PERSONAS DEAL

NCR Corporation announced a $13 million deal with Bank of China. The order involves the
purchase of NCR’s Personas 74, Personas 75, Personas 84 and Personas 86 Self-
Service TouchPoints and further demonstrates NCR’s prominent
position in the rapidly growing market for financial self-service solutions in
China.

In addition to traditional cash dispensing, the new machines will give
Bank of China branches the capability to offer additional automated services,
such as passbook printing, account inquires and bill payment. This latest
contract, which follows an earlier $14 million deal between NCR and Bank of
China signed in November 2000, demonstrates a trend towards increasing
financial self-service automation in this rapidly developing region.
“We are proud to announce that NCR has once again won the trust of Bank of
China,” said Albert Tsang, vice president, Greater China Area, Financial
Solutions Division, NCR. “NCR and the Bank of China have established a good
working relationship. We have been their major self-service provider for the
past 13 years.”

A Bank of China spokesperson welcomed the continuation of this partnership
with NCR. “Both the central bank and branches recognize NCR as a world leader
in the self-service industry. They have proven themselves in responding to
and resolving our self-service related issues in a highly professional way,”
said the spokesperson.

“We recognize NCR as our strategic business partner more than an equipment
supplier. With the installation of these high quality ATMs, we hope to
provide swifter and better services to our customers and, in turn, to increase
our revenue.”

NCR also has announced that it is raising the production capacity of its
ATM plant in China in anticipation of the increase in demand in Hong Kong and
the Asia Pacific region. The Beijing facility is NCR’s third ATM
manufacturing plant worldwide, the others being in Dundee, Scotland, and
Waterloo, Canada.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leader in providing Relationship
Technology(TM) solutions to customers worldwide. NCR’s Relationship
Technology solutions include the Teradata(R) database and analytical
applications such as customer relationship management (CRM) and demand chain
management, store automation systems and automated teller machines (ATMs).
The company’s business solutions are built on the foundation of its long-
established industry knowledge and consulting expertise, value-adding
software, global customer support services, a complete line of consumable and
media products, and leading edge hardware technology. NCR employs 33,300 in
more than 100 countries, and is a component stock of the Standard & Poor’s 500
Index. More information about NCR and its solutions may be found at
.

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CheckFree 2Q/01

CheckFree reported quarterly revenues of $121.8 million for the period ending June 30, compared to $88.5 million for the same quarter in 2000. For the quarter CheckFree reported a pro forma loss for the quarter of $800,000 compared to a pro forma loss of $3.3 million for the same quarter in 2000. CheckFree’s Electronic Commerce division reported revenue of $84.3 million for the quarter, representing 42% growth over the same quarter of fiscal 2000. The division posted a pro forma operating profit of $374,000 dollars, compared with an operating loss of $4.8 million for the same quarter in fiscal 2000. For complete details on CheckFree’s latest quarterly results visit CardData ([www.carddata.com][1]).

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

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EUROPAY MERGER

MasterCard filed with the Securities and Exchange Commission (SEC) a registration statement formally proposing the conversion of MasterCard International from a membership association to a private share corporation, to be known as MasterCard Incorporated.

The registration statement details plans for the conversion and the integration of MasterCard International and its European alliance partner, Europay International, under MasterCard Incorporated.

The filing of the registration statement begins a process of formal review by the SEC. When that review is completed, MasterCard will seek a vote of its principal members for approval of the conversion. Upon completion of the transactions, MasterCard principal members and Europay shareholders will receive shares of MasterCard Incorporated and a revised membership interest in MasterCard International, which will continue as MasterCard Incorporated’s key operating subsidiary. Closing of the transactions is subject to customary closing conditions, including receipt of all necessary regulatory approvals.

Robert W. Selander, MasterCard president and CEO, said the conversion to a private share corporation will have important long-range advantages by more closely aligning the interests of MasterCard with the interests of its members.

“We believe that converting to a stock company will give our principal members, who will become our stockholders, greater incentive to increase their business with MasterCard. As stockholders increase their contribution to MasterCard’s volume and revenues, they can increase their shareholdings, so by supporting the MasterCard brand, they are supporting their investment,” Mr. Selander said. Conversion will also create a more flexible structure, allowing MasterCard to respond more quickly to opportunities in today’s rapidly changing global marketplace, he added.

