Co. Ltd.

Founded more than a century ago in 1881, Oki Electric Industry Co. Ltd. is
Japan’s first telecommunications manufacturer headquartered in Tokyo. With
than 25,000 employees worldwide, Oki Electric provides customers with
products and technologies for telecommunication systems, information systems
and electronic devices. Visit Oki’s global Web site at


Authorize.Net VBV Ready

InfoSpace, Inc., a provider of wireless and Internet software and application services, announced that the company’s Authorize.Net* payment processing platform will offer real- time payer authentication anti-fraud technology that meets Verified by Visa compliance standards.

This agreement demonstrates InfoSpace’s commitment to leveraging new technologies to provide partners with the ability to deploy cutting edge services to their customers. The new service, which complies with the guidelines set forth under the Visa 3-D Secure global interoperability standard, offers participating merchants a fast and effective means to confirm the identity of a user, greatly increasing the security of online transactions and giving a new piece of mind to participating merchants who accepts payments online.

Verified by Visa allows consumers to actively protect their Visa accounts from unauthorized use by selecting a personalized password. Each time cardholders make purchases at participating online stores, they are automatically presented with a Verified by Visa window where they enter their password and authenticate themselves to the Issuer. Verified by Visa significantly minimizes fraud and customer disputes because only the cardholder and their card Issuer know the password.

In cases where a cardholder has not yet enrolled in the Verified by Visa program, and for all other credit cards and online checks used in online transactions with participating merchants, iShopSecure’s proprietary TRANSACT-SECURE* technology performs real-time multi-tiered authentication of the purchaser’s identity during checkout using information that is only known by the actual cardholder.

Together, Verified by Visa and TRANSACT-SECURE help merchants prevent credit card and eCheck fraud during checkout. Additionally, transactions from online merchants and telesales who sign up for the TRANSACT-SECURE service carry the iShopSecure insurance of up to $5,000 per transaction.

“Authorize.Net merchants will now be able to take advantage of these payer authentication solutions which we believe will greatly enhance fraud protection for both our merchants and their customers,” said Roy Banks, general manager of Authorize.Net. “This common sense approach to preventing fraud is tightly integrated into our gateway and represents a robust new revenue stream for Authorize.Net and our resellers.”

“We are very excited about our relationship with InfoSpace,” said Joseph A. McDonnell, chairman and chief executive officer of iShopSecure, Inc. “iShopSecure is proud to offer Authorize.Net merchants both the Verified by Visa and TRANSACT-SECURE service which carries an insurance policy up to $5000 per authenticated transaction for all major credit cards and eChecks.”

InfoSpace’s Authorize.Net* service has been pioneering online payment processing solutions since 1996 providing server-based payment solutions that enable merchants to process transactions in a secure, real-time environment 24 hours a day. Over 120,000 merchants have signed up for Authorize.Net, which enables merchants to authorize, process, and manage credit card and electronic check transactions on Internet-enabled mobile devices and personal computers.

About InfoSpace, Inc.

InfoSpace, Inc. (NASDAQ: INSP) provides an integrated technology platform and suite of applications that enable partners to deliver consumer and commerce services across the Internet to any device over current and next-generation wireless, broadband and narrowband networks. The Company’s array of products includes consumer services, such as communication, entertainment, gaming and speech applications, as well as commerce services, including payments, promotions and shopping. Together, the InfoSpace platform and applications comprise a highly flexible and scalable end-to-end solution that can be rapidly deployed under a partner’s brand. InfoSpace’s partners and affiliates include more than 3,200 Web sites and companies worldwide, including Verizon, AT&T Wireless, Cingular Wireless, ALLTEL, Virgin Mobile, Charles Schwab, Intel, Lucent, Nortel, AOL, Microsoft, Lycos, National Discount Brokers and Bloomberg, among others.


