NPC 3Q/00

National Processing reported this morning net income for the third quarter of $13.0 million. Revenue for the Merchant Card Services business unit, currently NPC’s largest business line, was $79.7 million for the quarter representing an increase of 21% over the comparable period in 1999. Merchant Card Services revenue represented 73% of total Company revenue for the quarter. NPC says its strong sales and customer-focused culture has allowed the firm to grow its merchant processing volume by 26%, nearly double the industry growth rate. Also NPC’s overall operating margins improved by 56% in the third quarter. For complete details on NPC’s 3Q/00 results and prior quarter results visit CardData ([www.carddata.com][1]).

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

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Dee Hock to Keynote

“If you think B2B is something new, then you need to listen to Dee Hock talk about his B2B journey,” challenges Tom Koulopoulos, Delphi Group president and leading B2B market analyst. “We widely acknowledge that B2B represents one of the fastest and most profound shifts in how organizations build interactions with suppliers, partners and markets,” said Koulopoulos. “Market research from Delphi Group and virtually all industry analysts predict a $5 trillion transaction space by 2002 (Delphi Group) much of that passing through vertical portals or exchanges.

Developing a comprehensive B2B business model and the requisite infrastructure is a foremost concern of top level executives and business managers. Industry pioneers like Dee Hock are a beacon in the raging B2B storm”. Dee Hock is founder and Chairman Emeritus of Visa International, a company that currently boasts a 22,000-member bank network and more than $1.35 trillion in global commerce. “Visa International,” asserts Koulopoulos, “is arguably the world’s largest exchange — a vast, worldwide network of organizations whose strategy and coordination are better than most centralized organizations.” Joining Hock at the Delphi B2B Summit and Executive Retreat is Stan Davis, one of the most articulate communicators of business perspective. Davis has demonstrated his mastery at predicting business and management shifts in such best selling books as Future Wealth, Blur, and 2020 Vision. Davis will present the keynote for the Executive Retreat, Tuesday, November 28, 2000, entitled, “From Crunching to Connecting: The Second Half of the Information Economy.”

B2B Business Models and Best Practices

With 5 tracks and 60 sessions, 50 of which are user case studies, The Delphi B2B Summit gives B2B planners and implementers opportunity to evaluate a variety of B2B business models and best practices and to network with B2B leaders. Participants can confidently take back their new knowledge and begin the transition from concept to deployment. The Delphi B2B Summit also presents Geoffrey James and Larry Jacobs, co-hosts of Funny Business, New England’s comedy talk radio program on AM680 WRKO in “Everything You Ever Wanted to Know About the Future, But Were Afraid to Ask”, a lighter look at how the computer industry will impact global business in the future. Jacobs, the humor columnist for the Boston Business Journal, has extensive experience in B2B sales. James is a contributor to Wired, Upside, ComputerWorld, NetworkWorld, and CIO. Also hear the latest thinking from Delphi Group President, Thomas Koulopoulos on how trust and liquidity must be built into the X-economy in “Belly-to-belly: Building Trust.” Says Koulopoulos, “You can’t have increasing volumes of transactions with unknown partners and suppliers if you cannot also achieve entirely new levels of trust.” Koulopoulos’ insights are from his soon-to-be-released book, The X-Economy.

Delphi B2B Summit and Executive Retreat

Detailed information on this event is available online at . To register, contact the Delphi Group at 800-575-3367 or email client.services @delphigrgoup.com. Online registration is also available. Delphi Group conferences are highly regarded by senior-level technology and business planners from the Global 2000 to small and mid-sized organizations for the opportunities they create to freely collaborate with peers on the challenges and potential of deploying B2B markets and exchanges. An exhibit hall contiguous to the conference area gives participants an opportunity to review products and services from leading solutions providers. Exhibiting companies are Ariba, Corechange, CoreCommerce, living systems, Plumtree Stoftware, Sequoia Software, Smartlogik, Sterling Commerce, and Vitria. Also, Access Commerce, Allegis, Copernic.com, Copernus, elcom.com, Excalibur Technologies, InterNetivity, Inc., IntraNet Solutions, and MarketSoft. Delphi Group is pleased to welcome Upside Magazine and eCommerce Business as publication sponsors.

About Delphi Group

Delphi Group () is the industry’s most powerful and comprehensive source of independent B2B market insight, blending B2B user and vendor advisory services, consulting, and market research into its community building educational events worldwide. Delphi Group provides the essential objective thought leadership on emerging technologies that has assisted more than 20,000 professionals in the Global 2000. The Delphi Group has its headquarters at 100 City Hall Plaza, Boston, Massachusetts.

