Citi Credit-ED

Bolstering its leading commitment to financial literacy among young adults, Citibank teams with EdVenture Partners to take its “Credit-ED” program into college classrooms across the nation. This spring semester, Citibank announces it will sponsor a unique hands-on industry-education course in which marketing students from five schools around the country will participate and, therefore, promote responsible money management to their fellow students on campus. The five schools participating in the Citibank/EdVenture Credit-ED pilot program are: Northeastern University; Boston University; Arizona State University; University of California, Berkeley; and the State University of New York, Binghamton.

Credit Education: A Pre-requisite to Life After College

The college campus is the ideal environment to teach young adults about the need for responsible money management. And who better to talk to students about credit card basics and creating a budget than…other students? The Citibank/EdVenture Credit-ED program provides students with the rare opportunity to apply classroom teachings to real-world business practices. Students at each of the five participating schools will form a “marketing agency.” The goal of the course is to design and implement an on-campus marketing campaign aimed at educating college students about the importance of fiscal responsibility.

“We are excited about offering this opportunity to the students,” explains Gina Doynow, Citibank’s Vice President of College Marketing. “Research tells us that students want to be responsible and learn the ABC’s of credit, yet many of them may not know where to turn. We are pleased to have the students themselves help us accomplish this. We’re looking forward to seeing their campaigns as well as the impact made in the student community.” The students will spend the first half of the semester formulating their marketing strategy recommendations and campaign idea. After presenting their concept to Citibank, they will execute their campaign on campus as well as track and analyze its results.

Beyond Students: Educating College Administrators and Parents Too

Many college students arrive on campus lacking the fundamentals for managing their own finances wisely. Surprisingly, it’s a subject often overlooked by parents and high schools. Citibank believes that young adults should not have to learn the vital lesson of financial responsibility the hard way — through trial and error. A pioneer in Credit Education, Citibank is changing this “learning” process. “We are dedicated to helping students acquire crucial money management skills early so they can spend wisely, minimize debt and build a good credit history for life after college,” says Doynow. Citibank’s Credit-ED program provides the utmost financial tools and resources not only to college students, but also campus administrators and parents. The program offers easy, convenient access to a wide range of free resources that include:

– The “Credit Matters” page at [][1]. This resource allows students – and parents – to learn and understand the fundamentals of money management. The site features a range of free credit-related tools, information and additional financial education materials, such as:

– “Start Right” — a 30-minute video of students talking to students about money

– Credit Minder – a credit card register that helps track spending

– “The Adventures of Anita Future and Les Foresight” comic book

– a humorous comic strip series that sheds light on credit card matters and money management

– Credit-ED bulletins – a series of guides on managing and understanding credit

– Information covering a variety of personal financial management issues

– Links to other useful Web sites.

– An innovative Web site Citibank created specifically for college and university administrators across the country: [][2]. Here, administrators can help guide their students to financial “smarts” by accessing all the free Credit-ED financial education materials and resources, many of which can be downloaded and customized with a college or university logo.

– Monthly statements and on-line account management provided to cardholders to help students track spending and manage their budgets.

Citibank is part of Citigroup (NYSE:C), the preeminent global financial services company, providing some 120 million consumers, corporations, governments and institutions in more than 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. Major brand names under Citigroup’s trademark umbrella are Citibank, CitiFinancial, Primerica, Salomon Smith Barney, and Travelers. Additional information may be found at: [][3].

EdVenture Partners, an education marketing company based in Berkeley, California, has designed unique industry-education partnerships at over 300 campuses across the United States. EdVenture Partners provides each student agency with ongoing resources, guidance, and a $2,500 project budget to implement their marketing campaign.




PSINet Transaction Solutions has selected the Paymentplus payment processing software engine, ‘LiveProcessor’, to power the PSINet ‘Payment Exchange’. ‘Payment Exchange’ is a fast, multi-feature eCommerce payment-processing gateway that organizations can private-label and resell to their small- and medium-sized merchants and business customers. PSINet ‘Payment Exchange’ is also an integral part of PSINet ‘Web Storefront’, an end-to-end eCommerce solution that merchants and other businesses can use to create or enhance an online store that is immediately enabled with fast, secure credit card processing. PTS will license both solutions to financial institutions for resale to their merchant customers.


