USTT Targets Vending

USA Technologies, Inc. has expanded its Authorized Reseller Program to target the multi-billion dollar global vending industry. TransAct swipe card technology will soon be upgraded to its new generation e-Port cashless and interactive media technology. Under the program, USA Technologies will provide the technology and integration expertise to allow manufacturers and distributors of vending as well as office equipment and services to readily attach e-Port to any brand of vending product or office equipment.

The USA Technologies Authorized Reseller Program was launched less than a year ago as a result of significant, positive feedback from major office equipment manufacturers and distributors who wanted to use TransAct and incorporate it into their own office equipment products and solutions, as well as sell it independently.

TransAct is a networked self-serve system that enables micro-credit card transactions, as low as $1.00, when connected with the use of office equipment. e-Port has all the same advantages as TransAct, but includes e-business and interactive media capabilities. It is targeted at more industry uses including: vending, point of sale, gas pumps, and other equipment that offers consumers access to goods and services in high traffic areas, such as hotels, convenience stores, travel & transportation facilities and public buildings. USA Technologies recently signed a major Canadian distributor, Global Technologies, that committed to resell an initial 500 terminals. Additionally, the company has signed an Authorized Reseller Agreement with North American Interstate, a major Michigan based vending distributor, as well as an OEM agreement with Automated Merchandising Systems. The growing Pennsylvania-based technology company is in other negotiations and discussions with the top vending manufacturing and distribution companies.

“We are arming our business partners with our revolutionary e-Port, and we’re signing on major manufacturers and distributors of vending equipment who sell hundreds of millions of dollars worth of vending equipment throughout the world, every year,” said Michael Lawlor, Senior Vice President of Sales & Marketing for USA Technologies. “Our goal is to develop a network of worldwide distributors for our technology and services. We have the infrastructure in place to mass produce e-Port, and we will continue to aggressively build the foundation for mass distribution via our Authorized Reseller Program, OEM agreements, etc,” he said.

The Authorized Reseller Program is part of an overall strategy to give USA Technologies greater distribution of its technology; new marketplace opportunities; and expanded distribution channels worldwide. USA Technologies has also signed a Strategic Alliance agreement with Marconi Online Systems, a division of Marconi PLC. In 2000, Marconi Online became the exclusive provider of intelligent vending technology to the Coca-Cola Company. USA Technologies is also in negotiations with global IT and interactive media businesses who are interested in the e-Port technology, especially the next generation of e-Port technology, which will offer unique wireless capabilities. e-Port attracted huge vending industry interest at the recent NAMA vending exposition held in Las Vegas earlier this year, where industry analysts described e-Port as: “unique technology that can collect supply chain data, allow consumers to make purchases with a credit card, and to view interactive media such as news, sports and weather. It will not only improve the value vending machine manufacturers and suppliers bring to customers, but will help generate greater revenue through increased sales of vending machines.”

About USA Technologies:

USA Technologies is recognized as a leader in cashless micro transactions and interactive media technology and associated financial services. USA Technologies provided 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 – news) Business Partner and an inaugural member of the Sprint Enabling Application Service Provider Program for e-commerce. It has also established relationships with a number of global IT, multimedia, and telecommunications companies including 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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Card Keyboard

PrivaSys has introduced its PIN-driven card technology. PrivaSys’ proprietary card provides an input device and a display within the dimensions of a conventional credit card.

Protected by a portfolio of patents, three of which are issued, PrivaSys’ proprietary technology authenticates cardholders for financial transactions (in person or online). PrivaSys technology requires no change to merchant or acquirers systems, making it instantly compatible with over 21 million merchants worldwide.

The PrivaSys suite of solutions quickly integrates with existing issuer systems providing an immediate security benefit through cards that are activated by keying in the cardholder’s PIN on an ATM style keypad, embedded on the card. Enhanced security features allow issuers to select a card that automatically generates a surrogate number for financial and/or authentication transactions.

PrivaSys’ first generation solutions are SecurSys and VariSys. SecurSys safeguards a cardholder’s information for single account cards such as credit (private label or bank issued), debit, or identity/security cards. VariSys consolidates multiple types of accounts (such as debit, personal and corporate credit, money market account) onto one card. Both SecurSys and VariSys cards can display either a surrogate account number or a conventional account number on the magnetic stripe and on the LCD.

“Real world and online fraud for financial transactions represent an escalating issuer concern worldwide,” said Joan Ziegler, CEO and co-founder of PrivaSys. “By introducing PrivaSys’ solutions at CardTech/SecurTech, the leading card show, PrivaSys has a great opportunity to reach the leaders in the card technology field.”

