ACE 1Q/01

ACE Cash Express, Inc., the nation’s largest check-cashing chain and a significant provider of related retail financial services, announced that it expects to report a loss for its third quarter ended March 31, 2001. The Company expects to report revenues of approximately $59.8 million for the third quarter, with a loss for the quarter expected to range from approximately $4.1 to $4.4 million, resulting in a quarterly diluted loss per share ranging from approximately $0.41 to $0.43. The expected diluted loss per share would be less than the analysts’ estimates of $0.56 to $0.58 earnings per share for the quarter.

Jay B. Shipowitz, President and Chief Operating Officer stated, “The expected quarterly loss stems from accelerating store closures and an increased loan loss provision on Goleta National Bank (GNB) loan participations. The Company has been in a growth period for many years, especially with the recent acquisitions of 114 stores. We have concluded that, in order to continue growth and enhance the Company’s ability to be competitive, it is necessary to close several unprofitable or under-performing stores; our operations can then focus on our most productive stores. We expect our productivity, efficiency, and profitability to increase in fiscal 2002 and thereafter due to this action. We also expect to continue to pursue opening up new locations and opportunistic acquisitions. We anticipate that during the fiscal year ending June 30, 2001, we will have opened approximately 50 new locations. The consumer acceptance for the loan product (Advance Cash Express) has exceeded our expectations; during the first nine months of fiscal 2001, customers have completed over 1,000,000 loan transactions at ACE stores. The GNB loan participations have been profitable, and we expect that to continue. We believe that the loan product will continue to bring significant revenues to ACE.”

Approximately 50 percent of the difference between the analysts’ estimates and the Company’s expected quarterly results would be attributable to less- than-anticipated profits from the Company’s participations in loans made by GNB at the Company’s stores. The losses resulting from borrowers’ nonpayment of loans are expected to exceed the Company’s loan-loss allowance. That allowance was based on the Company’s prior experience with its “payday loan” product.

The remainder of the difference between the analysts’ estimates and the Company’s expected quarterly results is attributable to the Company’s plans to accelerate the closure of approximately 84 unprofitable or underperforming stores. The Company would typically close these stores at various times over the next two or three years depending on the circumstances of each store and its local market. The Company has frequently made decisions to close unprofitable or underperforming stores to coincide with the expiration of store leases. The Company has determined, however, that closing these stores in the near future would benefit its future operations. The store closings are expected to occur before June 30, 2001. A store-closing expense of up to $8.6 million is expected, which would include costs associated with lease terminations, reduction of employees, write-off of goodwill, and disposals of certain fixed assets and inventory because of store closings. Prior to these store closings, the Company owned 1,055 locations. The 84 stores planned to be closed constitute approximately 8 percent of the Company’s owned locations.

Mr. Shipowitz further remarked, “As previously disclosed, our loan loss provision relating to loan participations purchased from GNB were originally established on the assumption that loan losses would be consistent with our experience with our previous payday loan product. In this quarter, our third full fiscal quarter of purchasing loan participations, we have concluded that the new loan product has performed differently and resulted in greater losses than anticipated. GNB and ACE have had some time to see how the product has performed as it has been more extensively offered over the last year; GNB continues to refine the underwriting criteria, and we have established new procedures for collections. These methods have already begun to substantially improve our collection rate.”

Donald H. Neustadt, chief executive officer, stated, “We are disappointed that the third-quarter financial results are less than expected. Though the store closings contribute to the loss, we believe that it was prudent to take the charge to better position the Company for the future. The accelerated store closings reflect our focus on long-term productivity and better use of capital. We cannot justify any additional investment in marginal stores due to factors such as location or market suitability. We anticipate increased profitability in future years because of the closures. Moreover, with the acquisitions of 114 stores, ACE will remain on track for network growth for fiscal 2001, even with the closures.”

For the entire fiscal year ending June 30, 2001, ACE now estimates that its diluted earnings per share will range between approximately $0.03 and $0.05. For its next fiscal year, ending June 30, 2002, ACE now estimates, based on currently available information and assumed business trends, that its total revenue will range from approximately $210 million to $215 million, resulting in diluted earnings per share ranging from approximately $1.30 to $1.36.

More information will be provided when the Company announces its full financial results for the third quarter, including a “Business Outlook” during the week of April 16, 2001.

About the Company

ACE Cash Express, Inc. is headquartered in Irving, Texas and is the largest owner, operator and franchiser of check-cashing stores in the United States. Founded in 1968, the company has a total network of 1,221 stores, consisting of 1,055 company-owned stores and 166 franchised stores in 33 states and the District of Columbia. ACE also maintains automatic check- cashing machines, which provide financial services without the need for a service associate, at 71 locations. ACE offers a broad range of financial and check-cashing services and is one of the largest providers of MoneyGram wire transfer transactions. In addition, ACE offers money orders, bill payment services, and prepaid local and long distance telecommunication services. Under ACE’s agreement with Goleta National Bank (GNB), GNB currently makes small consumer loans available to customers at various ACE company-owned stores. The company’s website is found at [][1].




