VISA U-Commerce

VISA is taking its ‘VisaNet’ payment network to the next level with the introduction of ‘Visa DirectExchange’. VISA’s new network incorporates Sun’s computing platform and Cisco’s routing technologies. ‘DirectExchange’ will be capable of processing all U.S. issued VISA credit and debit cards, along with all other forms of electronic payment. VISA says the network will be able to accommodate a volume of 10,000 messages per second with capabilities to handle more than 100 billion transactions annually, which is more than double today’s volume. VISA says the increased volume will be driven by M-commerce, particularly wireless payments via mobile phone and PDAs. ‘Visa DirectExchange’ will enable member banks to launch new payments technologies that enable u-commerce, such as mobile commerce, smart cards, business-to-business e-commerce, person-to-person e-commerce and electronic check conversions, with high levels of security, speed, reliability and mass customization capabilities. ‘Visa DirectExchange’ has been in development for nearly two years, and is based on open technology standards. MasterCard’s ‘Banknet’ network was upgraded to a virtual private network more than four years ago and already processes all forms of payments, including smart cards, Internet transactions, and mobile commerce on open technology standards. MasterCard is in year three of its five year system upgrade effort.

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Household 2Q/00

Household reported yesterday that the company’s managed receivables portfolio grew 22% from a year ago, reaching almost $80 billion. The company added $4.5 billion of receivables in the quarter, an increase of 6%. Household says credit quality improved dramatically during the quarter, as dollars of chargeoff and delinquency declined from first quarter levels. At June 30, the managed delinquency ratio (60+days) improved for the third consecutive quarter, to 4.16%. The annualized managed net chargeoff ratio for the second quarter fell 26 basis points, to 3.74%. For complete current and historical data on Household visit CardData ([www.carddata.com][1]).

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

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Metris 2Q/00

Metris Companies/Direct Merchants Bank reported Wednesday that its managed credit card loan portfolio increased by $471.5 million during the second quarter with total receivables of $7.8 billion as of June 30. Marketing efforts in the quarter generated over 400,000 new credit card accounts, to bring total accounts to 4.1 million accounts. The managed net interest margin for 2Q/00 remained constant at 13.2%, when compared with 13.2% for the first quarter and 13.3% for the second quarter of 1999. Managed credit card fees, interchange and other credit card income increased 54% to $122.2 million for the second quarter of 2000, from $79.3 million in the second quarter of 1999. Credit card charge volume increased 54% to approximately $2.0 billion in 2Q/00. The managed net charge-off rate was 9.5% for the second quarter. The managed delinquency rate (30+ days past due) was 7.7% at June 30. For complete current and historical data on Metris/Direct Merchants Bank visit CardData ([www.carddata.com][1]).

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

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Yes.Wallet

Thyron, a UK-based company specializing in mobile commerce, has announced the launch of YES.wallet, a service that makes buying from a WAP enabled mobile phone not only easier but up to five times faster than the current time taken to complete a transaction.

Industry commentators have heavily debated the future of making purchases over WAP, the technology that makes it possible to browse the Internet and buy goods and services directly from a mobile phone. The chief criticism is the time consuming process of entering transaction details (such as billing address, delivery address, credit card number, name, selection of goods) every time a purchase is made. Small keypads and displays have deterred customers from making purchases.

Mike Herman, Chairman of the Global Mobile Commerce Forum and Thyron’s VP of Mobile Commerce, commented, “WAP technology has been hyped and expectations have been set very high as a result. Until now, no one has been able to break the ‘convenience threshold’ to make payments over WAP a more accessible technology. YES.wallet reduces the whole transaction process to just a few keystrokes; it’s fast, easy and completely secure. Just register once and you can go on to make multiple purchases from multiple sites in a matter of moments.”

YES.wallet works by allowing users to store their personal information on a secure server, eliminating the need to enter it for every transaction. By making one visit to a Website, the individual can register their billing and delivery addresses and the details of one or more credit cards. Whenever a WAP purchase is made, the pre-stored information is sent to the merchant in the specified format. All the customer has to do is select the goods, nominate a credit card, and authorize the payment with a PIN.

YES.wallet, run by selected Internet Service Providers (ISP’s), will be made available to users at no cost. The ISP will license the software from Thyron. Some well-established e-businesses may decide to license the software directly, rather than signing up with an ISP.

“Thyron’s unique differentiator is its experience in secure payment transactions; many other companies in this arena are start up companies focusing solely on WAP technology,” Herman concluded. “While YES.wallet is a new product to the mobile market we expect to take it to market leader status.”

About Thyron

Thyron is one of the world’s leading suppliers of secure end-to-end Internet and mobile commerce payment solutions to financial institutions, business-to-business portals, mobile network operators and service providers. It is already providing advanced secure electronic payment and transaction processing infrastructures that offer the security and confidence, based on PKI (Public Key Infrastructure) technologies.

Thyron, through its YES(tm) secure commerce platform, is establishing a global presence as the authoritative secure commerce Application Service Provider (ASP). This e-trust framework provides a secure transaction-processing platform enabling businesses to transact, collect and process payments between Internet and mobile users.