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Citibank Bill Manager

Citibank, the largest issuer of credit cards, Friday announced the launch of the Citibank Bill Manager, an online bill management service for Citibank credit card customers that is powered by Paytrust, a leading Internet service that allows consumers to receive, review, pay and organize bills online.

The Citibank Bill Manager is an addition to the existing suite of financial offerings provided to credit card customers through Account Online which gives Citibank cardmembers secure, immediate access to their MasterCard or Visa credit card account information, 24 hours a day, 7 days a week. Citibank Bill Manager is now available at [www.accountonline.com][1].

The Citibank Bill Manager brings the 3 million Account Online customers the e-convenience of managing their credit card accounts and all their other monthly bills online through Account Online. With this service, Citibank continues its tradition of applying technology to financial services to improve the banking experience for their customers.

“With the launch of the Citibank Bill Manager, we are offering an important new payments service for our customers,” said Steve Freiberg, President and CEO of Citi Cards in North America. “Now customers who enjoy the convenience of receiving and paying their Citibank cards statement online can receive and pay all their bills online backed by the convenience and security of Account Online. The Citibank Bill Manager allows our customers to leverage the convenience of the Internet to significantly reduce the time it takes to pay bills. We are very pleased to be working with Paytrust to provide this exceptional service to our customers.”

The introduction of the Citibank Bill Manager is the latest in a series of recent announcements which demonstrates Citigroup’s commitment to providing a comprehensive suite of online consumer financial products and services, accessible anywhere, on any device, at any time, in a secure and private manner.

Through this new service, Citibank Bill Manager customers receive notifications of incoming bills through email reminders, review bill information from anywhere via the Internet, schedule payments from any of their check writing accounts, and access their bill history online with the Citibank Bill Manager. Additional conveniences include a data download feature that allows information sharing with personal financial management software and subscriber-defined payment rules that can automatically pay selected bills. As an added incentive to try the service, consumers who visit the Account Online site can enroll for a three-month trial period. Following the trial, subscribers pay a monthly fee of $8.95.

“Citibank has historically been the leader in offering new financial services to its tremendous customer base, and we’re proud to be working with such a leader and innovator in the banking industry,” said Edward G. McLaughlin, CEO for Paytrust. “This is an important strategic step for Paytrust as well as a notable move in the banking industry. Citibank clearly understands the compelling nature of the Paytrust service, and the value this partnership can bring to its customers.”

The electronic bill presentment and payment market continues to grow and Citibank Bill Manager is meeting what the industry demands. The industry is predicted to grow to over 40 million households viewing and paying their bills online by 2005. “Consumers are migrating to online bill payment and presentment and we’ve been there to serve them with the latest advances in technology,” noted Antony Jenkins, Chief Operating Officer for Citigroup’s Internet Payment Services. “It has always been important to us to provide our customers a straightforward and secure way to pay their Citibank bills. Citibank Bill Manager takes this promise one step further by providing an easy, convenient and secure way for our cardmembers to pay all their bills.”

Citibank cardmembers can register for Citibank Bill Manager at [www.accountonline.com][2].

About Citibank

Citibank is a member of Citigroup (NYSE:C), the premier global financial services company providing some 100 million consumers, corporations, governments and institutions in 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. The 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, CitiFinancial, and Primerica under Citigroup’s trademark red umbrella. Additional information may be found at: [www.citigroup.com][3].

About Paytrust

Using proprietary technology, Paytrust delivers 100 percent of a subscriber’s bills online or to a wireless device for complete bill delivery and management, far surpassing traditional bill pay-only services. Paytrust subscribers receive bill notifications and reminders via email rather than physical mail, and they can review their bill information from anywhere they have access to the Internet. Through Paytrust, customers can issue payments directly from any check writing account, view automatic checkbook balancing and download and analyze data in their personal financial management software.

Founded in October 1998, Paytrust is the flagship product of PAYTRU$T, Inc., a privately held company based in Lawrenceville, New Jersey. Through Paytrust’s acquisition of PayMyBills.com in September 2000, PayMyBills.com is a wholly owned subsidiary of PAYTRU$T, Inc. The company is financially backed by investors including American Express, AT&T Ventures, Citigroup, ComVentures, E*TRADE, FTVentures, GE Equity, Goldman Sachs, idealab Capital Partners, NextCard, SOFTBANK Venture Capital, Spectrum Equity Investors and Thomas Weisel Partners. More information on the company can be found on its Web site located at [www.paytrust.com][4] or by calling 1-800-PAYTRUST.

