S2 & Stratus

S2 Systems, Inc., a global provider of transaction processing, authorization and integrated solutions for the banking, financial and retail sectors, announced a global marketing agreement with Stratus Technologies, maker of the world’s most reliable server technologies, to deliver continuously available next-generation payment solutions for Microsoft Windows 2000 operating environments. This joint initiative reaffirms and extends a long-standing relationship between S2 and Stratus, leveraging Stratus’ fault-tolerant technology with S2’s mission-critical transaction processing applications for open platforms.

The newest partnered solution from S2 and Stratus enables OpeN/2(TM) to provide 24×7 availability of business-critical transaction processing systems on the ftServer in a Windows(R) environment. The combined synergy between Stratus and S2 builds upon earlier industry benchmarks achieved by each company, both separately and together as partners. For two decades, Stratus has been solely focused on providing fault-tolerant technology to meet the availability needs of mission-critical applications. And for more than 18 years, some of the world’s largest organizations have relied on S2 products to drive their high-volume transaction networks.

“Our most recent collaboration with Stratus is the next logical step in a long history of providing global financial and retail payment solutions,” said Stephen Clark, president and CEO of S2 Systems. “We expect the additional support of the Stratus ftServer family to strengthen S2’s industry position as the preferred choice for transaction processing solutions in the Windows(R) environment. By leveraging the latest S2 open systems technology with the Stratus ftServer platform’s 24×7 availability, we are also extending OpeN/2’s proven capabilities further.”

S2’s OpeN/2 provides the robust and scalable online transaction processing (OLTP) capabilities that are integral to real-time e-business. The OpeN/2 core transaction engine is built for high volume throughput and peak performance — with applications for EFT, card activity and check management. Unlike proprietary systems that are hard to maintain and even more difficult to change, OpeN/2 provides the power of object-oriented programming and industry-standard relational database drivers on UNIX(R) and Windows(R) 2000 operating systems.

“The deployment of fault-tolerant server technology for 24×7 availability in electronic transaction processing is a major competitive advantage for our customers and partners,” said Steve Kiely, president and CEO, Stratus Technologies. “The Stratus ftServer platform for Windows(R) 2000 offers simple installation and manageability at a very low cost. The combined solution of S2’s OpeN/2 distributed architecture and the ftServer system provides industry-standard reliability, with capabilities for EFT, ATM networks, POS, wireless and other emerging technologies.”

The Stratus ftServer system is built around Intel(R) processors and supports the Microsoft(R) Windows(R) 2000 operating system, giving users the powerful option of a fault-tolerant family of servers at industry-standard prices. The inherent reliability of its hardware fault-tolerant design is integrated with unique software-availability features and service technology that allows the Stratus ftServer system to prevent critical system downtime and data loss.

About Stratus Technologies

Stratus Technologies offer a proven range of continuously available computer platforms, application solutions, professional services, and technologies for mission-critical business operations. Many Stratus customers are highly visible industry leaders such as prominent U.S. securities firms, major credit card companies, the largest stock exchange in Asia, the largest options exchange in the world, and 15 out of the world’s 20 largest banks. The Stratus 24-7 Technologies Division licenses technology for fault tolerance to technology companies. Stratus has offices and a comprehensive network of customer service centers worldwide, and 1,100 employees. Visit the company’s Web site at [www.stratus.com][1].

About S2 Systems

S2 Systems, Inc. is a leading global provider of e-business solutions for the banking, financial services, retail and travel & hospitality industries. For more than 18 years, some of the world’s largest organizations have relied on S2 products to drive their high-volume e-commerce transactions. Today, our leading-edge technology enables businesses worldwide to implement Web-based initiatives that improve operational efficiency, enhance customer service and generate new revenue streams. S2 Systems is headquartered in Dallas and has offices in Atlanta, London, Paris, Maarssen, Stockholm, Dubai, Riyadh, Hong Kong, Beijing, Melbourne and Sydney. For more information about S2 Systems, visit its Web site at [www.s2systems.com][2].

[1]: http://www.stratus.com
[2]: http://www.s2systems.com

Details

Rate Cut

Interest rate spreads for credit card portfolios will get a boost today as the Federal Reserve will most likely lower short-term interest rates by at least a quarter point. The effects of the rate cut will be enhanced due to the triggering of floor interest rates and the prevalence of fixed APR pricing on bank credit cards. Only $234 billion of the $575 billion in total U.S. credit card receivables will be re-priced due to variable rate structures. Nearly half of all credit cards in the U.S. have variable interest rates. Three years ago, about three-quarters of credit cards had variable rates. About 25% of credit cards have floor rates. Since January the Feds have cut short-term interest rates by 275 basis points which has knocked the prime rate from 9.50% to 6.75%.

Details

Provident Sale

Cincinnati-based The Provident Bank announced yesterday it is unloading about 80% of its bank credit card portfolio and entering into an agent bank relationship. Direct Merchants Bank signed the contract to purchase approximately 130,000 total accounts with $160 million in receivables and to offer bankcard products to Provident’s 400,000 consumer banking customers. According to CardData ([www.carddata.com][1]), Provident had 230,000 accounts and about $200 million in outstandings at the end of the first quarter. However, only about 36% of Provident’s credit card accounts were active in 1Q/01 and 4Q/00 compared to an industry average of 56%. Direct Merchants, one the nation’s fastest growing sub-prime credit card issuers, says it expects the deal to close by September 30 and the conversion to be completed by year’s end. Metris Companies/Direct Merchants recently crossed the $10 billion mark in credit card receivables and has approximately 4.6 million accounts.

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

Details

CIBC 2Q/01

Toronto-based CIBC reported yesterday that credit card revenue for the third fiscal quarter ending July 31 was $266 million, up $20 million from the same quarter of 2000 primarily due to a 19% growth in average balances and lower cost of funds. The gain was partially offset by the loss of revenue from the sale of the Merchant Card Services business. Revenue was up $12 million from the prior quarter after excluding the gain. This was due to a 3% increase in average balances under administration, an 18% increase in purchase volumes, lower cost of funds and three extra days in the quarter, which more than offset the loss of ongoing revenue from the Merchant Card Services business. CIBC realized an after-tax gain of $43 million from the sale of the Merchant Card Services business to Global Payments, Inc. Global agreed to purchase CIBC’s merchant acquiring business in November and closed on the transaction in March. Under terms of a ten-year marketing alliance with CIBC, Global will offer VISA credit and debit card payment products and services to merchants in Canada.

For more information on CIBC’s 2Q/01 results visit CardData ([www.carddata.com][1]) (CF Library 3/21/01)

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

Details

Consumer Advisory Board

MemberWorks Incorporated, the leader in bringing value to consumers through innovative membership programs, announced that, as part of its overall campaign to focus on consumer issues, it has created a Consumer Advisory Board.

Consisting of Chairperson Patricia Royer, former Michigan Attorney General Frank J. Kelley, Mary Heslin, Nicholas Willard, Dianne Goss and Robert Marotta, the board will help guide the company as it works to further improve marketing practices and customer service. Combined, the board members bring over a century of experience in consumer advocacy, public service and industry leadership.

