e-Port Shipments

USA Technologies, Inc. announced that through its expanded distribution of e-Port to vending operators, the Company has sold its initial production quantities of e-Port terminals and has accelerated production of product to meet industry demand for the upcoming third and fourth quarters. This news comes on the heels of several key announcements that have quickly followed USA Technologies’ successful introduction of e-Port to the vending industry. These include multi-year supply agreements, major strategic distribution partnerships, OEM agreements and an order from a single partner for 10,000 e-Ports.

“This is tremendous news for USA Technologies,” said Michael Lawlor, Sr. VP of Sales and Marketing for USA Technologies. “The enhanced distribution system that we are building, coupled with the intense efforts of our sales force and partners, form the foundation for the Company attaining its goal of selling 200,000 e-Ports and associated network services over the next three years.” New distribution of e-Port includes premier vending operators such as Sanese Vending, who is utilizing e-Port technology to vend Michelina’s branded prepared foods, and ASI vending, with beverage and snack locations in the Jacob Javitz Convention Center in New York. Examples of other e-Port installations with vending operators include select locations of Six Flags and Wal-Mart. “The response to our e-Port technology in the vending industry has been excellent. We have our e-Port technology being used in various beverage, snack, prepared food and merchandise vending machines across the country,” said Mr. Lawlor. “Our e-Port technology meets the consumers’ growing demand to vend products with credit cards and other cashless payment means, while meeting the business needs of our customers. We continue to receive daily inquiries domestically and internationally for our e-Port technology,” added Mr. Lawlor.

This new distribution of e-Port into the vending industry fits into the USA Technologies distribution strategy of marketing the e-Port technology to vending operators and soft drink bottlers, while working in partnership with vending distributors, OEM’s and strategic business partners to distribute product into the marketplace.

With its ever-expanding family of e-Port products and services, USA Technologies is rapidly emerging as the leader in cashless microtransaction products and services for the vending industry. The Company is in negotiations with numerous potential customers, partners and distributors in the Vending, Information Technology and Communications Industries, and expects to announce major new developments in the coming months.

Earlier this year USA Technologies formed a strategic alliance with Marconi Online Systems, a division of Marconi PLC, to bring together Marconi Online’s Intelligent Vending service with USA Technologies’ cashless payment and interactive multimedia capabilities delivered through e-Port. Last year, Marconi Online became the exclusive provider of intelligent vending technology to the Coca-Cola Company. The e-Port product line can be embedded into vending machines, gas pumps, office equipment and almost any kind of point-of-sale terminal. This scaleable technology and associated network and financial services enables the conversion of unattended points of sale into intelligent, networked “store fronts,” which could be connected via the Internet or other means. It is capable of communicating operational data to operators, conducting cashless microtransactions and could deliver advertising and information such as news, sports and weather to consumers while making routine purchases everywhere.

About USA Technologies

USA Technologies is recognized as a leader in cashless microtransactions and interactive media technology and associated financial services. USA Technologies provides credit card activated and other cashless systems, allowing end users, ranging from consumers to business professionals, to communicate, conduct business or make ordinary commerce transactions, outside of the home or workplace. USA Technologies is an IBM (NYSE: IBM) Business Partner and an inaugural member of the Sprint (NYSE: FON) Enabling Application Service Provider Program for e-commerce. It has also established relationships with a number of global IT, multimedia, and telecommunications companies including Marconi Online Systems, RadiSys Corporation, DoubleClick Inc., and Xerox Corporation. Visit the USA Technologies home page at [www.usatech.com][1].

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

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Poland Electron

Euronet Worldwide announced late Thursday the implementation of outsourcing services for Bank Wspolpracy Regionalnej in Krakow, Poland. Under the terms of the multiyear agreement, Euronet will manage the daily issuance of ‘VISA Electron’ cards, authorize and process debit transactions, and provide the bank a gateway to the VISA network. The bank will monitor daily transactions on the network through a remote terminal access system developed by Euronet, enabling the bank to provide real-time information to cardholders whose inquiries come into the bank’s call center. Bank Wspolpracy Regionalnej has 32 branches located mostly in the Southern part of Poland and is part of the Deutsche Bank group.

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FDC – NYCE

First Data’s new network, First Data Net, is taking shape. Yesterday FDC announced it will take a 60-65% equity interest in NYCE. The transaction will expand First Data’s current debit business to more than one billion online debit POS annually. In the U.S., FDC is the leading offline debit processor. Four of the current NYCE shareholders: Citibank, FleetBoston, HSBC Bank, and J.P. Morgan Chase will continue as equity partners, along with First Data. 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. Since 1992, First Data has operated one of the largest debit switches in Australia.

