New E-Bill Company

Derivion Corporation, an innovative new company that is developing a patent-pending Web-based electronic bill presentment and payment (EBPP) service targeted initially at mid-tier utility and telecommunications businesses, has won the support of Atlanta-area high-tech investors.

Entrepreneurs Gregory J. Rable and Andrew Wexler of Atlanta and Dushyant Sharma of Toronto formed Derivion. Based in Atlanta with research and development in Toronto, Derivion’s Web-based system brings together a wide range of services so consumers can easily view and pay bills online.

Consumers will be able to have their bills presented and pay them from a Web-based application through their Web browser. Derivion will initially market the Web service to “mid-tier” billers such as regional electric, gas, water, telecommunications or cable companies.

The initial round of funding was completed last week, said Rable, Derivion’s Chief Executive Officer. The source of the funding is what Rable described as a group of seasoned Atlanta investors.

Among the key investors are Bert Ellis, Chairman and CEO of Atlanta-based interactive media company iXL Enterprises. Ellis also is a member of the board of Atlanta-based Internet health care portal WebMD.

Other key investors include Boland T. Jones, Chairman and CEO of Premiere Technologies, and Rex Fuqua, Managing Director of Fuqua Ventures. Both Jones and Fuqua were early financial backers of hot Atlanta Internet companies iXL and WebMD.

Also investing in Derivion are Sergio Zyman, consultant and formerly Chief Marketing Officer for Coca-Cola Co., and Ashish Bahl, Senior Vice President of iXL’s financial services group.

“We’re very excited about the momentum that this first round of investment has given the company and about the caliber of the investors,” Rable said. “We envision 1999 as a positioning year for Derivion, and expect the Year 2000 to be a break out year.”

Ellis, CEO of iXL, noted that, “We think that Web-based EBPP technology is going to be the next wave in the evolution of electronic commerce. Getting in on the ground floor with a company like Derivion is a no-brainer for mid-tier billers and service providers. We think that they will find the cutting-edge, flexible technology on which Derivion’s EBPP product is built very attractive.”

Ellis added that, “iXL plans to incorporate Derivion’s EBPP strategies with some of our major clients.”

Sharma, the Toronto-based President and Chief Information Officer of Derivion, explained that, “The biggest challenge for companies offering EBPP solutions is to integrate them with the billers’ existing systems and processes. Derivion is offering a unique ‘self-learning’ EBPP system, so billers can easily ‘train’ the system to meet their unique requirements for bill presentation. Billers are welcoming this approach.”

There are two primary beneficiaries of the Derivion service. First, there are people who use it to view and pay bills. Second are the companies who will reap a substantial cost reduction for the Web-based service and, at the same time, improve customer service and customer retention, and provide new cross-marketing channels.

“We will provide our mid-tier corporate customers with the most cost-effective, efficient service to serve their customers better, and they will be able to implement the service quickly,” said Rable. “For example, it costs companies up to $2 to deliver a single monthly bill to a customer. We will do the job better on the Internet for less than one-quarter of that, allowing that savings to drop back to the biller’s bottom line.”

Rable and Sharma met while employed by InterTrans, a software company that was acquired in 1998 by i2 Technologies. They recruited Andrew Wexler, an accountant in the Atlanta office of Arthur Andersen, to join them in the venture as Chief Financial Officer.

Joining Ellis, Jones, Fuqua, Zyman and Bahl as members of Derivion’s board of directors are John Collins, Chairman and CEO of the Intercept Group; Rodger Johnson, an Atlanta high-tech veteran and President and CEO of JKC Holdings, and Robert Jetmundsen, Managing Director at Morgan Keegan, Inc.

Derivion’s product incorporates accepted industry standards, including the Open Financial Exchange (OFX) protocol for secure financial transactions.


VISA – ActivCard

Visa International and ActivCard have announced a major step forward in enhancing business and consumer smart card services. Both organizations have agreed to work together to enable Visa Members to provide a cardholder identification service on their smart cards.

The agreement will extend the functions offered by a Visa smart card to include identification of cardholders whenever they access a corporate computer network, Internet services, or even a building. This new application will be offered to Visa member banks as one of the many third party applications available on the Visa Open Platform.

ActivCard is a global provider of network security applications and the developer of the Corporate Wallet, a system designed to securely manage, control and distribute corporate credentials across communication networks.