[1]: http://www.accountonline.com/
[2]: http://www.accountonline.com/
[3]: http://www.citigroup.com/
[4]: http://www.paytrust.com/

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InternetCash

NYC-based InternetCash Corp. has signed agreements to expand its distribution to 5,000 retail locations by year’s end. Friday, the Company formed an alliance with In-Person Payments of America to sell InternetCash throughout the New York area and eventually to 1,400 IPP locations in 12 eastern states and the District of Columbia. InternetCash is a prepaid Web-based payment system and is available in $25, $50, and $100 denominations. InternetCash can be used online to purchase products and services from more than 170 Web sites including WWF.com and Sunglasshut.com.

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First Data 3Q

First Data reported yesterday that Merchant Processing Services delivered earnings of $137 million on revenues of $455 million. Merchant sales dollar volume processed was up 24% for the quarter. Card Issuer Services recorded a 1% revenue increase to $363 million and a 14% increase in earnings to $74 million. Card Issuer Services operating margins were up from 17.9% in 1999 to 20.2% in 2000 due primarily to cost management initiatives implemented during the year and restructuring charges recorded in the first quarter. Earlier this month the company converted approximately 45 million JC Penney credit cards on behalf of GE Capital Corp. The conversion raised the number of accounts First Data maintains on file to more than 300 million. In addition, First Data has a pipeline of more than 41 million retail and bankcards to be converted in late 2001 and the first half of 2002. FDC currently processes 100,000 Internet merchants through its bank alliances. As compared to the third quarter of 1999, the dollar volume generated by identifiable Internet merchants tripled to an estimated $5.5 billion. Payment Instruments, comprised largely of Western Union, produced revenue of $596 million and profits of $190 million.

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Safeway SELECT Bank

Safeway Inc. and Amicus FSB, a leading e-banking provider, today announce Safeway SELECT Bank, the result of a strategic alliance between the two companies.

The bank will be initially available in San Jose and Sacramento, California and in Denver, Colorado. Expansion into other western U.S. locations is also planned.

Safeway SELECT Bank is a unique day-to-day banking offer that provides the convenience of an on-line bank with an in-store presence. Customers benefit from no fees, great rates and free groceries.

“Safeway SELECT Bank extends Safeway’s premium Safeway SELECT brand to a financial service,” said Rick Dreiling, executive vice president, marketing and manufacturing at Safeway. “We built our premium private label brands by meeting and exceeding national brand quality and we intend to do the same with this offering,” added Dreiling. “Safeway pioneered supermarket banking in the early 1980’s, successfully providing a one-stop location to offer customers the convenience of banking while shopping for groceries. Safeway SELECT Bank now takes service to the next level and provides the added convenience of banking on-line at home or at the store with live customer service associates,” added Dreiling.

“People want day-to-day banking that combines outstanding value with greater convenience,” adds Gary Gray, president of Amicus FSB – Western Division. “And that’s what we’re bringing to customers with Safeway SELECT Bank.”

Safeway SELECT Bank is an online bank with a twist. It offers all of the benefits and features of an Internet bank including no fees on day-to-day banking, outstanding rates and instant access 24 hours a day – seven days a week. But the Bank also has a physical presence inside Safeway stores where customers receive service from knowledgeable financial professionals, something lacking with pure-play online banks.

Safeway SELECT Bank has developed a full selection of financial products to help customers save time and money including:

— A no fee checking account for day-to-day banking with:

– no fees, no minimum balance, free unlimited transactions,

– unlimited check writing, free unlimited use of Safeway SELECT ATM’s,

– free unlimited phone and Internet banking,

– free use of an ATM card for purchases

– higher interest paid on deposits.

— A savings account that earns money market rates comparable to term deposits with no minimum balance and no administrative fees.

— Easy lower-cost borrowing, whether customers choose a personal line of credit or a loan.

— Savings Awards redeemable for free groceries at Safeway stores.

— Advice from Safeway SELECT Bank Customer Associates about the features and services of Safeway SELECT Bank are available at the store seven days a week and over the phone 24 hours per day.

Safeway SELECT Bank provides safe and secure access to accounts with all products insured by the FDIC. Amicus FSB, a member of the Federal Deposit Insurance Corporation, will employ the in-store Customer Associates, supply all of the banking services and hold all deposits made by Safeway SELECT Bank customers.

“Our alliance with Safeway lets us offer electronic banking services to many new customers in the western United States,” comments Brian Cassidy, CEO of Amicus. “The Amicus model has proven highly successful in other markets and now we’re ready to introduce it to California and Colorado.”

