ECC for Smart Cards

First Data Corp., a leader in electronic commerce and payment services, and Certicom,, a leading provider of mobile e-business security, announced a strategic licensing agreement. First Data licensed Certicom’s leading elliptic curve cryptography and plans to incorporate the highly efficient technology in a number of areas including smart cards.

Certicom’s ECC technology is ideally suited for securing the new generation of small devices that are limited by low processing speed, network bandwidth, and battery power. Using ECC, digital signatures can be performed on small devices such as smart cards without the additional cost of a cryptographic co-processor found with other systems. The small key sizes and short signature lengths provided with ECC can lead to significant reduction in data storage required to support processing large volumes of transactions.

![][1] “There is an ever-increasing need for strong and efficient tools to protect consumer privacy and insure the integrity of financial transactions,” said Gene Kathol, vice president for First Data Corp. “Our selection of Certicom and their strong cryptographic tools further enables application of digital signatures and encryption into our products to help us continue to provide secure and efficient products for our customers.”

“Certicom has been collaborating with First Data on digital signature technology for years, beginning with our mutual involvement in financial industry standards,” said Richard Depew, executive vice president of Certicom. “We are very pleased to take this important step with First Data towards enabling the market with efficient signature systems that meet the business case for wide scale deployment.”

About First Data Corp.

First Data Corp. (NYSE: FDC), with global headquarters in Denver, powers the global economy. As the leader in electronic commerce and payment services, First Data serves approximately 2.5 million merchant locations, 1,400 card issuers and millions of consumers, making it easier, faster and more secure for people and businesses to buy goods and services using virtually any form of payment. With more than 27,000 employees worldwide, the company provides credit, debit, smart card and stored-value card issuing and merchant transaction processing services; Internet commerce solutions; Western Union(R) money transfers and money orders; and check processing and verification services throughout the United States, United Kingdom, Australia, Canada, Mexico, Spain and Germany. Its money transfer agent network includes approximately 104,000 locations in more than 186 countries and territories. For more information, please visit the company’s Web site at [www.firstdata.com][2].

About Certicom

Certicom is a leading provider of information security software and services, specializing in solutions for mobile e-business. The company’s products and services are specifically designed to address the challenges imposed by a wireless data environment. Certicom’s solutions incorporate its efficient encryption technology and are based on industry standards for information security that utilize public key cryptography. Certicom’s products are currently licensed to more than 150 customers including Cisco Systems, Inc., Handspring Inc., Motorola, Inc., Nortel Networks, Openwave Systems, Inc., Palm, Inc., QUALCOMM, Inc., Research In Motion Ltd. and Sony International (Europe) GmbH. Certicom’s headquarters and worldwide sales and marketing operations are based in the Silicon Valley in Hayward. For more information, visit Certicom’s Web site at [http://www.certicom.com][3].

[1]: /graphic/certicom/certicom.gif
[2]: http://www.firstdata.com/
[3]: http://www.certicom.com/

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ENHANCED PRISM

With debit card payments having recently surpassed cash as Canadians’ favorite
way to pay for purchases, CIBC has become the first bank in Canada to offer
their banking card holders an enhanced level of fraud detection with PRISM(R)
risk management software from ACI Worldwide, a leading international provider
of enterprise e-payment solutions.
PRISM proactively monitors bank machine and point-of sale debit card
transactions to detect suspicious activity. CIBC has integrated PRISM with its
BASE24 authorization software from ACI, providing a cost-effective means to
monitor debit card-based transactions in near real-time for fraud as those
transactions are processed for approval.

“Ninety per cent of adult Canadians have a banking card, and the number of ABM
and Interac Direct Payment transactions surpassed 3.5 billion in 2000,” said
Jude Pinto, vice-president and chief administrative officer, direct to
consumer
group, CIBC. “While the incidence of debit card-based fraud at CIBC is still
very small compared to overall transaction volumes, it has affected many of
our
customers, and CIBC is committed to being a leader in providing improved
security through the early detection of banking card fraud.”
PRISM’s strength lies in its neural network technology that identifies subtle
patterns of suspicious or unusual behavior by comparing individual card usage
with known patterns of fraud. Activity that matches suspicious patterns is
automatically queued for review by CIBC’s analysts. PRISM streamlines the
monitoring process, allowing CIBC staff to quickly investigate and respond to
suspect activity, including contacting customers to verify deposits,
withdrawals or banking card requests.