E-xact Transactions Ltd. has recently signed an agreement with Intrawest
Corporation to integrate its’ transaction processing services for Intrawest’s
new online resort technology.
Intrawest is the leading developer and operator of village-centered resorts
across North America. The company owns ten mountain resorts, including
Whistler/Blackcomb, North America’s most popular mountain resort, as well as
several golf and beach resorts. E-xact will provide a critical piece for their
new online infrastructure by processing all the online transactions for
each of
their resorts and provide independent financial audit of these transactions.
“E-xact provides a world-class solution and we’re thrilled to be working with
Intrawest and their partners – Pivotal Software and Microsoft in bringing
transaction automation to their resorts. Our services fit especially well due
to our deep reach into both Canadian and U.S. financial networks,” says Peter
Fahlman, President and CEO of E-xact. “We already provide transaction services
to the Resort Ownership group, so Intrawest management can now get complete
financial reporting for both of these business units through one easy
interface – in real-time!”

Intrawest will rollout several services and marketing campaigns over the
months for on-line ticket sales, reservations, renewals, and miscellaneous
product sales. Last year Intrawest saw 6.2 million skiers, 546,000 rounds of
golf, and 8,000 yearly members – many of whom will be using these new online

“The scope of our business required the right partner for handling our
financial transactions and we’re pleased with the choice we’ve made with
E-xact. Their technology provided the kind of performance and scale we were
looking for and their continued work with other high profile companies like
Dell Computer, Advanced Book Exchange and Sony Music, gives us great
as we launch our online initiatives,” says Kevin Stunder, Director of
Intrawest’s E-commerce Division.

About E-xact Transactions Ltd. (CDNXEXZ.U)

E-xact specializes in the real-time, secure movement of mission critical
financial information. E-xact offers clients on-line automated application
services through Speedy Merchant, and transactional services for IP-based
Point-Of-Sale. Headquartered in Vancouver, B.C., further information is
available at

About Intrawest Corporation (NYEIDR, TSEITW)

Intrawest is the leading developer and operator of village-centered resorts
across North America. The company owns many of North America’s most popular,
world-class, four-season resorts including Whistler/Blackcomb. The company is
headquartered in Vancouver, B.C. and is located online at



CardSelect International announced that it is ready to offer its credit card and loyalty card system for integration into a bank’s services. This back-end system enables card issuers to offer credit cards with multiple loyalty programs to their customers.

This new technology platform will allow consumers to select the merchant reward programs they use most often and link them either online or offline to their financial transaction card of choice. The company can tailor the program to work efficiently in either magnetic stripe or smart card environments. CardSelect is offering the service to card issuers and processors. CardSelect was awarded a United States Patent in 1999 for its “Gateway Apparatus for Designing and Issuing Multiple Application Cards”. This technology enables multiple applications from different vendors to be combined on virtual cards, magnetic stripe cards and/or smart cards. Consumers would need only one card to pay for purchases and to accumulate and track merchant loyalty points/miles.

According to Holger Mackenthun, president of CardSelect International, issuers are currently exploring various new options to make their card programs more appealing to customers. “Card issuers must find ways other than low interest rates to differentiate their products and brands in a crowded marketplace,” Mackenthun says. “That’s why we are confident that our loyalty program solution will help banks create an exciting value proposition for their cardholders and associated merchants.”

About CardSelect International

CardSelect International was founded by former executives of a major international smart card manufacturer. The company has developed a patented loyalty platform for customizing and issuing credit cards, smart cards and multiple application cards both online and offline. The company provides backend services for loyalty programs and co-branding solutions that enables consumers to personalize an ALL IN ONE CARD with their favorite merchant and membership club reward programs. More information on CardSelect can be found on the company’s web site at [][1].



CHINA Inc., a leading Internet technology provider in China, announced a
partnership with MasterCard International China, Acer and HiTRUST to offer a
complete e-commerce payment system for NetEase Web site users.
With this partnership, NetEase users will be able to conduct secure e-commerce
transactions on NetEase’s e-commerce platform using MasterCard’s advanced
payment solutions and HiTRUST’s secure on-line payment system. The online
transactions will be powered by Acer’s high technology hardware.

The partnership draws upon the strengths of each company. NetEase recently
important advances in e-commerce in China when it launched the NetEase
Mall, an
e-commerce platform on which NetEase’s 16 million registered users are able to
buy products online. MasterCard International is a recognized leader in secure
and reliable payment facilitation and is a strong liaison to banks. HiTRUST is
the leading technology provider of secure authentication and e-commerce
infrastructure services and Acer offers robust technological hardware and
technical support.
“China’s e-commerce industry is still in its embryonic stage, and by
issues such as delivery, payment systems and infrastructure, we are
facilitating its development,” said King Lai, Chief Executive Officer of “Our partnership with internationally recognized players
MasterCard, Acer and HiTRUST will help us drive our e-commerce capabilities to
the next level,” Lai added.

MasterCard International, the global payments company, is the market leader in
the Asia Pacific region for both real and virtual payment systems. Willie
MasterCard International Senior Vice President and General Manager for Greater
China, commented, “MasterCard is dedicated to making purchasing on the
easy and convenient for both consumers and enterprises. MasterCard’s
collaborative efforts with NetEase, Acer and HiTRUST will ultimately benefit
MasterCard cardholders who can now shop on China’s leading Web site.”
MasterCard will also sponsor a special mini-mall within the NetEase Mall so
that its authorized MasterCard merchants will be able to offer their products
and services online.