“This is a consumer `dream team’ we have been fortunate enough to put together,” said Gary Johnson, president and CEO of MemberWorks. “These individuals have been at the forefront of the consumer movement for decades. Their focus and experience will provide a unique and healthy balance to MemberWorks’ marketing initiatives, taking our ongoing efforts to improve customer service to a higher level.”

The Consumer Advisory Board will work with MemberWorks’ newly created Office of Consumer Affairs to advise senior management on a host of consumer-related issues, including improving customer service and ensuring that the company’s policies are consistent with both legal and industry standards. In addition, the Consumer Advisory Board will advise the company on its implementation of its national Best Marketing Practices.

“We applaud the formation of an advisory board as a positive step toward enhancing the business-customer experience,” said Marzia Puccioni Jones, president of the Better Business Bureau of the Heartland. “The Better Business Bureau hopes the Consumer Advisory Board will assist the company in further responding to consumer-related issues and the ever-changing concerns of the marketplace.”

Chairperson Pat Royer has a rich history as a consumer advocate in both the public and private sectors, having served as the Vice President of Consumer Affairs for leading healthcare company Merck Medco and as the Director of Consumer Affairs for the State of New Jersey. Frank Kelley served as Attorney General for the State of Michigan for over 37 years. During his tenure, he developed an aggressive consumer protection program, which included the creation of the nation’s first Consumer Protection Division within an Attorney General’s office. The board’s other members have served in various leadership roles protecting consumers in the states of Ohio and Connecticut and for such organizations as the AARP.

In addition to their professional experience, the members serve in leadership positions in a variety of national, state and local consumer organizations, including the National Consumers League, the National Association of Consumer Agency Administrators, the New Jersey Consumer League, the Pharmaceutical Care Management Association, and the National Association of Food and Drug Officials. Many additional national, state and local organizations have also recognized the members for their devotion to serving consumer interests through the years.

Recently, MemberWorks became the first company of its kind to implement a national Best Marketing Practices. The four point set of standards is aimed at ensuring that all of its customers: (1) are informed of the full terms and benefits of the programs; (2) are aware of the programs’ cancellation and payment terms; (3) understand and consent to the terms of the program before being enrolled; and (4) can receive a no-questions-asked refund for any unauthorized charges.

MemberWorks already contracts with independent research firms to determine how well consumers understand the terms of MemberWorks’ programs and its sales scripts, but will employ the expertise of its board to further ensure that its consumer outreach and written materials are as clear as possible.

“The establishment of this board clearly shows just how serious MemberWorks is about protecting and serving consumers,” said Consumer Advisory Board Chairperson Patricia Royer. “The proactive steps they have taken to improve customer service put them at the forefront of the membership services industry. We on the board are encouraged by this pioneering spirit and look forward to helping propel the company’s consumer efforts even farther ahead. And while we are confident that the Board will positively influence MemberWorks, we hope that our work will bring about change in the entire industry.”

Once they have become familiar with the operations of MemberWorks, the board’s six members will select one additional member, bringing the ultimate total to seven.

About MemberWorks

Headquartered in Stamford, Connecticut, MemberWorks is a leader in bringing value to consumers by designing innovative membership programs that offer services and discounts on everyday needs in healthcare, personal finance, insurance, travel, entertainment, computing, fashion, and personal security. As of June 30, 2001, 7.9 million members are enrolled in MemberWorks programs, gaining convenient access to thousands of service providers and vendors. MemberWorks is a trusted marketing partner of leading consumer-driven organizations, and offers them effective tools to enhance their market presence, to strengthen customer affinity and to generate additional revenue.

Details

ORSUS UNO

Orsus Solutions, a leading provider of technology that aggregates,
integrates and delivers information to web and wireless users, announced
that Bank Leumi, one of Israel’s oldest and largest banks, is using Orsus
Uno to power Israel’s first wireless financial services portal. Using Orsus
Uno, a comprehensive platform for rapidly creating and deploying web and
wireless applications, Bank Leumi is able to provide its mobile customers
with access to 22 types of financial and personal banking services,
including comprehensive information for checking, savings and foreign
currency accounts, in both Hebrew and English. Additionally, mobile
customers are able to access credit card and loan information, obtain
foreign exchange rates, receive alerts and more.

Orsus’ experience in the financial services sector brought to Bank
Leumi a domain expertise and comprehensive technology that allowed the bank
to quickly implement a wireless financial portal, benefiting its mobile and
wireless customers. Orsus’ easy-to-use graphical design interface enabled
Bank Leumi’s internal team to develop personalized applications for
customer deployment after one week of Orsus’ technical training.
“Bank Leumi is a highly valued customer. We are proud that within a
short time we succeeded in providing them with the ability to adapt to the
mobile world quickly,” said Aryeh Finegold, founder and chairman of Orsus
Solutions. “The banking sector has unique demands, and Orsus is confident
in its ability to offer quick solutions to meet these demands.”

Available to Orange and GoNext Customers

Bank Leumi wireless services are available to customers of Orange
Israel and GoNext. Prior to the launch of the newly created banking portal,
Bank Leumi customers were limited to wireless access via Orange phones
utilizing SMS technology. Now, customers of Orange and Israeli wireless
operator GoNext can benefit from wireless banking services, by simply
accessing the bank’s new wireless portal on the mobile Internet.

Orsus Uno

The Orsus Uno platform includes Uno Studio, an environment for
developing complete web and wireless applications, and Uno Server, a
scalable, standards-based deployment server for Java and Windows.
Professional and novice developers use Uno Studio’s graphical process and
interface editors to prototype applications in hours and perfect them in
days. Depending upon complexity, the accelerated deployment time assists
organizations in meeting their information needs without placing additional
strain on IT resources.

Uno Server is built on a scalable Java architecture that is based on
platform, data-access, web and wireless standards, and runs on Windows
2000, HP, Sun and Linux servers. In addition, Orsus Server runs on J2EE
appservers based on WebLogic/BEA, iPlanet, HP Bluestone, jBoss and JRun.

About Orsus

Orsus is a leading provider of business solutions that transform
enterprise and web information into task-based, personalized applications
for any device or platform. Orsus products empower businesses to
consolidate resources across an enterprise, build intuitive applications
and portals for wireless and web delivery, integrate data and services from
different web sites, and provide employees, customers and partners with
mobile access to corporate systems. Orsus Solutions is headquartered in
Silicon Valley, has a European subsidiary in London, a full-service
Asia-Pacific subsidiary in Singapore, and an R&D center in Israel. For more
information, call 650-988-9100, go to www.orsus.com, or send email to pr@orsus.com.

About Bank Leumi

Bank Leumi, one of Israel’s oldest banks, with over 90 years
experience and branches worldwide, offers its customers a full range of
banking products, securities, insurance, asset management and other
financial services. Bank Leumi worked with Orsus to build Israel’s first
wireless financial portal, bringing robust financial information services
and personal banking to the bank’s mobile customer base.

Details

ADS Signs Harlem

Alliance Data Systems Corp. announced Monday it has signed a five-year agreement with retailer Harlem Furniture to provide a full-service private label credit card program and implement new technology for streamlining the credit application processes.

