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 ([www.carddata.com][1]).

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

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VISA PANDA WEEK

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
Science
and Technology Museum, China.

This event leads off Visa’s special “Panda Week” in Shanghai amid other
special
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,
Visa
International’s executive vice president for International Marketing
Partnerships and Sponsorships. “The offers and programs available to our
member
financial institutions and our cardholders as this film opens around the
world,
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,
the
Bank of China, SSTM and IMAX.”

“We are very excited to be working with Visa on this new initiative,” said
Mary
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
zoo.

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
commerce
anytime, anywhere, over any type of device. Visa can be found at
http://www.visa.com.

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
http://www.imax.com.
IMAX(R) is a registered trademark of IMAX
Corporation.

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.

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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 [www.foomp.com][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, PETsMART.com 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 [www.clearcommerce.com][2].

[1]: http://www.foomp.com/
[2]: http://www.clearcommerce.com/

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NEW SIM CARDS

Oberthur Card Systems is partnering
with France-based mobile operator Bouygues Telecom, to provide the most
advanced
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
PKI-based
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.
Working
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
viability
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
(IMT-2000/UMTS),
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
more
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
the
French Mobile Telephony market. The company ranks as one of the top 10
operators worldwide: with an international reach extending to more than 120
countries.

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Isaac Hayes Gift Cards

Gift Check Solutions Monday announced it was selected to provide its Gift Card Solution to Isaac Hayes Blues Club, a joint venture among Isaac Hayes, Memphis, Tenn.-based Lifestyle Ventures and Famous Dave’s of America.

The venture opened two locations this summer in Chicago and Minneapolis. Under terms of the agreement, Gift Check Solutions will manage the fulfillment, processing and security of Isaac Hayes Blues Club gift cards. Gift Check Solutions utilizes magnetic swipe card technology, allowing all gift card transactions to be processed in real-time through a highly secure network. Gift Check Solutions’ electronic gift cards are designed to utilize Gift Check Solutions’ compatible point-of-sale equipment or dedicated gift card terminal.

“Because of Isaac Hayes’ overwhelming popularity, the gift cards will be a natural and unique gift for fans of Hayes’ music, and now food, to buy for friends and associates,” said Doug Anderson, vice president of marketing for Famous Dave’s. “Gift Check Solutions provides an easy method for managing the gift card program, and its gift cards make it easier for us and our banks to control the flow of funds between restaurants.”

A customer may place any dollar value on a gift card. Following a purchase, no change is given and any account balance remains on the customer’s card for future use. In addition, each gift card is customized with Isaac Hayes Blues Club logo and theme. Cardholders are available to complete the gift card presentation.

“Our Gift Card Solution offers Isaac Hayes Blues Clubs a creative sales tool to introduce its new entertainment-restaurant concept to perspective customers,” said John Bechard, president of Gift Check Solutions. “At Gift Check Solutions, our goal is to manage the gift certificate or gift card programs of stores and help store managers and owners focus on attracting customers and selling their products. “With Isaac Hayes Blues Clubs in its early stages of life, and its managers focused on making an immediate impact in their markets, our outsourced services become even more critical and beneficial to the restaurants owners and operators.”

About Isaac Hayes Blues Club

Famous Dave’s, barbecue ribs restaurants and blues clubs from Minnesota, has partnered with singer/songwriter Hayes to create a new entertainment/restaurant venue. Isaac Hayes, the voice behind the “Theme from Shaft” and “South Park’s” character Chef, has entered the food business and recently opened up restaurants in the Chicago and Memphis areas. The Chicago restaurant opened in June and the Memphis location opened late this summer. The Isaac Hayes Blues Club will mix Famous Dave’s barbecue with recipes from Hayes (who last November published the cookbook “Cooking With Heart & Soul”), as well as live music. Hayes will be performing regularly, as well as Otis Rush from Chicago, and other top musical acts. For more information, visit or .

