CyberGold Goes Public

Cybergold announced Thursday that its initial public offering of 5,000,000 shares of common stock has been priced at $9 per share through underwriters led by SG Cowen Securities Corporation. Cybergold has granted underwriters SG Cowen Securities Corporation, CIBC World Markets Corporation, Volpe Brown Whelan & Company, and E*Offering Corporation an option to purchase up to 750,000 shares to cover over-allotments.

The common stock will begin trading on the NASDAQ National Market under the symbol “CGLD.”

Cybergold intends to use the proceeds from the offering to market and promote its brand as well as for general corporate purposes including working capital and capital expenditures.

Copies of the final prospectus related to the offering can be obtained from SG Cowen Securities Corporation at One Financial Square, 28th floor, New York, NY 10005, telephone: (212) 495-6000; CIBC World Markets Prospectus Department, World Financial Center, 200 Liberty Street, New York, NY 10281, telephone: (212) 667-7000; Volpe Brown Whelan & Company at One Maritime Plaza, 5th floor, San Francisco, CA 94111, telephone: (415) 274-4400; or E*Offering Corporation at One Market Street, Steuart Tower, 4th floor, San Francisco, CA 94105, telephone: (415) 618-6200.

Cybergold is a leading provider of Internet-based direct marketing and advertising solutions, including incentive programs which reward consumers with cash for their attention or specific response to ads and promotions. Cybergold’s business revolves around its Earn & Spend Community(TM), where its over 2.6 million members can use the incentive money they earn to buy digital content, services and products. The company’s pay-for-performance service offers advertisers and online merchants lower, more predictable customer acquisition costs. Cybergold consistently ranks among the 100 most visited web sites, according to PC Data Online. Cybergold’s partnerships include: Visa USA, MBNA, AOL, EarthLink, E*TRADE, Quintel and Autobytel. Headquartered in Oakland, California, Cybergold also has offices in Dallas, New York, and Washington D.C. It counts Intel (Nasdaq:INTC) among its corporate investors.


Destiny/Fleet Agreement

Destiny, formerly Destiny Software, announced Thursay that Fleet Credit Card Services, Horsham, PA, has entered into a multi-million dollar agreement for its e-business services. Destiny will work closely with Fleet’s credit card unit to develop and refine Fleet’s web strategy and to continuously launch leading online credit card offerings.

Fleet and Destiny will leverage the latest in web technology to deliver next generation services to consumers. The Internet platform will include targeted acquisitions, cross-marketing and customer management capabilities, intelligent applications and interactive, personalized customer services.

![][1] “Today’s announcement illustrates Fleet’s commitment to a unique and powerful presence on the Internet. Fleet recognizes that the rules are different on the web and that institutions must compete differently,” commented Lucinda Duncalfe, chief executive of Destiny. “Our set of web-based services combined with Fleet’s marketing prowess should produce industry leading results in very short timeframes. The web is changing the landscape of financial services and this long-term commitment to constant innovation is the way to ensure competitive advantage.”

“Our goal is to provide a unique and differentiated online experience for our customers throughout their entire relationship with Fleet, from initial marketing contact through acquisition, servicing and ongoing relationship management,” commented Joe Saunders, Chairman and Chief Executive Officer of Fleet Credit Card Services. “The Internet creates tremendous opportunity for us, but we also recognize that it demands a new orientation. Together with Destiny, we have all of the necessary skills to lead in this new arena.”

“Destiny’s deep understanding of our market and web technologies will be invaluable as we deliver innovative products and services to attract and retain cardholders. With today’s announcement, we’ve made Destiny an integral part of our team to achieve these goals and become a pioneer on the web,” added Warren Wilcox, Executive Vice President of Planning and Development for Fleet Credit Card Services.

Under the terms of the multi-year agreement, Fleet has retained Destiny to provide all of the services needed to build an online business, including strategic consulting, technology architecture, web design, electronic relationship management, application development, and systems integration.

