Cap One 3Q/00

Capital One reported yesterday that net income between 3Q/99 and 3Q/00 increased 28.0%. For the third quarter, Cap One’s managed consumer loan balances increased by $2.3 billion to $24.2 billion. During the third quarter, Cap One added 2.3 million net new accounts, bringing total accounts to 29.4 million. On the Internet, online account originations and online account servicing increased to 760 thousand and 1.2 million, respectively, as of the end of the third quarter. Marketing expense rose to a record $233 million compared to $212 million in the second quarter of 2000 and $175 million in the comparable period of the prior year. The managed net charge-off ratio for 3Q/00 stood at 3.80% compared 3.97% one year ago. Delinquency (30+ days) edged slightly lower to 5.32% compared to 5.35% for 3Q/99. For complete 3Q/00 and prior quarters’ data for Cap One visit CardData ([www.carddata.com][1]).

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

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Price Chopper Gift Cards

Price Chopper has selected Standard Register to deliver 500,000 gift cards which will replace the supermarket chain’s paper gift certificates. Standard Register will print and package the gift cards and provide Price Chopper with point-of-sale displays to enhance customer service and convenience.

“We’re pleased to assist Price Chopper with its transition to gift cards,” says Dave Fehrman, general manager, Imaging Services, Standard Register. “In addition to improving customer service and reducing paperwork throughout Price Chopper’s operations, the gift card program is an effective avenue to keep dollars in Price Chopper supermarkets. The cards will retain their value until the entire dollar amount is spent at Price Chopper.” Fehrman advises retailers interested in implementing card programs to consider some additional advantages. “Gift cards can prevent additional revenue loss which may otherwise occur through certificate counterfeiting,” states Fehrman. “They’re also an effective way for retailers to strengthen their brand and status among competitors through the use of creative card designs leveraged through card-carrying customers.” Joanne Gage, Price Chopper’s vice president of consumer and marketing services, anticipates the supermarket chain’s cards will make an outstanding gift choice for shoppers who prefer to leave merchandise selection to card users. “Gift cards are easy to use, conveniently accessible to customers, and they’re a terrific vehicle for establishing relationships with new customers,” states Gage. “It’s easy to see why they’re growing in popularity among retailers and card users.” Price Chopper is headquarter in New York’s capital region and operates 97 Supermarkets located throughout Connecticut, Massachusetts, New Hampshire, New York, Pennsylvania, and Vermont. The supermarket chain will offer its gift cards in $10, $25 and $50 denominations with card and package designs featuring a produce-filled bag of groceries over a blue background. During the holiday season Price Chopper will offer gold gift cards featuring red bows.

About Standard Register:

Dayton, Ohio-based Standard Register (NYSE: SR) is a nationwide leader in delivering customized document management and workflow solutions to healthcare, financial and general business markets. Serving as a strategic partner under its Less Paper Strategy®, Standard Register helps transaction-intensive businesses reduce costs and increase revenue. Offerings range from traditional forms manufacturing to commercial and digital on-demand printing; e-documents and related desktop printing and processing solutions; plastic card imaging, packaging and distribution; Internet and paper-based billing services; supply-chain and labeling solutions. Standard Register reported 1999 revenues of $1.327 billion. For more information, call 800/755-6405 or visit [www.standardregister.com][1].

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

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Latin Opportunities

Online retailing in Latin America will reach $580 million by the end of 2000. The Boston Consulting Group says Brazil continues to be the largest online market in Latin America, accounting for $300 million in revenues and just over half of the entire market. The Mexican and Argentinean markets, however, have grown out of their nascent stages and this year will generate $91 million and $82 million in sales, respectively. One of the surprising findings of the report is the weakness of U.S. English-language players in the region. Their market share is expected to drop from 32% of the market in 1999 to a mere 7%, or $40 million in sales, in 2000. For details on specific Latin American countries visit CardPlanet ([www.cardplanet.com][1]).