Mr. Selander also said “Integration with Europay under a single management team and governance structure will make us a stronger organization, able to better serve all financial institutions, whether they operate in one country or in markets around the globe. It will bring together MasterCard’s award-winning marketing expertise and strength in e-commerce and processing technology with Europay’s particular strength in debit, chip and m-commerce.”

MasterCard has had a long-standing alliance with Europay, which has exclusive licensing rights for MasterCard brands in the European region. MasterCard now owns a 12.25% share of Europay and a 15% interest in EPSS, Europay’s processing subsidiary. The European members of MasterCard, who are also shareholders of Europay, presently control approximately 7% of MasterCard International’s total votes. In addition, MasterCard and Europay each own 50% of Maestro, a leading online debit program.

About MasterCard

MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCard, Cirrus and Maestro. More than 1.7 billion MasterCard, Cirrus and Maestro 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 a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCard’s award-winning Priceless advertising campaign is now seen in 80 countries and in more than 36 languages, giving the MasterCard brand a truly global reach and scope. 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 .

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Accu Chek Acquisition

Certegy Check Services, Inc., a subsidiary of Certegy Inc., based in St. Petersburg, Florida, has announced the completed acquisition of Accu Chek, Inc. for $25 million in cash. Accu Chek, located in Tuscaloosa, Alabama, is the nation’s leading provider of third-party check collection services, generating approximately $9 million in annual revenue.

Certegy Check Services, formerly known as Equifax Check Solutions, is the premier provider of check risk management, authorization and loss prevention services to retailers, supermarkets, E-Commerce, gaming and check cashing establishments worldwide. “The acquisition of Accu Chek is a great complement to our product offering and strengthens our core strategy of providing the most efficient and cost effective check acceptance solutions to our customers. The combination of Certegy’s risk management and Accu Chek’s check recovery systems provide a capability unmatched by any other service offering in the industry. We expect to derive considerable strategic benefits in the long term from this complementary business,” stated Jeff Carbiener, senior vice president and group executive for Certegy Check Services.

Accu Chek, founded in 1989, primarily provides third-party check collection services to national retailers, and also licenses their system to those who wish to maintain collection operations in-house through their Private Label program. Their state-of-the-art collection process, the only one in the marketplace designed specifically for check collections, includes features such as automated skip tracing, client-specific process flexibility and image web-based reporting. Accu Chek will retain its operations in Tuscaloosa, Alabama.

Certegy Inc. provides credit, debit and merchant card processing, e-banking, check risk management and check cashing services to financial institutions and merchants worldwide. Headquartered in Alpharetta, Georgia, Certegy maintains a strong global presence with operations in the United States, Canada, the U.K., Ireland, France, Chile, Brazil, Australia and New Zealand. As a proven global payment services provider, Certegy enables transaction certainty, brings customers and commerce together and provides business results through leading technology. Certegy employs about 5,800 associates in 9 countries and had $779 million in revenue in 2000.

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ANZ FRAUDLINK

Carreker Corporation, a
leading provider of e-finance enabling solutions to the financial industry,
announced further expansion of its fraud prevention technology in the
Southern Pacific region through a contract with Australia and New Zealand
Banking Group Limited. ANZ, with total assets of $172 billion (AUD), is
one of the world’s 100 largest banks.

Carreker will install its FraudLink On-Us, FraudLink Deposit, and
FraudLink Kite software to monitor potential fraudulent activity across
all check transactions within the bank’s operations. This contract represents
the first entry of Carreker technology into New Zealand and another expansion
of the company’s technology in Australia. With this engagement, Carreker
solutions will monitor more than 80 percent of the Australian banking
industry’s depository accounts against fraud. The Australian Institute of
Criminology estimates the cost of fraud and misappropriation is between
$3 billion and $3.5 billion (AUD) per year in Australia.

Carreker’s FraudLink On-Us(TM) is a mainframe-based fraud detection
platform designed to assist banks in reducing check fraud losses by detecting
counterfeit and forged checks either at the teller station or in the back
office. FraudLink Deposit(TM) is an advanced software solution that allows
banks to detect potentially fraudulent deposit transactions by using bank-set
parameters to identify criminal trends and comparing the information with
account holders’ established deposit history. FraudLink Kite(TM) is an
historical, behavior-based application designed to identify and report
suspected kiting cases for investigation.

