AE-5 Smart Card Controllers

Addressing the increasing security needs and concerns of manufacturers and users of smart cards in financial, mCommerce, and health, among many other applications, Hitachi Semiconductor (America) Inc. today announced its AE-5 (Advanced Engine) family of high-end 32-bit smart card controllers. These high performance controllers offer strong protection of on-chip data, advanced screening techniques against information leakage attacks and improved integration of security between different parts of the chip. The AE-5 series also supports multi-application cards based on sophisticated operating systems such as Java Card and Multos. They make Hitachi the only semiconductor manufacturer offering a complete object-code-compatible smart card controller lineup: the 8-bit AE-3 series chips, the 16-bit AE-4 series devices, and the new 32-bit AE-5 series controllers.

Smarter chips for smart cards

According to Sami Nassar, director of strategic marketing at Hitachi Semiconductor (America), ‘The demand for smart cards in the U.S. has been rapidly growing, due to the increased adoption of smart cards in TDMA and CDMA mobile communication technologies and smart cards reaching critical levels of momentum in the credit card and banking markets. The AE-5 leverages the extensive design, process technology and production expertise we gained over the past 15 years producing smart card ICs for mobile communication and financial markets. ‘

‘In addition to Hitachi’s solid foothold in the European market, Hitachi has established a strong U.S. smart card organization dedicated to boosting usage in North America and helping new and existing customers accelerate smart card adoption.’

0.18 micron EEPROM process, a world’s first The 32-bit smart card controllers in the AE-5 family are the first in the industry being produced with a 0.18-micron (0.18-µm) EEPROM process. This smaller-geometry technology allows the high-capacity on-chip memory essential for top-end applications. The first chips the AE-5 family offer up to 128 kilobytes (128 KB) of EEPROM, 256 KB ROM, and 10 KB RAM, as well as a range of peripheral functions.

Devices in the AE-5 family are object code compatible with AE-4 series card controllers for versatility and to preserve previous engineering investments. Major improvements include 32-bit CPU cores that can run Java virtual engines and deliver much higher speeds: 10 times faster than the fourth-generation chips on an absolute timing basis.

Better functionality, greater security

For enhanced functionality and security, AE-5 series controllers have a special, built-in cryptographic co-processor that allows key sizes up to 2112 bits long, sufficient for asymmetric algorithms, as well as a new hardware module that implements the AES (Advanced Encryption Standard) algorithm. The devices’ fast processing makes sophisticated verification or encryption operations practical. For example, the AE-5 chips can perform a 1024-bit RSA calculation in less than 120 ms.


AE-5 devices will be available from H2/2002.

Reader contact Readers can find additional product and contact information on Hitachi Semiconductor’s Website at [http://semiconductor.hita][1] or by calling (800) 285-1601.

About Hitachi Semiconductor (America) Inc.

Hitachi Semiconductor (America) Inc., a subsidiary of Hitachi America, Ltd., supports the requirements of the North American marketplace with a broad range of standard and low-power semiconductor solutions. Offering some of the industry’s most popular RISC microprocessors, smart-card controllers and memory components, among other semiconductor solutions, Hitachi provides chips to the world’s leading device manufacturers within industrial, consumer and emerging market applications. Hitachi’s substantial design engineering, research and development facilities in the United States help bring the world’s best technology to U.S. customers. For more information, visit: .




First Data Corp., a global
leader in electronic commerce and payment services, and Cards etc,
Sydney-based developer of Arterium — the lifetime relationship management
system for multi-product smart cards — announced the finalization of a
global partnership agreement covering software, strategy and professional

Alison Colquhoun, vice president smart commerce, First Data Resources,
said that First Data had selected Arterium as the solution of choice for its
multi-product smart card management requirements globally.

“We are working closely with Cards etc to progressively roll-out services
which add platform support, card lifecycle features and enhanced functionality
to our chip-enabled programs. Initially, the focus has been on supporting our
U.S.-based customers. However, mandated EMV migration in Europe and Asia has
increasingly created the need for comprehensive, lifecycle management support
at First Data Europe and in PaySys’ VisionPlus product suite,” said Colquhoun.