About Fleet Credit Card Services

Fleet Credit Card Services, based in Horsham, Pennsylvania, is the nation’s eighth largest bankcard issuer. Part of Fleet Financial Group, Fleet Credit Card Services has more than $14 billion in managed receivables and more than eight million credit card customers.

Fleet Financial Group, headquartered in Boston and listed on the New York Stock Exchange (NYSE: FLT), is a diversified financial services company with $107 billion in assets and $87 billion in assets under management. Fleet is the nation’s sixth largest commercial lender and New England’s leading small business lender. Fleet’s products and services include consumer banking, government banking, mortgage banking, private banking, corporate finance, commercial real estate lending, credit cards, insurance services, cash management, trade services, export finance, capital markets, equipment leasing and asset-based lending. Fleet also provides a wide array of investment management services for both individuals and institutional clients and operates the nation’s third largest discount brokerage firm through its Quick & Reilly, Inc. subsidiary. With 1,150 branches and 2,400 ATMs, Fleet also provides 24-hour telephone banking as well as on-line banking services for individuals and businesses.

About Destiny

Destiny is a leading provider of e-business solutions to the world’s premier financial institutions. Through its integrated set of e-business services, which include online strategy, web design/branding, architecture consulting, electronic relationship management, and systems integration, Destiny helps financial services companies build competitively differentiated web businesses. Destiny’s extensive experience and innovative approach to working with clients, WebCycle(SM), ensures the utmost in speed to market and flexibility. Destiny’s clients include Bank of America, The Northern Trust Company, Chase Manhattan, Fleet Financial, and First USA (a Bank One subsidiary). The company’s web site is located at [][2].

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


BankServ Internet

San Francisco-based BankServ has formed a new Internet Payments division and has named Gary R. Craft to head the unit. Craft, former electronic financial services analyst for online investment banking firm E-Offering and a principal at BancBoston Robertson Stephens, will serve as CEO of the new entity. Bankserv says the new unit will facilitate merchant settlement and lower the overall cost of accepting payments online. BankServ is in the process of securing a new round of private financing to fund the Internet Payments unit. The company is preparing to launch an IPO sometime next year. Early investors in BankServ include Thomson Financial Services. Thomson Corporation units include American Banker/Bond Buyer and Faulkner & Gray.



The Board of Directors of Credit Management Solutions, Inc. announced Thursday that it has appointed Scott L. Freiman, Executive Vice President and co-founder of the Company, to assume new responsibilities as President and Chief Executive Officer following Peter M. Leger’s decision to resign from the Company.

In two related moves that will add further depth to the management structure of CMSI, Miles H. Grody, Senior Vice President, will assume the position of Chief Operating Officer, and John J. McDonnell, Jr. has been appointed Chairman of the Board, succeeding James R. DeFrancesco. As the Company’s co-founder and largest individual shareholder, Mr. DeFrancesco will continue his role as a Director and serve as an advisor to the Company.

Mr. Leger, who had been serving as CMSI’s President since early in the fourth quarter of last year when he joined CMSI from Automatic Data Processing, attributed his decision to leave the Company to personal reasons, citing the fact that since joining CMSI he has been largely separated from his family, who have not been able to relocate to the area from Chicago.

Mr. Freiman, 36, has served as the Company’s Executive Vice President and as a Director since 1987. Most recently Mr. Freiman has served as Business Line Manager for the Company’s e-Commerce/ Internet Commerce Division where he was instrumental in formulating the Company’s e/i-Commerce strategies. From 1985 to 1987, he was Technology Director of American Financial Corporation, an automobile finance/leasing company, where he worked with Mr. DeFrancesco to create the Company’s credit origination software. Prior to 1985, Mr. Freiman served as a development engineer for IBM and AT&T Bell Laboratories.

Mr. Grody, 43, has been a Senior Vice President and a Director of the Company since June 1995 and has held various senior positions including General Counsel, Corporate Secretary and Business Line Manager for the Company’s Credit Decisioning Division. From January 1993 to June 1995, Mr. Grody served as Chief Operating Officer and Director of Tomahawk II, Inc., a document imaging and conversion services company. From January 1992 to January 1993, Mr. Grody was a partner in the law firm of Rowan & Grody, P.C. From 1988 to January 1992, Mr. Grody was Corporate Counsel for Perot Systems Corporation.