Under the terms of the agreement, Alliance Data will provide a turnkey private label credit card program that will include account acquisition and activation; receivables funding; card authorization and data capture; private label credit card issuance; payment processing; statement generation; and customer service.

Additionally, Alliance Data will provide 70-75 new POS terminals for Harlem’s 13 retail locations in Chicago and surrounding areas. The new terminals equipped with touch screen features and proprietary software designed to make the decision processing time approximately 90 percent faster than the current process. The terminals will be deployed throughout the sales floor, allowing customers greater convenience and faster access when applying for private label card accounts.

“We were impressed with Alliance Data’s capabilities not only in providing a comprehensive private label program, but in their ability to deliver innovative POS technology as well,” said Bruce Berman, president, Harlem Furniture. “Alliance Data clearly understands consumer demands and the importance of strong customer service in today’s competitive retail marketplace. As such, we’re excited about implementing their services to help drive sales, build our customer relationships and grow our private label customer base.”

“We’re looking forward to offering customized business solutions and services to Harlem,” said Ivan Szeftel, president, retail credit services, Alliance Data Systems. “Historically, Alliance Data has been a leader in providing unsurpassed customer service and developing innovative products that fit our clients’ wide-ranging needs. We’re delighted about the opportunity of working with Harlem and helping them achieve their business goals.”

About Harlem Furniture, Inc.

With more than 500 employees, Harlem Furniture, family owned and operated since 1912, services Chicago’s highly competitive furniture market by offering the value conscious consumer excellent service and selection at affordable prices. Harlem Furniture, headquartered in Lombard, Illinois, currently operates 13 stores in the metro Chicago area.

More information on Harlem Furniture is available at [www.harlemfurniture.com][1].

About Alliance Data Systems

Based in Dallas, Alliance Data Systems (NYSE: ADS) is a leading provider of transaction services, credit services and marketing services, assisting retail, petroleum, utility and financial services companies in managing the critical interactions between them and their customers. Additionally, Alliance Data operates and markets the largest coalition loyalty program in Canada. All together, each year, the company manages over 2.5 billion transactions and 72 million consumer accounts for some of North America’s most recognizable companies. Alliance Data Systems employs approximately 6,000 associates at more than 20 locations in the United States, Canada and New Zealand. For more information about the company, visit its web site, [www.alliancedatasystems.com][2].

[1]: http://www.harlemfurniture.com
[2]: http://www.alliancedatasystems.com

Details

BASE 24

ACI Worldwide, a leading international provider of enterprise e-payment
solutions, announces the licensing of its BASE24 e-payment processing
software to Deutsche Bank S.p.A, one of Italy’s Top 10 banks and top credit
card issuers/processors. Deutsche Bank will use BASE24 to authorize, route
and switch both ATM and POS transactions, and to meet processing
requirements for EMV (Europay, MasterCard and Visa) smart card transactions.
The BASE24 system will be integrated with the ACI Commerce Gateway
(formerly known as e24(R)) Deutsche Bank recently licensed from ACI. Once
integrated, the ACI Commerce Gateway will format and manage the security of
credit card transactions initiated by consumers on the Internet and pass
the transactions on to BASE24 for routing and authorization. Additionally,
the BASE24 system will help Deutsche Bank meet EMV deadlines from Visa,
MasterCard and the Italian Banking Association.

“ACI’s presence in Italy, coupled with the company’s international
experience implementing e-payment systems, led us to expand our partnership
through the licensing of BASE24,” said Fabrizio Girardi, Credit Card
Division CIO of Deutsche Bank Italy. “The product is scalable and reliable,
and allows us to leverage the investment we’ve made in Internet payments
technology. The system also gives us the ability to add services to our
card processing environment, such as mobile commerce services, that will
share the same capabilities.”

“BASE24 is a powerful processing engine that can handle Deutsche
Bank’s current volume, and scale to meet future needs,” said Richard
Launder, managing director of ACI Worldwide’s Europe/Middle East/Africa
operation. “In addition, BASE24 offers Deutsche Bank the ability to
integrate additional services and technologies–from smart cards to mobile
commerce–that share the same communication links to hosts and interchange
networks, and the same always available processing capabilities.”
BASE24 is used by more than 340 ACI customers around the world to
manage devices, route and switch transactions, and provide authorization
support for high-volume payments processing. The software operates on
Compaq NonStop Himalaya systems to provide 24/7 support for ATM and POS
networks, manned teller systems, telephone banking, mobile commerce, and
Internet banking and commerce.

About ACI Worldwide

Every second of every day, consumers are initiating electronic
payment transactions–getting cash at ATMs, using debit and credit cards to
make purchases in stores and on the Internet, banking by phone and PC,
paying bills online. Twenty billion times a year, ACI software is used to
process these transactions, powering the world’s online payment systems.
ACI was founded in 1975 and pioneered the development of applications and
networking software for online transaction processing. Today more than 500
customers in 79 countries use ACI supplied software. Visit ACI Worldwide on
the Internet at www.aciworldwide.com .

Details

Xmas Forecast

In terms of consumer spending and credit card use, the fourth quarter could be the weakest since the recession of 1990-91. The 2001 forecast by PriceWaterhouseCoopers predicts holiday retail sales will grow a mere 2.5% compared to 4.5% for 2000 and 7.5% for 1999. During 1991 retail sales increased by 2.75%. At mid-year, bank credit card charge volume grew at an annual rate of 14%. At year end 2000, U.S. charge volume increased 13.2% over the previous year. If retail sales plummet as expected, some credit card issuers may experience flat charge volume for the fourth quarter based on last year’s 4Q data.

CHARGE VOLUME
ISSUER 4Q/00 4Q/99 CHNG
MBNA $29.5b $29.0b +1.7%
FUSA $37.1b $37.5b -1.1%
DISC $22.8b $20.5b +11.2%
AMEX $59.0b $51.7b +14.1%

Source: CardData (www.carddata.com)

Details

EIC LASERCARDS

Drexler Technology Corporation has received its second purchase order for
100,000 LaserCard optical memory cards for the Government of Italy’s
Italian Electronic Identity Card (IEIC) national ID card/social services
card program.

Shipments of the 100,000 “microchip ready” Smart/Optical LaserCard
optical memory cards are expected to begin this quarter. Drexler completed
shipment of the earlier 100,000 IEIC card order in January 2001.
Under the emerging IEIC program, the central and municipal public
administrations in Italy would select the specific types of services to be
offered with the IEIC card. The Italian government has indicated that the
national services offered through the IEIC cards may include healthcare,
voting, and social security, while municipal local services may include
transportation and education.

Drexler’s “microchip ready” cards contain a 16mm-wide optical memory
stripe and have a designated space for insertion of a computer microchip.
The Italian government will arrange to have Siemens’ microchips inserted
into the optical memory cards, thereby creating a combination smart
card/optical memory card. The optical stripe will be used to provide the
high security electronic identity data, to record transaction process
history and provide a data backup, to store large amounts of data, and to
provide a visual embedded “ID hologram.” The microchip will be used to
provide electronic identification, authentication, and communication
security for network transactions. The combination card, known in Italy as
the “carta d’identita elettronica,” also can be used to provide digital
signatures and a variety of e-services.