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

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PocketCard Launches Delta

PocketCard Inc. announced the creation of its Delta Payment Systems division ( [http://www.deltapayment.com][1]) to process e-payments and stored-value programs for other issuers. The same patent-pending money transfer engine that powers the industry-pioneering teen and business PocketCard programs is now available for financial institutions and other businesses that want to provide their customers ability to instantly transfer stored purchasing power anytime, anyplace, to anyone.

The market leadership demonstrated by creating and issuing a stored-value teen card a year before competition followed suit will extend into the emerging e-payment industry. “The success of the PocketCard teen card and small business program demonstrates the appeal and utility of instantly moving value where it is needed,” said PocketCard Inc. founder and CEO William Scheurer. “Delta Payment Systems’ dynamic stored-value platform will change how businesses interact with their customers, employees and others, just as PocketCard is changing how families and small businesses spend and manage money.”

Bridging Mainstream Payment Processing Systems into the New Economy

PocketCard Inc. offers the only payment-processing platform built specifically to capitalize on the power and scope of advanced communications technologies. By integrating the existing payments industry infrastructure used to process magnetic-stripe transactions with consumer-accessible technologies like the Internet, touch-tone phones and emerging wireless capabilities, Delta Payment Systems enables customized ways to pay and transfer value for businesses, financial institutions and payment service providers.

The Delta Payment Systems platform’s unique ability to transfer, control and monitor value in real-time, ubiquitous merchant acceptance and ATM access has put PocketCard Inc. in a position to lead the stored-value product market, estimated to reach $1.3 trillion by 2003. Gift cards, employee retention and loyalty programs, corporate incentive, payroll and electronic benefit transfers are examples of the trend in a variety of industries away from cash and checks and towards card-based payment methods

Delta Payment Systems, however, offers more than technology. Delta Payment Systems offers complete solutions to manage all facets of card-based stored-value programs, including program consulting, card fulfillment, merchant purse programs, targeted ad delivery and a fully staffed and equipped customer care center.

PocketCard Is Changing How Families Spend Money

Incorporated in Sept. 1998 and issuing cards since May 1999, PocketCard Inc. invented the financial service product known as dynamic stored value cards: special purchasing cards for financial dependants — featuring instant funding, reporting and control. PocketCard Inc.’s patent-pending technology enables the instant transfer of money and information — anytime, anyplace and to anyone — in both the online and offline worlds.

PocketCard Inc. and its division Delta Payment Systems provide families, businesses and individuals with innovative e-finance and relationship marketing products and services. PocketCard works with leading card issuers, processors, retailers, media and others to deliver these programs.

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

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SIMphonIC 3G Card

Oberthur Card Systems, a global leader and innovator in the smart card industry, confirmed Wednesday the forthcoming launch of its USIM (Universal SIM) card product, SIMphonIC 3G.

SIMphonIC 3G is the first Java based multi-standard, multi-application card, which embraces all the 3rd generation technology standards as determined by the ITU(a), under the UMTS/IMT-2000 banner.

Traditionally, SIM cards enable access to a single network; the SIMphonIC 3G will offer true global roaming and multiple network access around the World as well as enabling multi-standard inter-operability.

With 3rd generation networks going live as early as 2001 in Japan and Spain, the world of wireless multi-media and Internet connection at speeds of up to 400kb per second (equivalent to those of ADSL(b) today) is fast approaching. Providing secure access to any variation of voice, text, data and video, the SIMphonIC 3G enables the user to e-mail, shop, bank, play games and download music and video to any wireless terminal: mobile phone, camera, PDA, music players or even game consoles.

SIMphonIC 3G also enables backwards compatibility with current GSM technologies ensuring operators a smooth migration path to 3G. Stephane Mousse, Head of Marketing for Mobile Communications at Oberthur Card Systems said, “SIMphonIC 3G, the first ever Java USIM card, has been designed to help operators launch innovative multimedia services based on a real business case with secure access to and payment of content on many new devices.”

