SVS CONVERSION

Comdata Corporation announced its Stored Value Systems subsidiary will provide American
Eagle Outfitters with electronic point-of-sale currency conversion for its
Canadian-based stores. An SVS electronic cash card customer since 1998,
American Eagle Outfitters operates over 600 stores in the United States and
Canada.

“Currency conversion is a critical factor for the growing number of
domestic retailers that are expanding their operations to Canada,” said Mike
Berry, executive vice president and general manager, Stored Value Systems,
Inc. “Shoppers in American Eagle’s Canadian stores will enjoy faster check-
outs, while store managers will benefit from more accurate, error-free
accounting that SVS electronic cash cards provide.”

As the exclusive cash card provider with automatic currency conversion at
the point-of-sale, SVS first introduced the technology in Canadian Pier One
Imports stores last fall. SVS customers with currency conversion sell their
cards in the common currency of the country where the store is located. The
cards can be redeemed in either the United States or Canada. When a shopper
presents an electronic cash card for payment, the SVS system converts the sale
amount to the base currency of the card, deducts the amount of the sale, and
calculates the remaining balance in the base currency. The transaction is
conducted in real-time through the retailer’s point-of-sale device.

“Cross-border shopping is becoming more common today, especially in a
fluctuating economy,” said Berry. “SVS is working with domestic retailers
today to find new ways to capitalize on shopper trends. Our currency
conversion feature is the first in a series of exciting developments we are
introducing that add more value to retailers today challenged with incremental
sales growth.”

As the leading electronic cash card provider, current SVS clients include
some of the nation’s most acclaimed retailers, grocers and petroleum
providers. Current SVS clients include K-Mart, Target, Radio Shack, Kroger,
Lowes and Food Lion, all of which market the SVS product as private-label gift
cards, electronic replacements for traditional gift certificates.

About Comdata

Comdata Corporation, http://www.comdata.com/, is redefining the movement of money
and information through technology for businesses, customers and employees. A
leading provider of transaction and information services, Comdata provides
Comchek(R) credit and debit processing and reporting for commercial fleets and
merchants, SVS electronic cash, gift and chip card programs for retailers and
governmental agencies, Comchek(R) eCash payroll services for food, retail and
other service industries, and point-of-sale equipment for travel plazas and
convenience stores. Headquartered in Brentwood, TN, Comdata employs nearly
2,000 people throughout the United States and Canada. Comdata is a wholly-
owned subsidiary of Minneapolis-based Ceridian Corporation (NYSE: CEN).

About Stored Value Systems, Inc. (SVS)

Stored Value Systems (SVS), http://www.storedvalue.com, is the nation’s leading
provider of retail cash card services and chip card programs. Retailers
across America rely on SVS to create customer loyalty, increase transaction
volumes and strengthen their competitive position in the retailer marketplace.
The people of SVS are the undisputed experts at building retail brands and
keeping satisfied shoppers in stores. Headquartered in Louisville, KY, Stored
Value Systems is a wholly-owned subsidiary of Comdata Corporation.

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TRAIN CARD

East Japan Railway Co. is deploying a smart card in November, the first time such a system has been used in Japan’s train system. The ‘Suica’ card will used at 424 stations on 26 train lines in the greater Tokyo area. Plans call for the system to expand to more than 450 stations by next March. The card will be available in two versions. One will be for used only as a prepaid ticket card, while the other will function as a prepaid ticket card and a commuter pass. Tokyo Monorail Co., which links Tokyo International Airport to Tokyo, will also introduce the same smart card system for all stations of its Haneda line by April 2002.

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Market Pains

Credit card related stocks sank yesterday after Providian warned of lower profits. However the tumble eased somewhat by afternoon following a government report showing that manufacturing is recovering. While all the monolines fell yesterday, Citigroup and American Express eked out a small gain.