A simple example of how PRISM can detect a fraudulent transaction might
involve
multiple cash withdrawals coming from Vancouver and, minutes later, a cash
withdrawal in Toronto on an account with only one active banking card. Once
PRISM has flagged this transaction, the bank’s analyst would see that
transactions are being done simultaneously in two different regions of the
country and realize that a counterfeit card has likely been produced. CIBC
would contact the legitimate customer and act to minimize the inconvenience to
the customer and minimize the bank’s potential loss.
“CIBC is a long-time ACI customer, and we are proud they’ve enlisted us to
help
expand their fraud-fighting efforts,” said Mark Vipond, president of ACI
Worldwide. “In the hands of CIBC’s skilled investigators, PRISM will
provide an
effective tool in the bank’s efforts to protect its card holders and fight
fraud.”
Pinto added, “Combating banking card fraud is shared responsibility between
CIBC and our customers, and this initiative will help reassure the growing
number of customers relying on e-payment transactions that we are serious
about
offering the best level of protection we can. The customers we have contacted
in our investigations are highly appreciative of the proactive measures we
have
taken to provide them with greater comfort and security in the use of their
banking cards.”

About CIBC

CIBC is a leading North American financial institution offering more than
eight
million personal banking and business customers a full range of products and
services through its comprehensive electronic banking network, branches and
offices across Canada, in the United States and around the world. CIBC is a
leader in electronic banking, with more than 3.5 million e-banking customers
banking by Telephone, Bank Machines and the Internet. CIBC’s innovative use of
technology to provide its customers with industry leading protection for
electronic banking also includes offering customers digital signatures to
instantly confirm authorization of online applications made for CIBC products
and services. To find other news releases and information about CIBC, visit
our
Media Centre at www.cibc.com.

About ACI Worldwide

Every second of every day, consumers are initiating electronic payment
transactions–getting cash at ATMs, using debit and credit cards to make
purchases in stores and on the Internet, banking by phone and PC, paying bills
online. Twenty billion times a year, ACI software is used to process these
transactions, powering the world’s online payment systems. ACI was founded in
1975 and pioneered the development of applications and networking software for
online transaction processing. Today more than 2,000 customers in 78 countries
use ACI supplied software. Visit ACI Worldwide on the Internet at
www.aciworldwide.com.

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CardBASE Update

CardBASE Technologies Inc, a leading provider of smart card solutions for secure e-commerce, announced the expansion and relocation of its US operations. The Company’s new office located in Sherman Oaks, California, provides sales and support services to CardBASE’s customers throughout the United States, including a recently signed Licence Agreement with Wells Fargo & Company, for the implementation of ChipCERT – CardBASE’s smart card management solution for PKI.

Recent appointments as part of CardBASE’s plans for expansion in the USA include Mr Jerry Homeyer, Vice President Sales, Mr Lee Larimore, Vice President Sales and Mr Eric Peng, Pre-Sales Technical Support Consultant.

Peter Omelia, Director of US Operations for CardBASE said, “The expansion of our team and the implementation of ChipCERT at Wells Fargo is an important milestone in the development of our operations in the United States. The adoption of smart cards for secure on-line authentication within large corporations is projected to grow from around 3% in 2001 to over 20% by 2003. Working with Wells Fargo further endorses CardBASE’s position as one of the leading providers of Smart Card Management Systems in this expanding market.”

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DIGITAL WALLET

Proton World and The Brodia Group
announced that they had signed an agreement, under which they will work
together to develop smart card capability in Brodia’s e-wallet, leveraging the
leading technology and expertise of both companies.
Brodia is a global leader in deploying a commerce platform technology that
enables authenticated transactions on any mobile or network-connected device.
Proton World is a leading multi-application smart card technology and
application provider with mass implementations worldwide. Proton World has a
proven track record in high-end smart card security solutions. Integrating
both
companies’ offerings and technologies will strengthen the value proposition to
financial institutions, and will make new opportunities available for
financial
e-services and payments.
The first step in the co-operation is the development of secure, PKI-based
cardholder authentication for access to the Brodia e-Wallet services.
The two companies will then go on to jointly develop a range of products and
services that leverage the particular strengths of both the Proton Prisma
multi-application smart card range of products and the Brodia server-based
wallet solution.