Thyron’s YES(tm) secure commerce platform, which has already attracted an investment in 1999 of $10 million from US investment bankers, Warburg Pincus, comprises solutions for transaction management, Public Key Infrastructure security as well as customer and card issue management. The portfolio is supported by an advanced mobile payment terminal, called PayCell, which is capable of handling any wireless network and card technology. In addition to YES(tm), Thyron has a number of support services, including consultancy, project management and project definition. The company also offers a range of change management services within its customers’ organizations to help staff adapt quickly to new e-commerce and m-commerce technology.

Since it was founded in 1984, Thyron has sought to expand globally and in 1994, the company opened a centre for software development in India. More recently, it opened sales and support offices in New Delhi and Copenhagen. Further offices are planned for the USA, Singapore and Central Europe.

Visit the company’s website at [www.thyron.com][1]

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

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Citi 2Q/00

Citigroup continued to solidify its number one position in the U.S. credit card business during the second quarter as Bank One falters. Chargeoffs and delinquency dropped significantly from last year too. For complete current and historical data on Citibank visit CardData ([www.carddata.com][1]).

Citibank Portfolio Snapshot
(U.S. Cards)
2Q/99 2Q/00
Receivables: $70.3b $79.4b
Q Volume: $40.8b $48.4b
Accounts: 41.1m 42.1m
Chargeoffs: 4.63% 3.96%
Delinquency*: 1.36% 1.18%
*90+ days
Source: CardData (www.carddata.com)

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

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Buying Power

Kalorama Information released a new study this morning that shows $340 billion as the total purchasing power of gay and lesbian adult consumers in 1999. The research firm estimates this buying power will increase 30.8% by 2004. Kalorama says this is substantially more than the purchasing power of Hispanic consumers of the same age, and compares favorably with the $360 billion in buying power estimated for adult African American consumers. The Kalorama Information study estimates that in 1999 there were approximately 13 million self-identified gay men and lesbians 18 years of age and older and that in 2004 the gay and lesbian population will reach nearly 15 million.

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Strong Medicine

Bank One said yesterday it is taking some strong medicine to get its house in order. The First USA unit reported a net loss of $379 million, a decrease of $718 million from the year-ago quarter. Earnings were affected primarily by impairment-related asset write-downs totaling $777 million pretax. Net interest income of $1.451 billion decreased $330 million, or 19%, from the year-ago quarter due to margin compression resulting from the attrition of higher priced accounts, reduced margins and lower outstandings. Compared with the first quarter, the managed delinquency rates for 30 and 90 days declined from 4.08% to 3.83% and from 1.91% to 1.69%,respectively. The managed charge-off rate declined to 5.44% from 5.78% in the prior quarter. Compared to the year-ago period, average outstandings decreased approximately 4% to $66.3 billion. At quarter-end, First USA had 54.6 million cards issued. About 826,000 new accounts were opened during the quarter. Second quarter charge volume totalled $36.8 billion. The $777 million asset write downs include: $354 million related to the value of the interest-only strip of securitized receivables; $275 million related to purchased credit card relationship intangibles; and $121 million pretax related to marketing partnership agreements. First USA also notes it realized a net gain of $46 million on the sale of its credit card operations in Canada and the UK. For complete current and historical data on Bank One/First USA visit CardData ([www.carddata.com][1]).

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

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Chase 2Q/00

The Chase Manhattan Corporation announced diluted operating earnings per share of $0.95 for the second quarter of 2000, down eight percent from $1.03 per share for the same 1999 period. For the first six months of 2000, diluted operating earnings per share rose five percent to $2.01 from $1.91 in the first six months of 1999. Operating earnings in the 2000 second quarter were $1.22 billion, compared to $1.35 billion in the same 1999 quarter. For the first six months of 2000, operating earnings rose to $2.58 billion.

Reported net income per share, which includes nonrecurring items, was $0.85 and $1.92 for the second quarter and first half of 2000, respectively, compared with $1.06 and $1.95 in the 1999 second quarter and first half, respectively. Reported net income in the 2000 second quarter was $1.09 billion compared with $1.39 billion in the 1999 second quarter; net income for the first half of 2000 was $2.45 billion and $2.57 billion in the same period of 1999. “Our cash return on equity of twenty-three percent this quarter demonstrates the resilience and strong competitive position of Chase’s businesses,” said William B. Harrison, Jr., Chairman and Chief Executive Officer. “And with the acquisition of The Beacon Group on July 6 and the anticipated acquisition of Flemings on August 1, we are strengthening Chase’s ability to benefit from the growth occurring in the global securities markets. We will continue to reposition and strengthen our franchises with a focus on financial discipline.”

Financial Performance

THE CHASE MANHATTAN CORP Second Quarter Six Months

(dollars in millions,
except per share amounts) 2000 O(U)1999 2000 O(U)1999
—- ——– —- ——–
Operating Revenues $5,799 2% $11,978 8%
Cash Operating Earnings 1,299 (9) 2,744 3
Cash Operating Earnings
Per Share(a) 1.02 (6) 2.15 6
Shareholder Value Added 542 (22) 1,243 4
Cash Return on Common Equity 23% (320)bp 24% 20bp

(a) All per share results are on a diluted basis and reflect a
three-for-two stock split that became effective June 9, 2000.