724 3Q/01

724 Solutions Inc. reported results for the third fiscal quarter ended
September 30, 2001.

Third fiscal quarter revenues were approximately $10.0 million, compared
to $6.1 million for the same period last year, a 64 per cent increase. Pro
forma net loss for the third fiscal quarter was $17.0 million, or $0.29 per
share, compared to $10.9 million, or $0.29 per share in the same period last
year. Pro forma net loss and net loss per share include net loss for the
period, adjusted for amortization of intangibles (including goodwill), stock-
based compensation, equity in income (loss) of affiliate, restructuring costs,
write-down of intangibles and other assets (including goodwill) and long-term
investments. In addition, in the quarter the company recorded a one-time, non-
cash charge of $329.1 million primarily related to the partial write-down of
long-term investments and goodwill from acquisitions. (All amounts in U.S.

“724 Solutions remains distinctively positioned to be a winner in the
provision of secure mobile transactions infrastructure and solutions to
financial services companies, and we are now extending our core competencies
into the mobile network operator marketplace,” said John Sims, Chief Executive
Officer, 724 Solutions. “The market opportunity before us is as big as we ever
perceived, and with our strong cash position and ongoing cost re-alignment, we
believe that we will be able to continue to sustain the investment in our core
opportunities while driving the company towards profitability.”

The company ended Q3 with over $107.0 million in cash, cash equivalents,
and short-term investments, and it is on track to reduce quarterly cash
operating expenses by approximately 50 per cent — to $12.0 million — by Q1,


The company expects that the current economic conditions will persist
through the next several quarters. It anticipates that fourth quarter 2001
revenues will be in the range of $7.0-8.0 million. As the current macro-
economic environment improves, the company will provide additional guidance on
its business in 2002.

Third quarter highlights:

724 Solutions delivers additional solutions to financial services

During the quarter, 724 Solutions developed solutions with other
providers of advanced technologies to help accelerate consumer adoption of
wireless applications for the financial services market. For example, by
integrating 724 Solutions’ alerts and aggregation product offerings with
Ezenet’s wealth management technology, the companies will market the solution
to North American financial institutions.

The company also launched its multi-modal strategy, which is aimed at
redefining consumers’ wireless Internet experiences by creating an advanced
wireless offering that allows consumers to seamlessly move from voice to text,
depending on their surroundings and the type of transactions they are
conducting. As part of its multimodal strategy, the company announced a
relationship with leading interactive voice response (IVR) technology company
— InterVoice-Brite, Inc. — whose IVR solution and speech technologies are
planned to be used by 724 Solutions to add voice capabilities to its suite of

724 Solutions enters new industry sector

This quarter, the company announced that it has broadened its focus by
offering solutions that leverage mobile network operators’ (MOs) existing
infrastructure investments. To accomplish this, 724 Solutions has extended its
core competencies of security, scalability, money transactions, alerts and
platform to create the following offering:

– 724 FrameWorks (FW) – a software portfolio that provides server-side
applications to extend transactions to wireless devices. FW supports
on-line shopping, brokerage and banking applications by providing
interfaces for credit/debit card authorization, settlement,
reconciliation and private label card processing.

– 724 Payments – a complete commerce solution that is built on top of FW
to facilitate secure, personalized, consumer and merchant interaction
and payment completion.

– 724 Alerts – provides mobile operators with the capability to enable a
broad range of third-party applications to deliver interactive
actionable alerts in a broad range of industry verticals.

In addition, 724 Solutions announced two new customers for this industry

– Nortel Networks, a global leader in networking and communications
solutions and infrastructure for service providers and corporations,
that has signed an OEM agreement to incorporate 724 Solutions’ 724
FrameWorks and 724 payments solutions with its Network Gateway Server
and wireless infrastructure equipment;

– Aspire Technologies (ShenZhen) Ltd, China, has licensed the 724
FrameWorks solution. The solution will be used by Aspire in its Mobile
Information Service Centre offering to mobile operators in China,
allowing them to offer a multi-channel portal service providing easy
access information on the latest in news, weather, sports, and
entertainment, as well as more specialized content such as financial
stock quotes, and e-mail services. The 724 FrameWorks solution will
enable user authentication, protocol translation, portal navigation,
and data roaming capabilities.

About 724 Solutions Inc.