AT&T SIM Cards

Schlumberger Test & Transactions, a business segment of Schlumberger Limited announced that it has signed a memorandum of understanding with AT&T Wireless to provide SIM smart cards and related OTA (over the air) technology to support AT&T Wireless’ new GSM (Global System for Mobile Communications) network platform.

AT&T Wireless recently announced that it will introduce wireless data services by overlaying a GSM/GPRS (General Packet Radio Service) platform to its existing nationwide TDMA (time division multiple access) digital network beginning in this year. GSM handsets require SIM cards, which allows customers to access seamless call delivery across GSM networks in North America, Europe and Asia.

“The move of AT&T Wireless to add GSM-based services heralds a new era for wireless communication in North America,” said Dave Karpenske, vice president field operations, Schlumberger Network and e-Transactions Solutions North America. “We are pleased to help support AT&T Wireless’ efforts to bring advanced digital technology to consumers across the country.”

Schlumberger, the world’s leading provider of smart card-based solutions, pioneered Java(TM)-based SIM cards and OTA technology to enable wireless operators to quickly, efficiently and cost-effectively provide secure, value-added services to subscribers without modifications to handsets. Worldwide, Schlumberger SIM cards and related technology are used by 165 wireless operators in 90 countries.

The solution that Schlumberger is providing to AT&T Wireless includes Simera Classic(TM), a part of the Schlumberger line of leading-edge Cyberflex(TM) Simera SIM cards, which supports fastest time-to-market for new applications. Strict conformance to standards makes Simera Classic the new industry benchmark for interoperability. Schlumberger is also providing AT&T with its Aremis(TM) service administration platform, which provides the most efficient and versatile environment for activating/deactivating, configuring, tracking and billing of mobile value-added services on existing SIM cards. Aremis offers the capability of loading complete Java-based SIM toolkit applications over the air directly onto the SIM card.

About Schlumberger

Schlumberger Test & Transactions provides consulting, integration and products for smart card-based transactions; IP (Internet Protocol) network, security and wireless services; and testing and measurement of semiconductor devices. With 2000 revenue of $1.4 billion and over 8,000 employees in more than 40 countries, it is a business segment of Schlumberger Limited (NYSE: SLB), a global technology services company with 2000 revenue of $9.6 billion. More information is available at [][1].




S2 Systems, a global provider of integrated e-business solutions for the banking and financial services market, announced that Adirondack Trust Company will deploy and leverage S2’s OpeN/2:ATM-IN-A-BOX to expand its ATM network.

S2’s powerful transaction system replaces Adirondack’s switch for driving and monitoring ATMs, and will also provide a migration path into Internet banking, wireless and other emerging online technologies.

OpeN/2:ATM-IN-A-BOX is a flexible and reliable transaction engine capable of handling high volumes and supporting diverse applications. A robust, full-featured EFT engine, ATM-IN-A-BOX supports all current ATM transactions and easily adapts to support evolving services such as online bill payment, smart card transactions and other Web-based services.

“OpeN/2:ATM-IN-A-BOX enables banking and financial services organizations to capitalize on the growing use of ATMs as versatile, multi-service revenue generators,” said Jeff Chick, S2 Systems vice president and general manager, the Americas. “Our innovative ATM transaction processing solution enables companies such as Adirondack Trust to leverage technology while staying ahead of the innovation curve in today’s wired marketplace. We look forward to helping Adirondack Trust with its present and future e-business initiatives.”

“We are very pleased with S2’s proven transaction processing technology and their other capabilities as well,” stated Ned Wait, Adirondack Trust VP of IT. “As we move forward by expanding our ATM network to engage new markets, it is critical that our solution partner possess the domain knowledge and experience to meet our evolving needs.”

Financial institutions benefit from the growing popularity of ATMs by improving customer satisfaction, prospering from the fee income ATMs generate and reducing branch operating costs. The continuing growth of ATMs is also fueled by the machine’s capability of providing consumers with a broad array of value-added services.