About Gift Check Solutions

Based in Salt Lake City, Gift Check Solutions provides paper- and electronic-based gift products and services. The company manages the creation, processing, printing and fulfillment of gift certificates and gift cards. Electronic gift cards utilize magnetic swipe card technology, allowing gift card transactions to be processed real-time via a secure network. Customized point-of-purchase materials are designed to drive gift certificate sales throughout the year. Gift Check Solutions also offers hosted e-commerce services for online gift certificate ordering. For more information, visit [http://www.giftchecksolutions.com][1] or call 888/739-9971.

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

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WebSentry Family

Thales e-Security’s WebSentry family offers system integrators and application developers new levels of flexibilty and scalability as well as the highest degree of protection for electronic applications operated across open networks.

WebSentry is a family of hardware cryptographic processors that support e-Business application security requirements, including transaction protection and digital signatures.

WebSentry PCI and Ethernet devices are cost-effective security solutions providing the cryptographic functionality necessary to support Internet applications. Reducing the risk of fraud for e-Business transactions, the WebSentry family seamlessly integrates into the application and employs the latest techniques in cryptography to provide, at a competitive price, a flexible means of conducting business as well as purchasing goods and services over public networks.

The architecture underneath the WebSentry Security Platform is capable of supporting the security and operational needs of e-Business applications. By using WebSentry, significant performance improvements are achieved in the provision of service over the Internet. The e-Business application servers can offload the burden of cryptographic key management and operations to the WebSentry devices and concentrate on service delivery.

The WebSentry PCI and Ethernet devices can be combined logically, thus offering a fully flexible clustered architecture for the application server. At the centre of the architecture, the WebSentry Resource Manager manages the traffic between the devices, totally transparently to the calling application. The WebSentry architecture also provides a totally automated key management system within a cluster of devices, guaranteeing that keys are automatically replicated between devices of a same cluster. Redundancy is also provided inside a cluster of WebSentry devices, thus adding to the systems’ inherent reliability.

The WebSentry architecture offers a scaleable base for developing and supporting e-business solutions with the ability to add new devices as and when the performance needs of the application grow, with no need to change the calling software. The WebSentry family meets the needs of small businesses and multi-national corporates alike handling numerous transactions per second securely and reliably.

Tamper-resistant and tamper-evident, The WebSentry devices provide the highest level of physical and cryptographic security. The platform’s “SafeGuard” Security Subsystem (SGSS) is certified by NIST and the Canadian Security Establishment to be compliant with FIPS 140-1 Level 4. The FIPS 140-1 standard is applicable to all US and Canadian Government agencies using cryptographic devices to secure transactions and communications. The standard is also globally recognised in financial and business markets.

Integration of the WebSentry platform into e-Business applications is seamless. In addition to the comprehensive installation and management tools, a cryptographic Application Programming Interface(APIs) compliant with the PKCS#11 standard is available for interfacing to e-Business systems and applications. For applications that do not meet the PKCS#11 standard, the WebSentry interface can be tailored to support customised functions, without jeopardising the high levels of security and flexibility of the platform. These benefits, the ability to implement custom algorithms and the upgradability of the WebSentry devices secures the service provider’s investment extending the useful life of the platform.

Thales e-Security provides e-business security solutions to several thousand customers worldwide. Over half of the world’s banks, together with the majority of the busiest exchanges, currently use Thales e-Security technology. Operating in three main markets covering e-security, card payment and network security, Thales e-Security addresses the business security needs of corporates and governments alike. For more than 20 years the company has been at the forefront of security and payment technology, co-operating and contributing to set the industry standards used for financial transactions and e-commerce globally.

Thales is one of Europe’s largest professional electronics groups and a world leader in three areas: Aerospace, Defence, and Information Technology & Services. Thales now has close to 65,000 employees worldwide and in 2000 generated revenues of ¬ 8.6 billion.

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IDshield VPA

Safewww, Inc. announces that its IDshield two-factor authentication software supports the Visa Payer Authentication service, based on the Visa 3-D Secure interoperability standard.

Visa Payer Authentication is the basis for Verified by Visa, an e-commerce program designed to reduce the risk of unauthorized use of cardholder accounts, making Internet shopping safer for both buyers and sellers. Safewww gives financial institutions adopting Verified by Visa a simple and seamless technology to provide improved protection for Web merchants and Visa cardholders from online fraud.