The Italian ID/social services card is an example of a “digital
governance” application, which represents Drexler’s principal LaserCard
market today. “Digital governance” means the utilization of digital
information technology to facilitate or expedite the process of governing
by a nation, state, region, municipality, agency, institution, or
commercial enterprise. The card is used as proof that the cardholder has a
formal permission, privilege, or right from the card issuer. The
LaserCard’s high-security features inhibit counterfeiting and data
tampering and provide controlled access to the benefits granted by the card
issuer.

Other examples of digital governance applications for which LaserCard
optical memory cards have been sold include the right to reside and work in
another country, cross a national border, receive medical care, convey
import privileges, register motor vehicles, construct buildings, utilize
expensive medical equipment on a pay-per-use basis, obtain automobile
maintenance services, deploy military cargo using paperless manifests, or
obtain certain purchasing or tax benefits.

Headquartered in Mountain View, Drexler Technology Corporation
(www.lasercard.com) develops and manufactures optical data storage products
and systems, including LaserCard(R) optical memory cards and chip-ready
Smart/Optical(TM) cards. Its wholly owned subsidiary, LaserCard Systems
Corporation, makes optical card read/write drives, develops optical card
system software, and markets card-related data systems and peripherals.

Details

CIBC QUARTERLY INCOME

CIBC announced third quarter Operating Earnings
(which exclude the sale of subsidiaries, an adjustment for tax rate changes
and the net impact of Amicus) of $525 million or $1.29 per share, diluted.
Operating Return on Equity was 20.0%. Reported Earnings for the third quarter
were $460 million or $1.12 per share, diluted, (which include the net impact
of building Amicus, $(0.17); a gain on the sale of subsidiaries, $0.05; and an
adjustment for tax rate changes, $(0.05)). Adjusted Earnings (which exclude
only the sale of subsidiaries and an adjustment for tax rate changes) were
$459 million or $1.12 per share, diluted.

Operating Earnings for the nine months ended July 31, 2001, were $1,631
million, compared to $1,787 million for the same period last year. Operating
Earnings per share, diluted, were $3.99, compared to $4.21 for the same period
in 2000. Reported Earnings for the first nine months of 2001 were $1,444
million or $3.51 per share, diluted, compared to $1,728 million or $4.06 per
share, diluted, for the same period of 2000. Adjusted Earnings for the nine
month period were $1,445 million or $3.51 per share, diluted compared to
$1,698 million or $3.99 per share, diluted for the same period last year.
Year-to-date, CIBC’s Operating Return on Equity was 21.2%. Since November
1, 1999, CIBC’s total return to shareholders is up 69.5%, the best total
return among the major Canadian banks.

“Our performance in a less than favourable business environment is a
clear reflection of our ongoing effort to build a broad-based franchise that
is capable of weathering downturns in the market,” said John S. Hunkin,
Chairman and Chief Executive Officer. “We remain confident that — through the
fundamental strength and diversity of our business portfolio — we are well-
positioned for growth as market conditions improve.”

To strengthen CIBC’s position, Hunkin said the company is continuing to
focus on four key areas, including:

Managing Risk

As in the first half of the year, credit conditions continued to be
challenging in the U.S. during the quarter, with trades and services,
manufacturing and telecommunications being the sectors most affected. “We are
managing our business on the premise that conditions are unlikely to improve
during the fourth quarter,” said Hunkin. CIBC continues to manage its market
risk at reduced levels consistent with its goal of low earnings volatility.
Market risk within CIBC’s trading book, measured by risk measurement units,
fell during the quarter to $12.6 million as of July 31, 2001, compared to
$14.8 million at the end of the second quarter and $24.7 million as of October
31, 1999.

Growing Amicus

The growth of Amicus, CIBC’s co-branded retail electronic banking
business, continues to exceed expectations in the area of customer
acquisition. During the quarter, Amicus acquired 121,000 new customers,
bringing the total number of registered customers to 779,000, up 18% from the
previous quarter and 104% from the same quarter in 2000. A highlight during
the quarter was the strategic alliance CIBC entered into with Ahold USA, Inc.,
a leading food retail and food service company, to provide electronic banking
services to the northeastern U.S. market through ABMs, telephone call centres,
the Internet and in-store pavilions. CIBC’s alliance with Ahold is expected to
launch next year and builds upon existing Amicus partnerships with Loblaw
Companies Limited in Canada and Safeway Inc. and Winn-Dixie Stores, Inc. in
the U.S.

Ongoing Business Development

In addition to Amicus, CIBC is continuing to focus on growth across all
of its business units. Developments in the quarter include:

— Electronic Commerce

– PC banking customers (non-Amicus business) grew by 13% to 1.16
million during the quarter. Year-over-year, PC banking customers
are up 66%.

– Telephone banking customers grew to 2.92 million, up 7% from the
second quarter and 26% from the third quarter of 2000.

— Retail and Small Business Banking

– Supporting its goal to provide its retail and small business
customers with Smart, Simple Solutions, CIBC continued its
technology upgrade in the quarter with the installation of 1,090
counter workstations in its branch network. Year-to-date, 1,590
upgraded workstations have been installed in 330 branches.

– To make it easier for its customers to do business, CIBC has
extended operating hours at 86 branches across Canada year-to-date.
– CIBC also continued to expand its bizSmart initiative, with the
opening of nine additional kiosks during the quarter, increasing the
total number operating across Canada to 37. CIBC also expanded
bizSmart’s product offering to include a Personal GIC and a Personal
Line of Credit which offers a credit limit up to $50,000 at an
interest rate of prime plus 1.75%.

— Wealth Management

– CIBC Investor Services Inc. introduced a new website,
www.investorsedge.cibc.com , to enhance and simplify online investing
for customers. The new website has improved navigation and expanded
features including access to CIBC World Markets Canadian equity
research.

– As at the end of June, CIBC Mutual Funds ranked second among the big
six Canadian banks in year-to-date net sales and moved up to third
among all Canadian mutual fund companies. CIBC continued to rank
first in index fund net sales for fiscal 2001, as at June 30, 2001.

— CIBC World Markets

– CIBC World Markets participated in a number of significant
transactions during the quarter, including acting as the sole
underwriter and lead arranger of a US$2.0 billion credit facility to
finance George Weston Limited’s acquisition of Bestfoods Baking
Company. CIBC World Markets was also joint arranger in the financing
of Apax Partners & Co., and Hicks, Muse, Tate & Furst Inc.’s
acquisition of Yell Directories, which include the U.K. Yellow
Pages, from British Telecommunications plc for pnds stlg 2.14
billion.

– CIBC World Markets launched its research broadcast via its new
Internet webcast facility. CIBC eTV is a proprietary, web-based
online television station that provides CIBC’s clients with leading
edge research. More information is available at
www.cibcwm.com/research.