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NPC Signs Shoney’s

National Processing Company announced the signing of a multi-year processing agreement with Shoney’s, Inc. Under the terms of the agreement, NPC will provide all Shoney’s, Inc. Restaurants front-end authorization and settlement services for all Visa and MasterCard transactions.

Shoney’s, Inc. has a rich heritage in the restaurant industry, and was a pioneer in the family dining segment over 50 years ago. At Shoney’s Restaurants, customers enjoy a great meal served by friendly servers in warm, welcoming surroundings.

“We are always looking at ways to maximize shareholder value,” said Jim Beltrame, chief financial officer for Shoney’s Inc. “NPC provides processing scale and efficiencies that minimizes our costs associated with credit card acceptance. We are looking forward to a long-term relationship with NPC.”

“NPC is pleased to be processing for a true pioneer in the family restaurant segment,” said Drew Soinski, senior vice president of Travel & Entertainment for NPC Merchant Services. “Like Shoney’s, NPC enjoys a long tradition of ground-breaking innovation. Shoney’s will benefit from our recent investment in products and services specifically developed for the restaurant industry.”

“We are very excited to be processing for Shoney’s,” said Mark Pyke, executive vice president of Merchant Services for NPC. “Shoney’s success is due to satisfying its customers by offering tremendous value with quality products and service. NPC also strives to provide the most cost effective solutions for its customers.”

About Shoney’s, Inc.

Headquartered in Nashville, Tennessee, Shoney’s Inc. owns, operates and franchises approximately 1,000 restaurants in 27 states, including 590 company-owned and 408 franchised restaurants. Shoney’s, Inc. is traded on the OTC Bulletin Board under the symbol “SHOY.”

About National Processing, Inc.

National Processing, Inc. through its wholly owned operating subsidiary, National Processing Company (NPC(R)) is a leading provider of merchant credit card processing. National Processing is 87 percent owned by National City Corporation (NYSE: NCC) ( [www.nationalcity.com][1] ), a Cleveland based $91 billion financial holding company. NPC supports over 500,000 merchant locations, representing nearly one out of every five Visa(R) and MasterCard(R) transactions processed nationally. NPC’s card processing solutions offer superior levels of service and performance and assist merchants in lowering their total cost of card acceptance through our world-class people, technology and service. Additional information regarding National Processing can be obtained at [www.npc.net][2] .

[1]: http://www.nationalcity.com/
[2]: http://www.npc.net/

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SchlumbergerSema Funding

Schlumberger Limited provided an update on the integration of Sema plc into Schlumberger Limited. As previously reported, the acquisition of Sema plc was completed on April 6, 2001 less than two months after the transaction was first announced. The new business segment, SchlumbergerSema, was created as a result of the merger of Sema plc with the businesses of Schlumberger Test & Transactions and Resource Management Services.

SchlumbergerSema will focus on six global market segments: telecommunications, utility, finance, transport, oil and gas and the public sector. The new SchlumbergerSema management structure is in place and will be presented at an analyst meeting to be held in Paris on June 27 along with an update on the business strategy.

Corporate cultural similarities, and synergies between the two companies, are contributing to the rapid and smooth integration of the combined businesses. Moreover, the attrition rate of Sema employees post acquisition has improved, and of the 2700 key Sema employees who received Schlumberger stock options in April, only a very small percentage have chosen to leave the company. Due mainly to the global slowdown in the telecommunications industry and a further weakening of the European currency against the US dollar, revenue for the businesses acquired with Sema plc is lower than previously estimated. Pretax operating income, before amortization of intangibles, is expected to be breakeven for the first six months following the acquisition.

The acquisition of Sema is being financed through existing cash resources of Schlumberger and from borrowings under the $3 billion floating rate credit facility. The after tax cost of funding is currently estimated to be 4.7%, which is lower than the previous estimate of 5.5%. Intangibles related to the acquisition are expected to be in the order of $5 billion and will be amortized over a composite life of 28 years. The Financial Accounting Standards Board (FASB) has proposed to eliminate goodwill amortization beginning January 2002. Starting in the second quarter, all acquisition related costs, including goodwill, will be reflected at the corporate level and not included in the business segments. Schlumberger Limited is a global technology services company consisting of two business segments. Schlumberger Oilfield Services is the leading provider of technology services and solutions to the international petroleum industry. SchlumbergerSema is a major IT services company providing information technology solutions to the telecommunications, utility, finance, transport and public sectors, and is the leading supplier of smart card technology. Schlumberger Limited acquired Sema plc in April, 2001. In 2000, Schlumberger revenue was $9.6 billion and Sema plc revenue was $2.4 billion. Additional information is available at [www.slb.com][1].