Mr. Lin Xianlang, Acer General Manager for China, explained, “Acer plays a key
role in this partnership, which in turn provides Acer with an important avenue
for our strategic transformation. As an Internet access device and server
manufacturer, Acer seeks to proactively provide impetus for the growth of
e-commerce in China. Utilizing ViewPoint 3D technology provided by NetEase,
Acer will demonstrate its newest products found on NetEase’s online mall and
will inform customers of where they can buy Acer’s products, both online
and in
local stores.”

Wen Lee, HiTRUST President and CEO, also added “The secure authentication and
e-commerce infrastructure services provided by HiTRUST are critical building
blocks for the development of e-commerce in China. By partnering with NetEase,
MasterCard and Acer, HiTRUST will allow the NetEase Mall to offer swift,
and advanced online payment solutions. Complying with banking security rules,
HiTRUST brings leading security technology to aid in the development of
e-commerce industry.”

About, Inc., Inc. is a leading China-based Internet technology company and
pioneered the development of applications, services and other technologies for
the Internet in China. The NetEase Web sites, operated by our affiliate,
organize and provide access to 18 content channels through content
arrangements with over 150 international and domestic content providers. In
addition, the NetEase Web sites contain over 723,000 personal home pages
created and maintained by our users that enable users to express themselves,
share items, interests and areas of expertise and to publish personal content
accessible by other Chinese Internet users. The NetEase Web sites also offer
online interactive community services through 200 community forums and over
76,000 personal community forums created by registered users. At the end of
February 2001, the number of simultaneous chat room participants reached
during peak hours., Inc. offers auction and online mall technology services, which
provide opportunities for e-commerce and traditional businesses to
establish an
online e-commerce presence on the NetEase Web sites.

About MasterCard International

MasterCard International has the most comprehensive portfolio of payment
in the world. More than 1 billion MasterCard(R), Cirrus(R) and Maestro(R)
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$725 billion. MasterCard can be reached through its
World Wide Web site at http//

About Acer Group

Founded in 1976 with worldwide headquarters in Taiwan, the Acer Group is the
world’s third-largest PC manufacturer, offering a broad selection of
industry-leading high-end servers, multimedia PCs, notebooks, computer
peripherals, components and semiconductors. The Acer Group maintains more than
32,000 employees in 120 enterprises, spanning 37 countries worldwide,
supporting dealers and distributors in over 100 countries. The Acer Group’s
revenue in 1999 was US$8.5 billion.


HiTRUST.COM is an e-commerce business jointly set up by a group of
world-leading companies including Acer Group, New World CyberBase, HSBC Group,
AIG Group and VeriSign — the worldwide leading provider of trusted security
infrastructure services. HiTRUST.COM’s key businesses are secure
services and secure B2B and B2B2C e-commerce infrastructure provision. It aims
to be a leading provider of electronic certification services and secure
e-commerce technology development in the Asia-Pacific region.


VeriSign & eONE Global

VeriSign, Inc., the leading provider of Internet trust services, and eONE Global LP, a leader in emerging payment technologies for Internet and wireless applications, announced that they have signed a strategic agreement to co-market each other’s products and services as well as co-develop solutions to increase secure payment options for a broad range of businesses engaged in e-commerce. As part of the overall agreement, and to cement this important alliance, VeriSign intends to make a $20 million equity investment in eONE Global and its SurePay business.

![][1] VeriSign and eONE Global, through eONE’s operating company SurePay, LP, will integrate their respective B2B solutions to deliver and co-market a ‘best of breed’ offering via SurePay’s patent-pending end-to-end payment solution to business-to-business exchanges, enterprises and financial institutions, and will jointly market VeriSign’s PayFlow managed payment services to online merchants. SurePay, an Internet gateway services provider for First Data Corp.

(NYSE: FDC), will market VeriSign’s managed payment gateway, as SurePay’s premier payment gateway offering, to First Data’s financial institution clients and other distribution partners. As the majority owner of eONE Global, e-commerce and payment services leader First Data has extensive distribution channels including relationships with 2.5 million merchant locations and more than 1,400 card issuers. Additionally, VeriSign will integrate First Data’s patented VirtualApp technology, an online merchant account application and decisioning tool, into its merchant payments platform and will also market First Data’s payment processing services to its customers, including its substantial domain name customer base.

‘Whether building new online marketplaces or reengineering existing supply-chain processes, businesses of all sizes will continue to migrate their mission-critical processes online,’ said Stratton Sclavos, president and CEO of VeriSign. ‘By leveraging the combined strengths of VeriSign and eONE Global, backed by First Data Corp., customers will be able to leverage a highly scalable solution set for Internet authentication, payments and transaction validation.’