Line-Of-Business Results

GLOBAL BANK(a) Second Quarter Six Months

(dollars
in millions) 2000 O(U)1999 O(U)1Q2000 2000 O(U) 1999
—- ——– ———- —- ———
Operating Revenues $2,257 11% (12)% $4,833 $700 17%
Cash Operating
Earnings 559 (2) (22) 1,272 84 7
Shareholder Value
Added 246 (5) (38) 642 86 15
Cash Return on Common
Equity 23% (60)bp (610)bp 27% 180bp —

(a) excludes Chase Capital Partners

Operating revenues in the Global Bank, excluding Chase Capital Partners, were
$2.26 billion in the second quarter of 2000, 11 percent higher than in the
1999
second quarter. On the same basis, cash operating earnings in the second
quarter of 2000 were $559 million, compared with $571 million in the second
quarter of 1999, reflecting increased cash expenses.

— Total trading revenues, including related net interest income, were $841
million, up 15 percent from the second quarter of 1999, driven by foreign
exchange and equity trading. For the first six months of 2000, trading
revenues
were up 20 percent.
— Investment banking fees were $639 million, up nine percent from second
quarter 1999 levels. This increase was driven by record merger and acquisition
advisory fees and equity underwriting fees, partially offset by a decline from
last year’s record loan syndication and corporate bond underwriting fees. For
the first six months of the year, investment banking fees rose 43 percent to
$1.29 billion.
— Global Private Bank revenues increased to $285 million, a 33
percent increase from the same period a year ago, due to
broad-based growth globally and the inclusion of the revenues from
the Executive Financial Services Division at Chase H&Q. As of June
30, the Global Private Bank had over $170 billion in client
assets. — Cash expenses of $1.32 billion in the second quarter of 2000 were
up 26 percent from the second quarter of last year, but down $60
million from the first quarter of 2000. The principal reasons for
the increase were higher incentives related to market sensitive
revenue growth and the acquisition of Hambrecht & Quist.

CHASE CAPITAL PARTNERS Second Quarter Six Months

(dollars in millions) 2000 O(U)1999 O(U)1Q2000 2000 O(U) 1999
—- ——– ———- —- ———-
Operating Revenues(a) $249 (50)% (45)% $698 $(110) (14)%
Cash Operating Earnings 130 (56) (46) 370 (99) (21)
Shareholder Value Added (78) n/m n/m (35) (261) n/m
Cash Return on Common
Equity 8% (2300)bp (790)bp 12% (1350)bp —

(a)Operating revenues include private equity gains and other
income net of borrowing costs to fund the portfolio of investments

Net gains on private equity-related investments in the second quarter of 2000
were $298 million, down from $513 million in the same 1999 quarter and $500
million in the 2000 first quarter. Net gains include cash realized from the
sale of both public and private securities that were held in the portfolio and
unrealized changes in the market value of securities including,
appreciation as
a result of initial public offerings. Realized cash gains on the sale of
securities in the second quarter of 2000 were $350 million, compared with $207
million in the same period a year ago and $341 million in the first quarter of
2000. Approximately 75 percent of the carrying value of the Chase Capital
Partners portfolio consists of privately-held securities. Volatility in the
financial markets during the second quarter principally affected the remaining
25 percent of the portfolio, which is publicly-held.

GLOBAL SERVICES Second Quarter Six Months

(dollars in millions) 2000 O(U)1999 O(U)1Q2000 2000 O(U)1999
—- ——– ———- —- ——–
Operating Revenues $877 14% 3% $1,726 $231 15%
Cash Operating Earnings 163 20 9 313 69 28
Shareholder Value Added 75 83 25 135 82 155
Cash Return on Common
Equity 24% 540bp 230bp 23% 630bp —

In the second quarter of 2000, Global Services’ operating revenues
increased 14
percent over the prior-year quarter to $877 million, reflecting increased
activity in all of its businesses. Operating revenues in Global Investor
Services (custody), Capital Markets Fiduciary Services (institutional trust)
and Chase Treasury Solutions (cash management) were up 18 percent, 14 percent
and eight percent, respectively, compared with the 1999 second quarter. Cash
operating earnings for Global Services for the second quarter of 2000 were up
20 percent compared with the 1999 second quarter. Shareholder value added
increased to $75 million, an 83 percent increase over the prior-year quarter.

NATIONAL CONSUMER SERVICES Second Quarter Six Months

(dollars in millions) 2000 O(U)1999 O(U)1Q2000 2000 O(U)1999
—- ——– ———- —- ———
Operating Revenues $2,507 1% 5% $4,899 $24 –%
Cash Operating Earnings 443 6 26 795 (15) (2)
Shareholder Value Added 175 8 106 260 (47) (15)
Cash Return on Common
Equity 22 20bp 450bp 19% (170)bp —

Operating revenues for National Consumer Services increased to $2.5 billion, an increase of one percent over the second quarter of 1999. Cash operating earnings of $443 million increased by six percent. This increase was driven by regional banking, the retail investment businesses and middle market banking, partially offset by continuing weak auto origination volumes and pressures on credit card margins due to rising interest rates.

— Cash operating earnings for cardmember services for the second quarter of 2000 were up three percent compared with the second quarter of 1999, reflecting significantly improved credit quality. Operating revenues declined six percent, reflecting reduced net interest spreads due to rising interest rates and a lower level of late and overlimit fees, partly offset by higher consumer purchase volumes. Expenses were down in the second quarter despite higher technology and e-commerce investments.