J.D. “Denny” Carreker, Chairman and Chief Executive Officer of Carreker,
said the contract is another significant achievement in the company’s global
e-finance strategy and supports the company’s efforts to expand development in
the region.

“ANZ has a strong commitment to protecting its customers and reducing its
exposure to fraudulent activity. We are extremely pleased that ANZ has
selected Carreker solutions to mitigate fraudulent activity in their business.
This is further recognition of our success in developing effective risk
management solutions for our clients in the region and around the world. We
look forward to our expanded relationship with ANZ,” Carreker said.
Mike Israel, Carreker Sales and Business Development Director for Australia
and Asia, said, “Carreker combines extensive expert knowledge with
cutting-edge software to develop an integrated fraud mitigation solution. We
will work with the bank to make sure the most effective solution is
implemented for ANZ. As every bank worldwide will differ by region and market,
Carreker will work with ANZ to assure that the implementation of the software
will mitigate the ‘specific’ check fraud schemes that ANZ might experience.”
ANZ offers financial products and services in Australia and New Zealand
and has overseas representation predominantly in greater Asia. ANZ provides a
full range of banking services including residential and investment mortgage
lending, deposit taking, credit cards, electronic banking including Internet
banking, overdrafts, term loans, trade finance, commercial bill acceptances
and treasury services.

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
Web site at .

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Debit-it

The Electronic Retailing Association and AmeriNet have teamed to provide check processing services for ERA members who market goods and services on-line. The firms have agreed to launch an electronic transaction system called ‘Debit-it’ designed exclusively for ERA membership. Features of ‘Debit-it’ include a user interface that mirrors a real time credit card transaction; batch processing of checks; an AmeriNet Parsing engine that eliminates 8 – 10% of errors up front; fraud screening built into the check processing system, processing of web and phone orders; paperless transactions; custom reporting, and ease of integration through a transaction server that integrates in less than two hours.

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Slots & Credit Cards

Innovative Gaming Corporation of America announced it has acquired the eight U.S. and corresponding foreign patents that will allow the exclusive use of common charge cards on slot machines. The patents are the key to the potential conversion of the more than two-million slot machines which, according to Deutsche Alex Brown, exist worldwide. The patents are applicable to all new slot machines as well. All credit, debit and ATM cards issued by any bank or financial institution can be utilized with this new technology.

According to Chairman and CEO of IGCA, Roland Thomas, “These are the most significant patents in the gaming industry with regard to cashless gaming. Our patents will eliminate the need for players to carry cash. The system we’re developing will provide players with the first detailed accounting of funds, receipts, and also the convenience of never having to leave a gaming position to seek out more funds. These patents also give us a remarkable opportunity to further reduce the estimated one percent of players who are problem gamers.”

IGCA’s developing system will detect underage and unauthorized gamers. It will allow a player to set his own fund limit and includes a “cooling off” period to ensure any player who reaches his self-set limit must cease playing and wait a period of time before playing on that credit card again.

Even gaming critics are applauding IGCA’s new technology. Former California Governor, Leo McCarthy who helped draft congress’ national gambling impact report said “I’m impressed with IGCA’s responsible approach to gaming. No one else in this industry is doing anything like this.”

IGCA’s new technology is expected to provide great benefits to casinos by opening new revenue sources and increasing customer base by reducing the wait time players currently experience when they are trying to get funds, reducing the handling of currency and coins and by providing access to new strategic marketing methods for player development.

IGCA’s new credit card patents strengthen its solid gaming technology base, which includes revolutionary internet technology and the company’s exclusive PC-based Linux slot machine operating system.

CEO Thomas says “These patents reconfirm IGCA’s commitment as a technology leader in the gaming industry.”

Innovative Gaming Corporation of America, through its wholly-owned operating subsidiary, Innovative Gaming, Inc., develops, manufactures and distributes fast playing, high-entertainment gaming machines. The Company distributes its products both directly to the gaming market and through licensed distributors.

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Datacard Lands Shields

Datacard Group announced that Kent Shields has been named senior vice president and general manager of the company’s hardware systems division. Shields moves to Datacard from Onan, a subsidiary of Cummins, Inc., where he served as general manager for the power generator business for the past three years.

