CSI Name Change

Card Services International the world’s leading smart card management software company, announced that as of January 1, 2000 the company will change its name to CardBASE Technologies.

The company is changing its name to reflect the focus of the organisation and to provide a .com Internet address for Customers and Partners worldwide – [www.cardbase.com][1] will be live from January 1, 2000.

Founder and Chief Executive Officer, Aonghus Geraghty commenting on the change said: “the new name unifies the company and its product brand. Our core technology, CardBASE(R) delivers the most advanced chip card management product available in the market today. CardBASE Technologies plans to continue to dominate the market for advanced chip card life-cycle management systems. The current industry excitement about the potential of multi-application chip cards and the role these cards can play in the delivery of secure eCommerce, pays little attention to exactly how these multi-application cards will be managed at the back-end. CardBASE addresses these issues and provides a fully integrated solution for the volume personalisation and issue of chip cards, plus the collection, processing and clearing of associated transactions.

Today, CardBASE is the technology behind some of the world’s leading chip card payment schemes including ChipCASH, ValuCard, and Visa Cash. In total these schemes issue hundreds of thousands of cards and process millions of transactions annually.

As the smart card market continues to develop, CardBASE will provide card life-cycle management solutions for PKI security chip cards and other advanced applications.

For our employees and shareholders our new name reaffirms our commitment to the development of a global brand and enhances the company’s growth and earnings potential.”

About CardBASE Technologies

CardBASE Technologies(R) (formerly CSI) is a European company serving world markets from offices in Ireland, the United States and Africa. Since its foundation in 1993, CardBASE Technologies has positioned itself at the forefront of eCommerce software solutions, providing innovative smart card management systems for the Internet, Banking, Oil Distribution and Airline Treasury Management.

CardBASE(R) offers clients the ability to issue smart cards, which can manage Multiple Applications, Card Personalization, Card Management, Transaction Processing and Settlement. CardBASE solutions have been specifically designed to support the Visa International led Common Electronic Purse Specification (CEPS) and Public Key Infrastructure (PKI) standards.

CardBASE Technologies Internet address will be [www.cardbase.com][2] from January 1, 2000.

[1]: http://www.cardbase.com/
[2]: http://www.cardbase.com/

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Rev Credit Skids

Revolving consumer credit continues to decelerate in the USA. According to preliminary figures released by the Federal Reserve, Americans paid down $300 million in outstanding revolving credit during October, marking the third straight month of decline. The peak occurred in July when consumers owed $584.6 billion in revolving credit, which is mostly credit card debt. Last year Americans added nearly $6 billion to revolving credit during the month of October. Revolving credit is now growing at a negative rate of 0.6%, according to the FRB. Meanwhile, preliminary results from CardData’s ‘3Q/99 Portfolio’ survey indicated bank credit card debt is growing at a 3% annual rate, the lowest rate of growth since 1991. Overall, consumer credit is growing 3.7% annually. It should be noted that the FRB figures do not net out monthly payments made on credit card balances. Monthly payment rates have been rising sharply this year which dampens the real growth in revolving credit. Among credit card-backed securities the average monthly payment rate for October stood at 16.2%. Overall, American consumers were $1.371 trillion in debt, exclusive of home mortgages, at the end of September.

REVOLVING CREDIT HISTORICAL
Oct99 Sep99 Aug99 Jul99 Jun99 May99 Apr99 Mar99 Feb99 Jan99
%GRWTH: -0.6% 0.1 2.5 12.1 13.8 4.5 5.6 -0.9 3.4 11.6
$OWED: $584.3 584.6 584.5 584.6 578.5 572.2 569.9 567.3 567.5 565.9

Source: Federal Reserve; revised figures as of 12/07/99; For complete historical data visit [www.carddata.com][1].

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

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RPM Partner

San Francisco-based InnoVentry Corp. has established a strategic alliance with Diebold which includes a contract under which Diebold will integrate, install and service InnoVentry’s new ‘RPM Cash Management Machines’ in key target markets in the USA. InnoVentry’s ‘RPM’ has been developed to provide secure financial transactions for the self-banked (an estimated 37 million US adults who do not have bank or checking accounts or maintain only nominal balances in the accounts they do hold). The ‘RPM’ consists of Diebold’s advanced-function, ‘1062ix’ ATM and InnoVentry’s cash management technology. InnoVentry has secured commitments for 1,500 sites for its new ‘RPM’ with major convenience store and supermarket retailers. The company, formerly known as innoVisions, was formed in May 1998 as a private company with investments from the wholesale bank of Wells Fargo and Cash America International.