About Adirondack Trust Company

The Adirondack Trust Company is a New York-state chartered commercial bank and a member of the Federal Reserve System. Founded in 1901, the employee-owned institution is the largest independent community bank and the highest rated bank in Saratoga County. The company operates seven branch offices in Saratoga Springs and nearby communities, has assets of approximately $400 million and 147 employees.

About S2 Systems

S2 Systems, Inc. is a leading global provider of e-business solutions for the banking, financial services, retail and travel and hospitality industries. For more than 15 years, some of the world’s largest organizations have relied on S2 products to drive their high-volume e-commerce transactions. Today, our leading technology enables business worldwide to implement Web-based initiatives that improve operational efficiency, enhance customer service and generate new revenue streams. S2 Systems has over 350 banking customers worldwide including six of the world’s top banks. Headquartered in Plano, Texas, S2 Systems has offices in Atlanta, London, Paris, Maarssen, Stockholm, Dubai, Riyadh, Hong Kong, Beijing and Melbourne. For more information about S2 Systems, visit its Web site at [][1].



UK Card Rates

While bank credit card rates are tumbling in the UK largely due to competition from US-based issuers, store cards continue to carry high interest rates. Timecard now carries an APR of 31.9% compared to an 8% APR on the Cahoot bank credit card. The latest issue of London-based Moneywise magazine notes that John Lewis and Waitrose carried the lowest rates for retail cards, coming in at 13%. Among other retailers charging the highest interest rates on UK store credit cards: Laura Ashley, Owen Owen, Kwik Fit, Monsoon, Country Casuals, and Russell & Bromley.


Conference Card

American Express will be the official card of COMDEX, NetWorld+Interop, and Seybold Seminars. Under a multi-year marketing agreement signed with Key3Media Group, AmEx will become the official card of Key3Media event brands throughout the U.S. AmEx will also promote its products and services at all U.S. Key3Media events. AmEx says the deal creates an ideal venue to promote its smart ‘Blue’ card. Key3Media Group serves more than 6,000 exhibiting companies and two million attendees through 60 events in 19 countries.


4th Largest ATM Net

Customers of Firstar Bank and U.S. Bank can now use any Firstar or U.S. Bank ATMs to make withdrawals, transfers and balance inquiries free of charge. It is the first tangible benefit that customers will experience in the newly merged U.S. Bancorp.

The new U.S. Bancorp operates the fourth-largest ATM network in the nation, with 5,208 ATMs. The ATMs will not be able to accept deposits from both banks until systems are fully integrated, which will occur over the next several months.

![][1] After the integration is complete, customers will be able to use any of more than 2,239 branches to conduct their banking business. The signs on Firstar branches, ATMs and other buildings will be changed to U.S. Bank market-by-market starting later this year and continuing into 2002.

“As the systems of both companies integrate, customers will have access to the full range of the new U.S. Bancorp’s combined products, services and locations, which clearly sets us on course to becoming the best bank in America,” said Richard Davis, vice chairman of consumer banking and payment services for U.S. Bancorp.

Customers will be notified of additional benefits or any changes to their accounts well in advance of the change. Customers will soon see other changes, including the adoption of Firstar’s Five Star Service Guarantee, a unique brand of customer service that credits customer accounts with $5 if any element of the guarantee isn’t delivered.

Minneapolis-based U.S. Bancorp, with assets in excess of $160 billion, is the 8th largest financial services holding company in the United States. The company operates 2,239 banking offices, 5,208 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payments services products to consumers, businesses and institutions. U.S. Bancorp is the parent company of Firstar Banks and U.S. Bank. Visit U.S. Bancorp on the web at [][2] and Firstar Bank at [][3]