As part of the agreement, eONE Global and its operating companies, including SurePay, will use VeriSign’s range of Internet trust services, including managed PKI services and website digital certificates. ‘eONE Global’s focus is accelerating the development and adoption of new payment technologies. That’s what this agreement with VeriSign is all about,’ said Garen Staglin, president and CEO of eONE Global, which focuses on the business and consumer as well as the government payments sectors. ‘We believe SurePay is the premier product suite for exchanges, enterprises, financial institutions and other organizations integrating a payments solution. Instead of having to manage many different relationships, now it’s just one.’

The SurePay payments solution, to be marketed by both SurePay and VeriSign, is an end-to-end online offering targeted at enterprises, public and private B2B exchanges, net market makers, systems integrators and other technology companies. Leveraging First Data’s expertise and processing technology, the SurePay solution is an integrated suite of products that will include: Registration, authentication, trade financing, secure payments processing and settlement, and customizable reporting, which can be seamlessly integrated into an enterprise’s or exchange’s existing software.

SurePay and VeriSign will also jointly develop tools to enable developers to integrate SurePay’s B2B solution with third-party point solutions in order to route information and payment data between relevant parties in an XML format.

SurePay will continue to pursue its strategy of partnering with financial institutions and point-solution providers to complement and complete its end-to-end offering.

Ric Duques, chairman and CEO of First Data and chairman of the eONE Global board, said, ‘What’s most important here is that leading industry players are coming together, bringing their respective ‘best in class’ offerings to fuel both the growth of the business to business as well as online commerce between merchants and consumers. Instead of searching for what is the ‘right’ solution, those financial institutions and third-party providers, we believe, will have unquestionably the leading ‘industry’ solution.’

About VeriSign

VeriSign, Inc. (Nasdaq:VRSN) is the leading provider of trusted infrastructure services to Web sites, enterprises, electronic commerce service providers and individuals. The company’s domain name, digital certificate and payment services provide the critical Web identity, authentication and transaction infrastructure that online businesses require to conduct secure e-commerce and communications. VeriSign’s services are available through its Web site ([][2]) or through its direct sales force and reseller partners around the world.

About eONE Global

As the leading source for accelerating payment innovation, eONE Global, LP ([][3]) identifies, develops, and operates emerging payment systems and related Internet and wireless technologies spanning the business, government and consumer markets. Its operating companies include SurePay, LP ([][4]), which provides end-to-end payment and security products for companies and consumers buying and selling over the Internet, as well as govONE Solutions, LP ([][5]), which enables businesses and consumers to make government payments electronically. eONE Global is owned by global e-commerce and payment services leader First Data Corp. (NYSE: FDC) and iFormation Group, a company created by The Boston Consulting Group, General Atlantic Partners, LLC and The Goldman Sachs Group.

About SurePay

SurePay, LP provides complete, end-to-end payment, trust and security products and services for Internet B2B, B2C and Mobile Commerce markets on a global scale. Leveraging the leadership position of its founder, First Data, in payments processing, SurePay develops and delivers trusted, secure payment solutions for businesses and consumers buying and selling on the Internet. SurePay is a central operating company within the eONE Global network of payment companies and technologies. Headquartered in Melville, NY, SurePay has access to the powerful transaction processing and distribution resources of First Data Corporation throughout the world. For more information visit [][6].

About First Data Corp.

Atlanta-based First Data Corp. (NYSE: FDC) is a global leader in electronic commerce and payment services. Serving more than 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 [][7].

About iFormation Group

iFormation Group is a company created by The Boston Consulting Group, General Atlantic Partners and Goldman Sachs to carve new ventures out of traditional companies in partnership with the Global 2000. iFormation teams with industry leaders to acquire, develop and build new Internet and technology ventures that leverage the corporate partners’ legacy assets. For more information, please visit the company’s Web site at [][8]

[1]: /graphic/eoneglobal/eog.gif



Gemplus, the leading smart card solutions provider, announced – in concert
Nextel Communications, Inc.’s announcement of the i85 phone by Motorola- that
it has been chosen by Nextel as the provider of SIM cards for the Motorola
wireless phone. These SIM cards are the first in the world to be manufactured
to a specification other than the Global System for Mobile Communications
(GSM). That means North American users of non-GSM phones can enjoy the same
advanced features and high security that wireless customers in Europe and Asia
have come to expect.

Gemplus is manufacturing the SIM cards for Nextel to iDEN(R) standard
specifications. This Motorola technology supports voice, data, short messages
and other features in one phone. It operates in the 800 MHz and 1.5 GHz bands
and is based on TDMA (Time Division Multiple Access).
A key benefit of the Gemplus SIM card for Nextel and its customers is enhanced
security, with a strongly encrypted “handshake” between the user and the
network that provides a highly dependable means of user identification. SIM
cards create the freedom for users to roam internationally without losing
personal set-ups and to change wireless terminals as they wish, without
customer care. SIM cards also open the door to application security for mobile
commerce and wireless Intranet.
The integration with Motorola was the first of its kind successful
of a SIM card in a mass-market non-GSM phone.

