LML Revenues

LML Payment Systems Inc. filed its Annual Report on Form 10-K for the fiscal year ended March 31, 2001 with the Securities and Exchange Commission with respect to results for its fiscal year ended March 31, 2001. For more information regarding LML’s results for the fiscal year ended March 31, 2001, please see the Form 10-K as filed with the SEC.

LML is pleased to announce record fourth quarter revenues of approximately $2.9 million, an increase of approximately 10% or $267,342 from the fourth quarter last year and an increase of 12% from revenue of $2.6 million from the third quarter. LML had earlier reported first and second quarter revenues of $2.1 million and $2.5 million respectively.

Earnings before income taxes, interest expense, depreciation and amortization for the fourth quarter was a loss of ($1.3 million) or ($0.07) per share. Net loss for the fourth quarter was ($2.5 million) or ($0.15) per share which includes $1.2 million in non-cash amortization and depreciation expenses primarily associated with recent corporate acquisitions.

For the year ended March 31, 2001, LML earned record revenues of approximately $10.1 million, an increase of approximately 237% or $7.1 million from last year. Earnings before income taxes, interest expense, depreciation and amortization for the year was a loss of ($1.9 million) or ($0.11) per share. Net loss was ($5.2 million) or ($0.34) per share which includes $3.1 million in non-cash amortization and depreciation expenses primarily associated with recent corporate acquisitions.

Highlights:

— LML reports three consecutive quarters of revenue growth for the fiscal year 2001.

— LML reports record revenue of $2.9 million for the fourth quarter

— LML reports record revenue of $10.1 million for the year

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

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CardWebTV

The first TV business news show devoted to the payment card industry was launched this morning. The half-hour length, digitally produced ‘CardWebTV’ program, can be viewed as an on-line or off-line multimedia stream or via a standard VHS tape. The June 2001 edition of the new, monthly payment card video magazine, covers more than 35 significant news stories, showcasing several new products unveiled at the CTST convention in Las Vegas during May. Among the new products with featured video demos in the first edition of ‘CardWebTV’: Thales ‘P3-Server’; Wearlogic ‘SmartWear e-Wallet’; Schlumberger ‘e-gate’; NavyCash smart card; Giesecke & Devrient ‘Foil Card’; American Banknote Holographics ‘Holocard’; Cubic ‘Nextfare’; SCM Microsystems ‘E-25’ reader; Comsense ‘ComDot Cards’ and Mist ‘Freedom’ terminals. The new multimedia business news show is produced by CardWeb.com, Inc in association with San Francisco-based BlueJag Corporation. The program is hosted by Robert McKinley, CEO of CardWeb.com. Future editions of CardWebTV ([www.cardweb.tv][1]) will feature on-location interviews with top executives as well as roundtable discussions with industry leaders. CardWeb.com will release a DVD version of the program by the end of the summer and is currently reviewing proposals for cable broadcasting distribution. Viewing ‘CardWebTV’ online requires broadband Internet access and either ‘Quicktime’, ‘Windows Media’, or ‘Real Player’ software. A program trailer, available to view at lower speed connections, will be available later this week.

[1]: http://www.cardweb.tv/

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BofA Desoer

Bank of America Corporation Chairman and Chief Executive Officer Kenneth D. Lewis announced that Amy W. Brinkley has been named chairman, Credit Policy, with responsibility for credit and market risk management activities across all business lines. At the same time, Lewis announced that Barbara J. Desoer has been named Consumer Products executive, succeeding Brinkley with responsibility for managing several of the company’s major product lines and channels that serve customer needs.

Brinkley, who will also carry the title of deputy Corporate Risk Management executive, will report to F. William Vandiver Jr., Corporate Risk Management executive. “I am very excited about Amy assuming this new role,” Vandiver said, “and look forward to working closely with her in building the premier risk management practice in the industry.”

Brinkley will also serve on the corporation’s Risk & Capital committee, which is comprised of the eight top executives in the company.

“Amy Brinkley and Bill Vandiver form a strong team that will take risk management to the next level for the company,” Lewis said. “Amy combines a strong knowledge of credit risk management gained earlier in her career with a demonstrated track record of successfully managing large business portfolios that encompass a variety of consumer and commercial credit risk. Her broad business skills also will play a big role in influencing how we manage risk holistically.”