[1]: /graphic/usbank/usbank.gif


Feb Checkwriting

Same-store retail sales for February rose a moderate 2.6 percent over the same period last year, according to data compiled by TeleCheck Services, Inc., the world’s leading check acceptance company. TeleCheck’s figures concur with Alan Greenspan’s comment last week that the economy may be strengthening, despite prevalent discussions of a recession. The Southeast region led the nation, followed by the Southwest, the Midwest, the West, the Mid-Atlantic and the Northeast. The TeleCheck Retail Index is based on a year-over-year, same-store comparison of the dollar volume of checks written by consumers at more than 27,000 of TeleCheck’s 228,000 subscribing locations. Compiled on a calendar basis, TeleCheck’s index is based on a broad cross-section of retailers nationwide. Checks account for about one-third of retail spending and remain second only to cash as the most popular method of payment. TeleCheck is a subsidiary of Atlanta-based First Data Corp. (NYSE: FDC).

“Sales are surprisingly good considering recent widespread talk of declining consumer confidence and the incidents of severe weather, especially in the Northeast, that prevented many shoppers from getting out,” said Dr. William Ford, TeleCheck’s Senior Economic Adviser. “Mardi Gras celebrations occurred in February this year, as opposed to March last year, resulting in significant sales boosts for the Southeast region. Louisiana, in particular, experienced an impressive 4.8 percent increase in retail sales.”

Sales rose 3.5 percent in the Southeast, with Louisiana up 4.8 percent and Georgia up 3.5 percent. Sales were up 3.4 percent in both The Carolinas and Tennessee, and sales grew 3.1 percent in Florida. Sales increased 4.5 percent in New Orleans, 3.6 percent in Memphis, 3.4 percent in Miami/Ft. Lauderdale, 3.2 percent in both Nashville and Atlanta, 3.0 percent in Tampa and 2.5 percent in Orlando.

In the Southwest, sales rose 3.3 percent. Oklahoma’s sales jumped 4.2 percent, Texas’ sales rose 3.9 percent and Missouri’s grew 2.6 percent. Sales in both Houston and Tulsa increased 4.3 percent, sales climbed 4.1 percent in Dallas/Ft. Worth, 4.0 percent in Oklahoma City, 3.6 percent in Austin, 3.3 percent in San Antonio, 2.9 percent in Kansas City and 2.4 percent in St. Louis.

Sales in the Midwest climbed 2.6 percent, with Michigan up 3.6 percent, Minnesota up 3.0 percent, Ohio up 2.7 percent, Wisconsin up 2.0 percent and Illinois up 1.8 percent. Sales grew by 3.2 percent in Detroit, 2.6 percent in Minneapolis/St. Paul, 2.5 percent in Cleveland, 1.6 percent in Milwaukee and 1.5 percent in Chicago.

The West was up 2.4 percent with sales increasing 5.7 percent in Hawaii, 2.8 percent in Arizona and 2.6 percent in California. Sales rose 1.6 percent in Colorado, 1.1 percent in Oregon and 0.4 percent in Washington. Sales rose 2.8 percent in San Diego, 2.5 percent in Los Angeles and 2.2 percent in both the Bay Area and Phoenix. Sales grew 1.8 percent in Denver, 1.4 percent in Portland and sales decreased 1.5 percent in Seattle.

The Mid-Atlantic’s sales increased 1.9 percent. Pennsylvania’s sales were up 2.9 percent, Virginia’s sales increased 1.9 percent, New Jersey’s sales rose 1.3 percent and Maryland’s sales grew 1.1 percent. Pittsburgh saw sales jump 3.3 percent, Philadelphia’s sales grew 2.6 percent, the District of Columbia saw sales rise 2.0 percent and Baltimore’s sales grew 1.3 percent.

The Northeast region’s sales grew a modest 0.8 percent. Sales rose 2.1 percent in Massachusetts and declined 0.5 percent in New York State. Boston saw sales increase by 2.4 percent, while New York City’s sales decreased by 1.1 percent.

TeleCheck’s index is compiled on a calendar basis and is based on the total sales volume of check-writing consumers at a broad cross-section of retailers. Figures are not adjusted for inflation. Checks account for approximately one-third of retail spending. In 1999, TeleCheck authorized more than $155 billion in checks, representing 3.1 billion transactions. For more information about TeleCheck, visit the Internet site at [][1].