“This is a groundbreaking development for North American wireless networks,”
said Jean-Louis Carrara, Director of Telecommunications for Gemplus in North
America. “The use of SIM cards in the Nextel network is a tremendous
endorsement of smart card technologies, demonstrating the intrinsic value of
SIM cards in all networks, for all wireless technologies.”
Gemplus has been manufacturing the cards for wireless phones since 1992 and
issued 41% of SIM Card units sold in 1999 (source Eurosmart/Gemplus 2000), the
largest of any single manufacturer. Gemplus has been providing more than 250
wireless operators with SIM cards, software, and services since 1988. The
company’s other innovations in the mobile phone market include products and
technologies such as the development environment GemXplore(R) CASE, the remote
SIM management platform GemXplore Suite, and Java Card(TM) SIMs.
“As the world’s largest producer of SIM cards for cellular phones, Gemplus has
both the technical and manufacturing expertise necessary to ensure that high
quality SIMs will be readily available to meet the demand expected for the i85
phone,” said Greg Santoro, Vice President Internet and Wireless Services at
Nextel. “The security and dependability their smart cards provide is
in the industry.”

About Gemplus

GEMPLUS the world’s leading smart card solutions provider

Since its creation in 1988, Gemplus International S.A.(Euronext Sicovam 5768
and NASDAQGEMP) has driven the global marketing and deployment of smart
card-based applications for telecommunications, financial services and
e-business security.
Gemplus is instrumental throughout the value chain – chip design, card
management systems, software development, and consulting – delivering
integrated custom-made solutions for the security, personalization and privacy
management needs of clients and partners worldwide.
Gemplus technology has played a defining role in the development of wireless
telephony since the introduction of SIM cards into the GSM standard in 1990.
For more than a decade, Gemplus has pioneered applications that enable network
operators around the world to answer the changing needs of their customers.
Gemplus was first to market with a 3G card and supplies a product range
compliant with new and emerging transmission standards – 2.5G, 3G.
In 2000, revenue was 1.205 billion Euros, up 57% from the previous year’s 767
million Euros. Net income was 99 million Euros. Gemplus employs more than 7800
people in 37 countries worldwide. Since December 11, 2000, Gemplus shares have
been trading on Euronext Paris S.A. First Market and on Nasdaq Stock
at GEMP in the form of ADSs.



Strategic Internet Investments Incorporated announced that Strategic Profits
Inc. has released its beta version 1.0 of its recurring batch software.
SPI will have the basic batch virtual POS terminal ready for beta testing
within two weeks. SPI has been a secure payment service providers since 1997,
and provider of e-solutions since 1994.

The recurring batch software will provide merchants with the ability to
generate a database of recurring credit card transactions through a Windows
based software application. The transactions will then process automatically
according to the schedule the merchant sets up. An e-invoice and e-receipting
functionality will also be provided within the application. The interface is
user-friendly, creates browser-based reports and allows the database to be
downloaded to other desktop applications. This system will work in
with SPI’s existing Verifone Payworks 3 payment engine and become part of the
PayPaq(TM) stable of payment applications.
“This application will provide merchants that have recurring monthly credit
card billings, like membership fees, subscriptions or payment plans, etc. with
a simple to use desktop application that automates the process,” says
Clarke Luckhurst, President and CEO of Strategic Profits, Inc. “Merchants can
now realize the following benefits less manpower — as re-keying credit card
data is no longer required; less errors — data is only input once; better
record keeping — management reports are built in; sensitive data can be kept
within one secure and encrypted application.”

About Strategic Profits, Inc.

SPI has been providing Internet commerce solutions to small and medium
enterprises, not-for-profit and charities since 1994 including secure credit
card transactions since 1997. SPI provides full Internet service offerings
including online education, web hosting and design, Internet marketing, secure
shopping cart and payment order systems, as well as secure payment
through Moneris Solutions and through out North American with GPS. Secure cash
transactions are available through their partners,! In 1998
launched the e-commerce pilot with their consortium
partners Industry Canada, Royal Bank of Canada. Today,
is a fully commercialized portal offering online shopping, fundraising, and
turnkey e-commerce solutions. http//
Feb. 1,
2001 SPI, HP Canada Ltd. and TELUS announced an alliance to deliver a new
generation secure Internet-based credit card payment service…PayPaq(TM)!



The world’s premier card manufacturing
association the International Card Manufacturers Association (ICMA)will
hold its
11th Annual EXPO in Athens, Greece. The event will be held November 11-14,
2001, at the Athenaeum Inter-Continental Hotel. Known for centuries as a
leading center of knowledge, the Athens location will complement ICMA’s
in-depth educational conference for card manufacturers, personalizers, and
product and service providers.

The ICMA 11th Annual EXPO 2001 will feature an exhibition of plastic card
suppliers of card manufacturing equipment, materials, components and
ICMA has a full conference program planned consisting of both management and
technical topics. The EXPO culminates with the Final Night Awards Banquet
featuring the presentation of the Élan Awards for Card Manufacturing

ICMA encourages qualified industry participants to submit a paper for the
conference addressing both management and technical topics dealing with
card industry trends and production, personalization, technical, application
and marketing issues. If interested, a one-paragraph abstract should be faxed
or e-mailed to Mary Kay Metcalf at fax (609) 799-7032; e-mail by May 31, 2001.