Desoer has been the company’s Marketing director since 1999. She takes on responsibility for delivery of the full range of product-related businesses, including the card services, real estate, community development and consumer finance activities that make up the Consumer Products organization.

Reporting to Lewis, she also will oversee rapidly expanding Bank of America self-service delivery capabilities for customers seeking the convenience of doing business over the telephone and Internet. Like Brinkley, Desoer will serve on the Risk & Capital Committee. She also will continue to oversee the company’s Marketing activities until her successor can be identified. An external search is now under way.

The two executives each have more than 20 years of increasingly responsible leadership experience with the company. Prior to her six years as Marketing director, Brinkley headed the Consumer Credit Policy area for six years after establishing that function in 1987. Prior to her service as Marketing director, Desoer’s experience includes heading the Northern California banking group, and before that, a wide variety of commercial lending and credit administration assignments.

About Bank of America

One of the world’s leading financial services companies, Bank of America is committed to making banking work for customers like it never has before. Through innovative technologies and the ingenuity of its people, Bank of America provides individuals, small businesses and commercial, corporate and institutional clients across the United States and around the world new and better ways to manage their financial lives. The company enables customers to do their banking and investing whenever, wherever and however they choose through the nation’s largest financial services network, including approximately 4,400 domestic offices and 13,000 ATMs, as well as 38 international offices serving clients in 190 countries, and an Internet Web site that provides online access for more than 3 million customers, more than any other bank. Bank of America stock (ticker: BAC) is listed on the New York, Pacific and London stock exchanges. The company’s Web site is [www.bankofamerica.com][1]. News, speeches and other corporate information may be found at [www.bankofamerica.com/newsroom][2].

[1]: http://www.bankofamerica.com/
[2]: http://www.bankofamerica.com/newsroom/

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AT&T DISCOUNTS

AT&T Canada Inc.,
Canada’s largest national competitive broadband business services provider and
competitive local exchange carrier and a leader in Internet and eBusiness
services, today announced an agreement with Amex Bank of Canada to provide
savings on communications services to small business merchants that welcome
the American Express Card in their business.

For a limited time, independent businesses who accept the American
Express card will receive preferential rates for local, long distance, calling
card and Internet services through AT&T Canada. The offer is in addition to
AT&T Canada’s current relationship with American Express, signed in March
2001, through which holders of the American Express Corporate Card for Small
Business and the American Express Costco Corporate Card for Small Business
receive ongoing savings on an array of communications services.

“Our many small business Cardmembers are enjoying considerable
convenience and savings on their telecommunications needs through this
partnership, and we’re very pleased to bring similar benefits to our network
of credit card merchants,” says Trevor Van Nest, Director of Small Business
Services for Amex Bank of Canada. “These merchants, typically restaurants and
shops not affiliated with a national organization, are seeking ways to access
high quality telecom and Internet services at affordable rates. With AT&T
Canada, they can benefit from the value usually reserved for large companies.”
“This market segment has distinct communications needs and we’ve
developed considerable expertise bringing our industry-leading services to
this important market,” says Stuart Cordrey, Vice-President, Small Business,
AT&T Canada. “We’re proud to offer these services to Amex’s customers and
small business partners so they can compete and succeed.”

About AT&T Canada AT&T Canada is the country’s largest competitive
national broadband business services provider and competitive local exchange
carrier and a leading provider of Internet and eBusiness services. With over
18,500 route kilometres of local and long haul broadband fiber optic network
and world class data, Internet, web hosting and eBusiness enabling
capabilities, AT&T Canada provides a full range of integrated communications
products and services to help Canadian businesses communicate and compete
locally, nationally and globally. AT&T Canada Inc. is a public company with
its stock traded on the Toronto Stock Exchange under the symbol TEL.B and on
the NASDAQ National Market System under the symbol ATTC. Visit AT&T Canada’s
web site,www.attcanada.com, for more information about the company.

American Express in Canada operates as Amex Bank of Canada and Amex
Canada Inc. Both are wholly owned subsidiaries of the New York based American
Express Travel Related Services Company, Inc., the largest operating unit of
the American Express Company, which provides a range of financial and travel
related services for consumers and companies. Amex Bank of Canada is the
issuer of American Express Cards in Canada. Amex Canada Inc. operates the
Travel Service Network, Corporate Travel and Travellers Cheque divisions in
Canada. American Express opened its first offices in Toronto and Hamilton in
1853 and now employs over 3,000 Canadians coast to coast.