“Kent has been extremely successful in developing effective global strategies and leveraging new technology to build strong, profitable businesses,” said Jerry Johnson, president and CEO of Datacard Group. “We believe his skills and experience will help us extend our position as premiere provider of both high and low volume card issuance systems and solutions.”

Datacard’s hardware systems division designs, manufactures, sells and supports a wide range of card issuance systems, ranging from desktop units for local and distributed issuance, to powerful, high-volume systems for card personalization and delivery. Datacard systems are used to issue financial cards, employee, student and patient IDs, driver’s licenses, citizen IDs, loyalty cards, telephone cards and more. The company has successfully leveraged its card program expertise since it first introduced the concept of secure, high-speed card issuance in 1969.

“Our card issuance business is strong, stable and profitable — and growing demand for smart cards creates many new market opportunities for our customers,” Johnson said. “Kent is the right person to help us accelerate growth in our traditional business and successfully deliver flexible, scalable, high-speed platforms that allow our customers to capitalize on new, multi-application smart card opportunities.”

In his 20 years with Cummins, Shields served as chief product engineer, engineering director, product planning and development director and division general manager. Before joining Cummins, he worked as a research and design engineer for Caterpillar, Inc. He earned a bachelors degree in mechanical engineering from Purdue University and an MBA degree from the University of Minnesota.

Datacard Group provides financial institutions, corporations, consumer marketers, governments, schools, healthcare providers, service bureaus and other enterprises with the software, systems and professional services they need to build successful card programs. The company’s solutions portfolio includes the world’s best-selling smart card software and card issuance systems, as well as a complete line of digital identity systems. Consultative services include a smart card chip security laboratory that works with the world’s leading smart card issuers. DataCard Corporation, doing business as Datacard Group, is privately held and based in Minnetonka, Minn. Datacard Group serves customers in more than 200 countries. ([www.datacard.com][1])

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

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Zone Labs & VISA

Zone Labs, a leading creator of Internet security solutions, announced it has formed a three year global strategic alliance with Visa International, the world’s leading consumer payments brand. The alliance will explore options for using Zone Labs’ patented products and technology to result in safer and more secure e-commerce and e-business initiatives for Visa member banks, merchants and consumers worldwide.

Zone Labs’ award-winning product line is based upon the company’s patented TrueVector technology. TrueVector may be used to deliver a range of innovative security solutions that make it possible to secure Internet access for a multitude of users, whether they are accessing the Internet within a global enterprise, in a retail environment or at home.

“At Visa International we believe sending, receiving, validating and using information should be secure, simple and seamless,” said Sarah Perry, senior vice president of Strategic Investments and Business Development for Visa International. “As the world’s largest commercial processor of financial transactions, we are acutely aware of the need for security at all levels of the transaction process, and are excited by the possibilities that Zone Labs’ technology and solutions offer to all participants in that process — Visa member banks, merchants and cardholders.”

Zone Labs’ flagship Internet security products, ZoneAlarm(TM) and ZoneAlarm Pro, have been downloaded more than 14 million times and have been recognized with multiple industry honors, including a Best Security Software award from PC World and Editors Choice designations from PC Magazine in both 2000 and 2001. Zone Labs Integrity(TM), also based on TrueVector technology, was introduced at the prestigious Demo 2001 event. Integrity allows enterprises to manage and enforce endpoint security and security policy centrally, eliminating the security risks associated with an extended corporate workforce.

“Zone Labs and Visa share a vision of safe and secure Internet access, including the ability to conduct business safely within an enterprise, at home or at the point of purchase,” said Gregor Freund, chief executive officer and co-founder, Zone Labs. “By working closely together to leverage each company’s expertise, the substantial benefits of e-commerce and e-business may be maximized as the risks of fraud and theft are minimized. We look forward to the opportunity to work with Visa to protect all levels of critical data.”

The Web continues to grow in popularity as a medium for conducting business and consumer transactions. Results of the latest Forrester Online Retail Index found that total spending on online sales in June, 2001 totaled $3.2 billion. Additionally, the number of households shopping online in June was 13.1 million. Keeping pace with the growing number of dollars spent online, there has been a rapid rise in cases of online fraud, too. In 1997, the U.S. Federal Trade Commission received fewer than 1,000 Internet fraud complaints; last year, it received more than 25,000. A powerful security solution is the enabling technology for successful e-commerce, for both consumer- and business-oriented transactions.