“This announcement enables Visa members to move forward in the essential smart card functions of payment and customer identification,” said Philip Yen, senior vice president, Emerging Technology at Visa International.

“There is an ever increasing number of systems and applications which require user identification and a growing number of different ways in which identification can take place. ActivCard enables you to store credentials and digital signatures on the smart card so that the only thing a cardholder need do is insert the card into a PC and enter a PIN number. It makes the promise of anytime and anywhere access a reality and demonstrates how multifunction smart cards can offer much more than just access to financial services.”

Jean-Gerard Galvez, Chairman and CEO of ActivCard, said: “Three keys to the success of Internet transactions are security, extensibility, and interoperability. The Visa Open Platform allows smart cards and smart card technology to be deployed in any network environment, bridging the gap between traditional financial and IT services. ActivCard technology is a perfect enhancement to this environment: standards-based and extensible, supporting both existing authentication infrastructure and emerging technologies, including PKI and digital signature.”

As part of the agreement ActivCard will develop Java-based software to run on a Visa Open Platform smart card and will extend their current browser and e-mail based authentication products to support the card application.

The Visa Open Platform is a collection of specifications and technologies which enable financial institutions to develop and issue multifunction smart cards. The Open Platform is freely available and capable of use in numerous business environments. It enables applications and keys to be loaded securely onto a smart card even after the card has been issued to the cardholder.

ActivCard, a leader in strong authentication and electronic certification technology, delivers core components required to make smart cards the essential tool enabling next generation Internet business. ActivCard’s technology suite offers the ease-of-use of an ATM transaction with a security level better than face-to-face.

The technology integrated on a Visa Open Platform smart card provides a cardholder with the applications and credentials required to transparently, uniquely and absolutely be identified through the Internet. This strong authentication, in conjunction with the applications support for public key based data confidentiality and integrity, allows individuals and businesses to perform secure online transactions over the Internet. Today, more than one million people use ActivCard products for secure banking, web access and remote access to corporate networks. ActivCard’s Internet address is [][1].

As the ‘World’s Best Way to Pay’, Visa is the leading payment brand and the largest consumer payment system worldwide with more volume than all other major payment cards combined. Visa plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 Member financial institutions and their cardholders. Visa has more than 70 smart card programs in 33 countries and on the Internet, with 23 million Visa chip cards, including more than eight million Visa Cash cards. Visa is pioneering Secure Electronic Transaction (SET) programs to enable and advance Internet commerce. There are more than 630 million Visa-branded cards, which generate over US$1.3 trillion in annual volume. Visa is accepted at more than 15 million worldwide locations, including over 450,000 ATMs in the Visa Global ATM Network.



Maple Leafs Card

MBNA Canada Bank announced Friday that the Toronto Maple Leafs of the NHL have teamed with MBNA to issue the ‘Official Maple Leafs MasterCard’. Friday’s agreement with the Maple Leafs expands MBNA’s program with the NHL and its 30 teams, including endorsements from the Ottawa Senators and Calgary Flames. MBNA, which established the NHL credit card program in the U.S. in 1996, introduced the program into Canada last year and has the rights to market the NHL credit card program in Europe. MBNA has about 140 affinity programs in Canada.


GlobeSet Update

GlobeSet Inc. announced this week the release of the ‘GlobeSet Merchant Adapter 2.1′ with support for Microsoft’ Site Server 3.0 Commerce Edition’. The adapter works in conjunction with the ‘GlobeSet POS’, an application designed for payment processing between a cardholder and a financial payment gateway. The ‘Merchant Adapter 2.1’ features the ability to allow merchants to simultaneously process both SET and SSL transactions over the Internet and offers an extensive merchant integration manual designed to educate merchants on how to process both SET and SSL credit card payment authorizations through their on-line storefronts.


Coinstar Shopper

Coinstar Inc.will unveil this morning a prototype of its ‘Coinstar Shopper’ Internet platform, which enables consumers to save money and increases supermarket loyalty. At the beginning of a store visit, the consumer swipes their supermarket’s frequent shopper card, and the ‘Coinstar Shopper’ responds with special offers from the retailer, a personalized meal plan, and on-line purchases from leading non-grocery retailers on the Internet. This service enables retailers to deliver targeted messages, customized discounts, and sell additional products to consumers on their shopping trips. The ‘Coinstar Shopper’ will also allow consumers to join special grocer clubs, check their frequent shopper points balance, and receive special travel discounts. The company says there are currently more than 8,000 stores with frequent shopper programs, reaching more than 80 million consumers per week. Coinstar operates a network of more than 5,000 self service, coin counting machines in supermakets spread across 37 states.