Overall Performance and Accountability

During the quarter, CIBC took additional steps in support of its
commitment to maximize the value of its franchise. First, the company
announced the sale of its Guernsey private banking business to The Bank of
N.T. Butterfield & Son Limited. The sale generated an after-tax gain of $22
million and is consistent with Wealth Management’s strategy to focus on
supporting its North American client base and growing its Caribbean and Asian
operations.

Second, CIBC announced it is in advanced discussions with Barclays PLC,
one of the largest financial services groups in the United Kingdom, to combine
the retail, corporate and offshore banking operations of both companies in the
Caribbean into a new entity called FirstCaribbean International Bank(TM).
Under the proposed transaction, which is expected to close early next year,
CIBC and Barclays would each own approximately 45% of the new entity, with the
remainder held publicly. CIBC believes the future earnings potential from its
interest in FirstCaribbean will be greater than continuing with a controlling
interest of a smaller operation.

Outlook

“Our outlook for the fourth quarter remains cautious, particularly in
light of market conditions in North America,” said Hunkin. “Our focus moving
forward will be to, above all, continue to focus on our customers’ needs; all
our businesses are getting more competitive and we have to be even more
proactive and creative to grow revenue. Also, we will defer all non-essential
spending, but continue to make selective strategic investments, striking the
right balance between short term earnings strength and longer term value
creation.”

FINANCIAL AND OPERATIONS COMMENTARY – OVERVIEW

CIBC’s third quarter Operating Earnings, as noted in the following table,
were $525 million, down $117 million from the third quarter of 2000 and up $31
million from the prior quarter. Operating Earnings for the quarter were lower
than a year ago due to the effects of continued weaker markets, which were
partially offset by a greater proportion of income being earned in
subsidiaries that operate in lower tax jurisdictions. The improvement in
Operating Earnings from the prior quarter reflects stronger results in
Electronic Commerce and CIBC World Markets. Operating EPS, diluted, were
$1.29, down from $1.54 in the same quarter last year and up from $1.19 in the
prior quarter. Operating Return on Equity was 20.0%, compared with 25.5% in
the third quarter of 2000 and 19.4% in the previous quarter.
Reported Earnings were $460 million for the quarter, down $141 million
from the same quarter a year ago and down $9 million from the prior quarter.
Reported EPS, diluted, were $1.12, down from $1.43 in the third quarter of
2000 and comparable to $1.13 in the prior quarter. Reported Return on Equity
for the quarter was 17.4%, compared with 23.8% in the same quarter last year
and 18.4% in the prior quarter.
Reported Earnings for the nine months ended July 31, 2001 were $1,444
million, down $284 million from the same period in 2000. Reported EPS,
diluted, and Reported Return on Equity for the nine months ended July 31, 2001
were $3.51 and 18.6% respectively, versus $4.06 and 23.5% for the same period
in 2000.

FINANCIAL AND OPERATIONS COMMENTARY – SEGMENTED

CIBC’s management structure has four business lines — Electronic
Commerce, Technology and Operations; Retail and Small Business Banking; Wealth
Management; and CIBC World Markets. These business lines are supported by four
functional groups — Treasury and Balance Sheet Management (TBM); Risk
Management; Administration; and Corporate Development.

In 2000, CIBC introduced the Manufacturer / Customer Segment /
Distributor Management Model to measure and report the results of operations
of the four business lines. Under this model, internal payments for sales
commissions and distribution service fees are made between business lines. As
well, revenue and expenses relating to certain activities (such as the
payments business described under Electronic Commerce) are fully allocated to
other business lines. In addition, the revenue and expenses of the four
functional groups are generally allocated to the four business lines. This
model allows management to better understand the economics of our customer
segments, our products and our delivery channels.

In 2001, CIBC continued to refine certain estimates and allocation
methodologies underlying the model. Key changes include refinements to
customer segmentation and cost recovery methodologies. These changes primarily
affected Imperial Service in the Wealth Management business line and both
retail banking and small business banking in the Retail and Small Business
Banking business line.

Prior year segmented financial information has been restated to conform
with the presentation used in 2001. In 2001, the sales and service fees paid
to segments for certain products were renegotiated among the business lines.
Prior year financial information was not restated to reflect these fee
changes.

Business line return on equity is measured using risk-adjusted (economic)
capital which in many instances may be different from regulatory capital. The
difference between economic capital allocated to the business lines and
regulatory capital is held in Corporate and Other. From time to time
enhancements are made to CIBC’s economic capital model as part of our risk
measurement process. These changes are made prospectively.

Net income for the quarter was $47 million, down $12 million from the
third quarter of 2000 due to higher Amicus spending to support customer growth
and increases in the provision for credit losses, partially offset by strong
revenue growth in cards and mortgages. Net income was up $14 million from the
prior quarter, after excluding the second quarter after-tax gain of $43
million from the sale of the Merchant Card Services business. The increase was
primarily due to strong revenue growth in cards and mortgages, partially
offset by higher spending in Amicus. Excluding the gain, net income for the
nine months ended July 31, 2001 was $139 million, down $32 million from the
same period in 2000.

Revenue was $497 million, up $72 million from the third quarter of 2000,
and up $58 million from the prior quarter after excluding the pre-tax gain of
$58 million from the sale of the Merchant Card Services business. Revenue,
after adjusting for the gain, was $1,392 million for the nine months ended
July 31, 2001, up $157 million from the same period in 2000.

Revenue details are as follows:

– Mortgages includes both residential and commercial mortgages. Revenue
was $130 million for the quarter, up $49 million from the third
quarter of 2000 due to a 12% increase in residential loan balances
outstanding and improved spreads. Revenue was up $22 million from the
prior quarter due to an increase in prepayment interest amounts
related to refinancing, a 4% increase in residential loan balances
outstanding and three extra days this quarter versus the prior
quarter.

– Cards comprises a portfolio of credit cards. Revenue was $266 million
for the quarter, up $20 million from the third quarter of 2000
primarily due to a 19% growth in average balances under administration
and lower cost of funds, partially offset by the loss of revenue from
the sale of the Merchant Card Services business. Revenue was up $12
million from the prior quarter after excluding the gain. This was due
to a 3% increase in average balances under administration, an 18%
increase in purchase volumes, lower cost of funds and three extra days
in the quarter, which more than offset the loss of ongoing revenue
from the Merchant Card Services business.

– Insurance provides creditor insurance products. Revenue was $13
million in the quarter, down $33 million from the third quarter of
2000 due to discontinued insurance businesses, partially offset by
growth in creditor insurance revenue. Revenue was comparable to the
prior quarter.

– Other includes Amicus, electronic and self-service banking, the
allocation of a portion of treasury revenue and INTRIA third-party
technology services. Revenue was $88 million in the quarter, up $36
million from the third quarter of 2000 and up $23 million from the
prior quarter. The increase in revenue reflects higher treasury
revenue and Amicus growth.

Non-interest expenses were $354 million, up $63 million from the third
quarter of 2000 as a result of Amicus business growth, partially offset by
lower expenses related to discontinued insurance businesses. Non-interest
expenses were up $25 million from the prior quarter due to Amicus growth, and
the timing of Technology and Operations allocations to the business lines. Non-
interest expenses for the nine months ended July 31, 2001 were $999 million,
up $120 million from the same period in 2000.