Details

VISA GCPS

VISA International announced this morning it is teaming with the GCPS (Global Commercial Payment Solutions) network to help multinational corporations and governmental organizations seamlessly manage employee expenses, procurement, and purchasing data on a global basis. The GCPS partnership includes Bank of America, U.S. Bancorp, Banco Bilbao Vizcaya Argentaria, BNP Paribas, Barclays Plc, and Santander Direkt. GCPS offers the global ability to issue VISA corporate and purchasing payment services, with a single point of contact and pricing, integrated with commercial banking services, across borders and continents. GCPS also enables multinational clients to enjoy a single contract, improved market coverage, global data management services, and consistent service levels. The program has coverage in the United States, Canada, Mexico, Austria, France, Germany, Portugal, Spain, the United Kingdom, Argentina, Brazil, Chile, Columbia, Peru, Puerto Rico and Venezuela. By the end of 2001, the program plans to expand to Japan, Korea, Singapore, Australia, New Zealand, Belgium, the Netherlands, Switzerland and Italy.

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AMEX BLUE CARD

American Express and HSBC Argentina announced the launch of the HSBC American Express Card. Under the agreement between the two institutions, HSBC Argentina will issue American Express-branded credit cards denominated in Argentinean Pesos and U.S. Dollars. The new Cards are accepted on American Express’ global merchant network.

The agreement represents a unique opportunity for HSBC and American Express to reinforce their existing alliance in Latin America, a cooperation that includes a similar card-issuing Partnership with HSBC Brasil.

“The launch of HSBC Argentina American Express Cards marks yet another important step for American Express in its commitment to the Argentinean market,” said Gonzalo G. Ruiz, Vice President and General Manager, American Express Global Network Services, Latin America and the Caribbean. “In just one year American Express has built a network of five issuers in the country. As a result, American Express is in its strongest position ever to provide a far greater group of customers in Argentina with the opportunity to experience and benefit from the service of an American Express Card. I am confident this new partnership will combine American Express’ global strength and the expertise of HSBC Argentina to bring superior value to Argentinean customers.”

The HSBC Argentina American Express Card, which carries the American Express Blue Box logo at the bottom right corner, is designed, issued and serviced by HSBC Argentina. Cardmembers will enjoy a broad spectrum of distinctively value-added benefits, including

· 24-hour-a-day, 7-day-a-week customer service;

· Travel assistance at more than 1,700 American Express Travel Service Offices in 130 countries;

· Cash access at more than 500,000 ATMs in American Express’ global network;

· Medical and legal assistance;

· Travel accident insurance;

· Purchase protection;

· Direct debit of monthly balance from HSBC Argentina checking or saving account;

· Year-end summary for HSBC American Express Gold Cardmembers;

· Card loss/theft insurance; and

· Special access to HSBC Argentina banking services.

Under the agreement, HSBC Argentina is responsible for all operations supporting the new Cards including billing and payment systems, accounting, customer servicing, credit management and charge authorizations, as well as marketing the Cards in Argentina.

American Express is aggressively pursuing a strategy of opening its merchant network and card product portfolio to other card issuers around the world, as a major growth initiative for the company. By leveraging its global infrastructure and the powerful appeal of the American Express brand, the company aims to become the premier global network and gain wider reach to customers worldwide. In the last several years it has developed 76 card-issuing relationships in more than 70 countries. In Latin America alone, American Express has established 23 such alliances in 16 markets, allowing the company successfully to build its business in the region.

HSBC Argentina belongs to the HSBC Group, one of the world’s largest banking and financial services institutions. Headquartered in London, the HSBC Group has more than 6,500 offices in 79 countries. HSBC Argentina is one of the most important financial institutions in Argentina, with 160 network branches throughout the country. Its services range from consumer and commercial banking to general, health and life insurance.

Founded in 1850, American Express Company is a diversified worldwide financial, network and travel services provider. Its presence in Argentina dates back to 1918. Today, American Express is a global leader in charge and credit cards, travelers cheques, financial planning, travel, investment products, insurance and international banking.