CARD STOCKS
Sept. 4
COMPANY CLOSE CHANGE 52wk Hi
Providian $30.36 -22.27% $67.00
Metris $24.74 – 9.04% $42.94
NextCard $ 8.35 – 6.49% $12.75
MBNA $32.76 -5.75% $40.12
Capital One $52.76 -5.12% $73.25
Household $57.06 -3.45% $69.98
Source: CardData (www.carddata.com)

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SYMCOR ENHANCEMENTS

Symcor Services Inc. announced that it
has taken an important step forward in its growth strategy by making a
significant investment in its technology platform.
As Canada’s leading financial transaction outsourcer, each year Symcor
processes approximately 1.8 billion checks, handles 50 million customer
payments, produces over 300 million customer statements and generates more
than 50 million e-presentments on behalf of its customers.
“Enhancing our ability to digitally process, archive and deliver this
information provides the foundation for improved customer service as well as
new electronically-delivered products and services,” said Paul Currie, Symcor
CEO. “Our enhanced platform will also allow us to move forward quickly and
efficiently with our plans to expand our electronic services to customers in
the marketplace.”

Carreker Corporation’s (NASDAQ: CANI) Check Solutions will provide proven
software and advanced technology. These systems include conventional check
processing as well as image capture and automated reject reentry on the front
end of the item processing operation. In addition, Check Solutions software
will be used to provide new products such as image statements, CD/ROM
delivery, and check archive storage and retrieval. Symcor’s back office
processes will be further enhanced by using the image-enabled Inbound Returns
Express(TM) and Exceptions Express(TM) systems to handle returned items and
exceptions processing. The company also has full access to Carreker’s
Electronic Check Presentment technology, which allows financial institutions
to process incoming paper check information into their deposit posting systems
before the arrival of the physical paper items.

The IBM(R) Content Manager OnDemand application has been selected for
Symcor’s digital archive. This product will further improve Symcor’s current
digital archive capabilities. The new archive will enable large-scale storage
and substitution of images and electronic delivery for physical paper items.
In the company’s Item Processing business, the digital archive will facilitate
consolidation of back-office processing, reduce paper handling through the
exchange of images, and greatly streamline the research and adjustments
process. In the Customer Communication business, benefits of the digital
archive include improved flexibility and scalability of electronic bill and
statement delivery as well as reduced statement production costs.
Customer service in both Symcor businesses will also be improved with the
archive solution. Online access to high-quality images will provide faster
responses to customers without requiring access to the physical item; both the
call centre and the customer will be able to view the same image. On-line
access to check images and statement images will also enable Symcor’s
customers to provide immediate responses to their customers’ inquiries.
“Symcor is dedicated to providing a complete end-to-end solution that
helps transform and enhance our customers’ businesses,” said Currie. “And,
with our investment in our technology platform, Symcor will provide even
better support to our customers as they migrate from the physical to the
electronic world.”

About Symcor

Symcor is a Canadian leader in providing financial transaction
outsourcing services in two business areas – Item Processing and Customer
Communication. Symcor provides individualized product and service solutions to
customers in the banking, mutual fund, insurance, retail, telecom and utility
sectors. Symcor’s services include check, credit card and payment processing,
Web development, and a full range of customer bill and statement advisory,
design and presentment capabilities. For more information, please visit
www.symcor.com.

About Carreker Corporation

Carreker Corporation, headquartered in Dallas, Texas, is a leading
provider of integrated consulting and software solutions that enable banks to
identify and implement e-finance solutions, increase their revenues, reduce
their costs and enhance their delivery of customer services. Carreker’s e-
finance solutions use leading-edge technologies to create differentiated
applications for banks and their customers. The Company believes that its 23
years of experience in the banking industry, combined with a professional
staff and advanced technological expertise, allow for targeted solutions for
banks and other financial institutions. Carreker offerings are organized into
three divisions, as follows: (1) Revenue Enhancement, which increases banks’
revenues through market segmentation and improved customer pricing structures,
(2) Global Technology Solutions, which provides business-case driven
technology solutions through three customer-aligned groups: Risk Solutions,
Cash Processing & Logistics Solutions and Check Solutions (these technology-
enabled solutions bring together nearly 125 mission-critical business process
applications, strategic application implementation services,
consulting/advisory services and outsourcing services) and (3) Enterprise
Solutions, which integrates systems, combines operations and improves
workflows and internal operational processes. Carreker’s customer list
includes more than 200 financial institutions in the United States, Canada,
the United Kingdom, Ireland, Australia and South Africa, including 70 of the
largest 100 banks in the United States. For more information please visit the
website at www.carreker.com.