“Our service bureau offering provides card issuers with a means of
overcoming the long-standing barriers to smart card introduction by
significantly reducing both the up-front costs involved and the time to
market,” she added.

Arterium, the smart card infrastructure management solution, developed by
Sydney-based Cards etc has played a key role in First Data’s multi-application
smart card program.

The infrastructure now supports both MULTOS and Javacard/Open Platform
operating systems, as well as a growing number of payment and non-payment
related smart card applications (including VSDC and M/Chip).

Craig Dower, joint Chief Executive Officer and President of Cards etc,
said Cards etc and First Data continued to work closely to identify how
Arterium will support the future requirements of customers.

“Arterium is supporting First Data as it provides additional depth in card
lifecycle features including card ordering, pre-personalization data
preparation, personalization, key management, card inventory management,
lost/stolen card reconstruction and post-issuance support,” Mr. Dower said.
“We are also working to enhance support for an expanded range of payment,
authentication, access, convenience and loyalty applications.

“First Data’s chip-enabled programs are providing customers with real
solutions for the roll-out of multi-application smart cards. Cards etc is
pleased to be working closely with them as the roadmap for future industry
development is established.”

About Cards etc

Sydney-based Cards etc is a provider of smart software and solutions for
smart card, e-commerce and similar e-transaction systems. Cards etc is the
developer of Arterium, smart software that provides infrastructure management
for smart cards, products and devices. Arterium also provides relationship
lifetime management that enables organizations to manage their relationships
with cardholders over their lifetime. It can be implemented across financial,
telecommunications, government, transit and travel organizations deploying and
managing multi-product smart card, e-commerce and related technologies.

Cards etc provides professional services integrating new technology
solutions into existing environments.

About First Data

First Data Corp. (NYSE: FDC), with global headquarters in Denver, powers
the global economy. As the leader in electronic commerce and payment
services, First Data serves approximately 2.6 million merchant locations,
1,400 card issuers and millions of consumers, making it easier, faster and
more secure for people and businesses to buy goods and services using
virtually any form of payment. With 28,000 employees worldwide, the company
provides credit, debit, smart card and stored-value card issuing and merchant
transaction processing services; Internet commerce solutions; Western Union
money transfers and money orders; and check processing and verification
services throughout the United States, United Kingdom, Australia, Canada,
Mexico, Spain and Germany. Its money transfer agent network includes
approximately 117,000 locations in more than 185 countries and territories.


CardData 3Q/01

NC-based BB&T reported lower charge volume and active accounts for the third quarter compared to the second quarter, according to CardData’s ‘3Q/01 Portfolio Survey’. Simmons and Columbus B&T also reported lower active accounts. Third quarter volume appears to be flat across most of the industry. For complete details on the third quarter results from the nation’s top 300 issuer visit CardData ([][1])

Issuer 3Q/01 Recv 3Q/00 Recv Change
BB&T $727,909,000 $533,572,000 +36.4%
First Tenn $270,860,482 $544,762,000 -50.3%
Columbus B&T $217,701,814 $229,000,000 – 4.9%
Simmons $187,264,929 $185,656,789 +0.9%
FirstMerit $127,912,197 $111,127,931 +15.0%
Source: CardData (




Chinese consumers are threatening to file a lawsuit against China Telecom
the exchange of magnetic-stripe phone cards for smart chip phone cards. The
Ministry of Information Industry recently approved a plan for China Telecom to
begin the exchange of 40 million magnetic-stripe phone cards December 1st, for
a period of four months. Consumers suggest the exchange between the magnetic
cards and smart chip cards will not be at a fair rate. China Telecom says the
number of magnetic stripe-activated phones is down to 20,000, versus a peak of
70,000 a few years ago. By 2003, magnetic stripe-activated phones will be
totally replaced.


Fleet 3Q/01

Fleet reported a slight decline in charge-offs for the third quarter, but delinquencies edged up a bit. Third quarter charge-offs logged in at 6.26% versus 6.31% for 2Q/01. Fleet reported 3Q/01 delinquency of 4.13%, compared to 4.40% for second quarter. At the end of September, Fleet had $14.6 billion in domestic credit card receivables and third quarter charge volume of $5.8 billion. For complete current and historical data on Fleet’s credit card portfolio visit CardData ([][1]).