Brodia and Proton World have already defined a number of new applications that
will be jointly-explored in the near future. Some of the first services to be
jointly- delivered will be authentication, digital signatures, debit/credit
payment and storage of user profiles and other data. Proton Prisma smart cards
will be used as secure keys to access the Brodia wallet and to authorize
transactions.

Other opportunities for both companies include incremental Internet
micro-payments, transaction storage, form-filling and loyalty applications.
The
smart card – wallet combination has great synergy it can bridge the gap
between the Internet world and the physical world. This allows a smooth
roll-out of payment and loyalty programmes covering traditional point-of-sale
commerce,
e-commerce and m-commerce, which integrate them all into one single commerce
space.

These solutions will use Proton Prisma, a range of products based on a new
technology release earlier this year, designed for secure and flexible
multi-application smart card programmes. Proton Prismaretains and re-inforces
the open architecture and state-of-the-art, end-to-end security that has
contributed to the success of the Proton technology, while also offering
compliance with the leading international smart card standards. At the core of
Proton Prisma is CALC (Card & Application Life-Cycle manager), a spearhead
implementation of the forthcoming Open Platform 2.1. specifications.
Brodia’s Personal Commerce Manager™ (PCM) Digital Wallet is used today by a
large customer base. It is a powerful tool for acquiring, activating, cross

selling and retaining customers. By providing a simple, convenient way for
users to log in and fill forms at any web site, the Digital Wallet prevents
the
problem of cart abandonment before purchase completion. The brandable wallet
follows customers across the Web and reassures them that they are dealing with
an established company they already know.

The Brodia Commerce Platform’s core Identity Management System (IDMS)
technology enables the secure storage and access of personal and payment
information and preferences by trusted third-party partners for use in
executing any type of transaction, simply and securely.
Adrian Di Fede, Vice-President Products & Innovations at Proton World, said
“The Brodia Digital Wallet offers strong network-based payment and commerce
solutions, which complements our world- leading technology for smart card
payments and commerce. Furthermore, both organisations share the same vision
for the smart card / e-wallet market. Together, we can create a new dimension
in the customer fulfilment of financial services and security”
Ron Martinez, CEO of Brodia, said “As the provider of customizable,
comprehensive digital commerce services to more banks and credit card issuers
than any other eBusiness platform, we want to provide our financial
institution
customers with an opportunity to integrate the best of smart card and digital
wallet technologies into a seamless application for their customers.”

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Cheaper Smart Cards

VISA is expanding its low cost smart card program with the addition of two new products developed in conjunction with Philips Semiconductors. The new smart cards can support a range of payment and non-payment applications. Both products provide hardware-supported public key capabilities. The product based on the Philips ‘MIFARE PROX’ dual interface range allows both contact and contactless applications. The new products follow the introduction last October of a multi-application VISA smart card costing less than three dollars. The price of the new cards will be $3.56 and, for the dual interface card, $4.67. The typical cost of a card supporting public key capabilities is US$7.00. Two card manufacturers have already agreed to produce the new cards, Giesecke & Devrient and Orga. Five card vendors offer smart cards under three dollars including G&D, Orga, Dai Nippon, Oberthur, and Schlumberger. The new $3.56 smart card will be available in July while the $4.67 dual interface card will be available later in the year.

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ON COMMAND

ON Technology announces a contract win with Providian National Bank.
Providian
will be
using ON Command CCM, the leading solution for remotely managing and
configuring software, across 600 desktops located at the bank’s customer
service center in Crawley, United Kingdom.

Providian Financial is one of the largest issuers of bank cards in the
United States today, with over $32 billion in assets under management and over
17 million loyal customers. Providian recently entered the UK market, and is
currently one of the fastest growing credit banks in the country.
Providian is initially implementing ON Command CCM to manage the rollout
of core desktop applications such as Internet Explorer, Windows Excel and
virus protection software. ON Command CCM will also be used when changing
network configurations and carrying out emergency re-builds. Providian is
planning to roll out Windows 2000 using ON later on this year. Providian
chose ON Technology in order to allow its internal IT staff to concentrate on
skilled activities. ON Command CCM eliminates the need for an IT technician
to physically visit every desktop.