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BofA Gift Cards

Nearly one-half of U.S. consumers used a gift card in the past year and they may spend more than $32 billion purchasing gift cards in 2001. Yesterday Bank of America introduced the ‘Bank of America VISA Gift Card’. Purchasers can choose from 11 card designs to fit specific gift-giving occasions including weddings, holidays and birthdays. The gift cards are available in any whole dollar amount from $25 to $600. The cards carry a $5.95 fee for value under $300 while cards with more than $300 in value cost $7.95 each.

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ICMA EXPO

The International Card Manufacturers Association (ICMA), a global non-profit association for card manufacturers, personalizers and service providers, recently announced the addition of seven new members. These new members include four card manufacturers, two contributing members, and one supplier.

The Four Card Manufacturing Members include:

· Cardsolutions GmbH, Cham, Switzerland

· Oberthur Card Systems, Ltd., Tewkesbury, Gloucestershire, UK

· Perivallon SA, Attica, Greece

· Plasticard-Locktech International, Asheville, NC, USA

The Two Contributing Members include:

· Smart Card Forum Europe, Lueneburg, Germany

· Smart Card Forum of India, Bangalore, India

The One Supplier Member is:

· Sony Chemicals Corp. of America, Mt. Pleasant, PA, USA

“I am pleased with the addition of the new members,” said Jeffrey E. Barnhart, ICMA executive director. “ICMA’s continuous growth not only strengthens the association, but also provides a stronger forum for our members to network and establish resources while continuing to educate themselves with the plastic card manufacturing industry.”

For information on becoming a member of ICMA, contact Lynn McCullough at (609) 799-4900; e-mail lmccullough@icma.com or visit the ICMA web site at http://www.icma.com/.

About ICMA

Based in Princeton Junction, NJ, ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants. With more than 220 members globally, the ICMA acts as a clearinghouse for industry issues, including the production, technology, application, security and environmental issues of plastic cards.

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Catuity CIT

Catuity, Inc. announced that the loyalty software solutions provider will release its web enabling product Customer Transaction Interface.

This technology tool allows retailers to easily customize and integrate the Catuity system into their e-commerce Internet sites. The delivery of Catuity CTI marks the second product release from the company in the past 30 days. Catuity recently announced Catuity Loyalty Over-the-Counter (OTC), a new software development specifically designed to expand the benefits of gift and loyalty cards. Catuity OTC is being sold to retailers through its channel partners consisting of transaction processors, terminal sales organizations (ISOs) and merchant service companies. Michael V. Howe, President of Catuity, made the announcement noting: “Catuity’s software platform takes significant strides forward with the release of CTI. This software enables web developers using the Catuity system on the Internet to completely customize its interaction with a smart card.”

Howe noted that CTI provides web businesses with total control and flexibility. “CTI makes it easier to implement the Catuity program on the Internet in that it allows the web developer for any given merchant the opportunity to use a tool that will easily and effectively interface the Catuity system with the rest of the merchant’s e-commerce site.” CTI is being well received by Catuity’s channel partners. “Since all of our software development on the smart card front has been web-based and designed to run through a browser, this is an exciting and powerful new feature for us,” stated Joel Brock, President of Data Pro Account Software of Tampa, Florida. “Very soon our on-demand ticket printing capabilities through a browser will be available to our customers through either our secure paper technology or immediately to a smart card. This is very significant as we move forward in this arena.” Catuity, Inc. ([www.catuity.com][1]) is a leading provider of loyalty software systems. The Catuity software includes an integrated suite of applications that provide loyalty, ticketing, access control and membership. The Catuity Loyalty System is ubiquitous in that it can operate on any device, any card program and with any payment process, including stored value, smart cards and wireless applications. Catuity unites the brick-and-mortar retailer with the Internet to enable cross-sell capabilities with consistent brand imaging across all channels. The Catuity loyalty system is currently the only loyalty software approved by Visa USA for use by its member banks that issue smart cards with loyalty applications.

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

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EMV Solution

CIM and UbiQ, Inc. announced an agreement to provide a specially packaged EMV Smart Card Issuing Solution, enabling the market to issue smart cards through the most flexible and affordable system available in the industry to date. The sector benefiting most from this partnership will be the rapidly growing smart card banking/financial markets. Both Visa International and MasterCard International have become driving forces behind smart card technology; CIM and UbiQ, are ready to meet their goal of issuing highly secure and powerful smart cards at an affordable price point.