To learn more about the PrivaSys technology, stop by booth 1558 or visit the PrivaSys Web site at [http://www.privasys.com][1] . To schedule a private technology demonstration, please contact David Patterson, executive vice president of business development and co-founder, at 415-495-4098.

About PrivaSys:

PrivaSys’ patented payments infrastructure brings a new level of security, interactivity and convenience to credit and debit card transactions. PrivaSys proprietary card technology provides a user input device and display embedded within the dimensions of a conventional credit card. Protected by a portfolio of patents, three of which are issued, PrivaSys licenses its technology to financial institutions and security card manufacturers. PrivaSys’ technology is designed to scale from the smallest government installation to the largest credit card issuer. PrivaSys is a privately held company, founded in May 1999 with headquarters in San Francisco and product development in Orlando, Florida. For more information, please contact PrivaSys or visit [http://www.privasys.com][2].

[1]: http://www.privasys.com/
[2]: http://www.privasys.com/

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Concord Stock Sale

Concord EFS, Inc. announced that it has filed a registration statement with the Securities and Exchange Commission for the proposed public offering of 24,373,218 shares of the company’s common stock, including an over-allotment option. The shares to be offered include 19,194,103 held by the former owners of Star Systems, Inc., which was acquired by Concord on February 1, 2001, plus an additional 2,000,000 being sold by Concord. In addition, the underwriters have an option to purchase up to 3,179,115 additional shares of common stock from Concord to cover over-allotments. Concord intends to use the net proceeds from the offering for working capital and general corporate purposes. Concord will not receive any of the proceeds from the sale of common stock by the selling stockholders.

The offering will be managed by Salomon Smith Barney, Goldman, Sachs & Co., William Blair & Company, Banc of America Securities LLC, Bear Stearns & Co. Inc., Merrill Lynch & Co. and Morgan Keegan and Company, Inc.

About Concord

Concord is a leading, vertically-integrated electronic transaction processor, providing transaction authorization, data capture, settlement and funds transfer services to financial institutions, supermarkets, petroleum retailers, convenience stores, and other independent retailers. Concord’s primary activities include Payment Services, providing credit, debit, check authorization, and electronic benefits transfer (EBT) processing services to selected retail segments; and Network Services, providing gateway processing, ATM driving, online and signature debit card processing, and network access to the financial services industry under the Cash Station(R), MAC(R), and STAR(SM) brands. Concord also provides electronic payment and payroll services to trucking companies, truck stops and other businesses.

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MasterCard JavaCard

Closing the gap in smart payment card platforms, MasterCard announced Wednesday it will support the ‘JavaCard’ platform for smart cards along with its continuing support for ‘MULTOS’. MasterCard also says it is prepared to support Microsoft’s ‘Windows Powered Smart Cards’ if its members demand it. The decision to support ‘JavaCard’ will help break the platform logjam for U.S. issuers of both VISA and MasterCard. However MasterCard says its ‘MULTOS’ platform is more open than ever and as new members have joined the ‘MULTOS’ consortium, pricing has been simplified. ‘MULTOS’ recently added a new policy which enables card issuers to build their own facility to authorize application loading and deletion. MasterCard offers the ‘M/Chip’ family of credit/debit applications for smart cards. Gemplus announced yesterday type approval from MasterCard and Europay for delivery of the ‘M/Chip Lite’ smart card solution, based on the ‘JavaCard’ platform for its ‘GemXpresso’ card. Schlumberger Test & Transactions also announced that ‘M/Chip Lite’ is now available on its ‘Cyberflex Palmera’ card.

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FONECASH MERGER

FoneCash Inc. announced it is in discussions with ITE
(Holding) Limited in Hong Kong to form a joint venture, utilizing a wholly
owned subsidiary of FoneCash, Universal Information Technology Limited in the
formation of a merger company which will eventually be qualified to have its
stock trading on the GEM Board in Hong Kong.

The proposed merger of the two companies would have FoneCash owning 80% of
the stock and infusing its wireless technology and skilled hardware design and
software programming staff, while ITE would inject cash and its SmartCard
technology.

ITE is a smart card solution provider and system integrator, utilizing a
combination of smart card system expertise and its extensive software library
to design and implement solutions based upon the requirements of its clients.
FoneCash has experience and technical know-how in wireless transmission of
data, particularly in using RFID (radio frequency identification) technology
for contactless systems. The merger company would focus initially on
developing a Smart Tag contactless system for clients who are concerning with
the organization of inventories of huge amounts of goods such as warehouses,
custom houses, the military, libraries and any enterprise where location of
countless components are stored.