724 Solutions Inc. is a leading global provider of Internet
infrastructure software that enables the delivery of secure financial services
applications and mobile transaction solutions across a wide range of Internet-
enabled devices. The 724 Solutions suite of products and services enables
companies to realize value through the mobile Internet by building, deploying,
and integrating personalized and secure mobile commerce and lifestyle
applications. With dual headquarters in Toronto, Canada, and Austin, Texas,
the company has development and sales offices around the world. 724 Solutions’
common shares are listed on the NASDAQ National Market (SVNX) and The Toronto
Stock Exchange (SVN). For additional information visit


Harley-Davidson Promotion

Harley-Davidson Financial Services and U. S. Bank are giving away the exclusive 2002 Harley-Davidson V-Rod motorcycle as part of the Harley-Davidson Visa Card Me Sweepstakes that runs November 1, 2001 through April 30, 2002.

Individuals are automatically entered when they apply for, are approved for and use the card for a minimum purchase of $25(a). Anyone interested in applying for a Harley-Davidson Visa card can do so by calling 1-877-74CHROME x1100, or by visiting [][1].

All Harley-Davidson Visa cardholders earn valuable Harley-Davidson Genuine Rewards points with every purchase. Points are redeemable for Harley Chrome Cash, good towards genuine Harley-Davidson merchandise, parts and accessories at participating Harley-Davidson dealerships. The card can be used for purchases at any of the more than 22 million locations where Visa is accepted, down the road and around the world.

“We’re proud of our successful alliance with Harley-Davidson Financial Services and are thrilled to be able to make this kind of offer to our customers,” said Darla O’Donnell, senior vice president at U.S. Bank. “The chance to be one of the first owners of the new V-Rod(TM) motorcycle is truly a once-in-a-lifetime opportunity.” U.S. Bank began issuing the Harley-Davidson Visa card in March 2000 in conjunction with Harley-Davidson Financial Services.

Minneapolis-based U.S. Bancorp, with assets in excess of $168 billion, is the 8th largest financial services holding company in the United States. The company operates 2,186 banking offices and 4,937 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp is home of the Five Star Service Guarantee which assures customers of certain key banking benefits and services or customers will be paid for their inconvenience. U.S. Bancorp is the parent company of Firstar Banks and U.S. Bank. Visit U.S. Bancorp on the web at and Firstar Bank at

Harley-Davidson Financial Services (HDFS), a wholly-owned subsidiary of Harley-Davidson, Inc., offers a wide range of financial products and services to motorcycle enthusiasts and Harley-Davidson dealerships. Products available to consumers include financing on motorcycles, MotorClothes(TM), and parts and accessories; cycle insurance; and extended service plans for Harley-Davidson(R) motorcycles. More information about HDFS can be found at [][2].




Thales e-Security, the market
leading e-business security solutions provider, has completed its
Personalisation Preparation Process Family of systems. The family, P3
Desktop, P3 Advance and P3 Server, brings new levels of performance and
flexibility to the world of application data generation for smart cards. The
P3 Family of products provides a cost-effective solution whether personalising
30 cards per day, 30,000 plus cards per day or adding new applications to an
issued smart card base.

Launching the latest enhancements to the P3 Product Family, Phil Naybour,
Thales e-Security’s managing director, said: “Our P3 products now provide
card issuing banks and bureaux with a simple, future proof personalisation
path to smart cards by easily integrating with legacy systems. Offering them
a complete solution for the generation of all the cryptographic data needed to
be written to a smart card as well as the additional data required for
Europay, MasterCard and Visa (EMV) compliance standards, P3 is specifically
developed for financial smart card payments.” Phil Naybour concluded by
adding: “With P3 no matter how or where you produce your smart cards, the
flexibility and scalability of P3 now enables users to make sure customer data
generation is kept secure in-house regardless of quantities.”

In future P3 users, such as card issuers (financial institutions) and card
personalisation providers (independent bureaux), will be able to pay only for
the performance they need.

With the virtually unlimited ability to expand the hardware and software
capability as the need grows, Thales e-Security’s new P3 Family now offers
complete flexibility of scaleable performance providing a clear choice for
card issuers and an upgrade path for growth when required.