Chris Risebrow, IT Operations Manager, Providian says, “Using ON Command
CCM will allow us to remotely manage all our desktops and maintain a level of
technological consistency across the company. The nature of a call center
means that consistency is vital in achieving customer satisfaction and ON
Command will prove to be an essential tool during our growth here in the UK.”
The system will be running on Compaq NT servers managing NT desktops at
Providian. ON Command CCM allows IT technicians to remotely wake up PC’s and
then install and configure any 32-bit windows operating system (e.g. Windows
2000, Windows 95, Windows 98 and Windows NT) and application (e.g. Office
2000, Internet Explorer or SAP R/3) without sending technicians to every
remote PC, ensuring reduction in TCO (total cost of ownership).

Robert Drew, UK country manager for ON Technology said, “We are delighted
to be working with Providian National Bank here in the UK. We look forward to
providing all the remote system support it needs as the organization expands
further in the financial market. ON Command CCM shows companies that
deploying software does not have to be a long and costly process and gives an
organization the consistency it needs across the enterprise.”

About Providian

San Francisco-based Providian Financial (http//www.providian.com) is a
leading
provider of lending and deposit products to customers throughout the U.S. and
offers credit cards in the UK and Argentina. Providian Financial was named
one of America’s Most Admired Companies in a survey by Fortune magazine, one
of the nation’s top financial institutions by US Banker magazine, and one of
the most technologically innovative companies by InformationWeek magazine.
The Company has more than $32 billion in assets under management and over
17 million customers.

About ON Technology Corporation

ON Technology empowers IT organizations and service providers to rapidly
deliver business-critical software to a range of remote computing devices
including desktops, mobile PCs, handhelds and servers. The company’s flagship
product, ON Command CCM(TM), has been judged by analysts, product reviewers,
enterprise IT customers and service providers as the industry’s best solution
for remote software delivery and management. ON Command CCM is currently
being used to deliver software to over 500,000 corporate computing devices
worldwide in over 500 leading Global 2000 corporations such as WorldCom,
Deutsche Telekom and Goodyear Tire & Rubber. Application Service Providers
(ASPs) and Management Service Providers (MSPs) are also using ON Command CCM
to deliver high-value outsourced IT services more quickly and cost-effectively
while expediting their clients’ technology upgrades. For more information,
visit ON Technology’s web site at http//www.on.com or call 800-767-6638.

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Generation 2E Module

Datacard Group introduced a faster and more robust smart card personalization module for its family of high-volume card issuance systems.

The new Datacard Generation 2E smart card module features a faster system processor, direct Ethernet connection for fast communication with network-based cryptographic processors and a direct connection for a Datacard Smart Card Personalization Manager. It also supports 115K baud communications for faster card loading and personalization.

“Multi-application smart cards present card issuers with new challenges. They need more speed, more flexibility and more personalization power,” said Bob Beer, vice president of smart card solutions for Datacard. “This new Generation 2E smart card module gives them what they need.

“While it’s a new module in terms of power and speed, it’s really a proven, production-tested system,” Beer said. “We’ve shipped more than 700 smart card modules into worldwide markets. The productivity and reliability of our basic module design has been proven in some very demanding production environments.” The module can be integrated with the Datacard 9000, 7000 and 500 systems — the world’s best-selling line of high-volume card issuance systems. Existing Datacard smart card modules can also be easily field-upgraded to Generation 2E capabilities.

“The Generation 2E is part of our complete solution for issuing multi-application smart cards,” Beer said. “We can provide our customers with an end-to-end solution for issuing and managing multi-application smart cards. Clearly, this high-speed module is an important piece of that larger solution.”

Beer said he expects the new module will be used for a variety of applications, including the issuance of cards for financial, telecom, retail, loyalty, transportation, government and education applications. Datacard Group provides financial institutions, corporations, consumer marketers, governments, schools, healthcare providers, service bureaus and other enterprises with the software, systems and professional services they need to build successful card programs. The company’s solutions portfolio includes the world’s best-selling smart card software, card issuance systems, smart card life cycle management system and a complete line of digital identity systems. Consultative services include a smart card chip security laboratory that works with the world’s leading smart card issuers. DataCard Corporation, doing business as Datacard Group, is privately held and based in Minnetonka, Minn. Datacard Group serves customers in more than 200 countries.

([www.datacard.com][1])

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

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LOW COST SMART CARDS

Two new low cost smart card products have been developed by Visa
International,
in conjunction with Philips Semiconductors, as part of a major program to
offer
Visa member banks a family of low cost multi-application smart cards.