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Green Tree Name Change

Private-label credit provider Green Tree Retail Services has been renamed to Conseco Finance Corp., Retail Services Division. The name change follows the June 1998 acquisition of Green Tree Financial Corporation, one of the nation’s largest multi-line finance companies, by Conseco, Inc.

Conseco Finance’s Retail Services Division adds value to the sames efforts of retailers and manufacturers through the design and execution of innovative marketing programs. Founded in 1996, the division has grown to become a top-five third party private-label credit provider, with 30 retail and manufacturer relationships, more than $1.2 billion in receivables and over 1.6 million cardholders.

Headquartered in Carmel, Ind., Conseco is one of middle America’s leading sources for insurance, investment and lending products. Through its subsidiaries and a nationwide network of insurance agents and finance dealers, Conseco provides solutions for both wealth protection and wealth creation to 12-1/2 million customers.

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Concord Deal

Concord EFS announced this morning that SUPERVALU INC. has signed an exclusive contract with Concord to provide end-to-end processing for credit and debit card payments at their store locations nationwide. SUPERVALU, the tenth largest food retailer in the nation and the largest food distributor to supermarkets, operates or supplies on a primary or secondary basis, about 5,000 retail food stores nationwide. SUPERVALU is a long-time front-end processing client of Concord’s recently-acquired subsidiary, BUYPASS Corp. The new agreement extends the contract for front-end processing and adds Concord’s back-end processing services, which includes settlement and funds movement for credit card payments. The agreement also adds Concord’s check authorization service to the range of payment options supported.

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CreditLand

San Francisco-based Creditland closed its second round of financing yesterday and has hired a new president. Billing itself as the “Internet’s only unbiased credit marketplace” the online startup closed a $15 million equity financing deal. Investors to-date include: Wheatley Partners, Pacific Century CyberWorks, Thomas Weisel Partners, and Robertson Stephens. The firm has also received investments from First Union Capital Partners and umbrellabank.com, a division of Argo Federal Savings Bank, FSB. The new firm also announced Thursday that Michael Bartholomew, former COO of Cheap Tickets, has been named president and COO. Creditland is a free service that matches consumers to auto loans, home loans, personal loans and credit cards provided by participating vendors.

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Return Cards

Borders has come up with a novel way to handle holiday returns. The global retailer will issue a platinum prepaid card in the amount of the return credit. Borders electronic return card will hold a balance up to $500 and can be used anywhere in the store to buy books, CDs, videos or Borders Cafe Espresso items. Customers can check their available balance via an 800# or at store registers. The new prepaid return is being introduced this week at all Borders stores. The company also issues a prepaid gift card.

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Troubled Cards

Another sub-prime issuer is struggling with rapid account growth and a simultaneous sharp rise in chargeoffs. Dallas-based UICI acknowledged yesterday that it expects to post a $79 million loss for the fourth quarter. The loss is attributed to UICI’s United CreditServ subsidiary which needs to boost reserves for credit card losses associated with the relatively new, sub-prime ‘ACE VISA’ credit card program. United CreditServ says over the past twelve months it has experienced a significant increase in new ‘ACE VISA’ cards issued and is now taking steps to substantially restructure and reprice the credit card product. The issuer has also installed an entirely new management team this year which included the hiring of W. David Huddleston, former President of Associates National Bank, as President and CEO of United Credit National Bank, United CreditServ’s SD-based credit card issuing bank. Under the ‘ACE VISA’ program applicants are offered a $400 minimum credit line in exchange for charging a $300 personal finance educational program, a $19.00 processing fee and a $49.00 annual fee. According to CardWatch ([www.cardwatch.com][1]) the required $300 personal finance educational program consists of five booklets and two videotapes produced by a group called: American Credit Educators. The ACE program is similar to the now defunct ‘Best Bank VISA’ program which offered a $600 credit line in exchange for charging a $500 travel club membership fee. The ‘ACE VISA’ carries a 19.92% APR and a $25 annual fee for any additional cards.

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

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CardEx Expansion

Corporate gift certificate and gift card specialist, CardEx, announced yesterday it has added seven major brands to its gift certificate program. The new brands include: Waldenbooks; Borders Books; Sunglass Hut; Virtual Vineyard; Planet Hollywood; Orvis; and The Bon Marche department store chain in the Pacific Northwest. CardEx now offers gift certificates from more than 100 popular national merchants to corporate gift and incentive buyers. CardEx gift certificates are sold at face value with no service charges. All CardEx gift certificates are available in denominations of $25 and are delivered to buyers overnight. In addition to merchant gift certificates, CardEx offers the ‘CardEx MasterCard GiftCard’.