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SchlumbergerSema Falcon

HNC Software and SchlumbergerSema announced this morning a partnership agreement to integrate HNC’s ‘Falcon’ payment card fraud detection system, as part of its SS’s ‘Essentis’ new card management system. The first ‘Falcon’ implementation within ‘Essentis’ is planned to take place at UBS Card Center, the card issuing organization of UBS, one of Europe’s largest banks. The HNC/SchlumbergerSema alliance will significantly expand Falcon’s availability to a broad array of card issuers in Europe and Asia. ‘Essentis’ is a solution that offers the capability to manage a variety of payment card products and operate with multiple currencies and languages. ‘Essentis’ exploits the latest technological advances to deliver competitive advantage to card issuers by offering speed to market of new products, customer focus, the ability to process chip cards, and to utilize new delivery channels such as the Internet and wireless devices.

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GCPS FORMED

A number of leading global banks including Banco Bilbao Vizcaya Argentaria (BBVA), Bank of America, BNP Paribas, Barclays Plc, Santander Direkt, and U.S. Bancorp have launched a new joint partnership–GCPS, L.L.C.–to provide corporate and purchasing products to multinational clients worldwide. GCPS is teaming with Visa International to deliver new solutions to help multinational corporations and governmental organisations seamlessly manage employee expenses, procurement, and purchasing data on a global basis.

Today’s multinational clients–including large corporations and government agencies that operate across several countries–spend the equivalent of trillions of pounds around the world for procurement of goods and services as well as employee expenses for travel, entertainment, and supplies. Spending can involve thousands of employees in hundreds of different offices. Such multinational clients require increasingly innovative and flexible commercial products and services. Yet few financial institutions today have global capabilities to issue and service payment products, relying rather on local partners in other countries to handle issuing, processing and service functions on behalf of their multinational customers.

As an unprecedented consortium of leading commercial lenders, GCPS brings a new level of service and convenience to the world’s largest organisations by offering the global ability to issue Visa corporate and purchasing payment services, with a single point of contact and pricing, integrated with commercial banking services, across borders and continents. GCPS also enables multinational clients to enjoy a single contract, improved market coverage, global data management services, and consistent service levels.

“GCPS provides its partnership network with the expanded global capability necessary to thrive in today’s global economy,” said Jeff Rankin, chairman of GCPS and senior vice president, Commercial Card Services, Bank of America. “While we all have our own company and business unit priorities, this alliance, built in the spirit of co-operation and flexibility, will allow each of us to provide a broader range of products and services to our individual clients.”

“Visa is keen to help our Member financial institutions give their multinational customers the most effective payment solutions, with the best data management, and the flexibility to use point-of-sale, telephone, wireless, Internet, and other payment modes any time, any where, any way,” said Roger Swales of Visa International. “We are pleased to be helping GCPS bring to its multinational customers the value of our premier brand, acceptance at more than 22 million locations worldwide, and our global network’s unmatched reliability and capacity.”

Note To Editors

About GCPS, L.L.C.

GCPS, a global commercial payment solution, is a for-profit, limited liability company formed in May 2001. Through its founding partners, which include Banco Bilbao Vizcaya Argentaria, Bank of America, BNP Paribas, Barclays Plc, Santander Direkt, U.S. Bancorp, and Visa International, the GCPS goal is to deliver global solutions for issuing commercial products and services to multinational clients.

About Banco Bilbao Vizcaya Argentaria

BBVA is a leading financial group in Spain and Latin America. With a market value of over 50 billion euros, it is the second largest group in market capitalisation in the euro area. Established in 37 countries, it has the largest branch network under a single brand in the world, with nearly 9,000 branches and more than 11,000 ATMs worldwide. The BBVA Group employs more than 100,000 people, and has a market share of about 20 per cent in Spain and 10 per cent in Latin America, where it is a leader in the banking, private pension funds and e-banking markets. Finally, it is the largest Visa issuer in the Latin America Region.