Mousse added, “an aggressive rollout of SIMphonIC 3G is essential — operators need to move quickly with their 3G offers in order to gain a fast return on the investment made in 3G licensing.”

To meet the needs of the world’s first UMTS network operators, Oberthur has opened an office in Japan to offer local support and development. Any type of application can be developed for the card. With its large 64K capacity, the multi-application capability of Oberthur’s SIMphonIC 3G card allows the housing of telecommunication and non-telecommunication applications alongside the USAT (Universal SIM Application Toolkit). These applications can run simultaneously. For example, an EMV debit/credit function and an e-purse application could be included which would allow the online `topping-up’ through a 3G network of the e-purse directly from the user’s bank account — this one simple transaction runs three applications at the same time.

SIMphonIC 3G incorporates the ultimate in security features including RSA Cryptography(c) and Common Criteria EAL4+ evaluation, which is currently the only internationally recognized set of security features.

Since Oberthur Card Systems first introduced Java onto the SIM card with the launch of its award-winning SIMphonIC card, Java has been adopted as the industry-wide standard for mobile telephony and Internet technology. A “Java chain” is beginning to emerge as many operators, banks and other card service providers now use Java to develop their applications.

This chain allows operators to customize and define a full solution from the content, the server and to the mobile handset using Java at every level. The smart card is the key for storing all security features and so ultimately provides the key for accessing all services.

The SIMphonIC 3G is the latest in a long list of `firsts’ for Oberthur and confirms the company’s open architecture vision. Having brought the WIM (WAP Identity Module) and the SWIM (combined SIM toolkit and WAP) card to the market first, Oberthur Card Systems takes the next step with the imminent launch of the USIM offer.

Oberthur Card Systems will be exhibiting at Cartes 2000, CNIT Paris la Defense — France (October 24-26, 2000).

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MBNA 3Q/00

MBNA America reported Wednesday that net income rose 26.5% over the past twelve months. During the third quarter, MBNA signed 123 new affinity card deals and added 8.1 million new cardholders representing 6.2 million new accounts. Total managed loans at Sept. 30 were $84.7 billion, an $8.3 billion increase over second quarter 2000, a $12.4 billion increase year-to-date, and a $17.3 billion increase over third quarter 1999. Delinquency on total managed loans was 4.65% at Sept. 30, compared to 4.67% for 3Q/99. Managed charge-offs for the third quarter of 2000 were 3.88% compared to 4.34% one year ago. MBNA.com, introduced in the first quarter of 2000, now serves more than 2.3 million cardholders. Through the first nine months of 2000, more than 1 million MBNA cardholders have enrolled to use the online service including 350,000 in the third quarter. In the first nine months of 2000, MBNA added 630,000 new accounts via the Internet and expects the figure to top one million new accounts by year end. For complete 3Q/00 and prior quarters’ data for MBNA visit CardData ([www.carddata.com][1]).

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

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AmEx Teen Card

VISA Buxx and the VISA PocketCard picked up some competition from American Express this week. Yesterday, AmEx and San Francisco-based Zowi Corp. unveiled the ‘Cobaltcard’, a stored value card for teenagers, age 13 and up. Applicants under the age of 16 will need to obtain parental approval in order to obtain the AmEx teen card. Applicants who are 16 and 17 years of age, with an individual checking account, may enroll for a ‘Cobaltcard’ without prior approval, but parents will be notified that a ‘Cobaltcard’ membership has been established. Through the ‘Cobaltcard’ Web site, cardholders may load money onto the card and have access to their ‘Cobaltcard’ information including transaction history, remaining funds and an interactive budgeting tool. To help foster financial responsibility, the ‘Cobaltcard’ Web site will provide budgeting tools, tips for parents about how to talk to their teens about money, financial questions and answers. AmEx has taken a minority investment in Zowi. To view AmEx’s new teen debit card visit CardWatch ([www.cardwatch.com][1]).