3Q/01 2Q/01 1Q/01 4Q/00 3Q/00
EOP RECV: $14.6b 14.5 14.1 14.7 14.4
Q-VOL $ 5.8b 5.5 4.3 5.3 6.2
ACCTS: 7.2m 6.7 6.6 6.8 6.7
ACTIVES: 5.2m 5.3 5.2 5.3 5.2
CARDS: 10.4m 10.3 10.3 10.1 10.0
Source: CardData (



TSYS & Providian

TSYS has signed a 10-year extension to its long-term credit card-processing agreement with Providian Financial Corporation, the fifth-largest bankcard issuer in the United States and one of the largest issuers of Visa “smart” cards. Providian, based in San Francisco, has been a customer of TSYS since 1986.

“In the history of our long relationship with Providian, they have become one of the largest and most successful bankcard issuers in the country,” says Philip W. Tomlinson, president of TSYS. “We are grateful for the opportunity to contribute to that success, and we expect it to continue as Providian expands into the future.”

“TSYS is an important strategic partner of Providian, and we’re pleased to extend our relationship,” said Jim Redmond, executive vice president of operations for Providian. TSYS currently processes about 18 million MasterCard and Visa consumer credit card accounts for Providian in the United States.

About Providian

Winner of the 2001 Rochester Institute of Technology/USA Today Quality Cup for excellence in customer service, San Francisco-based Providian Financial is a leading provider of lending and deposit products to customers throughout the United States, and offers credit cards and deposit products in the U.K. and in Argentina. Providian Financial has been named one of America’s Most Admired Companies in a survey by Fortune magazine, one of the nation’s top financial institutions by U.S. Banker magazine, and one of the most technologically innovative companies in the U.S. by InformationWeek magazine. Providian Financial has more than $36 billion in assets under management and more than 18 million customer accounts.

About TSYS

TSYS ([][1]) brings integrity and innovation to the world of electronic payments. TSYS serves as the integral link between buyers and sellers in the rapidly evolving universe of electronic payments. With more than 200 million accounts on file, TSYS makes it possible for millions of consumers to use their credit, debit, stored value, commercial, smart chip and retail cards anytime, anywhere through any medium or portal. TSYS and its family of companies offer a full range of acquiring and issuing services from accepting and settling electronic payments for goods and services, to credit applications, bankruptcy and collections. Based in Columbus, Ga., TSYS processes for 23 countries, in 14 currencies, in four languages and maintains operations in Canada, Mexico, Japan, and the United Kingdom. TSYS is an 80.8-percent-owned subsidiary of Synovus Financial Corp. (NYSE: SNV) ([][2]), No. 8 on FORTUNE magazine’s list of “The 100 Best Companies To Work For” in 2001. For more information, contact .




Open Market, Inc. announced this week that the UK’s first full-
service Internet Bank, smile, (, has chosen Open Market and BEA
Systems to launch and support its company’s Web content development and
management. Utilizing Open Market’s Content Server Enterprise Edition
family of products including, Content Server, Content Centre and
Personalization Centre software, running on a BEA WebLogic Server,
Smile went live with its new website in May 2001.

Prior to using Open Market, smile’s Web management consisted of a manual
system requiring that all content first be developed by external copywriters,
then hand-crafted into HTML pages which resulted in a time-consuming
production process. Within that system, making a simple date change to a Web
page could take two weeks or more. Now, powered by Open Market’s suite of
software, smile is able to manage this entire process internally with a
turnaround to Web changes taking only 20 minutes.

The key to smile’s decision was deploying a solution based on open
standards like XML and taking advantage of all the benefits inherent it its
Java(TM) 2 Enterprise Edition (J2EE(TM)) application server platform. Also
critical was a simple to use software interface that even non-technical staff
at smile could take advantage of. Now, users are able to load content into
pre-developed templates and can deliver content in any format. This also
allows smile’s programmers more time to focus on the ‘look and feel’ and
performance of the site.