About Safeway Inc.

Safeway Inc. is a Fortune 50 company and one of the largest food and drug retailers in North America based on sales. The company operates 1,680 stores in the United States and Western Canada. Safeway currently offers 2,500 Safeway brand products and over 1,100 premium SELECT brand items.

About Amicus FSB

Safeway SELECT Bank is the result of a strategic alliance between Safeway and Amicus FSB. Amicus and its affiliates have formed alliances with a number of North American retailers to offer day-to-day banking that eliminates service fees and makes it easy for people to bank where they live, work or shop.

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$3 Smart Card

The smart card price breakthrough announced last month by VISA and Gemplus is spreading across the industry. Yesterday four more smart card manufacturers agreed to produce ‘Open Platform’ multi-application smart cards starting at less than three dollars each. The news comes from VISA’s announcement yesterday that it is launching a new program to offer VISA member banks low-cost smart cards. ‘VISA Price Breakthrough’ is supported by IBM and Philips Semiconductors, along with four major smart card manufacturers including: Giesecke & Devrient, Oberthur Card Systems, ORGA and Schlumberger. The family of new smart cards is based on the ‘Java Card 2.1’ and the ‘Open Platform 2.0’ specifications. The price of the initial card includes two applications, such as VISA credit/debit and ‘VISA Cash’, loaded to the ROM with room for multiple applications in the erasable memory or EEPROM. Issuers can decide what additional applications to add, such as loyalty or secure Internet access. Applications can be securely added or removed after the card has been issued. Three more card products will be made available, all at significantly reduced prices. The second card will provide public key encryption while the third and fourth cards will see memory size increased from 48k ROM to 96k ROM and 16k EEPROM to 32k EEPROM. These cards will be public key and non-public key versions. Applications can be loaded after the cards have been issued or added to the ROM during chip production freeing EEPROM for other application or service data. The chips are manufactured by Philips Semiconductors and contain new technology developed by IBM. The average price of a microprocessor chip card is about six dollars. (See CF Library 9/12/00)

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Captura Going Public

Captura Software, Inc. announced Thursday it has filed a registration statement with the Securities and Exchange Commission relating to a proposed initial public offering of its common stock.

All the offered shares will be sold by Captura. Captura(R), headquartered in Kirkland, Washington, is a leading provider of automated payment processing solutions for Global 2000 companies. Its technology platform automates the preparation, approval and processing of procurement, travel, entertainment and fleet transactions.

Banc of America Securities LLC will act as the lead underwriter of the offering. Other managing underwriters of the offering include U.S. Bancorp Piper Jaffray, Wit SoundView and Pacific Crest Securities. Prospectuses are not currently available. When available, prospectuses may be obtained from Banc of America Securities LLC at 600 Montgomery Street, San Francisco, CA 94111, phone 415/627-2220.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may any offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

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ACE Acquisition

ACE Cash Express, Inc., the nation’s largest check-cashing chain and a significant provider of related retail financial services, announced today that it has signed a letter of intent to acquire the assets of 107 check-cashing and retail financial services locations from five privately held companies. The majority of the locations are in California and Texas. The purchase price for the assets would be based on a formula, but it is currently expected to total approximately $30 million.

The letter of intent is subject to completion of due diligence, preparation and execution of definitive documents, arrangement of financing and approval by the boards of directors of the parties. The parties have requested and received early termination of the waiting period for the acquisition under the Hart-Scott-Rodino Antitrust Improvements Act.

“This single acquisition is the largest in ACE’s history and is greater than the total number of stores that the company has acquired in the past three fiscal years,” stated Jay B. Shipowitz, president of ACE. “This transaction which includes the acquisition of approximately 60 stores in Northern California and 40 stores in Texas compliments our existing store network and strategically positions ACE to further expand in these geographic areas. We intend to complete this transaction by the end of this calendar year.”

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, as of August 31, 2000, has a network of 1,084 stores, consisting of 921 company-owned stores and 163 franchised stores in 33 states and the District of Columbia. 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 [http://www.acecashexpress.com][1].

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

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Concordia VISA

Concordia University announced a new Royal Bank affinity credit card partnership. The university’s new affinity cards – offered in Visa Classic and Gold cards – provide the institution’s supporters with a simple, convenient way to link buying power with philanthropic habits. Each time the new card is used, the Concordia University Alumni Association receives funds through a marketing agreement that contributes to the growth of its programs and services.