Mr. McDonnell, 61, has served as a Director of CMSI since November, 1996. He has been President, Chief Executive Officer and a Director of Transaction Network Services, Inc. of Reston, VA, a nationwide communications network company specializing in transaction-oriented data services, since founding that firm in 1990. Transaction Network Services announced in late August a definitive agreement to be acquired by PSINet Inc. of Herndon, VA, the first and largest independent facilities based commercial Internet Service Provider (ISP). That transaction is valued at approximately $720 million.

“Jack McDonnell is a seasoned industry veteran who has built TNI into the leading worldwide provider of e-Commerce data communications, processing more than 20 million transactions per day from 2 million businesses. TNI handles over 70 percent of the dialed electronic Point of Sale transactions in the U.S. His level of experience adds considerable depth to the talent pool represented by our outside directors,” said Mr. DeFrancesco.

Mr. McDonnell commented, “On behalf of the Company, I would like to thank Peter Leger for his contributions to CMSI during his tenure as an officer and director. I have every confidence that the current management team will continue to successfully execute the Company’s business plans and strategies, especially those related to the Company’s e/i-Commerce initiatives.”

About CMSI

Since it was founded in 1987, CMSI’s credit automation and loan marketing technology services and software have been the choice of the world’s largest and most demanding lending institutions. Building on its leadership, the Company is rapidly becoming a premier provider of Internet-based online lending and leasing technology, including student loans, telecommunications, utility and small business applications. CMSI offers a portfolio of products through service bureau alliances that are sold on a per-transaction fee basis by its partners. The Company’s e-commerce products and services are built around its patented CreditConnection(R) technology, which links borrowers and credit originators such as automobile dealers to the industry’s most extensive national network of leading prime and non-prime lenders.


Internet ATM

Union Planters installed the first production model Internet ATM which will offer customers Internet access and financial management tools through its ATM network. The new technology was jointly developed by Diebold and FundsXpress. Union Planters’ customers will have access to Internet-based banking content and other financial service information previously available only through a PC located in a home or office. The first installation, at the Union Planters administrative center in Cordova, TN, allows users to continue to do all of the current ATM functions plus utilize the Internet to access additional account information from ‘UPOnline’, the bank’s secure Internet banking service. Diebold’s ‘OPTinet’ software technology enables the ATM to leverage the existing authorization network and connect to a financial institution’s Internet site for additional transaction or marketing information.


Driver’s Edge Connection and Citibank joined up Thursday for to be the exclusive online car-buying service for Citibank’s ‘Driver’s Edge’ credit cardholders. Beginning this month, Citibank ‘Driver’s Edge’ cardholders will be encouraged to use to research, select and finance their next car. is currently promoting the partnership with a free, enter-to-win sweepstakes. For a limited time, consumers will have the opportunity to visit and complete a Citibank ‘Driver’s Edge Platinum Select’ credit card application for the chance to win a $5,000 credit towards the purchase of any new or used vehicle on The sweepstakes ends this month. Citibank ‘Driver’s Edge’ cardholders will also be given one free used car listing each year, placing their ad in a database consulted by millions of car shoppers each month. Citibank’s ‘Driver’s Edge’ program allows members to earn up to $500 a year in rebates that can be redeemed at the lease or purchase of any car, new or used.


Equifax & Fair Isaac Renew Vows

Equifax and Fair, Isaac and Company, Inc. yesterday announced that they have extended their longstanding commitment to provide products and services to the financial services industry. Several new joint products as well as enhancements to existing products and services will be released in the next few months. These innovative solutions will provide credit grantors with tools to better manage the profitability of their consumer-lending portfolios.