“To our customers our business is our website,” explained Bob Head, CEO,
smile. “Because of our corporate philosophy, we choose not to spend money on
fancy offices, like other banks but that means our Web address needs to be the
best in the banking industry. It wasn’t enough to market smile as a more
efficient, less bureaucratic company, we needed to incorporate those
principals into our business. With Open Market software running on our BEA
WebLogic Server we’re in a position to help ourselves — now our website is
smiling and so are our customers!”

“smile is an excellent example of a company taking its business and its
customers seriously,” explained Joe Alwan, senior vice president of worldwide
marketing at Open Market. “smile’s business centers around a sound content
management practice that combines delivery of updated, accurate information to
customers while utilizing the best of its internal resources. We are very
happy to offer application server platform choices to our customers by
partnering with BEA. Our relationship offers two powerful open standards
solutions to our customers–our e-business applications and the award-winning
BEA WebLogic Server.”

Benefits of an Open Market BEA Solution

Open Market’s Content Server Enterprise Edition and its family of
applications including — Content Centre, Personalization Centre, Catalog
Centre(TM), Integration Centre(TM) and Marketing Studio(TM) — are layered on
top of BEA WebLogic Server. Open Market has been compatible with BEA servers
since July 2000. By selling its application suite in collaboration with its
platform partners, Open Market provides customers with the flexibility,
scalability and interoperability required to rapidly deploy e-business

About Open Market

Open Market, Inc. makes content-driven e-business solutions that enable
enterprises to better manage interactions with their site visitors, customers,
employees, and channels. Leveraging the new Java(TM) 2 Platform Enterprise
Edition (J2EE(TM)) standard, the Company’s software products are built with
Java, JSP and XML and are layered on top of popular application servers like
the BEA WebLogic Server, the IBM WebSphere Application Server and the iPlanet
Application Server. Open Market’s roster of global customers includes
publishers and media companies like The McGraw-Hill Companies, The Washington
Post, and The New York Times Company; financial services companies like J.P.
Morgan Chase, GE Capital and The Hartford Financial Services Group; and
manufacturers like BASF and Milacron. The company, headquartered in
Burlington, Massachusetts, has customers in 43 countries. Open Market’s
international head office is in the U.K. with additional offices in Australia,
Canada, France, Germany, Italy, Japan, The Netherlands and Singapore. Open
Market can be reached by calling 1-800-OPEN-MKT (toll-free) or 1-781-359-3000
in the U.S. or +44-1753-838-000 in the U.K. or by visiting


OPC Signs All States

Official Payments Corporation (, the leading provider of electronic payment options to government entities, announced a new business agreement with Greenville County, South Carolina.

The award entails a new Internet and telephone payment system that will enable citizens to charge real estate, personal property, and vehicle taxes to their credit cards. The contract represents Official Payments’ first business award within the state of South Carolina. With this contract, the company now has agreements with government entities in all 50 states. Official Payments also provides credit card payment services to the Internal Revenue Service, 18 state governments, the District of Columbia, and over 1,000 counties and municipalities across the country.

Annually, the county collects $131 million in real estate taxes, $6.6 million in personal property taxes, and $68 million in vehicle taxes, resulting in an $87.6 million collection opportunity for the company.

“We welcome Greenville County as our first client in South Carolina, and we are confident that other counties in the state will follow their lead,” said Thomas R. Evans, Chairman & CEO of Official Payments. “This win is especially important to our company as it gives us a business presence in every state in the nation, and makes us the only e-government company in our sector with this distinction,” Evans added.

When the systems are launched later this year, taxpayers in Greenville County, SC will be able to make their tax payments with their credit cards by visiting [][1] on the Internet or by calling 1-800-2PAY-TAXSM.

Official Payments charges taxpayers a convenience fee for processing these credit card transactions. The fee schedule can be found on the Internet at [][2]. For example, a taxpayer who owed $800 and charged their taxes would find a total of $825 on their credit card statement: $800 for the tax bill and $25 for the convenience fee. American Express(R), MasterCard(R), Discover(R) and VISA(R) are the credit cards accepted by the program. Depending on their credit card program, taxpayers using credit cards with bonus rewards programs may be eligible to earn rewards points, cash-back or airline frequent flyer miles in return for paying their taxes. Official Payments will discuss the company’s third quarter 2001 financial results in a conference call on Wednesday, October 24, 2001 at 4:30 p.m. Eastern Daylight Time.