Note: The TeleCheck logo and retail sales figures can be downloaded from the TeleCheck press center at [ leCheck.html][2] or from PR Newswire and NewsCom.

Atlanta-based First Data Corp. is a global leader in electronic commerce and payment services. Serving more than two 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 [][3].

Dr. William Ford holds the Weatherford Chair of Finance at Middle Tennessee State University. Earlier in his career he was president of the Federal Reserve Bank of Atlanta and served on former Fed Chairman Paul Volcker’s Federal Open Market Committee.

Retail Sales
(Period: 2/1/01-2/28/01)
March 5, 2001


Florida 3.1% Arizona 2.8% Illinois 1.8%
Ft. Lauderdale 3.4% Phoenix 2.2% Chicago 1.5%
Orlando 2.5% California 2.6% Michigan 3.6%
Tampa 3.0% Bay Area 2.2% Detroit 3.2%
Louisiana 4.8% Los Angeles 2.5% Minnesota 3.0%
New Orleans 4.5% San Diego 2.8% Minneapolis/
St. Paul 2.6%
Georgia 3.5% Oregon 1.1% Wisconsin 2.0%
Atlanta 3.2% Portland 1.4% Milwaukee 1.6%
Tennessee 3.4% Washington 0.4% Ohio 2.7%
Memphis 3.6% Seattle -1.5% Cleveland 2.5%
Nashville 3.2% Colorado 1.6%
The Carolinas 3.4% Denver 1.8% MID-ATLANTIC 1.9%
District of
Hawaii 5.7% Columbia 2.0%
SOUTHWEST 3.3% Pennsylvania 2.9%
Texas 3.9% NORTHEAST 0.8% Philadelphia 2.6%
Austin 3.6% Massachusetts 2.1% Pittsburgh 3.3%
Dallas/Ft. Worth 4.1% Boston 2.4% New Jersey 1.3%
Houston 4.3% New York -0.5% Virginia 1.9%
San Antonio 3.3% New York City -1.1% Maryland 1.1%
Missouri 2.6% Baltimore 1.3%

Kansas City 2.9%
St. Louis 2.4%
Oklahoma 4.2%
Oklahoma City 4.0%
Tulsa 4.3%

SOURCE TeleCheck Services, Inc. Web Site: [ leCheck.html][4]



P2P Tickets

Western Union Financial Services and have signed an agreement to provide users with a link to the Western Union ‘MoneyZap’ service. The relationship enables users to request payment from friends or family after they have purchased tickets. For example, an individual buying tickets for large groups, family or friends can divide the ticket cost, send a ‘MoneyZap’ money request and then settle up through a money transfer online. The agreement will provide a link to the ‘MoneyZap’ service on as well as other sites in the Ticketmaster network, including Citysearch,,, and Within these entities, 8 million Internet users are given the opportunity to use the ‘MoneyZap’ service to send, request or receive payments by money transfer online.


InterCept 4Q/00

The InterCept Group, Inc. reported record financial results for the three months and year ended December 31, 2000. Previous year results have been restated to reflect the acquisition of Advanced Computer Enterprises, Inc. which has been accounted for on a pooling-of- interest basis.

Net revenues for the three months ended December 31, 2000 totaled $18.7 million, a 19% increase compared with $15.8 million for the three months ended December 31, 1999. Net income available to common shareholders, excluding net losses generated from InterCept’s 28% ownership of Netzee, Inc., totaled $2.6 million or $0.19 per share (diluted), on 13.8 million average shares outstanding for the three months ended December 31, 2000 versus $1.5 million or $0.14 per share (diluted), on 10.4 million shares outstanding for the three months ended December 31, 1999. Net losses reflect losses related to changes in Netzee’s shareholders’ equity less InterCept’s portion of Netzee’s losses. Net loss available to common shareholders including these net losses was ($10.1) million for the three months ended December 31, 2000 versus $5.9 million or $0.56 per share (diluted) for the three months ended December 31, 1999.