William J. Calpin, senior vice president, Equifax North American Information Services, said, “This agreement opens up new opportunities to provide lenders with additional and enhanced credit management solutions from Equifax and Fair, Isaac. While our two companies compete in some markets, we continue to recognize the synergy that has come from working together to bring new analytical credit risk and marketing solutions to market. It is Equifax’s belief that by making a variety of credit management solutions available to our customers, we can best serve their interests in providing the solutions that best meet their needs. This extended relationship with Fair, Isaac helps Equifax fulfill that belief.”

Cheri St. John, Fair, Isaac senior vice president, North American Alliance Management, added, “Our respective companies are committed to offering innovative solutions to the financial services industry. This agreement aligns us to jointly pursue the introduction of effective solutions that will enable lenders to improve credit and marketing decisions for their prospective and existing customers.”

The companies have agreed to introduce the following products and services:

— Next generation credit risk score. The advanced next generation credit risk score is an alternative to Equifax’s and Fair, Isaac’s BEACON(R) score. This groundbreaking risk assessment score leverages the highly predictive power contained in Equifax’s rich consumer credit database. The next generation credit risk score predicts the likelihood of 90-day or worse delinquency in a consumer-lending situation and will therefore rank order the risk of serious delinquency, charge-off, repossession, foreclosure and bankruptcy.

— Revenue Evaluator score. Designed to be used in conjunction with credit risk scores, this bankcard scoring tool can help lenders identify prospects and customers that are most likely to generate and maintain profitable balances. The Revenue Evaluator score rank orders the amount of revenue likely to be generated from an account over the next twelve months. By pre-identifying customers likely to provide profitable returns, the issuer can implement acquisition and retention strategies that maximize and protect the account’s long term value.

— Bankcard attrition score. Used in combination with risk and revenue scores, this jointly offered score predicts the likelihood that an existing bankcard account’s balance will decline by 50 percent or more over twelve months. This scoring system allows bankcard issuers to retain valuable customers by identifying those who may stop using their card. The issuer may then design and implement proactive marketing strategies for retaining its most valuable clients.

— ScoreNet(R) Service is a Fair, Isaac account management credit bureau information delivery service. A variety of soon-to-be-available service enhancements will allow credit grantors to obtain a broader array of information from Equifax such as the revenue, attrition and next generation risk scoring tools and credit profile attributes. The expanded information available through ScoreNet Service will increase the ability for credit grantors to evaluate, understand and manage their consumer lending portfolios.

Fair, Isaac ([][1]) delivers critical decision-making solutions that help businesses improve their performance in acquiring, growing and serving their customers. The company works in the financial services, e-Business, telecommunications and healthcare markets providing transaction-level decision-making processes and solutions to help clients make quicker, more profitable decisions. Headquartered in San Rafael, Calif., Fair, Isaac employs some 1,600 people in 18 offices worldwide. For the fiscal year ended September 30, 1998, the company reported net income of $24.3 million ($1.68 per share, diluted) on revenues of $245.5 million.

Equifax ([][2]), a worldwide leader in shaping global commerce, brings buyers and sellers together through its information management, transaction processing and knowledge-based businesses. Atlanta-based Equifax serves the financial services, retail, credit card, telecommunications/utilities, transportation, information technology and healthcare industries and government. Equifax adds knowledge, expertise, convenience and security to provide value-added solutions and processes for its customers wherever they do business, including the Internet and other networks. Entering its second century in business, Equifax employs about 11,000 associates in 17 countries with sales in almost 50 and has more than $1.7 billion in revenue.



Extensity Signs AmEx

VISA-backed Extensity Inc. formed a new alliance with American Express Wednesday to integrate the AmEx ‘Corporate Purchasing Card’ into Extensity ‘Purchase Reqs’, Extensity’s solution for automating internal procurement request and approval processes. The agreement enables companies to create a seamless system to allows employees to directly purchase smaller-ticket items without the complicated paperwork of traditional procurement systems. Extensity ‘Purchase Reqs’ is part of the Extensity ‘E-Business Application Suite 4.0’, which includes Extensity ‘Expense Reports’, Extensity ‘Travel Plans’ and Extensity ‘TimeSheets’.