For ICMA 11th Annual EXPO 2001 exhibiting, registration or sponsorship
information or for information on becoming a member of ICMA, contact Lynn
McCullough, phone (609) 799-4900; fax (609) 799-7032or visit the ICMA web
site at http//

About ICMA
Based in Princeton Junction, NJ, ICMA is a non-profit association of plastic
card manufacturers, personalizers and related industry participants. With
than 220 members globally, the ICMA acts as a clearinghouse for industry
issues, including the production, technology, application, security and
environmental issues of plastic cards.



Euronet Worldwide, a leading provider of secure electronic financial
transaction solutions and National Telecommunications Company, a
technology-based holding company active in the communication and information
technology fields in Egypt and the Middle East, announced the forming of
Cashnet, a branded Electronic Fund Transfer network.
Cashnet is a joint venture between Euronet, NTC and Quantum Fund, a member of
the George Soros group of funds, for developing and operating an Automated
Teller Machine (ATM) network for banks and card issuers in Egypt.
Cashnet will launch 50 ATMs by June of this year, and the company’s business
plan calls for the operation of 500 ATMs by 2004. The services Cashnet will
provide to Egyptian financial institutions include

— Deploying and operating the Cashnet-owned, Cashnet-branded ATM network

— Operating bank-owned, bank-branded ATMs

— Operating POS terminals

— Providing connections or secure transaction gateway services between banks and international networks such as Visa and MasterCard

— Providing authorization interfaces for the Internet and GSM mobile operators

— Providing debit and credit card issuance and related services

At this time, Cashnet has entered into agreements to provide services to
Citibank, Egyptian American Bank (EAB), Visa, MasterCard, American Express,
Diners Club International. As part of this agreement, Euronet Worldwide will
provide Cashnet with day-to-day management services, and processing of Cashnet
electronic transactions via the company’s Budapest, Hungary, processing
“Egypt is a market of 65 million people with a virtually undeveloped EFT
industry that is on the verge of tremendous growth,” said Dr. M.T. Bardai,

“By using Euronet’s processing center and their expertise in deploying and
operating ATMs as well as issuing debit cards, Cashnet will quickly be
positioned to influence and assist the growth of the EFT industry.”
“We are tremendously excited about this partnership,” said Michael Brown,
Euronet Worldwide Chairman and CEO. “This opens a new territory for us in the
emerging markets of the Middle East and Africa. In addition, we will continue
to pursue software sales and electronic recharge solutions for mobile
and will utilize Cashnet as a subcontractor for the in-country implementation
and support of these services. Currently nine Egyptian banks use Euronet’s
software for ATM, switching and debit card services.”
As a global provider of secure financial transactions, Euronet continues to
expand its geographic and marketplace presence throughout Europe, the Middle
East, Africa, the Americas and Asia/Pacific. This expansion enables our
customers to provide their consumers a wide array of transaction touchpoints
and provides Euronet continued transaction volume growth.

About National Telecommunications Corporation

National Telecommunications Corporation, “NTC,” was established in 1995 as a
technology-based holding company active in the Communication and Information
Technology fields in Egypt and the Middle East. NTC’s strategic plan is to
establish subsidiaries in DATA, Software Development, e-Commerce services, and
Telecommunication and Electronic Manufacturing. NTC has established the first
Cyber Center in the Middle East and the first Data network in Egypt. NTC is
positioning itself to be the premier financial services company in Egypt using
Smart Card technology.

About Euronet Worldwide

Euronet Worldwide is an industry leader in providing secure electronic
financial transaction solutions. The company offers financial payment
middleware, financial network gateways, outsourcing and consulting services to
financial institutions and mobile operators. These solutions enable their
customers to access personal financial information and perform secure
transactions — any time, any place. The company has processing centers
in the United States, Europe and Asia, including owning and operating the
largest independent ATM network in Europe. Euronet was recently ranked number
two on the Deloitte & Touche Technical Fast 500, a ranking of the
fastest-growing technology companies in North America. With corporate
headquarters in Leawood, Kansas, USA, and European headquarters in Budapest,
Hungary, Euronet serves more than 200 clients in 60 countries.



Keyware, one of the world’s leading providers of biometric and centralized
authentication solutions, announced it has acquired Data Management and
Processing, a provider of smart card authorization services for merchants and
card issuers. The acquisition will strengthen Keyware’s existing biometric and
smart card business, allowing the company to offer secure biometric
authentication in addition to providing authorization for each customer card

The purchase was made for approximately $1.1 million (U.S.) in cash and an
additional $800,000 in Keyware stock to be paid out over the next two years.
During the past year, DMP had revenues in excess of 50 million Belgian francs
(approximately $1.1 million U.S.) and earnings of 2.5 million Belgian francs.
DMP (, which stands for Data Management and
Processing, is under contract with a number of major card issuers to handle
authorization services for more than 1.5 million cards and accounts. Each day,
DMP servers authorize transactions from some 50,000 EFT terminals located at
retail stores, restaurants and other locations throughout the Benelux region.
The company has permanent online connections to authorization hosts for
acceptance of VISA, Eurocard, Mastercard, American Express, Diners Club,
Aurora, Tempo and other credit card organizations. DMP provides secure
authorization and clearance services to card issuers as well as directly to
merchants, and collects a small fee for each transaction. Customers currently
under contract include Citibank, Diners Club, Cetelem Group (Cetelem Belgium,
Fortis Credit Card, Fimaser), Mobistar and Proxis.
Keyware sells smart card software applications (loyalty, ticketing, identity)
and provides ongoing maintenance contracts through its smart card division.
company has worked with DMP for the authorization and clearance step in its
smart card transactions. In the future, Keyware plans to offer card issuers,
e-commerce and wireless vendors a simple way to authenticate a customer’s
identity with biometrics in addition to providing standard authorization
services for the transaction.