“This merger offers an unprecedented opportunity for the Company with a
chance to implement its business strategy, calling for the merger of its
design capabilities with other like companies who want to utilize a hand-held,
wireless processing unit”, stated Daniel E. Charboneau, Chairman and CEO of
Fonecash. “Given our relatively early entrance in the Hong Kong market”, added
Mr. Charboneau, “we are pleased to have the support of ITE, their investors
and their outstanding position in Hong Kong, recently reinforced by their sale
of shares on the GEM Board. Their position will undoubtedly lead other
investors to take a serious look at the merger company and lead to value for
the investors of both parent companies”.

About FoneCash Inc.

Under an exclusive licensing agreement, FoneCash, Inc designs, develops
and manufactures electronic terminals for processing credit and debit cards of
all the major banks issuers whose cards are accepted for payment by merchants
worldwide. The Company’s products includes software and proprietary processing
services that provide end-to-end support of electronic financial transactions,
utilizing wired and wireless networks for the transmission of data. The
Company intends to market a complete processing system that is high quality
and simple to operate. Revenues will be generated from sales/rentals of the
terminals and from transaction charges.

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FOIL CARDS

Giesecke & Devrient announced that they will be launching their new card
innovation, the Foil Card this month. This new offering is the flagship of
G&D’s new series of
product innovations for 2001 titled “Stepping Out” — cards that go beyond
traditional borders. The kind of cards that you just can’t get out of your
mind.

The new G&D Foil card is a composite card using a process exclusive and
unique to G&D. The final design images created on this Foil card provide an
exciting level of depth and dimension to traditional card graphics. Customers
have their choice of custom Holographics (silver & gold), laser refractive or
rainbow patterns. The foil effect can be applied to the front or the reverse
of the card.

“The challenge for Foil cards in the market so far, is the risk of
delamination,” explained Anna Rossetti, Vice President, Sales & Marketing.
“G&D has taken extra measures with extensive testing and now leads the market
in not only meeting, but exceeding all the specifications required by the ISO
(International Standards Organization).”
With an unprecedented money-back service guarantee, the G&D Foil card
claims the highest level in quality and durability in North America.

About Gisecke & Devrient

Giesecke & Devrient (G&D) is an international technology group with over
thirty subsidiaries worldwide. With nearly 150 years of history, the Giesecke
& Devrient of today upholds their tradition as a trusted leading supplier of
banknotes and security documents; banknote, security paper and currency
automation systems; as well as cards, components and complete multifunctional
Smart Card systems for electronic payments and telecommunications. Giesecke &
Devrient also offers consultancy services and complete solutions for brand
protection and security in e-commerce. The company employs about 5,800 people
worldwide.

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AADVANTAGE DEAL

In conjunction with the 20th
anniversary celebration of the AADVANTAGE Travel Rewards Program, American
Airlines introduced an enhancement to its distinguished list of
AADVANTAGE partners. Together with the Royal Bank of Canada, American is
launching the Royal Bank AADVANTAGE Visa Gold card.

The co-branded credit card enables Canadians to earn AADVANTAGE miles for
every purchase they make — one mile for every Canadian dollar spent.
Canadian AADVANTAGE members can then redeem these miles for trips on American
Airlines, American Eagle or any other airline partner, as well as for hotel
stays, car rentals and American Airlines Vacations(SM) packages.

As an added incentive, AADVANTAGE is offering 2,500 bonus miles to
AADVANTAGE members who sign up for the Royal Bank AADVANTAGE Visa Gold card.
Additionally, AADVANTAGE members who purchase air travel aboard American
Airlines or American Eagle using the Royal Bank AADVANTAGE Visa Gold card will
earn double purchase miles between May 15 and December 31, 2001.

“We are pleased to work together with Royal Bank, Canada’s premier
financial institution,” said Bruce Chemel, President of AADVANTAGE Marketing
Programs. “For years our Canadian AADVANTAGE members have been asking for a
co-branded card that will enable them to earn AADVANTAGE miles with every
purchase.”

“We are pleased to partner with airlines that know how to reward customer
loyalty, and American Airlines — with the world’s first and largest rewards
program — was a perfect fit,” said Mark Tonnesen, Executive Vice-President,
E-Commerce and Cards, Royal Bank. “The Royal Bank AADVANTAGE Visa Gold card
continues to build on our strategy of offering cardholders a wide variety of
options and features to meet their needs.”