Net revenue for the year ended December 31, 2000 totaled $69.6 million, a 33% increase compared with $52.4 million for the year ended December 31, 1999. Net income available to common shareholders for the year ended December 31, 2000, excluding net losses generated from InterCept’s ownership of Netzee, was $8.9 million, versus $5.1 million in 1999. Net loss available to common shareholders, including net losses generated from Netzee, was ($16.9) million for the year ended December 31, 2000. Net income per share for the year ended December 31, 2000, excluding the net losses generated from InterCept’s ownership of Netzee, was $0.67 per share (diluted) on 13.4 million shares outstanding versus $0.49 per share (diluted) on 10.6 million average shares outstanding in 1999. Net loss per share including the net losses totaled ($1.32) per share for the year ended December 31, 2000.

John Collins, Chairman and Chief Executive Officer of InterCept, said, “We are very pleased to be reporting outstanding financial results for the fourth quarter and full year of 2000. These record results represent a solid finish to a year of tremendous growth for our company. The consistent execution of geographic expansion and penetration supplemented by the acquisition of businesses that complement our comprehensive suite of products and services, and our focus of developing new and retaining long-term relationships with the community banks we serve, are reflected in our results. In 2000, InterCept completed several important business transactions including the completion of our largest acquisition, to date, in January 2001 of the U.S. data operations of This transaction added ten data centers and gives us additional opportunities for expanding our market share and increasing our name recognition throughout the U.S. We will continue to look for acquisitions of businesses in 2001 that we believe will increase our geographic and customer reach, enhance our product and services offerings and create additional value for our shareholders.”

About InterCept

InterCept is a single-source provider of a broad range of technologies, products, and services that work together to meet the electronic commerce and operating needs of community financial institutions. InterCept’s services include electronic funds transfer, debit card programs, core bank processing software, check imaging, and data communications management, as well as Internet banking products and services through its affiliate, Netzee, Inc. More information about InterCept can be found on the Internet at [][1] or by calling (770) 248-9600.

The InterCept Group, Inc.
Financial Highlights
(in thousands, except per share data)

Three-months Ended Year Ended
December 31, December 31,
2000 1999* 2000 1999*

Service fee income $15,458 $12,057 $55,289 $39,677
Data communications management
income 1,578 1,420 6,002 5,163
Equipment and product sales,
services and other 1,711 2,339 8,348 7,519
Total revenues 18,747 15,816 69,639 52,359

Cost of Services:
Cost of service fees 4,485 3,607 16,198 11,145
Cost of data communications 1,239 988 4,404 3,561
Cost of equipment and product
sales 1,396 1,733 6,350 5,746
Total cost of services 7,120 6,328 26,952 20,452

Selling, general and administrative 7,153 5,940 27,017 20,992
Depreciation and amortization 1,160 1,054 4,403 4,462
Operating Income 3,314 2,494 11,267 6,453
Other income (expense), net 1,326 23,036 11,825 39,172
Income before income taxes and
minority interest 4,640 25,530 23,092 45,625
Provision for income taxes 1,871 9,828 9,216 20,212
Equity in loss of affiliate (12,820) (9,811) (30,710) (15,352)
Minority interest (10) (33) (28) (120)
Net (loss) income (10,061) 5,858 (16,862) 9,941

(Loss) income per share:
Basic $(0.76) $0.59 $(1.32) $0.99
Diluted $(0.76) $0.56 $(1.32) $0.94

Weighted average shares outstanding:
Basic 13,185 9,976 12,820 10,095
Diluted 13,185 10,409 12,820 10,564

* All prior period amounts have been restated to reflect the acquisition

of Advanced Computer Enterprises, Inc. in a pooling transaction.