— Home finance revenues increased to $318 million, an eight percent increase from second quarter 1999. Cash operating earnings remained flat. Growth in servicing fee income was partially offset by declines in mortgage production activities due to the rising interest rate environment.

— Regional banking group revenues rose 11 percent from the second quarter of 1999 and cash operating earnings grew by 26 percent, reflecting higher deposit levels in the small business sector, the benefit from higher interest rates, growth in fees and disciplined expense management. — Revenues from diversified consumer services were $281 million in the second quarter, down one percent from the same 1999 quarter. Continued growth in the investment businesses were partially offset by the effect of higher interest rates and weak auto lease origination activity. Brown & Co., Chase’s online trading business, averaged over 46,000 trades per day during the second quarter of 2000 versus 33,000 trades per day during the same period in 1999. — Middle Market revenues were $270 million, up four percent from the second quarter of 1999. Cash operating earnings increased 11 percent over the prior-year quarter. These results reflect disciplined expense management and continued strength in new business and financing activity.

Additional Financial Information

— Total assets at June 30, 2000 were $396 billion compared with $391 billion at March 31, 2000 and $357 billion from a year ago. Chase’s Tier One capital ratio was 8.6 percent at June 30, 2000, compared with 8.6 percent on March 31, 2000. There were no repurchases of Chase common stock during the 2000 second quarter in anticipation of the acquisition of Robert Fleming Holdings Limited.

— On a managed basis, including securitizations, net credit losses were $574 million in the second quarter of 2000, down from $596 million in the first quarter of 2000 and down from $634 million from the second quarter of 1999. Consumer net charge-offs on a managed basis were $482 million, down from $524 million in the first quarter of 2000 and $523 million in the fourth quarter of 1999, primarily reflecting a decline in the second quarter of 2000 in the credit card net charge-off ratio to 5.09 percent. Commercial net charge-offs in the second quarter of 2000 were $92 million, compared with $72 million in the first quarter of 2000 and $86 million in the second quarter of 1999. For the second quarter of 2000, total net charge-offs on a reported basis were $332 million, and the provision for loan losses was $332 million. The allowance for loan losses was $3.46 billion at the end of the second quarter, unchanged from the prior quarter. Nonperforming assets at June 30, 2000 were $1.90 billion compared with $1.70 billion at March 31, 2000 and $1.63 billion at June 30, 1999.

— Total operating noninterest expenses increased 13 percent to $3.36 billion in the second quarter of 2000, reflecting higher incentives related to increased business volumes, the impact of acquisitions and the build up of the investment banking business platform. — Operating results (revenues, expenses and earnings) exclude the impact of credit card securitizations, restructuring costs and special items. In the second quarter of 2000, special items include a loss of $92 million (after tax) resulting from the economic hedge of the purchase price of Fleming prior to its acquisition and $32 million (after tax) of restructuring costs associated with previously announced relocation initiatives. In the second quarter of 1999, special items included a $61 million (after tax) gain on the sale of a building, a $46 million (after tax) gain on the sale of branches in Texas, and a $65 million (after tax) special contribution to The Chase Manhattan Foundation. — Chase’s 2000 results include the results for Chase H&Q, which was acquired on December 9, 1999 and the mortgage business of Mellon Bank N.A., which was acquired on September 30, 1999. Chase’s proposed acquisition of Robert Fleming Holdings Limited, is expected to be completed on August 1, 2000. The acquisition of The Beacon Group, LLC, a privately-held investment firm, closed on July 6. — Shareholders approved a three-for-two stock split at the corporation’s annual meeting on May 16, 2000. The record date for the split was May 17, 2000 and the additional shares issued as a result of the split were distributed on June 9, 2000. All per share results have been restated to reflect the three-for-two stock split.

The Chase Manhattan Corporation () is a premier global financial services firm with assets in excess of $396 billion. Chase combines the best of commercial and investment banking, offers world-class information and transaction processing services, and has a leading U.S. consumer franchise that serves over 30 million customers. Through its newly formed business unit Chase.com, Chase is successfully creating innovative business models for the New Economy. Chase, with offices in more than 45 countries, has a presence in all of the principal financial centers around the world.

For complete details on Chase Manhattan’s credit card portfolio visit CardData ([www.carddata.com][1]).

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

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Trintech Italy

Trintech Group PLC announced that Urmet Group has joined the Trintech PayWare Partner Program for the distribution, integration and deployment of Trintech’s secure ePayment solutions for physical, Internet and mobile commerce in Italy.

The Urmet Group is partnering with Trintech to provide its blue-chip financial sector customer base with secure eCommerce solutions. Urmet has extensive expertise in the EFT/POS market in Italy, including credit, debit and chip technology, and will be able to use that knowledge to offer Italian financial institutions payment solutions for the physical and virtual world based on Trintech technologies.

As a certified member of Trintech’s PayWare Partner Program, Urmet can now offer its customers Trintech’s range of eCommerce solutions, including PayWare mAccess, Trintech’s server product for mobile commerce (mCommerce); PayWare eIssuer, Trintech’s virtual credit card solution; PayWare eAcquirer, Trintech’s Internet payment gateway technology; and PayWare eStores, the payment engine for online merchants.

“It is our objective to provide our customers with secure payment solutions for eCommerce,” says Massimo Mondardini, president at Urmet Group. “We chose Trintech as our payment technology partner as we feel their technology provides the most innovative and secure ePayment solutions available. Trintech allows us to provide flexible payment solutions for both the Internet and the emerging mobile commerce market.”