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

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PERSONAS 73

NCR Corporation has reached an agreement with Credit Agricole Centre Est
to provide 200 NCR Personas 73 automated teller machines for deployment at
its branches in the Lyon area.

The regional bank, which is part of the Credit Agricole Group, sees the
introduction of a cash deposit facility at its ATMs as an important element
of its drive to improve customer services. The Personas 73 is NCR’s first
dedicated bunch-cash-accepting ATM, providing an around-the-clock automated
cash deposit facility that — with an optimal transaction time of under 60
seconds — is fast, secure and simple to use. The solution it offers
provides validation of currency, allowing the bank to offer credit for cash
deposit or bill payment at the NCR Self-Service TouchPoint™ and providing
the customer with immediate proof of deposit.

The introduction of the new machines will shift time-consuming transactions
away from the counter. The bank is therefore able to reduce customer lines
and free up staff to deal with customer queries and to concentrate on
revenue generating opportunities. Ultimately, consumers are benefiting from
a better service.

In addition to accepting deposits the Personas 73 can provide on-line
balance inquiry, mini-statements and receipt printing.
Eliane Guillot, infrastructure general manager at Credit Agricole Centre
Est, said, “We are very pleased by the Personas 73’s capabilities and by
its easy-to-use customer interface. We were also impressed by NCR’s high
levels of professionalism in providing the application and related services.”
Patrick Goasguen, NCR France country manager, welcomed the announcement. He
stressed, “Credit Agricole Centre Est understands the importance of the
self-service channel as a strategic weapon that can provide competitive
advantage while bringing added value to customers.”

About NCR Corporation
NCR Corporation (NYSE NCR) is a leader in providing Relationship
Technology™ solutions to customers worldwide in the retail, financial,
communications, travel and transportation, and insurance markets. NCR’s
Relationship Technology solutions include privacy-enabled Teradata®
warehouses and customer relationship management (CRM) applications, store
automation 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 33,200 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 www.ncr.com .

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MerchantOnline Funding

MerchantOnline, a digital payment products and services provider, announced that it has received a $2 million financing commitment from a group of current MerchantOnline investors. These investors have agreed to purchase units of restricted convertible preferred stock and warrants. The first closing occurred today. This commitment supersedes all prior financing agreements or commitments.

“We look forward to proceeding with our revised business plan with renewed enthusiasm as we complete our restructuring. Our new management appreciates this vote of confidence during this time of significant market uncertainty,” said Jim Degracia, MerchantOnline CEO.

About MerchantOnline.com

Founded in December 1997, MerchantOnline provides a secure transaction network that enables businesses and consumers to use one payment system for both their real world and virtual world needs utilizing credit card, ATM/debit cards, stored value cards, electronic cash and other payment technologies. Except for historical matters, the matters in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements reflect assumptions and involve risks and uncertainties which might affect the Company’s business and prospects and cause actual results to differ materially from these forward-looking statements. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including those risk and uncertainties detailed in the Company’s Annual Report on Form 10-KSB for the year ended October 31, 2000 filed with the SEC.

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ICE STORM

Hypercom Corporation reported large scale deployment of its high-performance, touch screen ICE card payment terminals throughout Asia. More than 20 leading financial institutions, including the largest banks in China, the Philippines, Malaysia and Indonesia, have selected and deployed the browser-based terminals. ICE terminals now account for nearly 50% of all Hypercom’s shipments in Asia versus 3% less than a one year ago, indicating the broad acceptance of the value represented by the terminal’s value-added functionality and ability to combat credit card “skimming.”

Credit card skimming is an alarmingly escalating form of fraud that is victimizing consumers, causing havoc with merchants, and costing the industry hundreds of millions of dollars every year. Hypercom’s smart card-enabled ICE card payment terminals will play a key roll in stopping credit card skimming because they are tamper-resistant and customer-activated.

“Hypercom’s ICE technology is setting the standard for the electronic payment industry throughout this important region,” said Jeremy Su, president, Hypercom Asia. “We are bringing to market advanced, highly-secure card payment terminals and value-added wireless, Internet-based and smart card advanced applications that allow merchants to maintain and increase their competitive edge in the rapidly changing marketplace and combat credit card skimming, which is a major problem in Asia.”

The leading financial institutions now using Hypercom’s ICE terminals include The Industrial and Commercial Bank of China (China’s largest bank), The Agricultural Bank of China, Equitable Bank (the Philippines’ largest bank), Maybank (Malaysia’s largest bank), Bank Central Asia (Indonesia’s largest bank), Citibank Hong Kong; Standard Chartered Bank (The Philippines); Bangkok Bank, Thai Farmers Bank, Thai Military Bank, American Express Thailand, Bank International Indonesia.