American Airlines and AADVANTAGE already participate in the Royal Bank
Avion Visa Gold Rewards Program. Through a recently launched points
conversion program, AADVANTAGE members can convert their Avion points — which
are earned 1 Avion point per Canadian dollar spent — for AADVANTAGE miles at
a 11 ratio. The Royal Bank AADVANTAGE Visa Gold card is an extension of this
relationship.

About AADVANTAGE

American’s AADVANTAGE Travel Rewards Program — the first and largest of
its kind — began in 1981 with 283,000 members and has grown to more than
43 million members worldwide. AADVANTAGE has more U.S. fliers than any other
frequent traveler program, and it provides more opportunities to redeem miles
than any other program, including the two most popular redemption options,
AAnytime(R) Awards and PlanAAhead(R) Awards. AAnytime Awards, available
‘anytime, anyplace, anywhere’ there is a vacant seat, carry no restrictions,
such as limited seat availability or travel embargo dates. PlanAAhead Awards
— best for times when customers can plan in advance — have restrictions,
such as limited seat availability and some travel embargo dates, but can be
claimed for fewer miles than AAnytime Awards.

About Royal Bank of Canada

Royal Bank of Canada (RY) is a diversified financial services company. It
provides personal and commercial banking, wealth management services,
insurance, corporate and investment banking, and transaction processing on a
global basis. The company employs more than 54,000 people who serve
10 million personal, business and public sector customers in North America and
in some 30 countries around the world. For more information, please visit
www.royalbank.com. Canadian residents can apply for
the Royal Bank AADVANTAGE
Visa Gold card by visiting their local Royal Bank branch or Royal Bank’s Web
site at www.royalbank.com/cards/aa.

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EUROPAY CHAIRMAN

OMNIKEY, an innovative supplier of cross-technology smart card readers for
business use, has introduced a read/write-device including a fingerprint
sensor. By combining biometric identification processes with market-proven
CardMan smart card technology, CardMan Desktop fingerprint does not only
improve security conditions – it also allows a much easier handling of smart
cards in the many areas where they have come to be used.
Developed by OMNIKEY, the biometric smart card reader stands out against
ordinary read/write devices based upon smart cards through various innovative
product features. From now on, for example, tools like PIN numbers identifying
a particular user will not be necessary any more – a fact which minimizes
security risks and improves handling processes. As biometric technology works
differently, users can dispense with time-consuming administrative procedures
every time access has been denied. Moreover, biometric identification, based
upon the unique character of unchangeable fingerprints, profits from full
legal
acceptance.

Biometric identification processes will especially be used for applications
which require a high security level, for instance home banking, internet and
computer access as well as digital signatures. The target groups for CardMan
Desktop fingerprint include manufacturers of personal computers, financial and
insurance companies as well as health care organizations and public
administrations.

Says Uwe Schnabel, Head of the Biometry Department at OMNIKEY “The open
CardMan Desktop fingerprint architecture provides OEMs and suppliers of
biometric systems with an easy support of their own identification algorithms.
It also enables integration with applications via standard interfaces such as
Bio-API and PC/SC.”
OMNIKEY will launch CardMan Desktop fingerprint 7120 first in a series of
biometric products, with distribution via OEMs, system integrators and
resellers.
CardMan Desktop fingerprint 7120, at the attractive price of Euro 100, will be
available from the third quarter of 2001.

About OMNIKEY

OMNIKEY AG is the first cross-technology supplier of smart identification and
payment devices. The company unifies and leverages leading technologies
such as
smart card, radio frequency identification (contactless) and biometrics. These
technologies are used in the development of secure devices with standard
interfaces. The certified products can be integrated into any application and
includes smart card readers, smart card terminals and contactless modules. The
company is headquartered in Wiesbaden in Germany, with offices and R&D
facilities at five other locations.

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Smart Visa Ready

Further nudging the smart card drive along in the USA, VISA announced yesterday it is launching its ‘smart VISA Ready’ program for smart card-related products such as personal computers. The new corporate identifier, or mark, will denote that smart-card components, devices and services have met a set of criteria to ensure consistent performance and utility. VISA will require vendors, processors and physical POS merchants to undergo a standardized approval process before granting authorization to use the mark. The mark, similar to the highly recognized ‘Intel Inside’ mark, will appear on device packaging. Compaq Computer Corp. is the first to be approved for the ‘smart VISA Ready’ mark, and will begin incorporating smart card readers into its consumer PC family. Using the Gemplus reader technology, Compaq will release its new ‘smart VISA Ready’ computers later this year. The Compaq/Gemplus readers will also be EMV compliant.

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