Both CIM and UbiQ are confident in the success of the packaged solution. One of the key determinants of this imminent success is the lack of flexibility other proprietary software solutions have to offer, as well as the prohibitive costs involved with other card personalization systems. ‘Smart card applications typically require customized packages, and if these are proprietary to the card and equipment manufacturers, they can be costly and time consuming processes for the issuers. The CIM and UbiQ solution is open: neither costly nor proprietary,’ said Alberto Mucelli, CIM S.p.A.’s CEO & Chairman.

According to UbiQ’s President & COO, David Tushie, ‘Using CIM’s highly flexible and multi-modular Pro-Series line of card personalization units combined with the state of the art smart card issuing software UbiQQuickStart’, card issuers will now have the most reliable and cost effective desktop smart card issuing system available today.’

CIM is a leading and innovative manufacturer of card printers and embossing products. Established almost 20 years ago, CIM has a worldwide presence with subsidiaries covering the Asia/Pacific region, and since 1999 is covering the Americas through its subsidiary CIM USA Inc located in Miami, Florida.

By providing the widest range of plastic card and metal plate personalization equipment available in the industry, CIM now has the most intelligent, flexible, and user-friendly technology for all types of market segments: financial institutions, hospitals, casinos, government agencies, card manufacturers/service bureaus, retailers, etc.

UbiQ Inc. is a rapidly growing privately held software firm. Based in Minneapolis, Minnesota USA, UbiQ has developed patented technology for smart card personalization. UbiQ’s mission is to be the highest value integrator in the smart card issuance process, reducing the time and cost necessary for secure, faultless card issuance. The company distributes its products worldwide to smart card issuers including Visa and MasterCard member institutions. Other customers and partners of UbiQ include card service bureaus, smart card manufacturers, and card personalization manufacturers.

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Interlink Revolt

Wal-Mart Stores announced Tuesday afternoon it is kicking VISA’s ‘Interlink’ POS on-line debit cards out of its 2,700 stores effective October 13. The world’s largest retailer said the action is the direct result of VISA’s decision to raise transaction fees next month from 20 cents to 45 cents per transaction. Wal-Mart also noted that it made the bold decision despite the fact that VISA offered the retailer as much as $32 million in incentive payments if the company would accept the increased transaction fees by ‘Interlink’. Wal-Mart handles more than 350 million individual customer transactions through PIN-based or on-line debit transactions annually. Less than 10% of Wal-Mart’s total debit card business is processed by the ‘Interlink’ network. VISA handles approximately 400 million POS transactions through ‘Interlink’ annually. More than 50 million cards carry the ‘Interlink’ logo with most of the U.S. cardholders located on the west coast, where the network was established. There are more than 675,000 ‘Interlink’ merchant acceptance locations in the U.S. VISA made the decision in June to boost ‘Interlink’ transaction fees for most merchants from 45 bps +3 cents with a 20 cents maximum to 65 bps +12 cents with a 45 cents maximum. The fee tiff comes in advance of an anti-trust trial between major retailers and VISA/MasterCard over acceptance of off-line debit cards which require significantly higher transaction fees than on-line debit cards. The trial is expected to get underway next year. Wal-Mart is the lead plaintiff in the lawsuit. Wal-Mart will continue to accept other PIN-based debit cards such as Star,Pulse, NYCE and AFFN.

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SVS in Canada

Comdata Corporation announced its Stored Value Systems subsidiary will provide American Eagle Outfitters with electronic point-of-sale currency conversion for its Canadian-based stores. An SVS electronic cash card customer since 1998, American Eagle Outfitters operates over 600 stores in the United States and Canada.

“Currency conversion is a critical factor for the growing number of domestic retailers that are expanding their operations to Canada,” said Mike Berry, executive vice president and general manager, Stored Value Systems, Inc. “Shoppers in American Eagle’s Canadian stores will enjoy faster check- outs, while store managers will benefit from more accurate, error-free accounting that SVS electronic cash cards provide.”

As the exclusive cash card provider with automatic currency conversion at the point-of-sale, SVS first introduced the technology in Canadian Pier One Imports stores last fall. SVS customers with currency conversion sell their cards in the common currency of the country where the store is located. The cards can be redeemed in either the United States or Canada. When a shopper presents an electronic cash card for payment, the SVS system converts the sale amount to the base currency of the card, deducts the amount of the sale, and calculates the remaining balance in the base currency. The transaction is conducted in real-time through the retailer’s point-of-sale device.