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NextCard Stock

NextCard, Inc., creator of The First True Internet Visa, Thursday announced the public offering of 8,000,000 shares of its common stock at a price of $35.94 per share. The offering consists of 4,500,000 shares being sold by the Company and 3,500,000 shares being sold by certain selling stockholders.

NextCard’s public offering was co-led by Donaldson, Lufkin & Jenrette Securities Corporation and Goldman, Sachs & Co., with Thomas Weisel Partners LLC, Prudential Securities and U.S. Bancorp Piper Jaffray Inc. acting as co-managers. The Company and the selling stockholders have granted the underwriters a 30-day option to purchase up to 900,000 shares from the Company and up to 300,000 shares from certain selling stockholders to cover over-allotments, if any.

NextCard is a leading Internet-based provider of consumer credit. The Company was the first to offer an online credit approval system for a Visa(R) card and to provide interactive, customized offers for credit card applications. NextCard has continued to innovate with its GoShopping!(SM) Web site, the NextCard Concierge(SM) online wallet companion, personalized PictureCard(SM) design and interactive customer service. The NextCard Internet Visa, termed The First True Internet Visa, is marketed to online consumers through the Company’s website, located at [www.nextcard.com][1].

NextCard intends to use the net proceeds of the offering for general corporate purposes, including working capital, funding of credit card receivables and future capitalization of NextBank N.A., its limited purpose banking subsidiary. The Company will not receive any proceeds from the sale of the common stock offered by the selling stockholders.

A copy of the prospectus relating to the offering may be obtained from Donaldson, Lufkin & Jenrette Securities Corporation, 277 Park Avenue, New York, New York 10172, (212) 892-3000; Goldman, Sachs & Co., 85 Broad Street, New York, New York 10004, (212) 902-1000; Thomas Weisel Partners LLC, One Montgomery Street, San Francisco, CA 94104, (415) 364-2500; Prudential Securities , 111 8th Avenue, 5th Floor, NY, NY 10011, (212) 776-8190; and U.S. Bancorp Piper Jaffray Inc., 222 South Ninth Street, Minneapolis, Minnesota 55402, (612) 342-6000.

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

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AAdvantage Adds Four Airlines

American Airlines and four members of the Qualiflyer group of airlines have started frequent flyer program cooperation. The arrangement gives customers more ways than ever to earn and redeem miles. The Qualiflyer airlines include Swissair, Sabena, Crossair and Turkish Airlines.

“We are pleased to welcome these four airlines into American’s AADVANTAGE program and we are pleased to start participating in the Qualiflyer program,” said Henry Joyner, American’s vice president for marketing planning. “By forming this relationship, we are able to offer our customers more ways to earn miles and more exciting destinations to choose from for award travel.”

Under the provisions of the frequent flyer arrangement, AADVANTAGE members may earn mileage credit when traveling on non-transatlantic flights operated by Sabena, Swissair, Crossair and Turkish Airlines (excluding Turkish flights within Turkey). AADVANTAGE members may also earn mileage credit when traveling on one of Swissair’s or Sabena’s transatlantic flights if it is a codeshare flight and the passenger is booked under American’s AA code and flight number.

AADVANTAGE members may redeem travel awards on all flights operated by Sabena, Swissair, Crossair and Turkish Airlines.

Qualiflyer members may earn mileage credit and redeem travel awards on non-transatlantic flights operated by American and its regional affiliates American Eagle and Business Express. Also, Qualiflyer members may earn mileage credit on American’s transatlantic flights if it is a codeshare flight and the passenger is booked under the Swissair or Sabena code and flight number.

Swissair operates flights between Switzerland and the U.S. cities of Atlanta, Boston, Chicago, Los Angeles, Miami, New York (JFK), Newark, San Francisco, and Washington (Dulles).

Sabena operates flights between Belgium and the U.S. cities of Atlanta, Boston, Chicago, Cincinnati, New York (JFK), Newark and Washington (Dulles).

Turkish Airlines operates flights between Turkey and the U.S. cities of Chicago, Miami and New York (JFK).

Crossair is an affiliate of Swissair and operates within Switzerland and elsewhere in Europe.

Summary of AADVANTAGE and Qualiflyer FFP Cooperation

AADVANTAGE AADVANTAGE Qualiflyer Qualiflyer
Members May Members May Members May Members May
Earn on Redeem on Earn on AA Redeem on AA
Qualiflyer Qualiflyer and Affiliates and Affiliates
Crossair Yes Yes American Yes* Yes*
Sabena Yes* Yes American Eagle Yes+ Yes+
Swissair Yes* Yes Business Express Yes+ Yes+
Turkish Yes* Yes

* Excludes transatlantic flights.
# Excludes flights within Turkey.
+ Crossair, American Eagle and Business Express do not operate transatlantic
flights.