CardLogix, a leading U.S. manufacturer of smart cards, announced that it is partnering with Humetrix’, Inc., to enable easy and secure smart card-based Internet transactions for healthcare insurers, providers and consumers. This agreement incorporates Humetrix’s line of Netissimo’ products and services for direct and secure Internet access. The addition of the CardLogix smart card platform increases the ease-of-use and security of Humetrix solutions. The announcement was made at the annual HIMSS Conference And Exposition in Atlanta, where CardLogix is exhibiting in Booth 2214.

Two-thirds of all visitors to the worldwide web have accessed health information, with half inquiring about a specific condition or disease. Providers and insurers benefit from fast, secure access to medical databases, reference materials and claims information for better patient care and business management, keeping costs down.

CardLogix and Humetrix products are aimed at healthcare consumers, providers and insurers. Humetrix offers tailored solutions and integration services to meet specific consumer needs.

‘ Humetrix is a valuable partner for us, with in-depth knowledge of the technical and business dimensions of this vast industry in the U.S.’, said Bruce Ross, Vice President Of Marketing for CardLogix. Dr. Bettina Experton, President and CEO Of Humetrix, comments that Humetrix solutions integrate smoothly with CardLogix smart cards and Smart Toolz’ Application Development Software. ‘We have identified some key opportunities for our combined products’.

Founded in 1994, CardLogix manufactures smart cards and development software for integrating smart card technology into computing and transaction systems. Key application areas include Healthcare, Security, Entertainment and Banking. Contact CardLogix at 16 Hughes, Irvine, CA. 92618, (949)380-1312, [][1] and

Humetrix’, Inc. Incorporated, founded in 1991, develops and sells proprietary smart card applications and smart card-based products and services that address the entire spectrum of Internet communications and transactions for Healthcare, Banking, Finance and Travel and Leisure. For more information, contact Humetrix at 110 5th Street, Del Mar, Ca., 92014, (619) 259-8987 and



Best Value

STAR Telecommunications subsidiary PT-1 Communications, was cited as the best value in low-cost dial-around service in the March 1999 SmartMoney article entitled “Ringing Endorsements.” PT-1 is the nation’s largest prepaid calling card provider. PT-1’s ‘101-6868’ service was rated the best value among fifteen other dial-around services. The interstate long-distance rate is 7.9 cents a minute round-the-clock. The service also has no hidden surcharges, no minimum talk-times and no monthly service fees. PT-1 says it plans to expand its service nationwide following the installation of our national OC-12 fiber backbone in June.


Mag Stripe to Smart Card

Bull, Europay and the Slovakian bank Slovenska Sporitelna announced Thursday the world’s first deployment of 100,000 microprocessor cards complying with the Europay-Mastercard-VISA (EMV) international standard and Europay’s “off-the-shelf” specifications. Slovakia is the second country in the world to migrate to EMV standard microprocessor cards. Slovenska Sporitelna, Europay member, is one of the major distributors of ‘Maestro’. Bull says that migrating from a magnetic strip cards to an EMV smart cards is a major issue for banks. It requires interoperability, security and must be done quickly and easily.



There is clear evidence this week of growing support for the Mondex ‘MULTOS’ multi-application, smart card operating system. Hitachi revealed this week that it now has orders for more than one million units for the world’s first ‘MULTOS’ chip to be shipping in volume. Hitachi began shipping its ‘H8/3112 MULTOS’ chip in Sept. Hitachi also announced, earlier this month, a new enhanced 16K chip (H8/3114) which supports ‘MULTOS version 4.0’. The 16K announcement complemented Keycorp’s recent 16K chip announcement and the news that Mondex International has granted a Japanese franchise to Sanwa Bank and credit card giant JCB. Meanwhile, Finland’s two largest card fabricators, Setec and Miotec, said this week they are set to offer ‘MULTOS’ cards. Also IVR-supplier, InterVoice, announced that its ‘InterVoice Gateway’ will now support ‘MULTOS’ smart cards allowing innovations such as personal ATMs to be attached to phones so that consumers can withdraw electronic cash or download new applications to their card using the telephone. Finally, BT is demonstrating this week a new digital ID solution, based on ‘MULTOS’, which provides consumers with a secure, portable access token to Internet and network-based interactive services.