SCF Names Chairman

The Smart Card Forum, a multi-industry organization working to accelerate the widespread acceptance and application of smart card technology, Wednesday announced its new Chairman, Executive Committee, and Board of Directors for the 1999-2000 year. Donna Farmer, President and CEO of the Smart Card Forum, welcomed Allen Gilstrap, Vice President at American Express, as the new Smart Card Forum Chairman of the Board at the Forum’s 7th Annual Meeting held here today. The Smart Card Forum’s Executive Committee and Board are made up of industry leaders and visionaries that will guide the organization into the new millennium.

“The smart card industry in the US has reached a turning point,” said Gilstrap. “The Smart Card Forum will be essential in serving as a principal industry champion and leading provider of education programs. I am pleased to be working with Donna Farmer in leading the Forum into 2000.” Farmer, in welcoming Gilstrap as the new Chairman at the Smart Card Forum’s Annual Meeting, said, “I look forward to an exciting new year with the Forum, and to working closely with Allen in continuing to build our membership base and enhancing our services.”

The Smart Card Forum Board of Directors also includes the following distinguished individuals who retain seats on the board: Miguel Abramowicz, Vice President, CitiGroup; Louis Gasparini, Vice President, Excite@Home; Gerald Hubbard, Vice President, Bull; Gilles Lisimaque, Co-Founder and Senior Vice President, Gemplus; Mike Love, Vice President, First Union; Jerry Smith, Smart Card Opportunity Manager, IBM; Randy Vanderhoof, Director of Product Marketing, Schlumberger; Bette Wasserman, Vice President, Bank of America; and Jody Zimmerman, Global Business Development Director, Motorola. They are joined by the following newly elected Board Members:

— Patrick Gauthier, Vice President, VISA

— Kevin Gillick, Director of Market Development, DataCard

— Rick Mace, President and CEO, First Access

— Tambra Nichols, Vice President, Wachovia Bank, and

— Michael Orr, Director of Business Development, 3GI (Audit Rep)

As a part of the Smart Card Forum Board of Directors elections, the following individuals were also elected to the Executive Committee:

— Gilles Lisimaque, Gemplus, elected as Vice Chairman

— Patrick Gauthier, Visa, elected as Treasurer

— Rick Mace, First Access, elected as Secretary

— Tambra Nichols, Wachovia Bank, elected as Assistant Treasurer

— Kevin Gillick, DataCard, elected as Assistant Secretary

In addition, Mike Dinning, US Department of Transportation, was elected as the Federal Government Advisor to the Board.

“With so many key representatives of leading smart card technology innovators and implementors leading our organization, The Smart Card Forum is well-positioned to fulfill its goals of achieving widespread smart card usage in the US in the new millennium,” said SCF President and CEO Donna Farmer. “As we progress into our new membership year, I would like to thank Bill Barr, past Chairman of the Smart Card Forum and our departing Board Members: Catherine Allen, BITS; Jean McKenna, VISA; Michael Tempora, MasterCard; Bryan Ichikawa, SPYRUS; Julie Krueger, SPYRUS; Eddie Esquivel, State of Texas; and Tom Gregg, 3GI. All have devoted time and attention to further the industry through their dedicated efforts with the Smart Card Forum.”

About The Smart Card Forum

The Smart Card Forum is a non-profit, multi-industry organization of nearly 200 members working to accelerate the widespread acceptance of multiple application smart card technology by bringing together, in an open forum, leading users and technologists from both the public and private sectors. The Smart Card Forum is the leading organization for education and awareness of topical issues associated with the use and adoption of smart card systems. The Smart Card Forum also operates the Smart Card Forum Educational Institute, the industry-leading course dedicated to providing smart card education that has set the standard in the industry. The curriculum is based on leading edge educational models and methodologies utilizing experienced instructors who are experts in the smart card industry. For more information about The Smart Card Forum, log on to the organization’s Web site at [][1].