The P3 Desktop has been designed for low-volume card issuing banks, for
those banks wishing to offer distributed or instant card issuance to their
customer base or for running a pilot scheme. P3 Advance, designed for medium
volume card issuing banks, small bureaux or banks acting as a bureaux, offers
an easy upgrade path to P3 Server which is aimed at high-volume card issuing
banks or large bureaux personalising cards on behalf of multiple card issuing
banks or any issuer offering post issuance application load services to its
customer base, in conjunction with a compatible smart card management systems

Ideal for in-line batch processing systems as well as post-issuance
applications, where data is required to be generated and loaded onto cards
dynamically after issuing to cardholders, P3 Server offers a choice of
interfacing methodologies to complement today’s sophisticated SCMS.
Application independent, P3 Server allows data for new applications to be
generated using the scripts supplied by the application developers. Thus, no
additional software development is necessary to be able to issue cards
containing the new applications.

The P3 Product Family as a whole supports a wide range of single and
multi-application chip cards with the flexibility to offer a range of
different products and solutions to suit a variety of customer’s needs. P3 is
designed to meet the requirements of existing card issuers moving to smart
cards, operators of card personalisation systems and system integrators
requiring smart card data generation capability within their products.
Supporting existing and developing International standards, the P3 Product
Family adheres to the EMV standards for data generation, including EMV style
certificates and data authentication schemes.

Whilst smart cards have been used in some countries for 10 years or more,
it is only comparatively recently that worldwide acceptance of this technology
has started. This is due in part to the emergence of standards such as EMV
for use in the banking world. And, partly due to the introduction of smart
card platforms, including Global Platform and MULTOS, that are capable of
supporting multi-applications loaded either at the time of initial issuance or
later in the life of the card.

These two aspects alone enable issuers to build solid business cases for
investing the large sums of money necessary for the introduction of smart card
programmes. The cards alone may cost an order of magnitude more than the
traditional magnetic stripe card, though this will change as volumes increase,
but enhanced acceptance devices/terminals and the necessary supporting back
office systems all add to the costs. If the services offered by
multi-application cards enable them all to share the cost of introduction, the
cost per application can be significantly reduced.

In the last year or two, a number of initiatives making use of
multi-application cards have been launched by the major financial card
associations (Visa, Mastercard, Amex etc). These initiatives all require data
to be generated for the chosen applications. This data is usually a
combination of plain-text and cryptographically derived data (e.g., keys,
signatures and certificates). P3 from Thales e-Security has for a number of
years offered the capability of generating this data for certain fixed
applications (Visa VSDC and Visa Cash, Mastercard M/Chip). More recent
versions have added the capability to produce application data for any
application using a scripting language defined by Global Platform. This
scripting language is essentially a set of instructions (produced by the
developer of the application) which, when interpreted by P3, will produce all
the required personalisation data for the application. Such a capability is
very flexible, and means that when a new application is developed, it is
possible to start generating data for it, and to produce cards, in a very
short time. This is because no specialist software has to be developed to
produce that data.

Specific updates to the P3 Family

* VSDC (DDA) — Updated support for VSDC specifications (VIS 1.4) to
support dynamic data generation (DDA). DDA prevents “skimming” attacks
on the card.

* VSDC Domestic and International — Updated support for VSDC
specifications (VIS 1.4) for Domestic and International processing.
This enables the card to use different risk parameters if it is used
outside of its country of origin.

* Update to scripting capability to support TIBC 3 — TIBC 3 is a
platform similar to GlobalPlatform or MULTOS, but used only in Latin
American countries. The solution has been developed in conjunction
with Datacard.

* Certificate expiry date check — Checks certificate expiry against the
expiry of the card to make sure the certificate doesn’t expire prior to
the card