About Bank of America

One of the world’s leading financial services companies, Bank of America is committed to making banking work for customers like it never has before. Through innovative technologies and the ingenuity of its people, Bank of America provides individuals, small businesses and commercial, corporate and institutional clients across the United States and around the world new and better ways to manage their financial lives. The company enables customers to do their banking and investing whenever, wherever and however they choose through the nation’s largest financial services network, including approximately 4,400 domestic offices and 13,000 ATMs, as well as 38 international offices serving clients in 190 countries, and an Internet Web site that provides online access for more than 3 million customers, more than any other bank. Bank of America stock (ticker BAC) is listed on the New York, Pacific and London stock exchanges, and the company’s Web site is bankofamerica.com.

About Barclays Plc

Barclays PLC is one of the largest financial services groups in the United Kingdom and is a leading provider of co-ordinated global services to multinational corporations and financial institutions in the world’s main financial centres. Barclays, through subsidiary Company Barclaycard, is also the UK’s leading issuer of corporate charge cards. A member of Visa, Company Barclaycard is welcomed at more than 613,000 places in the UK and over 22 million worldwide. No other charge card is accepted in more places.

About BNP Paribas

BNP Paribas is the leading banking group listed in France. It is number one in France in corporate credit cards with 100,000 units currently issued. It is ranked number two in the euro area in terms of earnings (EUR4.124 billion in 2000). BNP Paribas employs 80,000 people worldwide and has one of the world’s largest international networks, extending across 85 countries. BNP Paribas is a major player in retail banking, corporate and investment banking, private banking, asset management, securities services, insurance and private equity. Eighty of the world’s top one hundred companies have chosen BNP Paribas as their banker.

About Santander Direkt

Santander Direkt Bank AG was established in 1994 as the legal successor to Banco Santander S.A. VISA Card Services, and is now an affiliated company within the Banco Santander Central Hispano (BSCH) group. BSCH is one of the top 10 banks in Europe. With around 726,000 customer relationships in the credit card, financial investment and loans segments, Frankfurt-based Santander Direkt Bank is one of the largest German direct banks. It regards itself as an innovative provider of financial services for specialised card and bank products.

About U.S. Bancorp

Minneapolis-based U.S. Bancorp, with assets in excess of US$160 billion, is the 8th largest financial services holding company in the United States. The company operates 2,231 banking offices and 5,208 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp is the parent company of Firstar Banks and U.S. Bank. Visit U.S. Bancorp on the web at usbank.com and Firstar Bank at firstar.com.

About Visa International

Visa is one of the world’s leading payments brands and the largest payments system worldwide. Visa-branded cards generate almost US$2 trillion in annual volume and are accepted at over 22 million locations around the world. The Visa organisation plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions and their cardholders. Visa is a leader in Internet-based payments and is pioneering the creation of u-commerce, or universal commerce–the ability to conduct commerce anytime, anywhere, over any type of device.

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Infrared Capture

The technology to conduct secure credit card transactions via an infrared line-of-sight data path was demoed last week at Retail Systems 2001. Using Compaq iPAQ’s infrared capability to beam card data to an IR-enabled XPOS retail system, running ‘QuickSell Commerce’ retail management software and the ‘XPOS’ authorization system, the transactions were completed in about 2 seconds. ‘QuickSell Commerce’ generated POS screens, tallied sales, and stored’purchase information, customer demographics, credit card data and’authorization codes to provide complete CRM, inventory and historical data. The XPOS system then transmitted a digital receipt via infrared beam to the customer’s iPAQ for later transfer into tax, bookkeeping and other programs.

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LML REVENUES

LML Payment Systems
Inc. filed its Annual Report on Form
10-K for the fiscal year ended March 31, 2001 with the
Securities and Exchange Commission with respect to results for its fiscal year
ended March 31, 2001. For more information regarding LML’s results for the
fiscal year ended March 31, 2001, please see the Form 10-K as filed with the
SEC.

LML is pleased to announce record fourth quarter revenues of approximately
$2.9 million, an increase of approximately 10% or $267,342 from the fourth
quarter last year and an increase of 12% from revenue of $2.6 million from the
third quarter. LML had earlier reported first and second quarter revenues of
$2.1 million and $2.5 million respectively.