Medsite MBNA MasterCard

Medsite, the physician’s home on the Internet, announced yesterday a partnership with MBNA America Bank, the leading issuer of affinity credit cards, to offer the Medsite Platinum Plus MasterCard to physicians and other members of the medical community. The credit card will be made available to all members of the medical community that visit the Medsite Money site as well as via traditional marketing efforts.

“The Internet has spawned an excess of choice in new online efforts to sell everything from prescriptions to books to medical supplies,” said Sundeep Bhan, Founder and CEO of Medsite. “We believe that the Internet is the inevitable sales channel in the healthcare industry and as a major player in this space, the ability for physicians to easily make purchases is a critical part of what we offer.

The Medsite credit card will enable users to make purchases wherever MasterCard is accepted, as well offer benefits to those customers who use the Medsite card for transactions on Medsite’s leading e-commerce channels, including Medsite MedBookstore, Software and Supplies.

The Medsite credit card offering is one of many features to be found on Medsite’s eFinancial site for the medical community, Medsite Money. Medsite Money provides essential products, services and content to satisfy the full spectrum of financial needs educational, business and personal – of the practicing and retired physician, medical student and resident.

Current offerings on Medsite Money include: stock quotes, charting, IPO information, healthcare business news, personal stock portfolio monitoring, equipment leasing, financial planning consultation, alternative investments, insurance and many practice management services.

“With 62 percent of the more than 700,000 physicians self-employed, and thus facing significant time constraints on a daily basis, we saw the opportunity to present an eFinancial destination that offers physician-focused financial products and services that would enable the physician to spend more time with patients, while still growing the business with confidence and security,” said Bhan.


Headquartered in New York City’s Silicon Alley,, Inc. is the physician’s home on the Internet. The company, which operates ([][1]), offers a comprehensive range of user-friendly solutions in the categories of medical ecommerce, medical information, and communication services. Building on its first Internet business, MedBookStore, Medsite has become a healthcare destination site offering an extensive selection of medical books, software, journals and supplies, electronic physician credentialing, the latest medical news, a scheduling tool for the medical community, a customizable finance channel, continuing medical education, and numerous other services, geared towards “making the practice click.”

Founded in 1995, Medsite currently draws over 12,000 visitors a day and has approximately 150,000 registered users. The company has developed strategic partnerships and alliances with industry-leading hospitals, medical schools, associations, and healthcare companies from more than 60 countries. Medsite’s customers include physicians, residents, nurses, medical students, physician assistants and pharmaceutical companies.

About MBNA

MBNA Corporation, a bank holding company and parent of MBNA America Bank, N.A., a national bank, has more than $66 billion in managed loans. MBNA, the largest independent credit card lender in the world, also provides retail deposit, consumer loan, and insurance products.

This release and prior releases are available on the KCSA Public Relations Worldwide website at [][2]



SmartCity 5.1 Card

CT-based ICL launched a new version of its SmartCity multi-application smart card system, ‘SmartCity 5.1’, which includes a new and advanced loyalty application. The new application, called ‘SmartCity Instant Award’, allows cardholders to collect loyalty points on every payment transaction made. The cardholder is awarded points either when using the card’s e-purse or when using other payment methods such as their credit or debit card. ‘SmartCity Instant Award’ is able to support one to 250 loyalty programs on the same system. These can be programs run by an individual merchant or by a group of merchants pooling their points together. SmartCity has been installed in more than 75 sites worldwide with 1.5 million cards in use every day.


Holiday Numbers

There is no end to the guesstimates on holiday spending. Yesterday CA-based Gartner Group projected consumers will spend $12.2 billion during the holiday season compared to $4.5 billion last year. Earlier this week Jupiter Communications projected consumers will spend $6 billion on-line compared to $3.1 billion last year. Garner Group says the US will dominate online holiday shopping with 70% of revenue. Europe is projected to account for 15.5% of revenue, while Asia/Pacific is forecast to have 7% of consumer electronic commerce this holiday season.