MIST Inc. announced that it has commenced deployment of its
FreedomGate transaction payment gateway. This gateway provides banks and
processors with direct connectivity to all of the major data communication
networks, particularly wireless networks, and enables them to manage these
connections with unprecedented ease and flexibility. Furthermore, MIST’s
gateway has more functionality and related software applications than any
similar product in the transaction payment industry.

MIST has also completed the development of its MIST Freedom III
desktop transaction terminal. Together with the MIST Freedom I and II
terminals, MIST now offers the most advanced and complete end-to-end
payment solution for banks and their merchant clients. The MIST Freedom
family of transaction terminals are all designed to take full advantage of
FreedomGate’s many features.

The MIST Freedom III transaction terminal has a large touchscreen and
contains a built-in ethernet port providing merchants with direct access to
the internet. The connectivity features enable merchants to significantly
reduce their communication and transaction processing costs. Moreover, the
expanded memory and large touchscreen enable banks and their merchant
clients to communicate interactively. Banks can now take advantage of
unparalleled terminal management features and simultaneously offer
merchants many value-added applications. These applications include time
and attendance, advanced reporting features, short text messaging, loyalty
and coupon programs, advertising and electronic storefront.

Financial Results

Net income for the nine months ended June 30, 2001 was $5.6 million,
or $0.18 per share, compared to a loss of $2.7 million or $(0.09) per share
in 2000. The increase is due to the $16.5 million gain realized on the sale
of the company’s card and imprinter manufacturing facilities. Net income
for the third quarter was $478 thousand, or $0.02 per share, compared to a
loss of $3.0 million, or $0.10 per share, in the prior year. The
improvement is due to a $5.0 million gain recorded on the sale of the
imprinter facility which closed during the quarter.

Revenue for the nine months ended June 30, 2001 was $6.6 million,
down substantially from $11.6 million last year. During the third quarter,
revenue was $2.6 million compared to $4.4 million last year. The decline in
revenue is due to a reduction in sales of traditional wired transaction
terminals. Banks and processors have reduced their capital spending in the
current economic slowdown and delayed product purchases as they plan for
the deployment of newer wireless terminals. MIST anticipates that sales
will recover towards the end of 2001 and into 2002.

The loss from continuing operations for the nine months ended June
30, 2001 was $12.4 million, and $4.3 million for the third quarter. This
loss is substantially greater than the prior year due to the sharp increase
in research and development costs and selling expenses predominantly
associated with the development of the Freedom III and the gateway. These
expenses totaled $5.4 million for the nine months and $2.2 million for the
third quarter.

Japanese Security Conference

During the quarter, MIST hosted a conference in Japan on security
issues involved in transaction payment processing in cooperation with VISA,
the TD Bank and the Canadian Embassy. This conference was well attended by
90 companies and institutions, including representatives of Japan’s largest
banks and telecommunication companies. The conference displayed the
technology that is used in Canada to protect the security of transaction
payments. This technology ensures that debit and credit transactions
processed in Canada are among the most secure in the world. MIST also
featured its payment gateway and, in particular, features imbedded in the
gateway that enhance network security.

Corporate Reorganization and Liquidity

During the quarter, MIST announced that it had deferred plans to sell
its card issuance business to its two major shareholders, and the related
special dividend payment to shareholders. This will conserve the company’s
cash for operating purposes.

In addition, Trilon Bancorp Inc., an affiliate of Trilon Financial
Corporation, one of MIST’s major shareholders, has agreed to revise and
extend MIST’s current credit facility, under which MIST owed approximately
$18.3 million as at June 30, 2001. The revised facility provides for
borrowing of up to C$22 million, a portion of which of which is due
December 31, 2001 and the remainder that is due in August 2002. The revised
facility bears interest at a floating interest rate and is secured by the
company’s and its subsidiaries’ assets. As part of the revision of the
facility, MIST will grant Trilon Bancorp Inc. a warrant to purchase 500,000
common shares of MIST at $1.25 per common share. Completion of this
transaction is subject to regulatory approval.


The company anticipates that revenues will increase later this year
and into 2002 as banks and processors begin to deploy FreedomGate(TM) and
the company’s new wireless transaction terminals. Product development costs
will be significantly reduced in the future as the gateway and Freedom
family of transaction terminals are now essentially complete.

About MIST Inc.