The Trintech PayWare Partner Program aims to develop a global network of strategic partners by targeting system integrators, consultants, distributors, value-added resellers and solution developers. The program targets consultants, resellers, distributors and system integrators who, with Trintech’s PayWare technology, can payment enable eMerchants, ISPs, CSPs and dot.com corporations.

“We are delighted to welcome Urmet to Trintech’s expanding PayWare Partner Program,” says John Harte, EVP global sales, marketing and services at Trintech. “We see Italy as a market that will experience much development in terms of eCommerce infrastructure. Key to this infrastructure is the ability to provide ePayment requirements and end-to-end ePayment solutions. We look forward to working closely with Urmet to provide such solutions.”

About Urmet

Urmet is one of the most advanced Italian producers in the telecommunications field and also one of the richest in history and experience. The company’s know-how and expertise has enabled the successful introduction of the most sophisticated electronic hardware and software technology into exchanges and terminals. The Urmet Group has a strong presence in Italy, with factories in the north and center and a widespread commercial presence over the whole territory. Abroad, Urmet is present with productive and commercial associated companies in many European, Latin American and Far Eastern countries. One of the Urmet Group Companies is Urmet Domus, one of the European leaders in Video house phones, Access Control and Building Automation. Urmet Domus is acting all over in the European region with factories and commercial offices.

Trintech Group PLC also announced Wednesday that Selesta Gestione Centri Applications, a Selesta Group company, has joined the Trintech PayWare Partner Program as a direct distributor of Trintech’s ePayment solutions for physical, virtual and mobile commerce in Italy.

Selesta G.C. Applications provides innovative information technology solutions to their customer base focusing on both the hardware and software sides of a customer’s requirements. Selesta G.C. Applications will be marketing and selling Trintech’s range of electronic payment systems as part of their eCommerce solutions offering. The company also provides systems integration expertise and local support for Trintech’s payment solutions in the Italian market.

As part of the PayWare Partner Program, Selesta G.C. Applications will be licensed to distribute Trintech’s range of eCommerce solutions, including PayWare mAccess, Trintech’s server-based product for mCommerce; PayWare eIssuer, Trintech’s virtual credit card solution; PayWare eAcquirer, Trintech’s Internet payment gateway technology; and PayWare eStores, the payment engine for online merchants.

“We are dedicated to supplying our customers with innovative solutions that meet their technology and business requirements,” says Paolo Sferlazza, COO at Selesta G.C. Applications. “By partnering with Trintech, we now have the technology necessary to address a fundamental aspect of eCommerce – secure payment. Together, Trintech and Selesta G.C. Applications can deliver electronic payment solutions that are critical to success of Italy’s eCommerce and mCommerce marketplaces.”

“As the Italian eCommerce and mCommerce markets continue rapid expansion we are very excited to be partnering with Selesta G.C. Applications,” says John Harte, EVP of global sales, marketing and services at Trintech. “Based on their IT solutions and integration strengths, Selesta is an ideal complement to Trintech’s strategy to provide comprehensive end-to-end electronic payment solutions in Italy.”

The Trintech PayWare Partner Program aims to develop a global network of strategic partners by targeting system integrators, consultants, distributors, value-added resellers and solution developers. The program targets consultants, resellers, distributors and system integrators who, with Trintech’s PayWare technology, can payment enable eMerchants, ISPs, CSPs and dot-com corporations.

About Selesta

Selesta Gestione Centri Applications is a company of Selesta Group: a group of highly specialized information technology companies established in January 1981 which now employs more than 400 people in 7 offices in various parts of Italy as well as branch offices in Spain, Mexico and Argentina. The company had a total turnover of 158 billion lire in 1999. Selesta Gestione Centri Applications set out working mainly in MVS mainframe environments and expanded from there to include the world of open systems and Internet. Today, they provide software systems especially designed to deal with heterogeneous information systems, backed up with specialized assistance and support in the development of specific technological projects. Selesta Gestione Centri Applications has worked with more than 200 customers over the years, and has grown to be much more than a supplier of software products at the forefront of technology: Selesta Gestione Centri Applications can now supply true “Enterprise” solutions. The philosophy of the company centers around the concept of dedication: we aim to supply. Visit Selesta G.C. Applications at [http://www.se lesta.it/International/gcapplications/index.htm][1].

About Trintech

Trintech Group PLC is a leading provider of secure electronic payment infrastructure solutions for real world, Internet and wireless transactions. The company, which was founded in 1987, offers a complete range of payment software products for credit, debit, commercial and procurement card applications. Trintech’s secure product range is deployed in over 35 countries worldwide and cover the payment requirements of consumers, card issuing banks, merchant acquiring institutions, merchants, eMerchants, telcos, wireless operators, ISPs/CSPs, Portals and large corporations. Trintech’s range of scalable, open systems architecture solutions for UNIX® and Windows NT? platforms covers consumer, merchant and financial institution requirements for all card-based payments, including e-commerce and the emerging world of mobile commerce. Trintech can be contacted in the U.S. at 2755 Campus Drive, San Mateo, CA 94403 (Tel: 650-227-7000) and in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel: 353-1-207-4000). Trintech can be reached on the Web at [http://www.trintech.com][2]. Investor information can be found at [www.trintech.com/investor][3].