“Enhancing security through biometrics”

“Security is a critical challenge for market acceptance of smart cards,” said
Francis Declercq, president and CEO of Keyware. “By adding biometrics, we can
authenticate the user before authorizing the transaction and enhance the
security. This can open up a huge number of possible applications, especially
for e-commerce and wireless transactions. By joining forces with DMP, we can
bring secure authentication to a large blue chip customer base and replicate
that solution well beyond the Benelux region, since e-commerce and wireless
transactions are not confined by national borders.”
According to Declercq, the acquisition of DMP furthers the company’s goal of
bringing biometrics to a much larger audience. “This is an implementation of
our strategy to bring biometrics with smart card applications to the mass
market,” he said. “It lets us offer customers authentication and authorization
services anywhere, anytime and from any device.”

“Major opportunity for development of biometric security”

Martin Gandar, principal analyst for Butler Group stated “The rapid growth we
have expected in the adoption of smart card technology which has been slow to
materialize and the ever growing problem with fraud has undoubtedly opened up
major opportunity for the deployment of biometric security techniques to
authenticate the user or card holder.”
He added “To date we have been surprised by the low number of manufacturers
looking to develop security devices such as smart card readers into standard
desktop equipment. However we are now seeing a great deal of development in
this area with major developers offering smart card options on standard office
based equipment to support hot desking which in its turn will undoubtedly fuel
the move to an increase in online commerce.”

Social Security Card

Keyware develops centralized authentication software allowing companies to
manage all their authentication methods (PKI, biometrics, smart cards, PINs,
passwords, etc.) from one server, called the Central Authentication Server
(CAS). Keyware integrates its CAS solutions into applications ranging from
Internet and network security to physical access control and smart cards.
Keyware has delivered a number of identity, ticketing, e-payment and customer
loyalty solutions based on smart card technology for companies such as
Delhaize, Kinepolis, Valor and the Belgian Football League. Keyware also
developed the Belgian social security card (SIS).
DMP is also present in the SIS card activity. DMP developed and sold under
license to main pharmacist’s software houses the BNCS (Belgian Native Card
Server) that recognizes Belgian SIS cards and deliver official certificate for
thousands terminals sold by Belgacom, Gemplus, Utimaco and others. DMP
a data processing center in Louvain-La-Neuve, Belgium and has a back-up
site in
Brussels. The seven employees are all expected to remain with Keyware.

About Keyware

Founded in 1996 and quoted on NASDAQ Europe (formerly EASDAQ) since June 2000,
Keyware is one of the world’s leading providers of a broad range of
authentication solutions for real-world business applications, and a
pioneer in
the field of biometrics, the technology of verifying an individual by means of
personal characteristics such as voice, face and fingerprints. Keyware’s
centralized authentication server (CAS) with LBV-technology allows
companies to
manage multiple authentication techniques, including biometrics, from one
central server. CAS optimizes security and convenience for physical locations,
e-commerce, network, smart cards and telecommunications applications.
award-winning technology is sold globally through an extended network of OEMs,
system integrators and VARs. Co-headquartered in Brussels (Belgium) and Woburn
(Mass., USA), you can find more information about Keyware at



RHB Bank Berhad, one of Malaysia’s largest commercial banks, has appointed
Corillian, a leading global provider of eFinance-enabling software, to
enhance its online banking services, offering RHB Bank customers personalized
Internet banking services throughout Malaysia and the South East Asia

The agreement signed with Corillian is for the implementation of
Corillian’s Voyager Internet banking platform – a robust, secure system
with proven ability to handle large volumes of online customer traffic.
The system enables RHB Bank to offer personalized financial management,
portal facilities and one-to-one marketing to its customers.

In choosing Corillian to enhance its online banking services, RHB Bank is
joining banks like Bank One, Chase Manhattan, Eurobank and Suncorp Metway
(Australia), which are currently running or in the process of implementing
Corillian’s Voyager platform.

“RHB Bank has in place an eBanking strategy that reinforces the bank’s
dominant positions in the various business segments to meet the challenges
of more intense competition and a very customer focused marketplace,” said
Yvonne Chia, managing director of RHB Bank. “We have shaped our strategy
to leverage on the best complement for our physical and electronic
channels. Our click and mortar approach ensures our customers have a
flexible solution and real-time access to all our channels seamlessly
anytime, any place. We will reach out to our customers in an integrated
manner combining the high volume processing capabilities of our core
banking technologies with advanced customer-friendly web functionalities.
RHB Bank will deliver Internet banking capabilities to our customers in a
highly secured environment using advanced technology capabilities on par
with that of global banks.”