FFP Members Always Earn Miles on Transatlantic Codeshare Flights

American code (AA) on flights operated by Sabena May earn AADVANTAGE
miles.
American code (AA) on flights operated by Swissair May earn AADVANTAGE
miles.
Sabena code (SN) on flights operated by American May earn Qualiflyer
miles.
Swissair code (SR) on flights operated by American May earn Qualiflyer
miles.

Current AMR Corp. (NYSE: AMR) news releases can be accessed via the Internet. The address is .

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MC Beefs-Up Creditalk.com

As more and more savvy shoppers log onto the Internet to save time and money, they may want to take a side trip to the newly re-designed version of MasterCard International’s educational web site, Creditalk.com, which features tips and information on credit card and money management.

Just in time for the holidays, Gerri Detweiler, personal finance expert, author, and educational advisor to the Debt Counselors of America, will host two chat sessions in which she will answer specific questions about credit and money management. The chat sessions will be held at [http://www.Creditalk.com][1] on Friday, December 17, from 12:00 to 1:00 p.m. EST and again from 3:00 to 4:00 p.m. EST.

Detweiler will address a variety of critical money management topics from budgeting basics, to securing your privacy, to avoiding scams and identity theft. The new version of the web site will also contain advice columns authored by Detweiler, excerpts from her new book, Slash Your Debt, and an opportunity to sign up for a free personal finance newsletter.

“With the holidays upon us and the spirit of giving around us, it’s easy to put our personal finances on the back burner,” Detweiler said. “By using the Internet to reach a broad range of consumers and by making the web site more interactive, MasterCard is providing an excellent vehicle for consumers to access information and to ask important questions about managing money. Creditalk.com is useful to anyone who wants to learn how to establish sound spending habits and save money,” she said.

These additions, along with several others coming in the very near future, are designed to broaden the web site’s appeal, according to Catherine Cummings, MasterCard’s Vice President of Consumer Affairs. Creditalk.com has several interactive features, including:

A credit calculator that projects savings made by increased credit card payments; A budget worksheet to create a personalized plan to control spending; Links to credit bureaus to obtain a credit report; Links to consumer sources for credit counseling; and A glossary of terms to explain credit card features, rates and the significance of a credit report.

“We initially developed Creditalk.com to provide younger audiences and new users of credit with information they would need to establish good money management skills,” Cummings said. “With these new enhancements we believe the site is now useful to all kinds of consumers — generally anyone who wants to keep an eye on their finances during a very active time of the year.”

Another upcoming Creditalk.com feature is a link to “Online University,” developed in conjunction with Debt Counselors of America, which houses an interactive financial fitness test. The test serves as an early warning system; by assessing an individual’s money management practices, it can help determine if he or she is headed for financial problems.

“With all of its new features, Creditalk.com is valuable for both the first-time credit user and the experienced credit card holder looking to reduce debt,” Cummings said. “We believe this site has something for everyone, and we will continue to look for ways to make it even more relevant and helpful for card users.”

Creditalk.com is a non-commercial consumer education web site developed by MasterCard International. Links are provided to not-for-profit consumer credit counseling services. Creditalk.com does not include credit card solicitations on its pages.

Gerri Detweiler is a nationally recognized credit and personal finance expert. She is a co-author of Slash Your Debt, Save Money and Secure Your Future (Financial Literacy Center, 1999), a first of its kind book providing consumers with information about how to manage debt, and the author of The Ultimate Credit Handbook (Plume, 1993, revised 1997), which was featured in Money magazine as one of the five best new personal finance books of the year when it was first released. Ms. Detweiler is also the former Executive Director of the non-profit consumer education and advocacy group, Bankcard Holders of America and co-author of Invest in Yourself: Six Secrets to a Rich Life (Wiley, October, 1998). Currently, Ms. Detweiler serves as the education advisor to the Debt Counselors of America, the nation’s first Internet-based non-profit counseling agency.

MasterCard International has the most comprehensive portfolio of payment brands in the world. With 23,000 member financial institutions, serving consumers in 220 countries and territories, MasterCard is the industry leader in quality and innovation. Nearly 700 million MasterCard(R), Maestro(R), Cirrus(R) and Mondex(TM) cards are in circulation today. With more than 16.2 million locations, no card is accepted in more places and by more merchants than the MasterCard card. In 1998, gross dollar volume exceeded $650 billion. MasterCard can be reached through its World Wide Web site at [http://www.mastercard.com][2].

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

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