[1]: http://www.selesta.it/International/gcapplications/index.htm
[2]: http://www.trintech.com/
[3]: http://www.trintech.com/investor

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HNC 2Q/00

HNC Software Inc. announced the financial results for its second quarter ended June 30, 2000, reporting revenues of $67.4 million, an increase of 20.6 percent over revenue of $55.9 million for the second quarter in the prior year.

“Demand for our software continues to be strong and our financial results reflect tremendous growth throughout the company,” said John Mutch, president and chief executive officer, HNC Software. “We’ve focused on not only driving revenue growth, but increasing our recurring revenue stream which accounted for 73 percent of the total revenue in Q2. With 41 new customers and the introduction of several new product and ASP offerings, we’ve demonstrated significant product expansion and broadened our market penetration.” Diluted operational net loss per share for the quarter, excluding acquisition-related amortization, in-process research and development, and stock-based compensation charges, was $0.11(2) per share. Diluted net loss per share for the quarter, including acquisition-related amortization, in-process research and development, and stock-based compensation charges, was $0.75 per share.

HNC’s Service Industries Group, comprised of three divisions representing the company’s core businesses in the banking/financial, insurance/healthcare and telecommunications markets, reported second quarter revenues of $46.0 million, an increase of 38.0 percent over revenue of $33.3 million for the second quarter of 1999.

SELECTED SECOND QUARTER FINANCIAL RESULTS

Three Months Ended June 30, 2000
(Unaudited, in thousands, except per share data)
————————————————-
Service
Industries
Group Retek eHNC Consolidated
———— ——- —— ————
Revenues $ 46,023 $ 19,588 $ 1,821 $ 67,432
% of revenues 68.3% 29.0% 2.7% 100.0%
———————————————————————-
Operating income
(loss), excluding
acquisition-related
expenses and
stock-based
compensation charges $ 4,692 $(12,737) $(3,200) $ (11,245)(1)
———————————————————————-
Diluted operational net
loss per share $ (0.11)(2)
Diluted net loss per share $ (0.75)
———————————————————————-

(1) Excludes $11,546 of acquisition-related amortization, $5,050 of
in-process research and development and $2,621 of stock-based
compensation charges.

(2) Based on: (a) diluted operational net loss of $3,264, computed as
operating loss of $11,245 plus other net income of $2,995 and
minority interest of $3,028, fully taxed at a 37.5% tax rate
divided by (b) weighted average shares of 30,570, computed as
26,955 shares used in computing diluted net loss per share plus
1,385 weighted average options, ESPP shares and warrants, and
2,230 shares from the assumed conversion of $100 million of
Convertible Notes.

Three Months Ended June 30, 1999
(Unaudited, in thousands, except per share data)
————————————————-
Service
Industries
Group Retek eHNC Consolidated
———— ——- —— ————
Revenues $ 33,343 $ 21,043 $ 1,547 $ 55,933
% of revenues 59.6% 37.6% 2.8% 100.0%
———————————————————————-
Operating income (loss),
excluding acquisition-
related expenses $ 5,076 $ 3,233 $ (259) $ 8,050 (3)
———————————————————————-
Diluted operational net
income per share $ 0.22 (4)

Diluted net income per share $ 0.13
———————————————————————-

(3) Excludes $2,056 of acquisition-related amortization.

(4) Based on: (a) diluted operational net income of $5,859, computed
as operating income of $8,050 plus other net income of $1,325
fully taxed at a 37.5% tax rate divided by (b) weighted average
shares of 27,230, computed as 25,000 shares used in computing
diluted net loss per share plus 2,230 shares from the assumed
conversion of $100 million of Convertible Notes.

SELECTED YEAR-TO-DATE FINANCIAL RESULTS

Six Months Ended June 30, 2000
(Unaudited, in thousands, except per share data)
————————————————
Service
Industries
Group Retek eHNC Consolidated
———— ——- —— ————
Revenues $ 85,270 $ 33,552 $ 3,173 $ 121,995
% of revenues 69.9% 27.5% 2.6% 100.0%
———————————————————————-
Operating income (loss),
excluding
acquisition-related
expenses and
stock-based compensation
charges $ 9,495 $(27,432) $(6,996) $(24,933)(5)
———————————————————————-
Diluted operational net
loss per share $ (0.26)(6)
Diluted net loss per share $ (1.22)
———————————————————————-

(5) Excludes $15,512 of acquisition-related amortization, $6,472 of
in-process research and development and $4,537 of stock-based
compensation charges.

(6) Based on: (a) diluted operational net loss of $8,237, computed as
operating loss of $24,933 plus other net income of $6,335 and
minority interest of $5,419, fully taxed at a 37.5% tax rate
divided by (b) weighted average shares of 31,110, computed as
26,529 shares used in computing diluted net loss per share plus
2,351 weighted average options, ESPP shares and warrants, and
2,230 shares from the assumed conversion of $100 million of
Convertible Notes.