The new smart cards, which are based on Philips Semiconductors 8-bit WE and
MIFARE® PROX smart card controller families, can support a range of payment
and
non-payment applications. Both products provide hardware-supported public key
capabilities resulting in enhanced off-line authentication. The product based
on the MIFARE® PROX dual interface range allows both contact and contactless
applications. These include Visa payment, secure network, and transit (bus or
train ticketing) applications.

The new products follow the introduction last October of a multi-application
Visa smart card costing less than three dollars. The price of the new cards
will be US$3.56 and, for the dual interface card, US$4.67. The typical cost of
a card supporting public key capabilities is US$7.00.

Two card manufacturers have already agreed to produce the new cards,
Giesecke &
Devrient (G&D) and Orga. In total, five card vendors have joined Visa’s low
cost card program and are offering smart cards at under three dollars. In
addition to G&D and Orga, these include Dai Nippon, Oberthur Card Systems, and
Schlumberger. These manufacturers offer the cards to Visa member banks using
Philips Semiconductors’ highly advanced chip solutions. Other manufacturers
are
currently negotiating with Visa to join the program.

The family of new smart cards is based on the Java Card™ 2.1 and the Open
Platform 2.0.1’ specifications. The US$3.56 card includes a minimum of two
applications, such as Visa Smart Credit/Debit and another application, loaded
to the read-only memory (ROM) with additional space for multiple applications
in the erasable memory (EEPROM). Memory size is 64k ROM and 16k EEPROM.

The US$4.67 price of the MIFARE® PROX based dual interface card, which has 64k
ROM and 16K EEPROM, also includes at least two applications loaded to ROM and
free memory space in EEPROM. The card offers the contactless MIFARE® interface
allowing fast and convenient card transactions in contactless mode, as
required
in transit applications. No comparable product with the same capacity
currently
exists for dual interface cards.

Card issuers can decide what applications they may like to offer, such as
loyalty or secure Internet access, depending upon market needs. The Open
Platform specifications enable applications to be added or removed after the
card has been issued or during card production or personalization.

James Lee, senior vice president, Emerging Technologies, Visa International,
said “We are seeing growing demand for these new low cost card products from
our member banks worldwide. We have already received large production quantity
orders for the low cost card product announced last October. In addition,
there
is commitment for over four million dual interface cards from banks in Asia
Pacific and strong interest in Latin America.”

Dr. Reinhard Kalla, general manager of the Business Line Chip Cards at Philips
Semiconductors, said “We highly appreciate Visa’s commitment to bringing new
technologies to its member banks, increasing customer security and promoting
ease of use of advanced services. Philips Semiconductors has been spearheading
the evolution of smart card technology, as evidenced by our early
commitment to
on-card security and to contactless technologies, and we welcome the
opportunity to demonstrate our innovations in the marketplace. Our technology
strategy has always been driven by the needs of card scheme operators in
developing value-added services for their users, and we look forward to
working
with Visa and its partners in rolling out high-performance cards around the
world.”

The new $3.56 smart card will be available from July 2001 while the $4.67 dual
interface card will be available later in the year.

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Arcot Supports VISA PAS

Arcot Systems, Inc., a provider of solutions for securing e-business in Internet-scale, transactional and wireless environments, announced that it has been named by Visa U.S.A., as one of the vendors supporting Visa’s Payer Authentication Service, based on the 3-D Secure Interoperability Standard. The Visa Payer Authentication Service, part of Visa’s Secure Commerce Program, is designed to reduce the risk of unauthorized use of a cardholder account and make Internet shopping better and safer for both buyers and sellers on the Web. The service enables card issuers to verify a cardholders’ identity through the use of a password and provides results to the merchant in real time during the virtual checkout process. This reduces the merchant’s exposure to fraud and frivolous disputes.

The Arcot solution is based on its TransFort product, which enables card-issuing banks to confirm the cardholder’s identity to an online merchant during the virtual checkout process in both a traditional PC shopping environment as well as a WAP-enabled mobile phone. “We are thrilled to have the opportunity to play an integral role in Visa’s 3-D Secure payment initiative,” said Chet Silvestri, CEO and president of Arcot Systems. “The Arcot relationship with Visa supports our approach to transaction authentication using TransFort. We are actively engaged with Visa banks in order to help them rapidly deploy 3-D Secure to meet the demands of online merchants and consumers.”