The InterCept Group, Inc.
Condensed Consolidated Balance Sheets
(in thousands)

December 31, December 31,
2000 1999*
Current assets:
Cash and cash equivalents $8,061 $1,945
Short term investments 37,484 200
Accounts receivable, net 9,960 9,099
Advances to SLM 5,000 —
Inventory, prepaid expenses and
other 4,689 4,766
Total current assets 65,194 16,010

Property and equipment, net 16,883 11,662
Intangible assets, net 24,786 20,600
Accounts receivable – affiliate 15,000 10,957
Investment in affiliate 19,196 40,446
Other assets 1,067 1,220
Total assets $142,126 $100,895

Current liabilities:
Current maturities of long-term
debt $45 $154
Accounts payable and accrued
expenses 3,188 6,387
Deferred revenue 5,054 5,777
Total current liabilities 8,287 12,318

Long-term debt, net of current
portion 4,513 12,669
Deferred revenue 453 440
Deferred taxes 26,279 22,633
Total liabilities 39,532 48,060

Minority interest 202 175

Shareholders’ equity:
Common stock 109,340 42,657
Retained earnings (6,951) 9,911
Unrealized gain on securities 3 92
Total shareholders equity 102,392 52,660
Total liabilities and
shareholders’ equity $142,126 $100,895

* All prior period amounts have been restated to reflect the acquisition
of Advanced Computer Enterprises, Inc. in a pooling transaction.

The InterCept Group, Inc.

Condensed Consolidated Statement of Operations
Three Months Ended December 31, 2000
(in thousands except per share data)

Consolidated Netzee InterCept
Service fee income $15,458 $— $15,458
Data communications management 1,578 — 1,578
Equipment & product sales,
services and other 1,711 — 1,711
Total Revenues 18,747 — 18,747

Cost of Services:
Cost of service fees 4,485 — 4,485
Cost of data communications 1,239 — 1,239
Cost of equipment and product
sales 1,396 — 1,396
Selling, general & administrative 7,153 — 7,153
Depreciation & amortization 1,160 — 1,160

Total Operating Expenses 15,433 — 15,433

Operating Income 3,314 — 3,314

EBITDA 4,474 — 4,474

Other Income (Expense)
Interest income, net 1,061 — 1,061
Gain in Netzee ownership 265 265 —

Total Other Income 1,326 265 1,061

Income Before Income Taxes and
Minority Interest 4,640 265 4,375

Provision for Income Taxes 1,871 107 1,764
Equity in Loss of Affiliate (12,820) (12,820) —
Minority interest in consolidated
subsidiary (10) — (10)

Net (Loss) Income Attributable
To Common Shareholders $(10,061) $(12,662) $2,601

Net (Loss) Income Per Common Share
(Diluted) $(0.76) $0.19
Net (Loss) Income Per Common Share
(Diluted, excluding
goodwill amortization) 0.20

Weighted Average Shares Outstanding
(Diluted) 13,185 13,827

The InterCept Group, Inc.

Condensed Consolidated Statement of Operations
Year Ended December 31, 2000
(in thousands except per share data)

Consolidated Netzee InterCept
Service fee income $55,289 $— $55,289
Data communications management 6,002 — 6,002
Equipment & product sales,
services and other 8,348 — 8,348
Total Revenues 69,639 — 69,639

Cost of Services:
Cost of service fees 16,198 — 16,198
Cost of data communications 4,404 — 4,404
Cost of equipment and product
sales 6,350 — 6,350
Selling, general & administrative 27,017 — 27,017
Depreciation & amortization 4,403 — 4,403

Total Operating Expenses 58,372 — 58,372

Operating Income 11,267 — 11,267

EBITDA 15,670 — 15,670

Other Income (Expense)
Interest income 3,847 — 3,847
Gain in Netzee ownership 7,978 7,978 —

Total Other Income 11,825 7,978 3,847

Income Before Income Taxes and
Minority Interest 23,092 7,978 15,114

Provision for Income Taxes 9,216 3,068 6,148
Equity in Loss of Affiliate (30,710) (30,710) —
Minority interest in consolidated
subsidiary (28) — (28)

Net (Loss) Income Attributable
To Common Shareholders $(16,862) $(25,800) $8,938

Net (Loss) Income Per Common Share
(Diluted) $(1.32) $0.67
Net (Loss) Income Per Common Share
(Diluted, excluding
goodwill amortization) $0.72

Weighted Average Shares Outstanding
(Diluted) 12,820 13,421

SOURCE IntertCept Group, Inc. Web Site: [][2]