Six Months Ended June 30, 1999
(Unaudited, in thousands, except per share data)
————————————————
Service
Industries
Group Retek eHNC Consolidated
———— ——- —— ————
Revenues $ 63,968 $ 37,690 $ 3,464 $ 105,122
% of revenues 60.8% 35.9% 3.3% 100.0%
———————————————————————-
Operating income (loss),
excluding acquisition-
related expenses $ 7,734 $ 6,308 $ (55) $ 13,987 (7)
———————————————————————-
Diluted operational net
income per share $ 0.38 (8)
Diluted net income per share $ 0.21
———————————————————————-

(7) Excludes $4,308 of acquisition-related amortization.

(8) Based on: (a) diluted operational net income of $10,598, computed
as operating income of $13,987 plus other net income of $2,970
fully taxed at a 37.5% tax rate divided by (b) weighted average
shares of 27,936, computed as 25,706 shares used in computing
diluted net loss per share 2,230 shares from the assumed
conversion of $100 million of Convertible Notes.

SECOND QUARTER HIGHLIGHTS

Customer Contracts

— HNC’s Service Industries Group signed 74 customer contracts including:
— 32 new customer contracts: 11 in financial services; 16 in insurance, and
five in telecommunications, and
— 42 existing customers that purchased additional software products and
services.
— HNC’s e-commerce division signed nine new customers, and received one new
license from an existing customer. Introduction of New ASP Services
— HNC announced ASP service offerings including:
— ATACS Online(TM), a new Web-enabled version of ATACS, HNC’s
telecommunications fraud detection solution. AXXENT Inc., a Canadian
competitive local exchange carrier (CLEC), signed a multi-year service
agreement for the service.
— Capstone Express(TM), a flexible new service that intelligently automates
decisions concerning credit card, consumer and auto loan, line of credit,
business loan or mortgage applications.
— HNC entered into strategic partnerships with First Data Corp. and
Equifax to
deliver a new generation of HNC’s eFalcon(TM) Internet fraud detection
solution
to their global customer bases.

Expanded Marketing Optimization Solutions

HNC’s marketing optimization solutions can now enable financial
institutions to
drive cross-sell marketing efforts through call centers, outbound
telemarketing
and direct mail campaigns. Two of the world’s five largest credit card issuers
have entered into contracts with HNC to optimize cross sell opportunities
within their customer accounts.

About HNC Software Inc.

Headquartered in San Diego, HNC Software Inc. (Nasdaq:HNCS) is a leading
provider of predictive software solutions for the services industry, including
financial, telecommunications, insurance and e-commerce. HNC’s suite of
predictive software solutions can provide real-time insight into customer
relationships based on transaction-level data, helping companies manage their
relationships with individual customers. By accurately predicting customer
behaviors, these companies can create initiatives to mitigate risk and
attrition; improve customer service; develop marketing programs to enhance
profitability, and detect fraudulent customer transactions.
For more information, visit HNC’s Web site at
http://www.hnc.com/>http://www.h
nc.com or contact Melinda Bateman, HNC
Software
Inc., 5935 Cornerstone Court West, San Diego, CA 92121, 858/799-3880.

HNC SOFTWARE INC.
CONSOLIDATED BALANCE SHEET
(in thousands, except per share data)

June 30, Dec. 31,
2000 1999
———- ———–
(unaudited)

Assets
Current assets:
Cash, cash equivalents and
investments available for sale $ 138,213 $ 165,518

Accounts receivable, net 62,938 64,189
Other current assets 17,494 31,528
———- ———–
Total current assets 218,645 261,235
Long term investments available for sale 76,654 68,563
Property and equipment, net 34,585 22,219
Other assets 208,572 64,404
———- ———–
$ 538,456 $ 416,421
========== ===========

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities $ 33,276 $ 30,049
Deferred revenue 45,286 15,274
Other current liabilities 3,539 —
———- ———–
Total current liabilities 82,101 45,323
Long-term debt 100,000 100,000
Other non-current liabilities 5,325 4,111
———- ———–
Total liabilities 187,426 149,434
———- ———–

Minority interest 14,855 17,414
———- ———-

Stockholders’ equity:
Preferred stock, $0.001 par value – 4,000
shares authorized:
no shares issued or outstanding — —
Common stock, $0.001 par value – 50,000
shares authorized:
27,180 and 25,704 shares issued and
outstanding, respectively 27 26
Paid-in capital 373,927 255,444
Retained earnings (deficit) (20,152) 12,209
Accumulated other comprehensive income (loss) (2,120) 1,507
Common stock in treasury, at cost – 233
and 882 shares,
respectively (15,507) (19,613)
———- ———–
Total stockholders’ equity 336,175 249,573
———- ———–
$ 538,456 $ 416,421
========== ===========

HNC SOFTWARE INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited in thousands, except per share data)

Quarter Ended Six Months Ended
June 30, June 30,
—————— —————–
2000 1999 2000 1999
——– ——– ——– ——–
Revenues:
License and maintenance $ 42,393 $ 41,336 $ 74,184 $ 77,807
Services and other 25,039 14,597 47,811 27,315
——– ——– ——– ——-
Total revenues 67,432 55,933 121,995 105,122
——– ——– ——– ———

Operating expenses:
License and maintenance 13,669 10,122 26,288 20,839
Services and other 18,414 10,327 33,462 18,984
Research and development 18,965 11,608 35,186 21,128
Sales and marketing 18,582 10,763 35,160 20,541
General and administrative 9,047 5,063 16,832 9,643
——– ——– ——– ———
Operating income (loss)
before stock-based
compensation,
acquisition-related
amortization, and
in-process research and
development expenses (11,245) 8,050 (24,933) 13,987