“Arcot’s infrastructure solution provides Visa’s Member banks in the U.S. with an effective option to implement the Visa Payer Authentication Service,” said Kevin Weller, senior vice president of Technology at e-Visa, a division of Visa U.S.A. “Working in collaboration with our technology partners, Visa will continue delivering new services to banks and merchants to make online shopping more secure.”

Real-time Transaction Authentication

Arcot provides support for Visa’s Payer Authentication Service with an infrastructure solution that is based on Arcot’s commercially available TransFort product. When a customer enters their Visa card information in an online checkout form and hits the “buy” button, the bank that issued the Visa card is automatically alerted. The issuing bank then requests that the customers authenticate themselves through a daughter window that appears on the customer’s screen. The customer enters a password, or other means of authentication, and the bank then validates the transaction. The Visa Payer Authentication Service offers dramatic benefits to the customer and merchant with almost no alteration of the current online purchase process:

Customer – the entire authentication transaction takes only a matter of seconds and the process is identical to a typical online purchase with one simple additional authentication step in the process – entering a password. It adds another layer of security to alleviate consumers’ fear of online fraud and provides additional protection from fraudulent use of their Visa cards.

Merchant – the process is identical to current online purchases with the addition of a small plug-in module that sits behind the “BUY” button. The plug-in module contains the logic to interface and interact with the Visa 3-D Secure infrastructure. The system will dramatically reduce the merchant’s exposure to online credit card fraud.

About Arcot TransFort

Arcot TransFort strongly authenticates and digitally signs transactions in real-time, providing for the secure, non-repudiation of online payments. Scalable to hundreds of millions of transactions, Arcot TransFort(TM) allows companies to grow the volume and value of their online transactions and provide their customers with an added level of confidence and security in the business relationship. Arcot TransFort is a multi-platform solution capable of authenticating transactions across Web, Virtual Private Network (VPN), and wireless environments. In addition, Arcot TransFort(TM) can comply with a variety of business rules or procedures that govern online payments and support multiple authentication methods including standard X.509 Digital Certificates, Smart Cards (or “Chip Cards”), and Pass-code.

About Arcot

Arcot Systems, Inc., is the leading provider of authentication and access control solutions for securing e-business in Internet-scale, transactional and wireless environments. Only Arcot provides cost-effective, scalable, software-based solutions for strongly authenticating users and transactions and managing access for payment systems, B2B extranets, Web portals and virtual private networks. Arcot solutions meet the business need for strong transactional security while providing the customer a user-friendly experience with anytime, anywhere convenience. Leaders in financial services, healthcare, and e-commerce are using Arcot solutions to protect their customers’ privacy and reduce fraud. For more information, visit [www.arcot.com][1].

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

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MONEY TRANSFERS

Western Union Financial Services,
Inc, a subsidiary of First Data Corp. announced the launch
of Western Union Money Transfer services to Yugoslavia. For the first
time, Serbian emigres throughout the world will be able to send money home to
loved ones using Western Union’s safe, rapid and reliable services. By the
end of 2001, more than 300 agent locations in Serbia and Montenegro will be
equipped to receive and pay out money transfer transactions.

The recent election of President Vojislav Kostunica signaled the end of
U.S. sanctions in Yugoslavia and made possible Western Union’s entrance into
this emerging market. Since that time, demand for money transfer services,
from Serbians living outside Yugoslavia, has continued to increase
dramatically. Western Union’s swift entry into Yugoslavia makes it one of the
first American companies to do business in the economically devastated
country.

“Serbians currently living and working outside of Yugoslavia are looking
for ways to improve the lives of their friends and relatives in need and to
help rebuild our country,” said Father Majstorovic, Dean of the Saint Sava’s
Serbian Orthodox Cathedral in Manhattan. “Through the Western Union Money
Transfer service, they will now be able to send money to their loved ones
quickly and safely. This will not only help families in need, but I believe
it will also greatly stimulate small business growth and influx of much needed
capital to Yugoslavia.”

Under the terms of the three year contract, Western Union will provide
money transfer services through its agent, EKI Transfer and through several
Yugoslavian banks, acting as EKI Transfer subagents, including Jugobanka,
Bojvodjanska and Atlas Bank. Western Union plans to expand its agent
locations to include other banks and institutions throughout the country. As
the service is launched, money transfer services will be immediately available
in 30 locations, in several cities, throughout Serbia and Montenegro. Funds
may be received in Deutsche marks, dinars and, in selected locations, U.S.
dollars.