* BIN/PAN matching — P3 will check to make sure that the BIN and PAN

* M/Chip Select version 2.0.5 — Updated to the latest M/Chip Select

* M/Chip ID — Updated to include M/Chip ID application

* Enhanced ability to export/import keys

* Allows output to Datacard SCPM


CompuCredit 3Q/01

Sub-prime issuers continue to struggle in a difficult environment as Atlanta-based CompuCredit reported third quarter earnings of $14.9 million compared to $22.2 million for 3Q/00. The issuer of the ‘Aspire VISA’ card also reported significant increases in delinquency and charge-offs compared to last year, but compared to the second quarter, the situation has stabilized as the company is purging inactive account to improves its risk profile. The pro forma net charge-off rate was 14.6% in the third quarter, unchanged from the second quarter, but much higher than 3Q/00’s 11.0% rate. At Sept 30th, the 60+ day managed delinquency rate was 10.9%, compared to 10.6% for the second quarter, and 8.8% one year ago.The company added 183,000 new accounts in the third quarter, up from 167,000 in the second quarter. During that same period, the company purged 182,000 inactive accounts while experiencing normal attrition of 138,000 accounts for a net reduction of 137,000 accounts overall. Total credit card loans stood at $1,804,631 compared to $1,321,128 for 3Q/00, a 36.6% increase. For complete current and historical data on CompuCredit’s credit card portfolio visit CardData ([][1]).




As part of an ongoing two-year global partnership designed to implement
worldwide marketing opportunities for Visa and IMAX Corporation, Visa is
hosting a special Shanghai screening of China: The Panda Adventure, presented
by Trane Air Conditioning an American Standard Company, at the Shanghai
and Technology Museum, China.

This event leads off Visa’s special “Panda Week” in Shanghai amid other
offers and benefits.

The film will open at China’s famed Shanghai Science and Technology Museum
(SSTM) a comprehensive science museum and the largest social and cultural
landmark in Shanghai, China. The IMAX theatre will have an informal opening on
December 18.

“This premier event underscores the power of two global brands, Visa and
IMAX(R), to create benefits for all our constituencies,” said Tom Shepard,
International’s executive vice president for International Marketing
Partnerships and Sponsorships. “The offers and programs available to our
financial institutions and our cardholders as this film opens around the
are evidence of the power of strategic marketing on a global basis. Locally,
this partnership will generate even more brand awareness in China for Visa,
Bank of China, SSTM and IMAX.”

“We are very excited to be working with Visa on this new initiative,” said
Pat Ryan, Executive Vice President Worldwide Marketing IMAX Corporation. “Visa
and IMAX are both trusted brands that command immediate international
recognition and Visa’s special Panda week program is an innovative way to tie
the two brands together in a win-win situation.”

Visa to Adopt a Panda

Visa also announced today that it would adopt one of the two Great Pandas at
the Shanghai Zoo. Visa will provide all operating expenses for the 11-year old
panda, “Chuan Chuan,” from November 2001 to October 2002. A plaque that says,
“Adopted by Visa International” will be set up at the Panda Gallery of the

In addition, the Shanghai Zoo now will accept Visa cards and offer Visa
cardholders a 10% discount. Chuan Chuan, who weighs 90kg and has a very gentle
temperament, is one of the most popular stars of the Shanghai Zoo and has
fathered five pandas, so far.

A number of special offers will be available in Shanghai during the special
Panda week event including a merchant usage program being conducted by Visa
member, Bank of China, and special offers from Shanghai Science and Technology
Museum (SSTM). Visa cardholders purchasing the IMAX movie ticket will
receive a
special opportunity to view the SSTM behind the scenes.

At least fifteen merchants will feature special offers and discounts. These
include major hotels such as The St. Regis Shanghai, Shanghai International
Airport Hotel, and the Equatarial Shanghai. Key Shanghai restaurants will also
feature special promotions and include No. 1 Yaohan Co., Shanghai Nine Sea
Restaurant, and Shanghai Zeshi Restaurant. Special offers and discounts will
also be available at the Den Qi Er Spa, SUNRISE Duty Free, and the Hang Qiao
Airport Duty Free shop. A special “Panda Button” has been created for all Visa
cardholders who use their Visa cards at these merchants.

The IMAX Theatre at SSTM can seat up to 441 people. SSTM which will officially
open to the public early in the New Year, focuses on the themes of nature, man
and technology. The museum aims to improve the public understanding of science
and technology and covers an area of more than 68,000 square meters. There are
five major halls including Heaven and Earth, Life, Wisdom, Creativity and the
Hall of the Future. The facility also includes a 700 square meter indoor
man-made rainforest, which visitors may walk through.