Zone Labs Inc.

Zone Labs Inc. is a leading creator of Internet security solutions. Founded in 1997, Zone Labs is a private company headquartered in San Francisco. Strategic investors in Zone Labs include noted security luminary John McAfee, founder of McAfee Software, EastWest VentureGroup, Intel Capital, Oxford Bioscience Partners, Pacific Venture Group and Visa International. For more information, please contact Zone Labs at 415/341-8200 or visit [www.zonelabs.com][1].

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

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Household Initiative

Household International announced Tuesday the establishment of a $3 million, multi-year, commitment to support financial literacy programs in Los Angles, Chicago and Atlanta. This commitment will be executed through individual grants to nonprofit organizations in those three cities. After the initial roll-out in these three cities, Household will evaluate expanding the program to additional locations across the country.

By supporting the educational efforts of local grassroots organizations, this financial education grant will aid in ensuring that consumers in these communities have access to the resources they need to make knowledgeable financial decisions. The grant builds on Household’s long-term commitment to empowering working Americans with the information they need to protect their financial well-being.

“With bankruptcies at an all time high and savings rates at their lowest levels in 70 years, there is a pressing need for communities and companies to work in partnership to increase access to critical information and resources,” said Larry Bangs, vice chairman of Household. “This grant strengthens Household’s commitment to improving the quality of life in the local communities in which we do business and will help empower residents so that they and their families can achieve a sound financial future.”

In addition to the grant, Household recently launched YourCreditCounts.com, which is designed to help consumers manage their credit and achieve their financial goals in a very personable and interactive way. Household also offers a number of tools and information to ensure customers effectively manage their credit and are financially responsible, including a comprehensive series of financial management booklets that include tips and strategies for managing their savings, spending and credit. These booklets are available on-line at household.com and in all HFC and Beneficial branches and in English and Spanish.

Household is currently accepting applications for the Financial Education Grant from 501 (C)(3) community organizations interested in obtaining funding for local financial education initiatives. Community-based organizations can submit a written request for an application to: Donna Funk, Director of Employee and Philanthropic Services, Household International, 2700 Sanders Road, Prospect Heights, IL 60070. Applications will be accepted until Friday, October 26, 2001 and grant recipients will be notified on Friday, November 16.

About Household

Household’s businesses are leading providers of consumer finance, credit card, auto finance and credit insurance products in the United States, United Kingdom and Canada. In the United States, Household’s largest business, founded in 1878, operates under the two oldest and most widely recognized names in consumer finance — HFC and Beneficial. Household is also one of the nation’s largest issuers of private-label and general-purpose credit cards, including the GM Card and the AFL-CIO’s Union Plus card. For more information, visit the company’s Web site at .

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First Data Net

First Data’s new network, First Data Net, continues to take shape as FDC yesterday announced it has completed a transaction to acquire a 64% equity interest in NYCE. The deal solidifies First Data’s leadership as the top offline debit processor in the USA, processing more than one billion online debit POS transactions annually. Under terms of the deal NYCE will continue as a separate entity, maintaining its existing management team. Four of NYCE’s long-time principal shareholders including Citibank, FleetBoston, HSBC and J.P. Morgan Chase, will continue as equity partners. First Data, NYCE and other owners say they will collaborate to develop products that will attract new card issuers and expand ATM deployment beyond current NYCE service areas. NYCE services 48 million cardholders through 45,000 ATMs and 275,000 POS locations. (CF Library 6/15/01)

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Off-Premise ATMs

Diebold said Tuesday it has finalized an agreement with Barnes & Noble College Bookstores to place ATMs at various college campus bookstores across the country. The three-phase project consists of seven initial deployments, followed by another 90 installations in the fall and concluding with more than 100 additional sites by year-end 2001. Designed for retail outlets with more than 500 monthly transactions, Diebold’s ‘Placement Program’ allows merchants to provide an ATM owned and operated by Diebold in their store at no cost. Diebold provides retailers with a portion of the transaction revenue, a choice of self-service product and full turnkey services, such as transaction processing, vault cash, cash replenishment, service and monitoring, and unique marketing tools, like on-screen advertising, and dispensing phone cards and coupons. Diebold currently has an agreement in place for ATM deployments at selected Wal-Mart and Uni-Marts locations. (CF Library 6/6/01)

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