“It has been estimated that more than three million Serbians are currently
living outside of their country. While these expatriates have become proud
members of their new communities, they remain very loyal to their families
back home and seek the safest most reliable means of sending them money,” says
Alan Silberstein, president and CEO, Western Union Financial Services.
“Western Union is the first commercial money transfer provider to offer a
service Serbians can rely on to meet the needs of their communities.”

Western Union Financial Services, Inc. is a worldwide leader in consumer
money transfer services. Consumers can quickly, safely and reliably transfer
money at approximately 104,000 agent locations in more than 185 countries and
territories using the Western Union and Orlandi Valuta money transfer
networks. Famous for its pioneering telegraph service, the original Western
Union dates back to 1851 and introduced electronic money transfer service in
1871. Western Union is celebrating its 150th anniversary in 2001. For more
information, please visit the company’s Web site at
http//www.westernunion.com.

First Data Corp. powers the global economy. Serving nearly 2.5 million
merchant locations, more than 1,400 card issuers and millions of consumers,
First Data makes it easier, faster and more secure for people and businesses
to buy goods and services, using virtually any form of payment credit, debit,
stored-value card or check at the point-of-sale, over the Internet or by money
transfer. For more information, please visit the company’s Web site at
http//www.firstdata.com.

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WELCOME PREVAILS

Welcome Real-time commenced legal action in the Federal
Court of Australia last year against the US Company, Catuity Inc and its
Australian subsidiaries, Chip Application Technologies and CIT Cards
(Australia). In his judgment issued this week Justice Heerey found that
Welcome’s
patent had been infringed by the US and Australian companies. Welcome claimed
in the Court case that Catuity and its Australian subsidiaries had infringed
its patent by operating the CiT Transcard system in Western Sydney from July
1997 and by offering to supply upgrades of the system since that time.
Catuity
denied the allegations and, in addition, claimed that Welcome’s patent was
invalid.

Welcome’s patented technology covers the operation of customer loyalty and
incentive schemes using customer cards with integrated circuits (commonly
called ” smart cards “). Smart cards are becoming the newest technology for
credit cards, worldwide. Welcome’s technology offers credit providers the
ability to issue credit cards that can be used to provide consumers with added
incentives, a new facility that will be popular with card issuers, consumers
and retailers, alike. In delivering his judgment, Justice Heerey accepted
Welcome’s claims that Catuity s systems infringe its patent rights. In
addition, he rejected Catuity s claims and found that Welcome’s patent was
both
novel and inventive. The decision has assured Welcome that its patent will
stand up as an inventive development over published inventions from around the
world.

In hearings to follow the Court will receive evidence on what compensation
Welcome should receive and what steps should be taken to prevent infringement
in the future. This outcome is very positive for Welcome’s patent rights for
the technology, world-wide and puts Welcome in a commanding position to market
its inventive technology Aneace Haddad, President and CEO of Welcome said
” We
have invested extensively in the protection of our intellectual property and
are extremely pleased with today’s judgment. This is a very major milestone in
the history of our company. “

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SLASH PLASTIC

PayPoint have again been able to harness
the flexibility of their chosen transaction platform, Postilion PrePay from
Mosaic Software, to offer another leading edge service. Splash Plastic, a
company marketing a new prepaid Internet card designed for teenagers, have
chosen PayPoint as one of its partners. Paypoint was one of the first UK
companies to offer instant electronic top-up for mobile phones and has a
network of over 7,500 locations across the UK (increasing to 9,000 by June
2001).

The continued diversity of non-bank related payment methods using local
merchant networks is a significant growth area, which increases customer
choice and frees the consumer from traditional banking systems and processes.
Splash Plastic cards are aimed at the youth market. Young people are
currently restrained from purchasing goods securely online, due to the lack of
a credit or debit card. With this new service from Splash Plastic, they are
able to do so. First they register on-line to receive a card and then on
receipt of the card, they simply activate it using the Splash Plastic website.
Once activated, they can take it to any of more than 20,000 Splash Plastic
network of locations across the UK to make a payment, including those
supported by PayPoint.