“Cross-border shopping is becoming more common today, especially in a fluctuating economy,” said Berry. “SVS is working with domestic retailers today to find new ways to capitalize on shopper trends. Our currency conversion feature is the first in a series of exciting developments we are introducing that add more value to retailers today challenged with incremental sales growth.”

As the leading electronic cash card provider, current SVS clients include some of the nation’s most acclaimed retailers, grocers and petroleum providers. Current SVS clients include K-Mart, Target, Radio Shack, Kroger, Lowes and Food Lion, all of which market the SVS product as private-label gift cards, electronic replacements for traditional gift certificates.

About Comdata

Comdata Corporation, , is redefining the movement of money and information through technology for businesses, customers and employees. A leading provider of transaction and information services, Comdata provides Comchek(R) credit and debit processing and reporting for commercial fleets and merchants, SVS electronic cash, gift and chip card programs for retailers and governmental agencies, Comchek(R) eCash payroll services for food, retail and other service industries, and point-of-sale equipment for travel plazas and convenience stores. Headquartered in Brentwood, TN, Comdata employs nearly 2,000 people throughout the United States and Canada. Comdata is a wholly- owned subsidiary of Minneapolis-based Ceridian Corporation (NYSE: CEN).

About Stored Value Systems, Inc. (SVS)

Stored Value Systems (SVS), , is the nation’s leading provider of retail cash card services and chip card programs. Retailers across America rely on SVS to create customer loyalty, increase transaction volumes and strengthen their competitive position in the retailer marketplace. The people of SVS are the undisputed experts at building retail brands and keeping satisfied shoppers in stores. Headquartered in Louisville, KY, Stored Value Systems is a wholly-owned subsidiary of Comdata Corporation.

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LML Signs Harvey Chain

LML Payment Systems Inc. is pleased to announce its subsidiary LML Payment Systems Corp. has signed an electronic transaction processing contract with J.H. Harvey & Co. of Nashville, Georgia.

J.H. Harvey & Co. operates a chain of 45 store grocery stores located primarily in the state of Georgia. The transaction processing agreement involves the processing of check authorizations, credit, debit and EBT card transactions through LML’s proprietary transaction software REPS (Retail Electronic Payments System). All check transactions will be authorized against LML’s national database of checkwriters and subjected to a variety of positive velocity parameters which can be employed on a national, regional or store basis. The Automatic Risk Leveling (ARL) feature of REPS allows clients to select and adjust the check acceptance risk level for each region, store and/or each cash register while monitoring transactions in real-time, allowing for on-the-fly risk level adjustments. Credit, debit and EBT card transactions will be routed to third party processors for settlement.

‘We are pleased with this contract,’ said Corporation President and CEO, Patrick H. Gaines. ‘REPS provides retailers with information in a form never before available. As a retail payment management tool, we believe REPS is unprecedented. Each store transaction, whether it be a check authorization, check conversion, credit, debit or EBT card transaction, can be viewed by client management in real-time by region, store or individual check-out lane. Individual store and regional store managers have immediate access to the same data and reports providing the ability to make better decisions.’

The Corporation, through its subsidiary LML Payment Systems Corp., is a financial payment processor providing check processing solutions including Electronic Check Conversion (whereby paper checks are converted into electronic transactions), electronic check verification, electronic check re-presentment (whereby returned paper checks are re-presented for payment electronically), and primary and secondary check collection to supermarkets, grocery stores, multilane retailers, convenience stores and other national, regional and local retailers. We also specialize in providing selective routing, including real-time monitoring of check, debit, credit and EBT transactions for authorization and settlement through our flagship transaction processing product REPS (Retail Electronic Payment System). The Corporation’s intellectual property estate, owned by subsidiary LML Patent Corp, includes new U.S. Patent No. 6,164,528 regarding Internet checking transactions, in addition to U.S. Patent No. 5,484,988 which describes a ‘Checkwriting point of sale system.’ which, through a centralized database and authorization system, is capable of providing and administering various electronic payment services for customers and businesses. Also included in our intellectual property estate is a recently received Notice of Allowance from the United States Patent and Trademark Office for a new patent based upon United States Patent Application Serial No. 09/562,303. The newly allowed patent application describes corporate checks and electronic fund transfers (EFT) and relates to existing U.S. Patent No. 6,164,528 and U.S. Patent No. 5,484,988 (described above).

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