About Visa

Visa is the world’s leading payments brand and the largest payments system
worldwide. Visa-branded cards generate almost US$2 trillion in annual volume
and are accepted at over 22 million locations around the world. The Visa
organization plays a pivotal role in advancing new payment products and
technologies to benefit its 21,000 member financial institutions and their
cardholders. Visa is a leader in Internet based payments and is pioneering the
creation of u-commerce, or universal commerce – the ability to conduct
anytime, anywhere, over any type of device. Visa can be found at

About IMAX

IMAX Corporation and its subsidiaries comprise one of the world’s leading
entertainment technology companies, with particular emphasis on film and
digital imaging technologies, including giant-screen images, 3D presentations,
digital post-production and digital projection. There were more than 225
IMAX(R) theatres operating in 30 countries around the world as of June 30,
2001. IMAX Corporation is a publicly-traded company listed on both the Toronto
and Nasdaq stock exchanges. More information on the Company can be found at
IMAX(R) is a registered trademark of IMAX

About the Movie

Set in the breathtaking splendor of 1936 China, the IMAX(R) feature highlights
the world of the magnificent and rare Giant Panda. It was inspired by the
autobiography of widowed New York socialite Ruth Harkness, “The Lady and the
Panda.” Harkness was a fiercely independent woman who took over her late
husband’s expedition to study the Giant Panda in the mysterious forests of
China. It was directed by award-winning documentary and feature filmmaker,
Robert M. Young (Dominick and Eugene). Chinese film star, Xia Yu (Shadow Magic
and In the Heat of the Sun) and Maria Bello (Coyote Ugly, Duets, and Payback)
star in the film. Xia Yu is gaining a worldwide standing as a major movie star
following his award winning performance in Yangguang Canlan de Rizi (In the
Heat of the Sun) in 1994 at the Venice Film Festival. Maria Bello is a star of
both screen and television and is best known to television audiences from her
role as the passionate and headstrong pediatrician Dr. Anna Del Amico on the
hit series, E.R. The film also features Xander Berkeley, well-known TV and
motion picture “bad-guy” who has appeared in more than 30 films in the past
decade (A Few Good Men, Air Force One and Terminator 2). The film is presented
by Trane Air Conditioning an American Standard Company.


First Omaha Licenses Hosting Engine

First of Omaha Merchant Processing, a wholly owned subsidiary of First National Bank and one of the nation’s largest card acquirers, announces the licensing and implementation of the ClearCommerce Hosting Engine to support the payment functionality of their web-based merchant customers.

The Hosting Engine will receive and process authorization and settlement requests from the application programming interface the merchant installs and integrates with the form in their web site’s shopping cart that captures the payment information from their customer.

The ClearCommerce Engine also provides the industry’s leading fraud protection solution, enabling merchants to combine merchant rules, negative lists, neural network risk scores, IP geo-location, and external service bureau data to screen and manage potentially fraudulent orders. It provides a case management user interface that allows the merchant to review the details of the order, the payment processor response codes, and the reason the order was flagged for review. By combining multiple fraud detection technologies and integrating human review, ClearCommerce Engine enables merchants to optimally manage the cost of online fraud.

“Merchants and Internet Service Providers come to us to find secure and reliable transaction processing for their online customers, and the ClearCommerce Hosting Engine provides that solution,” said Nick Baxter, president of First of Omaha Merchant Processing. “ClearCommerce shares our vision for exceptional quality and customer service, and their hosting engine technology provides an excellent match for the online processing needs of our valued clients.”

“Our relationship with an industry leader like First of Omaha allows thousands of users to have the high-level fraud protection and scalability necessary to thrive in e-commerce today,” said Robert J. Lynch, chief executive officer of ClearCommerce. “By joining forces with First of Omaha, ClearCommerce has the opportunity to provide superior e-commerce capabilities to companies reaching heavy transaction loads and in need of strong fraud protection.”

About First of Omaha Merchant Processing

First of Omaha Merchant Processing is a premier payment processor specializing in providing service to both the traditional and Internet direct marketing industry, as well as the traditional face-to-face card acceptance market. First of Omaha provides financial management and payment processing solutions for independent sales organizations, large and small retailers, restaurants, lodging merchants, petroleum marketers, associations/franchise groups and banks in both the business to consumer and business to business marketplaces. Known for their superior customer service, First of Omaha specializes in providing clients the latest in card processing technologies. Through development of a diversified product line, First of Omaha has become a leader in the merchant processing industry, assisting clients in the reduction of chargebacks and fraud. First of Omaha is a wholly owned subsidiary of First National Bank of Omaha and is one of the few remaining in-house bank processors. First National Bank of Omaha, founded in 1863, is the 32nd oldest nationally chartered bank in existence. First of Omaha’s Internet address is [][1].