MCI E-Bill

MCI WorldCom announced an agreement with CheckFree, the nation’s leading provider of electronic billing and payment, that will allow MCI WorldCom to expand its residential online portfolio in the world of e-commerce.

By giving MCI WorldCom residential customers the option to receive and pay their bills using the Internet, CheckFree and MCI WorldCom are the first to deliver what other companies have been promising for years — online bill payment and delivery by a nationwide telecommunications provider. MCI WorldCom now offers customers one more option to use the Internet to view and pay their bills, in addition to its existing online credit card or direct debit payment options.

To register for electronic bill delivery and payment, MCI WorldCom customers can enroll in MCI WorldCom’s online account manager at [][1] and choose to change their payment option, or go to the CheckFree E-Bill Web site at ; both sites will require the customer’s MCI WorldCom account number and an e-mail address. After registering, MCI WorldCom customers will receive a final paper bill by mail, then all future bills will be presented electronically. The electronic version of their monthly bill will include color graphics, logos and full- billing detail.

Using CheckFree E-Bill(SM) — backed by the industry’s most comprehensive point-to-point security — MCI WorldCom residential customers can simply click to approve the bill for payment, and the amount of the bill is deducted electronically from their designated bank account. Once MCI WorldCom customers are registered with CheckFree and MCI WorldCom’s Online Account Manager, they will also be able to view past bills on their computer or print them for future reference.

“The Internet allows us to make everyday tasks easier for our customers,” said Joyce Dorris, director of brand marketing for MCI WorldCom. “This E-Bill offering with CheckFree gives our customers added convenience they want while giving MCI WorldCom added cost savings by driving more business online.”

Bill summary will be available via Quicken and through online banks and other financial services sites that support CheckFree E-Bill. These sites include:

* First Union at

* Intuit’s Quicken 98/99 software

* Charles Schwab at

* Morgan Stanley Dean Witter at

* Prudential Securities at

Customers can then link back to MCI WorldCom’s Online Account Manager to view their account details and service their account online.

“Enabling electronic billing and payment for MCI WorldCom customers is an important step forward for the industry,” said Pete Kight, chairman and chief executive officer of CheckFree. “And as more financial services companies are coming online with bill presentment, including leading institutions like Bank One, an even broader range of consumers can electronically receive and pay their core bills. Being able to receive and pay these core bills — telecommunications, utilities, mortgage and credit card — will accelerate acceptance of the convenience and utility of electronic billing dramatically. MCI WorldCom’s obvious significance to the telecommunications industry, and its commitment to providing its customers with convenience and quality, makes this a strategic win for CheckFree.”


In addition to the convenience of paying bills without the hassle of checks and stamps, MCI WorldCom’s Online Account Manager has been enhanced to give customers complete control over their accounts. Secure account information is available 24 hours a day, seven days a week. Customers can see their current and past MCI WorldCom statements, review and update account information, add products and services, and more, all from the comfort of their own computer.

MCI WorldCom customers can also use Online Account Manager to send an e-mail to customer service representatives online, handling all questions a customer may have right on the Web.


MCI WorldCom offers the perfect complement to online bill presentation and payment — online savings. MCI One Net Savings is a long-distance calling plan that allows residential customers to use the Internet to receive added convenience and savings for long-distance calling. By signing up online at [][2], MCI One Net Savings customers receive a 24-hour flat rate of nine cents per minute for state-to-state long-distance calls, in addition to MCI Five-Cent Sundays.


Founded in 1981, CheckFree, the operating subsidiary of CheckFree Holdings Corp. (, is the leading provider of electronic commerce services, software and related products for more than 2.6 million consumers, 1,000 businesses and 850 financial institutions. CheckFree designs, develops and markets services that enable its customers to make electronic payments and collections, automate paper-based recurring financial transactions and conduct secure transactions on the Internet.

CheckFree introduced the nation’s first live, market-release product for electronic bill presentment and payment in March 1997, after completing a successful two-year pilot program. CheckFree E-Bill is the only fully integrated, end-to-end system for electronic presentment and payment of richly formatted bills over the Internet. CheckFree E-Bill uses existing payment systems and allows consumers to access and pay their bills through the branded home-banking services of financial institutions.