The regular workforce headcount totaled 16,371 at quarter end, up 421
from the prior quarter in order to support business growth in Amicus and
mortgages. As well, staffing was increased in Technology and Operations, the
costs of which are allocated to the business lines. Headcount increases were
also experienced in electronic banking to improve service levels.

Developments in the quarter included:

– Amicus and Ahold USA, Inc., a leading food retail and food service
company, announced an intention to forge an alliance to provide
electronic banking services to the northeastern U.S. market through
ABMs, telephone call centres, the Internet and in-store pavilions.

– Amicus added 48 new pavilions during the quarter, increasing the total
number of pavilions operating to 378. Also during the quarter, Amicus
acquired 121,000 new customers, bringing the total number of
registered customers to 779,000, up 104% from the same quarter last
year.

– Amicus commenced selling four index mutual funds and a money market
fund in Florida through its grocery store pavilions in Winn-Dixie
Stores, Inc.

– CIBC continued to expand its extended speech recognition telephone
service within its retail banking network during the quarter. In
addition to being able to register and pay bills by phone using only
their voice, CIBC’s 2.9 million telephone banking customers will be
able to complete other voice-command transactions in the coming months
including: mortgage information requests, cheque reordering, as well
as receiving information on branch and bank machine locations.

– During the quarter, it was announced that Amicus and Yahoo! Inc. will
no longer provide person-to-person banking services on Yahoo! Inc.’s
U.S. website. Yahoo! Inc.’s decision to provide this service globally
did not align with Amicus’ strategy of a continued focus on core
retail businesses in North America.

Net income was $96 million, consistent with the third quarter of 2000 as
increased infrastructure investment more than offset higher revenue and a
lower provision for credit losses. Net income was down $4 million from the
prior quarter mainly due to increased infrastructure investment, partially
offset by higher revenue. Net income for the nine months ended July 31, 2001
was $324 million, up $40 million from the same period in 2000.
Revenue was $659 million, up $8 million from the third quarter of 2000.
The increase resulted from volume growth on personal deposits and consumer
loans and higher treasury revenue, partially offset by lower student loan
revenue, declining spreads on deposits and the effects of refinements to
segment revenue among the business lines. Revenue was up $26 million from the
prior quarter, primarily due to three extra days this quarter and higher
treasury revenue, partially offset by lower deposit spreads and the effects of
refinements to segment revenue among the business lines. Revenue for the nine
months ended July 31, 2001 was $1,950 million, up $40 million from the same
period in 2000 primarily due to volume growth on personal deposits and
consumer loans.

Revenue details are as follows:

– Retail banking is the individual customer segment (customers other
than those in Imperial Service). Revenue is earned from sales and
service fees paid by CIBC’s product groups, primarily the investments,
deposits and lending products businesses. Revenue was $249 million in
the quarter, consistent with the third quarter of 2000. Lower deposit
spreads and the effects of refinements to segment revenue among the
business lines were offset by increased sales and service fees.
Revenue was up $5 million from the prior quarter due to three extra
days this quarter and higher sales and renewal fees, partially offset
by the effect of lower rates.

– Small business banking is the customer segment supporting small
owner-operated businesses, including owners’ personal holdings.
Revenue is earned from sales and service fees paid by CIBC product
groups, primarily the investments, deposits and lending products
businesses. Small business banking also includes bizSmart, which earns
revenue from net interest spreads. Revenue was $167 million in the
quarter, down $9 million from the third quarter of 2000 due to lower
deposit spreads and the effects of refinements to segment revenue
among the business lines. Revenue was up $7 million from the prior
quarter due to three extra days in the quarter.

– West Indies is a full-service banking operation in eight countries,
servicing all customer segments through a 45 branch network and
electronic delivery channels. Revenue is earned on net interest
spreads and sales and service fees. Revenue was $70 million in the
quarter, comparable with the third quarter of 2000 and the prior
quarter.

– Lending products comprises personal (including student loans), small
business and agricultural lending portfolios. Revenue is earned
through net interest spreads and service fees; part of this revenue is
paid to the customer segments. Revenue was $155 million in the
quarter, unchanged from the third quarter of 2000. Improved consumer
and small business interest spreads and higher consumer loan volumes
drove revenue up, but this was largely offset by a $11 million
decrease in student loan revenue. Student loan revenue declined as a
result of a strategic business decision to exit risk share lending
programs when CIBC’s contract with the federal government expired last
year. Revenue was unchanged from the prior quarter as the effect of
three extra days was offset primarily by higher sales and renewal
commissions paid.

– Other consists primarily of the allocation of a portion of treasury
revenue. Revenue was $18 million in the quarter, up $18 million from
the third quarter of 2000 and up $11 million from the prior quarter
largely due to higher treasury revenue.

Non-interest expenses were $485 million, up $38 million from the third
quarter of 2000 due to salary increases effective January 1, 2001, extended
branch hours, staffing of small business advisory teams and infrastructure
investment. Non-interest expenses were up $30 million from the prior quarter
primarily due to three extra days in the quarter and infrastructure
investment. Non-interest expenses for the nine months ended July 31, 2001 were
$1,372 million, up $79 million from the same period in 2000.
The regular workforce headcount totaled 13,143 at quarter end, up 216
from the second quarter with the additional headcount being primarily in
retail banking and small business banking.

Developments in the quarter included:

– CIBC and Barclays PLC announced that advanced discussions are underway
to combine their retail, corporate and offshore banking operations in
the Caribbean, to create FirstCaribbean International Bank(TM). Under
the proposal, which is subject to government and regulatory approval,
Barclays PLC and CIBC would each own approximately 45% of the ordinary
share capital of FirstCaribbean International Bank(TM), with the
remainder held publicly and with the intention to increase public
share holdings up to 20% as soon as practicable. FirstCaribbean
International Bank(TM) would retain the listings of CIBC West Indies
Holdings Limited in Barbados, Trinidad and Tobago and Jamaica.

– Effective August 1, 2001, the provinces of Ontario, Alberta and Prince
Edward Island entered into alternative arrangements for disbursing
student loans. CIBC continues to disburse student loans in the
provinces of Newfoundland, New Brunswick, and Quebec, and is protected
against credit risk exposure under these programs. As the various
student loan programs migrate to a direct lending program, CIBC
continues to leverage its investment in EDULINX Canada Corporation for
the servicing of student loans.

– For customer convenience, 86 branches across Canada have extended
business hours so far this year. By year end, this number is expected
to more than double and almost 30% of our branches will be open on
Saturdays.

– Robbery prevention initiatives reduced branch robberies 38% year-to-
date compared with the same period a year ago.

– CIBC’s technology upgrade in retail banking continued, with the
installation of 1,090 upgraded counter workstations this quarter.
Year-to-date, 1,590 upgraded workstations have been installed in 330
branches. In the fourth quarter, we plan to install 678 more counter
workstations in 172 branches and will start the rollout of the new
Windows 2000 based technology platform in approximately 200 branches.

– Small Business Way, a training initiative which provides a
comprehensive small business banking accreditation program, was
introduced at the beginning of the quarter.