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

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Comarmond Promoted

GlobeID, developer of advanced Internet payment solutions, has appointed Fabrice de Comarmond as Managing Director of its Americas, Asia and Pacific operations headquartered in Redwood City, CA. Mr. De Comarmond will remain the company’s Executive Vice President Development worldwide. Mr. de Comarmond will be responsible for managing the company’s US strategy and operations. He will be the driving force behind the sales and marketing of GlobeID’s flagship product, @Pay Issuer, an @dvanced Payment Portal solution targeting retail banks, credit card issuers and virtual cash issuers. He will also lead expansion plans to double the size of the company’s US staff by year-end including field offices in Massachusetts, New Jersey, Georgia and Texas.

“GlobeID is continuing to grow rapidly and needs a talented and seasoned executive team in the US to support our business objectives and product expansion,” said Francois J. Chaillou, CEO, GlobeID S.A. “Fabrice’s leadership, vision and years of experience in the Internet payments field are a great asset as we implement our US strategy.”

Mr. de Comarmond joined GlobeID in October 1997 as Cofounder and Vice President of Business Development. He was promoted to Senior Vice President, then Executive Vice President, Business Development & Marketing, in charge of worldwide business development strategies with a strong focus on the US market, as well as global marketing strategy.

About GlobeID

Established in 1997, GlobeID develops and markets advanced Internet payment solutions that enable retail banks and issuers to empower their customers with convenient, controlled high performance and availability Internet payment applications. GlobeID’s flagship product is @Pay(TM)Issuer, a high stickiness payment portal application that allows retail banks, card issuers and their processors to provide secure and convenient Internet payment services to e-commerce consumers. US headquarters are located at 303 Twin Dolphin Drive, Redwood City, CA. GlobeID’s website is [www.globeid.com][1].

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

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Gunderson’s P-Card

Credit Card Solutions, Inc. announced that Gunderson Inc. has chosen CCSi and the P-Card Web Solution for Gunderson’s new purchasing card (p-card) program.

“We made the choice to go with CCSi because their Intranet software offered the flexibility we need,” said John Butz, buyer at Gunderson Inc. “CCSi is able to tailor its software to interface seamlessly with our inventory system as well as with our general ledger, supplier & HR systems. That ability made CCSi the clear choice for us.”

A primary benefit of p-cards is the ease and speed at which employees can purchase and receive low dollar goods and services. The P-Card Solution Web Solution significantly reduces internal burdens related to managing p-card purchases, reducing the activity-based costs associated with reconciliation and reporting by as much as 70 percent.

The P-Card Web Solution offers ordering, reconciliation and approval features using a standard Internet browser. Just likes its predecessor, The P-Card Solution(R), this new software works with any card provider, is compatible with popular enterprise resource planning (ERP) systems such as SAP(R), PeopleSoft(R) and Oracle(R), and works side by side with e-commerce systems like Commerce One(R) and Ariba(R).

“We’re pleased to have Gunderson Inc. as our newest customer,” said Roy Wiprud C.P.M., president and chief executive officer of CCSi. “By tailoring our software to work with Gunderson’s existing internal systems, CCSi is able to help them maximize the benefits they will experience in their new p-card program.”

Gunderson Inc. is a diversified railroad freight car, and marine barge builder employing approximately 1,300 workers. Located on the Willamette River in Portland, Oregon, Gunderson is a unit of The Greenbrier Companies (NYSE: GBX), a leading supplier of transportation equipment and services in North America and Europe. Since 1960, Gunderson (including its predecessor companies) has produced more than 100,000 railcars.