About ClearCommerce

ClearCommerce(R) is the leading provider of payment processing software for enterprise merchants and service providers, including Apple Computer, Sony, Harrods, Chase Merchant Services, and EDS. The ClearCommerce Engine supports over 40,000 online merchants worldwide, and offers real-time payment processing, comprehensive and integrated fraud protection, shipping and tax calculation, detailed reporting, and integration with existing business systems. By bringing payment processing in-house, ClearCommerce helps businesses to increase profitability and take control of business critical data. For more information, please visit [][2].




Oberthur Card Systems is partnering
with France-based mobile operator Bouygues Telecom, to provide the most
SIM technology based on the latest advancement in 2nd Generation SIM cards,
Oberthur’s SIMphonIC’ cards integrating RSA architecture, currently the most
developed security technology available.

SIMphonIC’ RSA-enabled cards, that host 64K of EEPROM user memory to store the
RSA capabilities on the card, ensure a highly secure environment to conduct
wireless PKI and secure any transaction via mobile networks using digital
signatures. The 64K RSA-enabled SIMphonIC’ has provides both electronic
signature for wireless-transmitted data and highly secure authentication to
ensure non-repudiation for a user’s peace-of-mind.

‘Having achieved universal recognition by the industry as the security device
within the mobile phone, the SIM card is now the ideal tool to launch
secure services,’ commented Stephane Mousse, head of marketing for mobile
communications at Oberthur Card Systems. ‘We have established a solid
reputation as security innovators that enables us to build upon our
relationships with key partners such as Bouygues Telecom.’

Demand for data exchanges via wireless devices continues to grow, most notably
in the work environment. Business users want anytime anywhere access to
company networks (intranet, extranet) and true e-mail capability. For
consumers, the emergence of electronic signatures finally addresses the issue
of repudiation that had been a hindrance to mobile transactions. Additionally,
a need to consolidate the functionality of a PDA (personal digital assistant)
with a mobile phone is causing innovative operators such as France’s Bouygues
Telecom to address all these needs and develop secure services.

A long-term partner of Bouygues Telecom, Oberthur Card Systems, known as the
smart card innovator, has worked closely with the operator on the launch of
this electronic signature-secured mobile pilot.

‘Today, we witness a need for higher security in mobile telephony, for
authentication and non-repudiation, said Christophe Nivelet, m-commerce
security manager of Bouygues Telecom. In response to the individual needs of
both our customers and our partners on our 6th Sense portal, we have
engaged in
this initial phase with a view to potentially roll-out in 2002 or 2003.
with Oberthur Card Systems whose key strength lies in their ability to deliver
the necessary technology ahead of the market, enables us to prove the
of Bouygues Telecom’s projects.’

About Oberthur Card SystemsOberthur Card Systems (Paris Stock Exchange – Code
SICOVAM 12413), a global leader and the innovator in the smart card industry,
is shaping the future by offering the ultimate in SIM, WAP, 3G
e-wallet technologies & Internet-based card management services coupled with a
firm commitment to open standards.

Championing EMV migration, Oberthur is the world’s number one supplier of
MasterCard and Visa cards, a leader in the banking, e-commerce, m-commerce and
pay-TV sectors, and in JavaTM and GSM technologies.

Oberthur Card Systems has an international reach with an industrial and
commercial presence in 21 countries across the five continents. Oberthur Card
Systems had sales of 451.1 million Euros in 2000.

About Bouygues Telecom :

With 6,500 employees, more than 6 million customers and a network covering
than 98% of the national population, 5 years on from its commercial launch,
Bouyges Telecom confirms its presence as a dynamic and innovative player in
French Mobile Telephony market. The company ranks as one of the top 10
operators worldwide: with an international reach extending to more than 120