MIST Inc. is a leading provider of transaction payment solutions. The
company provides network connectivity and value-added applications through
its FreedomGate(TM) transaction payment gateway to banks, processors and
retail merchants. Through its facilities in Canada, the United States and
Japan, the company also manufactures and distributes transaction payment
terminals, including its innovative Freedom family of wireless transaction
terminals that maximize the functionality of FreedomGate(TM). For more
information, visit www.mistwireless.comor contact


CIBC – Juniper

The Federal Reserve Board Friday approved the application of Canadian Imperial Bank of Commerce to acquire the majority of the shares of DE-based Juniper Financial Corp. to give it control of Juniper Bank. Juniper specializes in online and wireless banking services and launched a MasterCard in October issued through Columbus Bank & Trust. Juniper has been engaged for the past several months with securing its third round of funding. In May, the Federal Reserve gave the nod to Juniper to become a bank holding company by acquiring a MO-based bank, which through a series of transactions, transferred Juniper’s credit card assets from CB&T to Juniper Bank. CIBC said its acquisition of 95% of Juniper’s preferred stock (up to 51% of Juniper’s total voting shares) would be acquired either by CIBC’s Delaware Holdings or by Amicus Holdings affiliates. CIBC launched Amicus Financial, an e-banking subsidiary, in April through an alliance with Sympatico-Lycos. Amicus offers the President’s Choice Financial MasterCard. CIBC acquired control of Amicus Bank, formerly known as St. Anthony Bank FSB, in April 2000. Juniper was founded by Richard Vague, co-founder of First USA and Jim Stewart, former CEO of and EVP at First USA. (See CF Library 5/25/00; 7/31/00; 10/25/00; 1/5/01; 5/10/01)



Gemplus International S.A, the leading provider of solutions empowered by
smart cards, announced the sale of its TAG subsidiary, a leading provider
of electronic smart labels solutions based on RFID (Radio Frequency
Identification) to Axa Private Equity. The terms of the agreement have not
been disclosed.

Gemplus is strategically focused on three core marketplaces:
telecommunications, financial services and e-business security. The sale of
the TAG subsidiary allows Gemplus to intensify its market driven approach
within its strategic competencies and dedicate more resources to their growth.
“We are focused on delivering high value solutions and moving up the
value chain in our target markets,” said Antonio Perez, President and CEO
of Gemplus. “Our strategy involves concentrating our effort and investment
into meeting the needs of our customers.”

The sale has the full support of the TAG management team and the TAG
subsidiary, which employs approximately 100 people, has been sold as a
going concern. It will continue to offer RFID support to a variety of blue
chip customers, including Air Liquide and Marks & Spencer.
“Gemplus is pleased that a suitable buyer has been found for the TAG
subsidiary. The business case and the management of the TAG subsidiary were
never an issue in the decision to sell. We are confident that the TAG
subsidiary will continue to succeed in the future and that the sale
benefits both parties,” added Perez.
Axa Private Equity is a management firm with expertise in all areas
of private equities (LBO’s, venture capital, growth expansion, recovery,
funds of funds).

About Gemplus

Gemplus: the world’s number one provider of solutions empowered by
Smart Cards (Gartner Dataquest 2001).
Gemplus helps its clients offer an exceptional range of portable,
personalized solutions that bring security and convenience to people’s
lives. These include mobile Internet access, inter-operable banking
facilities, e-commerce and a wealth of other applications.
Gemplus is the only completely dedicated, truly global player in the
Smart Card industry, with the largest R&D team, unrivalled experience, and
an outstanding track record of technological innovation.
Gemplus trades its shares on Euronext Paris S.A. First Market and on
the Nasdaq Stock Market as GEMP in the form of ADSs. Its revenue in 2000
was 1.205 Billion Euros. It employs 7500 people in 37 countries throughout
the world.


Student Wallets

About 1.8 million students will be heading to college this week, carrying more plastic than ever. First USA released a poll this morning that showed that 40% of college students will carry credit cards in their wallets. FUSA also found that parents will be making the card payments for slightly more than one out of three students. According to the First USA ‘Financial Index’, other items likely to be found in freshmen’s wallets include: a telephone calling card (42%), receipts for purchases (37%), and organ donor cards (25%). The survey also showed that 8% of students list credit card among possessions necessary to succeed at school. To earn extra cash, 1.3 million of students will have a job during their freshman year.



Pursuant to a Form 8-K
dated August 10, 2001, Freestar Technologies announced that it has purchased all of the assets of EPayLatina, S.A. in
exchange for 1,000,000 shares of Series A preferred stock in Freestar.
The Series A shares are convertible into 12,000,000 shares of common stock
in Freestar. Conversion can occur upon the certification that Freestar has
achieved a twelve-month, before-tax profit of at least $1,000,000. At that
time, one third of the preferred shares will convert to common stock until all
of the preferred stock has been converted.