Verified by Visa gives consumers a safer online shopping experience by adding a layer of security that helps to reduce fraudulent use of Visa card numbers on the Internet. The process enables Visa card Issuers to validate the identity of their cardholders in real time, during online payment transactions. Verified by Visa is designed to increase confidence of consumers and merchants in electronic commerce, resulting in increased online sales for Visa’s participating merchants and reduced disputes and fraud.

“An important goal of ours is to ensure that our cardholders are confident and secure while engaging in e-business, and to provide participating banks with a variety of vendors to make Verified by Visa a flexible turn-key solution for Visa Issuers,” said Jim McCarthy, senior vice president at e-Visa, a division of Visa U.S.A. “We are pleased that Safewww has chosen to support Visa Payer Authentication in its IDshield authentication technology.”

Cardholders will be able to register for Verified by Visa beginning Fall 2001. Each time a consumer makes a purchase at a participating online merchant, they are automatically presented with a pop-up window where they enter a personal password that is their online “signature” for web purchases. By incorporating IDshield into its authentication system, card Issuer’s can authenticate the identity of cardholders using a “hardware signature” taken from the user’s PC or laptop.

“IDshield is a great addition to Verified by Visa, providing easy to deploy strong two-factor authentication,” said Kenneth Bob, president and CEO of Safewww, Inc. We are looking forward to helping Visa with the goal to increase confidence in using its cards to make secure online payments.”

About Safewww, Inc.

Founded in 1999 by Israeli Internet security entrepreneurs, Safewww, Inc. provides strong two-factor authentication for secure online access, payments and transactions. With corporate headquarters in the U.S. and a research and development center in Israel, Safewww has established strategic alliances and received investment capital in the U.S., Israel, Spain, China, Japan and Argentina. Its target online markets include financial services, ePayments, B2B exchanges, digital content, secure access and gaming. IDshield patent pending authentication is unlike any other method available. It requires no additional hardware tokens or readers, is completely transparent to the end-user and easy to integrate with the existing provider applications. For more information please see Safewww’s Web site at [http://www.safewww.com][1].

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

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HomeLink

FleetBoston announced yesterday it now has the highest penetration (44%) of online banking customers of any bank in the nation, as a percentage of its bank card customer base. It is expected that enrollment for online banking services and online access to credit card accounts will jump in the fourth quarter driven by anthrax mail scare. Fleet’s ‘HomeLink’ service has now enrolled its two millionth customer, and is signing up more than 80,000 new online customers per month. Fleet says ‘HomeLink’ has over five million customer logins per month. MBNA reported earlier this month that its Web site now serves more than 4.8 million cardholders. Through September 30, more than 2.7 million MBNA customers enrolled to use NetAccess, MBNA’s online service, including 540,000 in the third quarter.

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DoD Smart Cards

The U.S. Department of Defense confirmed Monday it will begin distribution of smart cards in November to active duty personnel, reservists and the National Guard at 900 DoD sites worldwide. EDS said it will shortly begin delivery of 600,000 ‘Common Access Cards’ manufactured by SchlumbergerSema. The smart cards will provide users with access to DoD sites and enable them to use DoD networks and computer systems. EDS Systems have issued more than 100,000 smart cards for DoD to date, with up to 4 million additional cards expected to be issued over the next two years. Through the Defense Manpower Data Center, the DoD has purchased the new CACs under an existing contract.

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Concord EFS 3Q

Despite the down-shift in the economy during the third quarter, Concord EFS reported that 3Q/01 net income rose 62%, from $50.2 million for 3Q/00 to $81.5 million. The company also reported third quarter revenues of $437 million compared to $364 million in the third quarter of 2000, a 20% increase. Concord is continuing to focus on cost control. Its data centers in Atlanta and Maitland both moved into new facilities, and the North Olmsted data center was closed and consolidated into the Wilmington data center earlier this month. Concord also closed a card production facility in Maitland and consolidated all Network Services card production into a single Wilmington-managed service. For complete details on Concord EFS’ 3Q/01 results visit CardData ([www.carddata.com][1]).

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

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