Stock-based compensation 2,621 — 4,537 —
Acquisition-related
amortization 11,546 2,056 15,512 4,308
In-process research and
development 5,050 — 6,472 —
——– ——– ——– ———

Operating income (loss) (30,462) 5,994 (51,454) 9,679

Other income, net 2,995 1,325 6,335 2,970
Interest expense related to
convertible debt (1,342) (1,342) (2,684) (2,684)
Minority interest in losses
of consolidated subsidiaries 3,028 — 5,419 —
——– ——– ——– ———
Income (loss) before income
tax provision (benefit) (25,781) 5,977 (42,384) 9,965

Income tax provision (benefit) (5,636) 2,632 (10,023) 4,496
——– ——– ——– ——–

Net income (loss) $(20,145) $ 3,345 $(32,361) $ 5,469
======== ======== ======== =========

Net income (loss) per share:
Basic net income (loss)
per share $ (0.75) $ 0.14 $ (1.22) $ 0.22
======== ======== ======== ========
Diluted net income (loss)
per share $ (0.75) $ 0.13 $ (1.22) $ 0.21
======== ======== ======== =========
Shares used in computing
basic net income (loss)
per share 26,955 24,498 26,529 25,078
======== ======== ======== =========
Shares used in computing
diluted net income (loss)
per share 26,955 25,000 26,529 25,706
======== ======== ======== =========
Diluted operational net
income (loss) per share $ (0.11) $ 0.22 $ ( 0.26) $ 0.38
======== ======== ======== =========
Shares used in computing
diluted operational net
income (loss) per share 30,570 27,230 31,110 27,936
======== ======== ======== =========

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Freedom Card

CA-based Freedom Financial Services has enlisted Planet411.com to provide e-tailing services for its ‘FreedomCard’. The ‘FreedomCard’ is a sub-prime MasterCard issued through DE-based Cross Country Bank. FFS says its product is targeted at the 76 million minorities and other underserved consumers nationwide who currently have little or no credit. The partnership with Montreal-based Planet411 will bring digital currency to the sub-prime ‘FreedomCard MasterCard’. Jack Kemp, former Republican Vice Presidential candidate sits on FFS’ board. John Chalsty, chairman of Donaldson, Lufkin & Jenrette has invested $1 million into the firm. FreedomCard bills itself as the nation’s first minority-owned unsecured credit card designed specifically to meet the growing demands of African-Americans and Hispanic Americans who currently have little or no credit.

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MarketAccess

Inc.com, the Internet destination devoted to bringing the most comprehensive, high-quality management resources and tools to small businesses, announced an agreement with MasterCard International that provides the global payments company’s small business Web site –[http://www.mastercard.com/ma>][1]– with inc.com’s award-winning and trusted content. With MarketAccess, small businesses can securely and easily purchase goods and services at great prices, as well as set-up and maintain a free Web site with e-commerce capabilities all within the same Internet location.

“Inc.com is committed to meeting the needs of small businesses and we’re proud to use inc.com’s content on MarketAccess,” said Steve Abrams, senior vice president of Corporate Payment Solutions at MasterCard. “Small businesses have everything to gain from the MasterCard and inc.com relationship–valued buying opportunities and technology aligned with inc.com’s sharp, insightful content that will help small businesses run their businesses.”

MasterCard will display inc.com award-winning articles relating to e-commerce, Internet and business technology. In addition, visitors will have access to the inc.com archive, allowing them to explore inc.com’s back issues for a broad variety of small business information, tools and products.

“Through our alliances, we are extending our outreach to small business owners by providing them with the information, resources, tools and supplies that will help grow their business,” said inc.com CEO Bob LaPointe. “As inc.com content is found throughout numerous small business service sites, we continue to support the Inc. brand mission to be the definitive small business resource on the web.”

A virtual small business center and e-commerce site, inc.com provides small business owners with trusted information, tested products and proven solutions that will help them grow. Inc.com saves business owners time with practical information such as business plan templates, advice on how to incorporate, how to get venture capital and how to build a Web site. The site includes nearly 50 content providers and 100 different tools as well as informative bulletin boards with high profile mentors.

About inc.com

Headquartered in Charlestown, Mass., inc.com fills a market need by providing a total service Web destination site for small businesses seeking the broadest variety of high-quality management resources. An outstanding, comprehensive site, inc.com facilitates fast, intuitive access to an unrivaled range of quality products, services , information and advice. This one-stop destination eliminates Internet clutter by assembling best-of-breed solutions that are rigorously tested by inc.com’s technical staff before being awarded the trademarked inc.com “Click of Approval. Through this process, inc.com leverages and extends the unmatched reputation of Inc. magazine, the brand of choice and integrity among small businesses.

About MasterCard

MasterCard International has the most comprehensive portfolio of payment brands in the world. More than 1 billion MasterCard(R), Cirrus(R) and Maestro(R) logos are present on credit, charge and debit cards in circulation today. An association comprised of 22,000- 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 18 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. In 1999, gross dollar volume exceeded US$727 billion. MasterCard can be reached through its World Wide Web site at [http://www.mastercard.com][2].

[1]: http://www.mastercard.com/ma
[2]: http://www.mastercard.com/

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