“Many Canadians like Royal Bank’s affinity cards because they are a simple way to enhance revenues for the non-profit sector,” said Pierre Giroux, Royal Bank’s senior manager, affinity cards. “The cards provide organizations with a payment each time a new card is issued and every time it is used for a purchase. Affinity cards are an easy way for Canadians to supplement their support of some favorite causes.”

With its name drawn from the City of Montréal’s civic motto, “Concordia Salus,” Concordia University was formed in 1974, with the merger of Sir George Williams University and Loyola College. Both founding institutions are steeped in history. Originally part of Collège Ste-Marie, which was founded in 1848, Loyola College became a separate institution in 1896, moving to its present site in 1916. The origins of Sir George Williams University are tied to the founder of the YMCA and the evening classes it offered in 1873.

Today, Concordia has a school of graduate studies and four faculties in downtown Montreal. The university is celebrating its 25th anniversary in 1999-2000, building on the commitment of its founding institutions to open, accessible and innovative education.

Royal Bank of Canada (RY) is a diversified global financial services group and a leading provider of personal and commercial banking, investment and trust services, insurance, corporate and investment banking, online banking and transaction-based services including custody. The group’s main business units include Royal Bank, RBC Dominion Securities, Royal Investment Services, RBC Insurance and Global Integrated Solutions. The group has 49,000 employees who serve 10 million personal, business and public sector customers in 30 countries. For more information, visit Royal Bank’s Web site at [www.royalbank.com][1].

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

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Italian AmEx Card

Deutsche Bank Italia and American Express Thursday launched the first AmEx card to be issued by a bank in Italy. The ‘DBI American Express Card’, which will be available at all of DBI’s 280 branches in Italy, will operate on the American Express global merchant network. DBI will be responsible for all servicing of the card, including billing, accounting, customer service and credit authorizations, as well as for all marketing activity relating to the product. ‘DBI American Express’ cardholders will automatically be enrolled in the ‘Targa’ rewards program, allowing them to earn points each time they spend at a wide selection of hotels, restaurants and gas stations. These points are redeemable against a Fiat group car. ‘Targa’ loyalty program partners include: Hertz, Esso, Shell, Starhotels, Alpitour, and Europ Assistance. The card also features an introductory interest rate of 0.8% per month on all purchases for the first six months, rising to 1.3% per month thereafter. The card carries a fee of 100,000 lira. Deutsche Bank, with its credit card division, is a service provider for more than 800 partner banks and Deutsche Bank Group has more than 2 million cardholders and 300,000 associated merchants.

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SmartCardBus

O2Micro International Limited, a leading supplier of innovative ICs to notebook manufacturers, announces shipment of over 100,000 units of SmartCardBus controllers that contain industry standard smart card reader capability.

Sterling Du, Chairman and CEO of O2Micro, said today “O2Micro’s innovative new SmartCardBus, which provides built-in smart card reader technology for portable computers, simplifies the use of smart cards by eliminating the need for a costly external smart card reader.”

The demand for integrated smart card readers in portable computers is being driven by the acceptance of smart cards worldwide. Smart cards have been widely accepted for some time in Europe and Japan. Led by the American Express Blue Card, the United States market is rapidly moving forward due to the need for security and privacy.

Visa, USA, the U.S. division of Visa International, is also launching smart cards offering a suite of prepackaged services to be determined by its issuers. In fact, three of the ten largest U.S. credit card issuers, San Francisco-based Providian Financial Corp., FleetBoston Financial Corp. and the First USA subsidiary of Chicago-based Bank One Corp., have already announced major smart card programs in conjunction with Visa, USA.

Max Huang, Vice President, Intelligent E-Commerce division of O2Micro, stated, “Building on the success of the American Express Blue Card, Visa’s recent announcements are accelerating the momentum for smart cards in the US. O2Micro’s product strategy of providing low cost smart card readers for notebooks, desktop PCs and Internet appliances will be key to enabling smart card acceptance in the US.”

About O2Micro

Founded in April 1995, O2Micro designs, develops, and markets innovative peripheral components for Notebook computers, Internet appliances, LCD monitors, and wireless communications. Products include AudioDJ(TM), CardBus Controller, CCFL Backlight Inverter, and Battery Management ICs.

O2Micro designs products compliant with the System Management Bus (SMBus) and Smart Battery System (SBS) specifications, a subset of the ACPI specification (ACPI is a requirement for Microsoft’s PC98 and 99). O2Micro maintains an extensive portfolio of intellectual property with 205 patent claims granted, and over 250 more pending. The company maintains offices worldwide. Additional product information can be found on the web site at [www.o2micro.com][1].

[1]: http://www.o2micro.com/

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