Earnings before income taxes, interest expense, depreciation and
amortization for the fourth quarter was a loss of ($1.3 million) or
($0.07) per share. Net loss for the fourth quarter was ($2.5 million) or
($0.15) per share which includes $1.2 million in non-cash amortization and
depreciation expenses primarily associated with recent corporate acquisitions.
For the year ended March 31, 2001, LML earned record revenues of
approximately $10.1 million, an increase of approximately 237% or $7.1 million
from last year. Earnings before income taxes, interest expense, depreciation
and amortization for the year was a loss of ($1.9 million) or ($0.11) per
share. Net loss was ($5.2 million) or ($0.34) per share which includes
$3.1 million in non-cash amortization and depreciation expenses primarily
associated with recent corporate acquisitions.

Highlights

— LML reports three consecutive quarters of revenue growth for the fiscal
year 2001.

— LML reports record revenue of $2.9 million for the fourth quarter

— LML reports record revenue of $10.1 million for the year

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

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Wings Clipped

Bank One confirmed yesterday it will transition its Internet-only bank into the parent bank’s technology and operating infrastructure. By the end of this year, WingspanBank.com customers will be moved to BankOne.com. Customer notices will be issued starting this summer. Bank One says it wants merge WingspanBank’s resources and knowledge base into its other Internet initiatives to provide all of its customers a broader online banking experience. WingspanBank.com opened its virtual doors two years ago with the promise of revolutionizing the way people manage their finances. WingspanBank.com’s goals were to enable customers to have checking accounts, pay bills online, apply for loans, make and manage investments, and tap into sources on the Internet to find the best deals on mortgages and insurance. The Internet-only bank also offered its own branded VISA credit card. Bank One invested more than $100 million in the development of WingspanBank.com. (CF Library 6/25/99)

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MASTERCARD/TRAVELOCITY

MasterCard Canada and Travelocity.ca,
Canada’s online travel expert, have teamed to provide consumers with a safe
and convenient way to purchase travel online.

To celebrate this partnership, MasterCard Canada and Travelocity.ca have
introduced an exclusive bonus rewards offer in collaboration with Cathay
Pacific. Consumers who use their MasterCard card to purchase any Cathay
Pacific ticket on Travelocity.ca will receive an additional 5,000 AAdvantage
bonus miles with each purchase until July 15, 2001. In addition, consumers
also can take advantage of Cathay Pacific’s special round trip airfare between
New York and Vancouver for only $449, earning an additional 2,500 bonus miles
for travel booked in Economy Class, and 5,000 bonus miles for Business Class
bookings.

“Travel is one of the most popular online purchases and there is
tremendous opportunity for MasterCard and Travelocity to reach this fast-
growing market,” said Tracy Folkes Hanson, Vice President, Marketing and
Communications for MasterCard Canada. “MasterCard prides itself on aligning
with the world’s leading brands and it only made sense to affiliate with the
leader in online travel services. MasterCard Canada believes this partnership
will provide consumers worldwide with a safe and convenient way to shop for
travel on the Internet.”

In addition to offering value and convenience to travel consumers, both
MasterCard and Travelocity.ca are committed to providing a safe and secure
online shopping environment. MasterCard Canada recently implemented a Zero
Liability policy. For cardholders that have taken reasonable care to
safeguard their cards, this policy eliminates the former $50 liability fee for
cardholders who experience fraud through unauthorized transactions. The
policy applies to all consumer card purchases, including those made over the
Internet.

“By forming this alliance, MasterCard not only becomes the preferred
method of payment for Travelocity.ca members, but it is propelled into the
online travel market and positioned as a leading currency for the e-commerce
age,” said Terrell B. Jones, president and chief executive officer,
Travelocity.com Inc. (Nasdaq TVLY) “We are confident that our alliance with
MasterCard will continue to help Travelocity fulfill our brand’s promise to
provide the best tools to change the way the world shops for and buys travel.”
In addition to the Cathay Pacific promotion, MasterCard and Travelocity.ca
are collaborating on other future promotions designed to encourage consumers
to use the Internet for travel purchases.

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. 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 http//www.mastercard.com.

About Travelocity.ca

Travelocity.ca, Canada’s online travel expert, provides reservations
capabilities for 95 percent of all airline seats sold, more than 50,000
hotels, more than 50 car rental companies, direct booking for VIA Rail and
thousands of vacation and cruise packages. This reservations capability is
paired with access to a vast database of destination and interest information.
To date, Travelocity.com has sold more than 16 million airline tickets and has
more than 27 million members.

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