The customer takes the card to the merchant, where it is swiped or the
card number is keyed in at the Point of Sale (POS) terminal. The merchant
then keys in the amount to be added to the card, at which point the consumer
pays cash for the amount to be added to their Splash Plastic account. The POS
terminal dials up to the Postilion PrePay system at PayPoint where the
transaction is processed and authenticated. If the transaction is validated
by the Postilion PrePay system, it is forwarded to the Splash Plastic host to
credit the card account. Whatever the outcome of the transaction, the
Postilion PrePay system confirms to the terminal the status of the transaction
with appropriate receipt printing. This occurs in real time, in under 15
seconds. With their Splash Plastic account now in credit, the customer can
spend up to that limit on the Internet.

Paul Woodward, Project Manager at PayPoint, comments, “Postilion PrePay
was an obvious choice for us and with its flexible modular architecture, it
allows us to very quickly add new pre-payment solutions to our portfolio and
support new client business, like Splash Plastic. This means we are a very
attractive partner for companies who require instant access to our large and
established network of merchant locations.”

“Yet again the speed at which we can implement systems for our customers
makes a difference to their business, and helps them offer new and improved
services to their clients, as well as improving consumer choice,” comments
Stevi Lowmass, General Manager of Mosaic in Europe.

About Mosaic Software

Mosaic Software is a leading edge provider of electronic funds transfer
(EFT) software for consumer-generated electronic transactions, and is the
market leader for web-enabled ATM and prepay software solutions. The company
is held by strategic partners GE Equity and Comparex Holdings, and Mosaic
management. With offices in the USA, a European office in the UK, South
Africa and Australia, Mosaic has a strong global presence. The company is
firmly established in the financial services industry and its EFT solutions
drive operations in a large number of multinational companies and industry
leaders around the globe. Clients include financial institutions, retailers,
Internet service providers, card issuers, telcos, data processing service
providers and some of the foremost players in the emerging online industry, in
the USA, Latin America and the Caribbean, Europe, Australia, the Middle East,
Africa and the Asia-Pacific region.

Mosaic’s family of products, named Postilion, is a comprehensive software
solution designed to effectively handle the transaction delivery and
authorisation requirements of every aspect of the EFT arena. Worldwide,
Postilion is used for ATM Processing/Monitoring, EFT Switching and Routing,
Point-of-Sale (POS), Credit/Debit Card Processing, Internet/Call Center
Payment Authorisations, Prepayment, Internet/Home Banking and Mobile Commerce
applications. Operating as the first fully-fledged EFT switch running on
Windows NT/Windows 2000, Postilion is live in more than 500 installations
worldwide.

Mosaic Software clients include 7-Eleven (US), American Express (US),
Retail Decisions (UK), Calypso (Canada), PSINet Processing Solutions (UK),
Innoventry (USA), Echo (USA), Pick ‘n Pay (SA), ABSA Bank (SA), Saambou Bank
(SA), NBS (SA), Vodacom SA) and MTN (SA).
More detailed information about Mosaic Software can be obtained by
accessing the Web site at http//www.mosaicsoftware.com .

About PayPoint

PayPoint is the UK’s leading branded national network for collecting
payments ‘over the counter.’ There are over 7,500 PayPoint outlets located in
newsagents, convenience stores, supermarkets, forecourts and off-licences
across the UK. Over 2 million customers use PayPoint regularly every week
with over 1 billion pounds sterling worth of payments collected each year on
behalf of over 140 major Client companies including BT, British Gas London
Electricity, Vodafone and One2One.

PayPoint information can be obtained by e-mail at info@paypoint.co.uk, by
accessing the Web site at http//www.paypoint.co.uk or by calling (01707 600
300).

About Splash Plastic

Splash Plastic Ltd, a UK company, has developed the first ‘re-loadable’
prepaid card for teens who want to buy on the net. The company is targeting
the 20 billion pounds sterling annual spend of UK teens who want to buy online
but can’t because the main form of online payment, the credit card, isn’t
available to under 18’s. Card-holders will be able to upload money at payment
terminals in high street and convenience stores and the sums deposited will be
available to spend at affiliated Splash Plastic web merchants. Splash Plastic
is supported by a powerful consortium of payment and e-commerce specialists,
including GE Equity, Global Retail Partners (GRP) and Arts Alliance, who have
invested $10 million in first round funding. The company is leveraging an
existing payment infrastructure that will also be used by the new breed of
‘re-loadable’ top-up cards for mobile phones. More than 60,000 retailers will
be accepting Splash Plastic prepayments by the end of 2001.

Details