The preferred stock was issued pursuant to Section 4 (2) of the Securities
Act of 1934, as amended, and was disbursed to Paul Egan, the owner of
EPayLatina, S.A. The preferred stock has voting status, and each share
receives twelve votes on any issue brought before the shareholders.
Total assets transferred to Freestar by this transaction were valued at
$4,200,000 less liabilities of EPayLatina, which Freestar assumed, totaling

EPayLatina has developed proprietary software known as Enhanced
Transactional Secure Software (“ETSS”) which enables consumers to consummate
secure e-commerce transactions over the Internet using credit, debit, ATM
(with PIN) or smart cards. The ETSS system integrates a consumer-side swipe
terminal with a back-end host-processing center. The swipe terminal encrypts
sensitive financial data at the consumer’s personal computer before sending
the data over the Internet to a secure third-party processing center for
decoding and subsequent forwarding of the credit, debit, ATM or smart card
information to the online merchant.

In addition to EPayLatina’s powerful triple DES encryption, algorithms
protect financial data sent from the consumer’s terminal to the processing
center when a transaction is consummated, thus allowing the merchant to
receive an authorization number. The merchant never receives the consumer’s
credit card information. This allows for a maximum level of security during
the EPayLatina transaction.



Official Payments Corp. announced it has expanded its agreement with the State of Mississippi. By using these services, Mississippi citizens and businesses can now pay their established business sales and use tax liabilities by credit card over the Internet and telephone. The new agreement expands on the company’s existing service, which allows Mississippi citizens to make their state income tax invoice payments by credit card, over the Internet and by telephone. The State of Mississippi collects $2 Billion annually in business sales and use tax. Business sales and use tax obligations are paid monthly, quarterly or yearly depending on the amount owed to the state. The new system is scheduled to go live later this year.

“We are pleased to expand our services to the citizens of Mississippi,” said Thomas R. Evans, Chairman and CEO of Official Payments Corp. “We think this new offering will be particularly helpful to small and medium businesses in managing their cash flow and meeting their sales and use tax obligations,” Mr. Evans, added. Official Payments Corp. charges taxpayers a convenience fee for processing these credit card transactions. The fee schedule can be found on the Internet at For example, a taxpayer who owed the State of Mississippi $2,000.00 in sales and use taxes and charged their taxes would find a total of $2050.00 on their credit card statement: $2,000.00 for the tax bill and $50.00 for the convenience fee. Taxpayers using credit cards with bonus rewards programs can, depending on their card’s program, earn rewards, points, and cash-back or airline frequent flyer miles for paying their taxes.

About Official Payments Corporation

Official Payments Corporation (Nasdaq: OPAY) is the leading provider of electronic payment options to government entities. The company’s principal business is enabling consumers to pay their government taxes, fees, fines, and utility bills by credit card, via Internet and telephone. The company is unequaled in market penetration and national footprint. Official Payments has agreements to collect and process credit card payments with the Internal Revenue Service, 18 state governments, the District of Columbia, and over 900 county and municipal governments in 48 states across the United States. In 2000, Official Payments collected and processed over $925 million in federal, state and local government payments.

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


Global’s MD Ops Ctr

Global Payments Inc. announced it has completed and opened a new, 105,000 square foot operations and customer service center in Baltimore County, Maryland located at 10705 Red Run Boulevard in Owings Mills, Maryland.

The facility, which was developed to insure a pleasant, efficient and productive work environment, accommodates initially up to 500 employees with an opportunity to expand further, as required. This center will provide account support, customer service, business development and sales support for over one million Global Payments merchant locations throughout the United States and Canada.

Monitors that provide up-to-the-minute feedback on service levels, as well as company announcements are located throughout the space, for immediate viewing by managers and staff employees. Also included in the building s amenities are a cafeteria, serving breakfast and lunch, as well as an employee exercise facility.

President and Chief Executive Officer of Global Payments, Paul R. Garcia, said, We are pleased to be able to offer our customers and our employees such an outstanding facility, as well as become an integral part of the Baltimore County community.

An open house for Global Payments customers, community members, local media and employees is scheduled to take place on August 24, 2001 from 11:00 a.m. until 1:00 p.m. EDT at the new building on Red Run Boulevard.