The agreement is the first in Asia for Corillian, already a leading player
in the U.S. with a strong track record for providing cutting-edge eFinance
solutions to financial services institutions. Corillian’s entry to Asia
also demonstrates that successful eFinance solutions developed for the
U.S. market can be adapted for other markets. With over 40 financial
institutions already licensing the Voyager product in the U.S.,
Corillian’s Voyager platform offers unparalleled levels of scalability for
leading banks that are planning to enhance their Internet operations

“This deal is a major step forward for Corillian internationally and I am
sure that RHB Bank will act as an important reference site for us in
Asia,” said Giles Hewson, business director of Asia for Corillian
International. “This will definitely aid Corillian’s penetration of other
Asian markets such as Thailand, Singapore, Indonesia and the Philippines.
The competitive nature of these markets will result in a greater
liberalization and the rapid adoption of new technologies. Domestic banks
that do not invest in world-class eFinance software may find that
international banks are able to attract their best customers away with

state-of-the-art Internet banking services. The unparalleled scalability
and open architecture that Corillian provides will permit forward-thinking
banks like RHB Bank to take the initiative and provide the benchmark for
Internet banking in this region.”

Corillian Voyager – The Operating System for eFinance(TM) – is a
high-performance platform that allows for the delivery of financial
services to customers over the Internet. Voyager provides a link between a
financial institution’s legacy host system and its consumers, using
Internet browsers, personal financial management software and
Internet-ready wireless devices. Voyager’s open architecture design allows
an institution to quickly integrate emerging technologies, deploy the
platform in-house or in a secure data center, and customize the entire
Internet banking presentation to its customers.

About Corillian Corporation

Based in Oregon, and with international offices in Europe and Asia,
Corillian Corporation is an award-winning provider of eFinance-enabling
software for the financial services industry. Built on the Microsoft
Windows 2000 platform, Corillian applications support Internet banking,
bill delivery and payment, brokerage, customer relationship management,
enhanced data aggregation, and small business transactions. Voyager can be
deployed on-site at the financial firm or at a secure data center.
Corillian technology also enables Open Financial Exchange (OFX) access by
finance management software packages such as Quicken®, QuickBooks® and
Microsoft® Money. For more information about Corillian Corporation, visit
the company’s Web site at http//

About RHB Bank

RHB Bank is Malaysia’s third largest commercial bank and offers a
comprehensive range of financial products and services ranging from
retail, commercial and corporate banking to Islamic products and services
and electronic banking. With its Head Office at RHB Centre in Kuala
Lumpur, Malaysia, RHB Bank has built an extensive branch and Sales and
Service Outlets (SSOs) network of over 200 offices throughout Malaysia.
RHB Bank also has a regional presence in the region with branches in
Singapore, Bangkok and Negara Brunei Darussalam.



Philips Semiconductors, a division of
Royal Philips Electronics announced its newly
formed Crypto Competency Center, a leading edge research center
specializing in cryptographic architectures and algorithms. The CCC,
located in Eindhoven, The Netherlands, will focus on the growing demand
for highly secure encryption capabilities for data transactions. The CCC
will focus on applied crypto security research and the pre-development
of IP blocks by creating reusable, embeddable IP blocks capable of
supporting future semiconductor devices that can be integrated in
networking and identification products and systems.

The CCC will provide innovative hardware and software technology for the
secure implementation of existing encryption algorithms such as RSA,
elliptic curves and AES. It will also enable Philips Semiconductors to
stay at the forefront of development for new secure architectures and
algorithms. The CCC results will be used in new chips, enabling a wide
span of secure applications in advanced embedded solutions such as
integrated circuits (ICs) for broadband wired and wireless networks,
virtual private networks, smart cards, radio frequency identification
(RFID), and smart card readers. The resulting silicon solutions will
improve security transactions in applications such as secure network
access, m/e/t-commerce, high-security governmental and emerging on-line
applications such as pay TV, banking and online stock trading.

“The CCC strengthens Philips Semiconductors’ leadership position in
embedded secure technology by reinforcing our commitment to provide our
customers with the core-enabling technology for secure business
transactions,” says Scott McGregor, Executive Vice President, Philips
Semiconductors. “As the demand for secure global transactions increase,
our team of over 20 dedicated scientists and engineers at the CCC will
work to support our commitment and leadership in the digital marketplace
as it continues to grow.”

Philips Semiconductors will show a selection from its portfolio of
products for secure networking and provide an overview of smart card
applications at the RSA Data Security Conference in San Francisco, April
10-12, 2001.

Philips Semiconductors, which had annual revenues of approximately
US$6.3 billion in 2000, designs and manufactures semiconductors and

silicon systems platforms. Philips Semiconductors is spearheading the
emerging field of systems on silicon solutions with the innovative
Nexperia(tm) platform and VLSI Velocity(tm) tool set. The company’s
Sea-of-IP(tm) design methodology allows plug and play intellectual
property blocks for easily customizable products. The company is a
leader in communications, consumer, PC peripherals and automotive
semiconductors, which are key applications for convergence in end-user
products. Philips Semiconductors is headquartered in Eindhoven, The
Netherlands, and has operations throughout the world.