Hypercom’s ePOS-infocommerce(TM) (epic) ICE devices are high performance, touch screen-based, Internet-enabled card payment terminals and web appliances that incorporate a firewall-protected multi-application operating system, EMV chip card capability, secure PIN pad, built-in HTML/HTTP web browser and integrated receipt printer. In addition to the embedded applications, Hypercom’s epic ICE terminals support a range of value-added applications and services including electronic signature and receipt capture, e-mail, on-screen advertising, interactive electronic coupons, and cash management reporting through a standard browser — as well as secure credit, debit and smart card functions.

Hypercom Corporation (NYSEHYC) is a leading global provider of electronic payment solutions that add value at the point-of-sale for consumers, merchants and acquirers. Hypercom’s products include secure card payment terminals and web appliances, networking equipment and software applications for e-commerce, m-commerce, smart cards and traditional payment applications.

Headquartered in Phoenix, Arizona, Hypercom maintains an installed base of 4 million card payment terminals which operate in over 100 countries and conduct more than 2.85 billion transactions annually. Hypercom’s Internet address is www.hypercom.com.

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Chargeoff Spike

Credit card charge-offs for card-backed bonds of U.S. banks rose by 60 bps in April to 6.7%. This level is the highest loss rate reported among these securities since February 1997. According to Standard & Poor’s ‘Credit Card Quality Index’, the monthly loss rates is also higher than the 6.2% peak reached in June 1992, in the wake of the last recession. S&P says aside from the soft economy, the rise in charge-offs is due to a short-term increase in bankruptcy filings fueled by reaction to the pending bankruptcy reform legislation. S&P notes that for prime credit card portfolios, approximately 35%-50% of charge-offs are a result of bankruptcy-related losses while the figure is about 20%-30% for sub-prime issuers.S&P says it is likely that some credit card trusts have yet to fully realize the effect of the increase in bankruptcy-related losses. It is expected that the spikes in bankruptcy filings will continue to affect losses in May and June. Meanwhile, delinquencies for April remained stable at 5.0% for the second consecutive month. However, 75% of the trusts reported improvement or no change in the number of accounts reported in the 60-plus day and 90-plus day delinquency buckets. These numbers may also support the theory that the recent jump in losses is due mainly to bankruptcy filings since charged-off bankrupt accounts are less likely to be counted in the later stage delinquency categories.

CREDIT CARD QUALITY INDEXES
Performance month Apr 99 Apr 00 Feb 01 Mar 01 Apr 01
Yield (%) 18.8 18.9 20.0 21.1 19.9
Charge offs (%) 5.9 5.6 6.0 6.1 6.7
Delinquencies (%) 4.5 4.3 5.1 5.0 5.0
Payment rate (%) 16.2 15.4 15.0 16.6 15.6
SOURCE Standard & Poor’s

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Intl Payments

Pitney Bowes this week launched a new foreign currency payment service for small to mid-sized businesses in the US. To manage payments in over 60 foreign currencies, customers simply complete a registration form to set up the account, and then call or fax the Pitney Bowes Bank to initiate foreign currency payments. Pitney says it also offers extremely competitive exchange rates, currently up to 5% lower than bank rates. Pitney Bowes serves over 2 million businesses through dealer and direct operations.

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AU-SYSTEM EXPANDS

Swedish-based AU-System, a leading Mobile Internet consultancy, announced the opening of its North American subsidiary in San Diego.

“We are committed to AU-System’s growth in North America,” said Daniel Kivikas, president and CEO. “We are excited to make our home here in San Diego and to bring our expertise and knowledge to the U.S. market. AU-System has been at the forefront of the evolution of the Wireless Internet in Europe and we are looking forward to sharing our core competencies with technology companies, telecom operators and enterprises in North America.”

In addition to building the world’s first Internet bank with smart card security, AU-System has also created the world’s first commercially available WAP 1.1 browser and the world’s first secure wireless stock trading service. The company’s client list includes Ericsson, Telia, Singapore Telecom, Motorola, Hyundai, Compaq, Philips and Volvo.

AU System’s offerings encompass wireless application protocol (WAP), Bluetooth technology, embedded systems, telecommunications systems, portals, Customer Relationship Management (CRM), Operations Support Systems (OSS), security solutions and 3rd Generation (3G) wireless services. This includes technical and strategic evaluations, system design, software development, project management and turnkey solutions and support.

AU-System is publicly traded on the Swedish stock exchange and its major investors include Schroder Ventures, Ericsson and IBM. The company employs more than 1,000 staff in offices in Sweden, the United Kingdom, Italy, Thailand, Singapore and the U.S.

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