The new facility replaces the Global Payments offices previously located in Hanover, Maryland.

Global Payments Inc. is headquartered in Atlanta, Georgia and operates customer support and sales centers throughout North America and the United Kingdom in the following major metropolitan areas Chicago, Illinois; Cleveland, Ohio; Dallas, Texas; Peterborough, England; St. Louis, Missouri; Toronto, Ontario, Canada; Winston-Salem, North Carolina, as well as 24 regional sales offices throughout the United States and Canada.

Global Payments Inc. is a leading provider of electronic transaction processing services to merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada and the United Kingdom. Global Payments offers a comprehensive line of payment solutions, including credit and debit cards, business-to-business purchasing cards, gift cards, check guarantee, check verification and recovery, terminal management and funds transfer services.


Foil Cards

NJ-based QualTeq has signed a deal to grant a non-exclusive license of its patented ‘Foil Card’ technology to Plastag Corporation, an IL-based non-secure card manufacturer. The patented card technology provides for graphically printing over a mirror foil surface of a card. Unlike previous foil card processes, the QualTeq ‘Foil Card’ can accept litho and silkscreen inks, foil stamping, lamination, and other applications such as holograms. The process offers a range of foil colors including gold, silver, and rainbow foils. QualTeq says there are many card manufacturers who improperly reference products in their lines as ‘Foil Cards’, which is an infringement on its trademarked and patented technology.



ERG Ltd. and the National Roads & Motorists Association have formed a joint venture company to market smart cards. The announcement follows an alliance formed in May between NRMA and ERG. The NRMA has two million members and has plans to replace its membership cards with smart cards starting next July. The goal of the alliance is to enable NRMA members to access products and services as well as pay for public transport, parking, and motorway tolls once the government’s transport system comes on line with the new membership cards. A rewards program is also planned for the card.



Household announced this morning that its retail services business has signed an agreement to manage the newly-developed private label credit card program for Microsoft. Under terms of the deal, Household will provide credit for Microsoft system builder customers to purchase software, hardware and other computer products for resale. Household will also offer a revolving credit card program for Microsoft ‘System Builder Program’ participants. These firms can apply online for a credit line up to $25,000 with APRs as low as 9.5%.


FSTC & Meridien

The Financial Services Technology Consortium announced a collaborative relationship with Meridien Research. The arrangement will provide focused access to Meridien’s global strategic financial services technology expertise for FSTC members. Both organizations will cooperate to identify and examine significant issues and trends affecting the industry and its future.

“As the leading organization focused on helping advance the use of technology within the financial services industry, we were looking for a partner who was at the forefront of research in this arena,” said Zachary Tumin, Executive Director of FSTC. “Meridien Research brings a thorough understanding of the business issues and trends driving the use of technology to institutions throughout the world. I believe our membership will benefit greatly from this collaboration as we move into the future.”

The partnership between FSTC and Meridien Research will provide for the sharing of business and technical expertise on issues related to strategic technology investments. This will include interactive forums to promote dialogue between FSTC members and Meridien’s team of expert analysts, and the publication of research on topics of joint interest. Meridien and its advisory clients will get unique access to the business expertise gained through FSTC’s efforts and to the project-oriented collaborative research sponsored by FSTC.

“The synergies between the two organizations were clear. We have long followed the work of the FSTC and are looking forward to combining our strengths to explore new ways to leverage technology to further the financial services industry,” said Deborah Williams, co-founder of Meridien Research.

About FSTC

FSTC is a not-for-profit research organization comprised of banks, financial service firms, industry partners, national laboratories, universities and government agencies. Its goal is to bring forward interoperable, open-standard technologies for the financial services industry that make possible new products and services. For more information, contact FSTC Headquarters at 312/527-6724 or visit [][1].

About Meridien Research

Meridien Research of Newton, MA, provides analytical research services to users and providers of financial industry technology. Meridien Research targets three technology areas of strategic importance to financial services firms: eFinancial Services, Trading & Risk Management and Customer Relationship Management. Each practice delivers reports detailing new issues and challenges and uses its knowledge to advise clients in technology related decisions. Visit [][2] to register for announcements as new research becomes available. For media relations, contact Parallax LLC at 781.235.7025 or




Experian officially launched its online consumer credit management and credit education Web site today. features access to personal credit reports, credit scores, and monitoring services. Experian formed a joint venture with MD-based Encore Marketing International called Credit Expert LLC, which will manage Credit Expert LLC will offer subscriptions to the new ‘Credit Manager’ service for $79 each.