Headquartered in Richland, Washington, CCSi was founded in 1995 to provide its customers with solutions to their purchasing card challenges. CCSi’s software products significantly reduce the cost of purchasing card administration while substantially increasing the amount of information available about p-card transactions, and eliminates the redundancies inherent in typical reconciliation processes. The P-Card Solution and the P-Card Web Solution have been licensed to clients nationwide. CCSi’s customers include Arthur Andersen, ARCO, Bechtel, The California Institute of Technology, Honeywell, Jet Propulsion Laboratory, Lockheed Martin, the State of Alaska, and Warner Bros. For more information about The P-Card Solution, contact CCSi at 509-943-7998, via e-mail at solution@p-card.com or online at .

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Carlson Goes Wild

WildCard Systems has been named the ‘Preferred Partner’ for customized stored value cards for the Carlson Marketing Group. Carlson offers different types of cards that incentivize and reward employees. Utilizing WildCard Systems, Carlson offers ‘Global Rewards’ cards, for long-term programs with average annual participant earnings of $250; ‘Ready Reward’ cards, fixed-value debit cards with a one time deposit of $250 or less; ‘TravPass’ cards, which are reloadable and offer flexible redemption options including at-counter, mail order, or certificate redemption; and ‘Best of Everything’ cards, fixed value debit cards with a one-time deposit that can be pre-loaded in $25, $50, $100, $150, $250, and $500 denominations. Under the deal, WildCard will be the issuing processor, host the business and member-focused Internet applications, and provide online, real-time authorization systems and back office cardholder support applications.

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TPII in Zimbabwe

IFS International, Inc. announced that Trust Bank Corporation Limited, a major Zimbabwe banking company has licensed its TPII product to manage its network of Automated Teller Machines and Point of Sale devices. TPII will also interface to Zimswitch, the national switch in Zimbabwe.

The prime contractor for the project is ICL Zimbabwe Limited with TPII running on Clustered Sun (Nasdaq: SUNW) E450 hardware, utilizing Oracle’s RDBMS and the UNIX operating system. The project was won as part of a major joint marketing initiative that is currently being conducted by SUN/IFS & ICL.

William Nyemba, CEO of Trust Bank Corporation, stated, “The new commercial banking license we have obtained to establish a retail banking operation means that we can move forward with our aggressive expansion plans, including ATMs and the placement of POS devices at large domestic merchants. TPII has been selected by Trust Bank Corporation as it is a proven, reliable and scaleable product that we are confident will help us achieve our current, as well as future, service delivery strategies.”

Luckmore Chitima, Major Bids Director, ICL Africa Region, added, “This is our second contract with IFS in Africa. I foresee another smooth implementation and a delighted customer — just like with our first contract. We value our relationship with IFS and it is our customers that reap the benefits of this partnership. The roadmap for TPII is well defined, particularly with the VISA smart card initiative, and will position our customers at the forefront of the African Banking Industry.”

Gary Larkin, SVP Sales and Business Development, IFS International, added, “IFS is proud to be associated with another expanding bank from the African continent. This contract is further evidence of the value gained through the reseller agreement between IFS and ICL, combined with the strategic alliance IFS recently formed with Sun Microsystems. We expect the strategic alliances and major reseller agreements to continue to pay dividends for us all, with forward-looking customers such as Trust Bank Corporation benefiting from our leading edge technology.”

About IFS International Holdings, Inc.

IFS International, Inc. and Network Controls International, Inc. are subsidiaries of IFS International Holdings, Inc., which has headquarters in the USA and subsidiary offices in the USA, UK, Singapore, Australia, and Germany.

IFS International, Inc. develops, markets and supports software products for the electronic financial market. IFS International’s TPII and TP-CMS products provide support for ATMs, Point of Sale devices, network switches, smart cards and card management. IFS International’s subsidiary, Global Insight Group, is a supplier of strategic business and technical implementation support services to the Retail Finance Industry.

NCI, Inc. develops innovative retail delivery applications like NCI Business Centre(TM), which combines network centric and browser-based technologies in “One Application” to automate all delivery channels such as branch teller, platform service, call center, internet banking and customer relationship management.

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