About Official Payments Corporation

Official Payments Corporation (Nasdaq: OPAY) is the leading provider of electronic payment options to government entities. The company’s principal business is enabling consumers to pay their government taxes, fees, fines, and utility bills by credit card, via Internet and telephone. The company is unequaled in market penetration and national footprint. Official Payments is the incumbent in contracts with the Internal Revenue Service, 18 state governments, the District of Columbia, and well over 800 county and municipal governments in 49 states across the United States. In 2000, Official Payments collected and processed over $925 million in federal, state, and local government payments.

Official Payments was founded in the San Francisco Bay area in 1996. Thomas R. Evans, the former President & CEO of the Internet company GeoCities, became Chairman & CEO of Official Payments in the summer of 1999. Mr. Evans brought Official Payments public in November of 1999, raising $80 million in its IPO on the NASDAQ national market. The company has experienced rapid and sustained growth over the past six reported quarters in revenue, new client acquisition, and addition of incremental services to existing clients. The company’s success can be attributed to the combination of an enormous market opportunity with a highly skilled and experienced management and staff, aggressive sales and marketing, and a core competency in developing and implementing leading-edge technical systems.



Diebold COO

Diebold, Incorporated announced that Wesley B. Vance has been promoted to chief operating officer. Vance was previously president, Diebold North America. He will report directly to Walden W. O’Dell, chairman of the board and chief executive officer of Diebold.

“This appointment reflects our confidence that Wes’ proven leadership capabilities and broad experience in managing global operations will continue to benefit the company,” said O’Dell. “Additionally, Wes’ forward thinking and ability to turn a vision in to material success makes him a valuable asset moving forward.”

Prior to joining Diebold in October 2000, Vance spent 10 years at Arvin Industries, Inc. and ArvinMeritor, where he held several key executive positions. Vance served as senior vice president, ArvinMeritor and president of ArvinMeritor Exhaust Systems Worldwide just prior to joining Diebold. In this capacity he was responsible for operations located on five continents and in 25 countries. While based in Paris, he served as president and managing director of Arvin Exhaust Europe, which included Africa and Asia. While based in Toronto, Vance served as vice president and general manager of Arvin Ride Control, which included emerging markets throughout the world. Additionally, he has served as vice president business development of Arvin Ride Control and has held other managerial and financial positions. Prior to joining Arvin, Vance worked for Deloitte and Touche where he held various managerial positions.

Originally from Albuquerque, N.M., Vance earned a bachelor’s degree in Accounting from Brigham Young University, Provo, Utah. He went on to earn a master’s degree in business administration from Indiana University in Bloomington, Ind. Vance, his wife and their five children currently reside in Canton, Ohio.

Diebold Incorporated is a global leader in providing integrated self- service delivery systems and services. Diebold employs more than 12,000 associates with representation in more than 80 countries worldwide and headquarters in Canton, Ohio, USA. Diebold reported revenue of $1.7 billion in 2000 and is publicly traded on the New York Stock Exchange under the symbol ‘DBD.’ For more information, visit the company’s Web site at [][1].



Fraud Screen

VISA U.S.A. and CyberSource this morning announced the ‘CyberSource Advanced Fraud Screen Enhanced by VISA’ will be available in January. The new service is a real-time fraud-detection service that examines transactions generated from online stores and call centers. It estimates the level of risk associated with each transaction and drawing on access to a large database of global fraud trends and global payment-card usage patterns, including online and offline transaction data.



In the wake of the anthrax scare, Swedish card holders of American Express cards were concerned after receiving plastic snowflakes in the mail last week. AmEx sent out about 40,000 direct mail pieces to its Swedish customers as part of a Christmas promotion. The mailing suggested “consumers spread the snowflakes out”. The mailing prompted phone calls from angry customers. AmEx said Friday it has issued letters of apology to all the recipients of the mailing.