VISA Biz Chip

VISA USA announced the release of a small business version of its ‘smart VISA’ card this morning. Reportedly FleetBoston will be the first issuer to offer the new product. The announcement builds on the VISA smart card program introduced last September. The small business version of the ‘smart VISA’ card will initially offer three areas of functionality including the payment, access, and loyalty. Under the access function small business cardholders may be able to set spending limits for different employees while the loyalty function can capture discounts. By focusing initially on the payment function and the Internet, ‘smart VISA’ allows immediate use and acceptance of the new payment technology. An example of how the chip-enabled technology would work for a merchant would be to use a ‘smart VISA Business’ card to purchase supplies online and gain volume discounts through the suppliers’ secure Web site. Special offers could be downloaded from the Web site and used at the physical world store. This same business could build a rewards program for its own customers, offering discounts or free merchandise to customers for repeat business. Points or coupons could be awarded for purchases made and stored on the chip. In a different scenario, a contracting firm could issue ‘smart VISA Business’ cards to its employees, with the chip automatically recording purchase information and integrating it into the firm’s accounting software. VISA is continuing the push to incent merchants to obtain a plug-in application to take advantage of the payer authentication feature of the new ‘smart VISA’ cards. Fleet and Providian introduced consumer versions of the first ‘smart VISA’ cards on Sept. 12. First USA joined the smart card issuers Oct. 24. While VISA will not release figures on the number of ‘smart VISA’ cards issued to-date, it says the program has exceeded expectations. The AmEx ‘Blue Card’, the first general purpose smart card issued in the U.S., has signed up more than four million cardholders since its launch in Sept. 1999. AmEx also released a business version of ‘Blue Card’ last year. (CF Library 9/12/00; 9/13/00; 10/03/00;10/25/00)



Orbiscom, the leading provider of Controlled Payment Number technology, announced the launch of its Canadian operation in Toronto in a committed effort to extend it’s North American reach and establish marketplace leadership in Canada. Further, the global technology company announces the appointment of Frank Austin, BASc. MBA, P.Eng. to Chief Executive Officer of Orbiscom-Canada, Inc.

“By creating a Canadian operation, we have the ability to quickly establish Canadian customers and build consumer confidence for safe, online transactions,” said Ray Sheridan, Orbiscom’s chief operating officer. “Frank Austin’s extensive management expertise will prove invaluable in continuing to maintain our global leadership position.”

Mr. Austin brings more than 20 years of experience in applying technology systems, improving operations and initiating change to his current post, overseeing Orbiscom’s operations, management and team development in the Canadian market. Recognized as an innovator and successful change agent for his work with Tescor Energy, Saudi Aramco, The Body Shop, Dow Chemical and ServiceMaster. Austin is poised to advance Orbiscom’s CPN technology to ensure secure online payments for Canadian consumers.

Orbiscom-Canada’s first order of business is to sign a Canadian financial institution to license the Orbiscom, Inc. core product, O-power, a win-win solution for consumers, merchants and financial institutions.

“Our O-powered Controlled Payment Number is an incredibly powerful product, that enables people to shop on-line without exposing their personal credit card number. Orbiscom’s timing to market is ideal given the complete lack of proven and tested solutions available to Canadian consumers at this time, ” says Austin.

Orbiscom is also developing a number of other products utilizing O-power to address other on-line shopping needs of Canadian consumers. These new products will be available in Canada later this year.

About Orbiscom Inc.

Orbiscom Incorporated is a software technology service provider that is setting a new standard for controlled, protected on-line payments. The Orbiscom technology, O-power, enables consumers to generate a Controlled Payment Number (CPN) and specify a dollar limit valid for that on-line purchase. O-power is compatible with all current payment initiatives – credit, debit, checks – and allows consumers to shop at any e-tailer with confidence. Orbiscom, as the first to develop and successfully implement a Controlled Payment Number Technology, has installed O-power in Ireland, the UK and the United States. Founded in 1998, Orbiscom Incorporated is head quartered in New York with a development center in Dublin, Ireland, and operation centers in London, Brussels, Sydney and Toronto.