– Despite the current economic slowdown, impaired personal loans and
personal lines of credit are currently trending favourably versus the
prior two years, the result of enhanced front-end credit adjudication
and back-end collection processes. Small business and agricultural
impaired loans are trending consistently with the previous two years.

– Nine bizSmart kiosks were opened during the quarter (five in Alberta
and two in each of British Columbia and Ontario), bringing the total
to 37 bizSmart kiosks in operation at quarter end. As well, Personal
Line of Credit, which offers a credit limit up to $50,000 and an
interest rate of prime plus 1.75%, and Personal GIC were added to the
bizSmart product line. In addition, an Internet application for
business customers was also launched.

(1) The calculation of the asset growth rate was adjusted this quarter
to exclude assets that were converted to index mutual funds, at
CIBC’s discretion, in March, 2001.

Net income for the quarter was $90 million. Excluding an after-tax gain
of $22 million from the sale of the Guernsey private banking business, net
income was down $11 million from the third quarter of 2000 primarily due to
lower revenue. Net income, after adjusting for the gain, was down $7 million
from the prior quarter as a result of increased expenses. Excluding the gain,
net income for the nine months ended July 31, 2001 was $253 million, down $69
million from the same period last year due to lower revenue from retail
trading activities and expenses incurred to exit certain business operations.
The decrease was also due to higher than normal annual incentive fees earned
on risk-free participation in the profits of investment partnerships in the
prior year.

Revenue for the quarter was $598 million. Excluding the gain, revenue was
down $54 million from the third quarter of 2000 as weaker market conditions
prevailed, and up $15 million from the prior quarter. Revenue for the nine
months ended July 31, 2001 was $1,772 million, down $343 million from the same
period in 2000, after adjusting for the gain, primarily due to lower annual
incentive fees and trading volumes.

Revenue details are as follows:

– Imperial Service is the customer segment offering financial advice to
CIBC’s high-value clients. Specially trained financial advisers
support the financial planning and product fulfilment needs of these
clients. Revenue is earned from sales and service fees paid by CIBC’s
product groups, primarily the investments, deposits and lending
products businesses. Revenue was $168 million in the quarter, up $23
million from the third quarter of 2000 due to business volume
increases and revenue allocations renegotiated during the year.
Revenue was up $8 million from the prior quarter.

– Private client investment and asset management generates fees and
commissions from full-service retail brokerage providing equity and
debt investments, mutual fund products, asset management services and
advisory and financial planning services to individuals in Canada and
the United States. Revenue was $256 million in the quarter, down $53
million from the third quarter of 2000 primarily as a result of lower
trading volumes. Revenue was down $11 million from the prior quarter
due to prevailing weaker markets.

– Global private banking and trust provides a comprehensive range of
global solutions, including investment management, trusts, private
banking and global custody to meet the financial management needs of
individuals, families and corporations with significant financial
resources. Revenue for the quarter was $53 million. Excluding the
gain, revenue was $31 million, down $9 million from the same quarter
last year due to the loss of ongoing revenue from CIBC Suisse S.A.
exited in the fourth quarter of 2000. Revenue, after adjusting for the
gain, was comparable with the prior quarter.

– Wealth products include mutual funds, investment management services,
online and discount brokerage services and GICs. These investment
products are developed and distributed to retail, small business and
Imperial Service customers. Revenue was $98 million in the quarter,
down $30 million from the third quarter of 2000. The decrease was due
primarily to lower discount brokerage revenue resulting from declines
in trading activity, as well as increases in the sales and service
fees paid to customer segments. GIC revenue decreased from the same
quarter last year due to narrower net interest margins, along with
increases in commissions paid to customer segments within CIBC.
Revenue was consistent with the prior quarter.

– Other consists primarily of the allocation of a portion of treasury
revenue. Revenue was $23 million in the quarter, up $15 million from
the third quarter of 2000 and up $11 million from the prior quarter,
due to increased treasury revenue.

Non-interest expenses were $488 million, down $26 million from the third
quarter of 2000 primarily due to revenue-related variable expenses. Non-
interest expenses were up $23 million from the prior quarter as a result of
increases in non-credit losses, legal expenses and recruitment expenditures.
Non-interest expenses for the nine months ended July 31, 2001 were $1,413
million, down $192 million from the same period in 2000 due to decreases in
variable expenses associated with lower revenue.
The Wealth Management regular workforce headcount totaled 6,722 at
quarter end, down 136 from the prior quarter primarily due to the sale of the
Guernsey private banking business.

Developments in the quarter included:

– CIBC Investor Services Inc. introduced a new website at
www.investorsedge.cibc.com to improve and simplify the online
investing experience for Investor’s Edge and Imperial Investor Service
clients. The new website has easy-to-use navigation with a host of new
features and functions including access to CIBC World Markets Canadian
equity research. A new online Alerts service allows clients to receive
personalized stock notifications to keep abreast of the latest
developments affecting their investment portfolios.

– During the quarter, CIBC sold its Guernsey private banking business to
The Bank of N.T. Butterfield & Son Limited in Bermuda for an after-tax
gain of $22 million. This transaction is consistent with CIBC Wealth
Management’s strategy of focusing on its North American client base
and growing its Caribbean and Asian operations.

– As at the end of June, CIBC Mutual Funds ranked second among the big
six banks in year-to-date net sales, and moved up to third among all
Canadian mutual fund companies. As at June 30, 2001, CIBC continues to
rank first in index fund net sales for fiscal 2001.

– Since its conversion to a multi-manager approach in May 2001, Personal
Portfolio Services (PPS), Canada’s leading discretionary investment
management program, achieved net sales of $53 million. Total assets
under management are $6.0 billion.

– CIBC Wood Gundy, CIBC’s Canadian full-service brokerage operation,
continues to focus on growing fee-based asset management programs.
Specifically, Investment Advisory Service increased net assets by $217
million, representing 155% growth, year-to-date.

Net income was $229 million, down $157 million from the third quarter of
2000 which had more robust market conditions and higher merchant banking
revenue. Net income was up $34 million from the prior quarter due to higher
revenue from origination activities. Net income for the nine months ended July
31, 2001 was $695 million, down $284 million from the same period in 2000.
Revenue was $1,066 million, down $233 million from the third quarter of
2000 and up $67 million from the prior quarter. Revenue for the nine months
ended July 31, 2001 was $3,241 million, down $412 million from the same period
in 2000.

Revenue details are as follows:

– Capital markets operates trading, sales and research businesses
serving institutional, corporate and government clients across North
America and around the world. Revenue was $365 million in the quarter,
up $19 million from the third quarter of 2000 and up $14 million from
the prior quarter. The increase was due primarily to the strong
performance of the fixed income business.

– Investment banking and credit products provides advisory services and
underwriting of debt, credit and equity for corporate and government
clients across North America and around the world. Revenue was $480
million in the quarter, up $82 million from the third quarter of 2000
due to increased leveraged finance activity, primarily in Europe.
Revenue was up $82 million from the prior quarter due to improved
leveraged finance conditions, combined with increased U.S. investment
banking activities.

– Merchant banking makes investments to create, grow and recapitalize
companies across a variety of industries. Revenue was $103 million in
the quarter, down $309 million from the third quarter of 2000 which
benefited from higher merchant banking divestiture gains. Revenue was
down $40 million from the prior quarter due to lower realized gains
net of asset write-downs.

– Commercial banking originates financial solutions centred around
credit products for medium-sized businesses in Canada. Revenue was
$125 million in the quarter, comparable with both the third quarter of
2000 and the previous quarter.

– Other includes the allocation of a portion of treasury revenue, net of
unallocated funding charges; CEF Capital, an affiliated Asian merchant
bank holding company; and other revenue not directly attributed to the
main businesses listed above. Revenue was $(7) million in the quarter,
down $29 million from the third quarter of 2000 due to higher treasury
related funding charges. Revenue was comparable to the prior quarter.

Non-interest expenses were $685 million, down $24 million from the third
quarter of 2000 as a result of lower revenue-based compensation expenses. Non-
interest expenses were up $59 million from the prior quarter primarily due to
variable compensation associated with higher revenue. Non-interest expenses
for the nine months ended July 31, 2001 were $2,025 million, down $101 million
from the same period in 2000.

The regular workforce headcount totaled 2,989 at quarter end, up 22 from
the prior quarter.

Developments in the quarter included:

– CIBC World Markets launched a new webcast facility, CIBC eTV, a
proprietary web-based online television station providing clients with
access to current research.

– CIBC World Markets held an official ground breaking ceremony at the
commencement of construction of its new U.S. headquarters to be
located at 300 Madison Avenue in New York.

– CIBC World Markets successfully initiated an equity arbitrage business
in Ireland. This business is expected to play an important role in our
strategy to expand into European equity markets.

– Divestiture of non-strategic facilities continued with the sale of
$316 million of performing loans, resulting in pre-tax charges of $23
million. CIBC World Markets, together with Treasury and Balance Sheet
Management will continue to explore opportunities in this area.

– CIBC World Markets participated in a number of significant
transactions in the quarter:

– Sole underwriter and lead arranger of a US$2.0 billion credit
facility to finance George Weston Limited’s acquisition of
Bestfoods Baking Company.

– Joint-lead arranger, joint bookrunner, documentation agent, and
security agent on a senior debt facility, as well as joint arranger
and administrative agent on a bridge facility for Apax Partners
& Co., and Hicks, Muse, Tate & Furst Inc.’s acquisition of Yell
Directories from British Telecommunications plc for pnds stlg 2.14
billion.

– Financial advisor, lead arranger and underwriter on Nomura
Principal Finance Group’s acquisition of Le Meridien from Compass
Group plc for pnds stlg 1.9 billion.

– Co-lead manager and underwriter in a commercial real estate
securitization offering of US$962 million.

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MasterCard & Excite

TORONTO, Aug. 15 /CNW/ – MasterCard Canada, one of Canada’s leading
payment brands and Excite Canada, one of Canada’s foremost Internet companies,
have entered into a co-marketing alliance making MasterCard the preferred
payment brand for consumers shopping online at Excite.ca and the Excite for
@Home broadband portal.

To celebrate the launch of their collaboration, MasterCard Canada is
offering consumers a promotion titled “RAKE IT INstantly”. The promotion is
being supported online by Excite.ca and will run from August 15 to October 15,
2001. Consumers will have the opportunity to win prizes in one of three ways:
instant scratch and win coupons available in participating MasterCard issuer
cardholder statements, automatic entry each time a customer uses their
MasterCard at any of the participating partner locations during the promotion
period; or online by visiting www.mastercard.ca/rakeitinstantly/excite.
Participating partners include Canadian Tire, Loblaw Companies Ltd, The
Northern Group, Music World, The Brick, The Sony Store, Sony Style and Jean
Coutu. A sample of the prizes to be won include free groceries for a year, a
Sony 43″ Projection TV and a $2,500 Canadian Tire Shopping Spree.
“As leaders in our industries, it is a natural fit for MasterCard Canada
and Excite Canada to team up to offer consumers added benefits and convenience
when shopping online,” said Tracy Folkes Hanson, Vice President, Marketing and
Communications, MasterCard Canada. “Excite Canada offers Internet shoppers a
wide range of helpful tools and services to help them make informed decisions
when purchasing online.”

In addition to value and convenience, both MasterCard and Excite Canada
are committed to offering consumers a safe a secure environment when shopping
online. MasterCard Canada recently introduced a Zero Liability Policy. This
policy eliminates the former $50 fee for cardholders who experience fraud
through unauthorized transactions. The Zero Liability Policy applies to all
consumer card purchases, visit www.MasterCard.ca for more details.
“Broadband users are leading the charge to online shopping, taking
advantage of its convenience and security,” says Nyla Ahmad, Executive Vice
President of Excite Canada. “We look forward to building our relationship with
MasterCard to enhance the consumers shopping experience even more.”
MasterCard Canada and Excite Canada are currently developing additional
initiatives including MasterCard Exclusive Offers for Excite.ca and co-branded
web pages.

About MasterCard

MasterCard International has the most comprehensive portfolio of payment
brands in the world. More than 1.7 billion MasterCard(R), Cirrus(R) and
Maestro(R) logos are present on credit, charge and debit cards in circulation
today. An association comprised of more than 20,000 member financial
institutions, MasterCard serves consumers and businesses, both large and
small, in 210 countries and territories. MasterCard is the leader in quality
and innovation, offering a wide range of payment solutions in the virtual and
traditional worlds. MasterCard’s award-winning Priceless(R) advertising
campaign is now seen in 81 countries and in more than 36 languages, giving the
MasterCard brand reach and scope unrivaled by any competitor in the industry.
With more than 21 million acceptance locations, no card is accepted in more
places and by more merchants than the MasterCard Card. In 2000, gross dollar
volume exceeded US$857 billion. MasterCard can be reached through its World
Wide Web site at .

About Excite Canada

Excite Canada, Canada’s leader in broadband, is a joint venture of Rogers
Media Inc and Excite@Home Inc. Its branded network of highly popular
content destinations include the open-Web portal www.excite.ca and the
broadband Excite for @Home content portal which is featured exclusively on
the industry-leading Rogers, Shaw and Cogeco @Home high-speed Internet
services. A demonstration site for non-@Home customers is available at
www.excite.ca/broadband. Excite Canada also offers wireless content and
applications at www.excite.ca/mobile for web-enabled Rogers AT&T mobile
devices. Excite Canada is fully engaged in realizing the potential of the
broadband Internet future by working with its partners to provide useful,
interactive and entertaining services to Canadian consumers. Excite and the
Excite logo are trademarks of Excite@Home, used by Excite Canada under
license.

Information about MasterCard Canada can be obtained by visiting
www.mastercard.ca.

-30-

For further information: Jennifer Duggan, Goodman Communications,
(416) 924-9100 ext. 269, jenniferd@goodmanpr.com; Grant Packard, Excite
Canada, (416) 642-4724, gpackard@excitehome.net;
Archived images on this organization are available through CNW E-Pix at
. Images are free to members of The Canadian Press.

MASTERCARD CANADA, INC. has 18 releases in this database.

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