MCI WorldCom is a global communications company with revenue of more than $30 billion and established operations in over 65 countries encompassing the Americas, Europe and the Asia-Pacific regions. MCI WorldCom is a premier provider of facilities-based and fully integrated local, long distance, international and Internet services. MCI WorldCom’s global networks, including its state-of-the-art pan-European network and transoceanic cable systems, provide end-to-end high-capacity connectivity to more than 38,000 buildings worldwide. For more information on MCI WorldCom, visit the World Wide Web at or .



IVI Checkmate 4Q/98

IVI Checkmate Corp. announced its financial results for the fourth quarter and year ended December 31, 1998.

During the fourth quarter of 1998, IVI Checkmate completed its acquisition of Debitek Holdings Limited (“Debitek”), the leading supplier of smart card and magnetic stripe card payment systems to closed system user groups, in a transaction accounted for as a pooling of interests. In accordance with pooling of interests accounting, the financial statements for 1998 and 1997 were retroactively restated to reflect the historical results of Debitek and the previously announced third quarter merger with Plourde Computer Services (“Plourde”).

Revenue for the fourth quarter of 1998 was $26.5 million, a 7% increase over the revenue of $24.7 million in the fourth quarter of 1997. Earnings before net merger costs for the fourth quarter of 1998 were $1.4 million, or $0.08 per share (diluted). In comparison, earnings for the fourth quarter of 1997 were $1.7 million, or $0.09 per share (diluted), and included a large tax benefit of $922,000, or $0.05 per share (diluted), from reduction of valuation allowances against tax loss carryforwards. Excluding this tax benefit, 1997 fourth quarter earnings would have been $746,000, or $0.04 per share (diluted).

Revenue for the year ended December 31, 1998 was $107.1 million, a 16% increase over the revenue of $92.7 million for the year ended December 31, 1997. Earnings before net merger costs for 1998 were $6.1 million, or $0.35 per share (diluted). Earnings for 1997 were $3.2 million, or $0.19 per share (diluted), and included a large tax benefit of $1.3 million, or $0.08 per share (diluted), from reduction of valuation allowances against tax loss carryforwards. Excluding this tax benefit, 1997 earnings would have been $1.9 million, or $0.11 per share (diluted).

Barry Thomson, President and CEO of IVI Checkmate Corp., commented: “We showed solid financial improvement in the fourth quarter and throughout the year as revenues increased, and operating income, excluding merger costs, showed significant improvement. Our strong financial performance continues to confirm the effectiveness of our growth strategy and related acquisitions. Our customers and our stockholders are seeing a more powerful company through the integration and synergy of complementary technologies and expertise.”

Continued Thomson, “The acquisition of Debitek, combined with IVI Checkmate’s partnership with Ingenico, positions the Company to penetrate a broad range of markets, providing solutions that will bridge the closed system environments used in such markets as education and government to the open payment systems sponsored by such organizations as Visa and MasterCard, as these markets develop.”

Merger and acquisition costs in 1998 totaled $11.1 million (net of $1.5 million tax benefit), including fourth quarter costs of $691,000 (net of $94,000 tax benefit) related to the acquisition of Debitek. The effect of these costs would be to reduce 1998 earnings for the fourth quarter to $729,000, or $0.04 per share, and to a loss for the year of $5.0 million, or $0.28 per share.

Greg Lewis, President and CEO of IVI Checkmate’s U.S. Operations, said: “1998 was a challenging year for our U.S. operations in light of the combination of International Verifact Inc. and Checkmate Electronics (the “Combination”) and our ensuing acquisitions. The acquisition of Debitek in the fourth quarter, combined with the Company’s other subsidiaries, National Transaction Network, Total Retail Systems and Plourde, positions IVI Checkmate to provide the best integrated and stand-beside electronic payment solutions in the marketplace.”




Cheque Free Gets JAWS

JAWS Technologies Inc. announced this week the formation of a business alliance with Cheque Free Corporation, a pioneer in user-friendly, preauthorized payment processing.

The companies have developed a partnership whereby JAWS Technologies will provide security technology and practices to Cheque Free’s Preauthorized Payment program and its related Electronic Funds Transfer technology. Specifically, Cheque Free will incorporate JAWS L5 encryption technology into its current Internet billing solution for the Internet Service Provider market. The addition of this security element to Cheque Free’s electronic payment processing will ensure the integrity of ISPs’ customer billing information against intrusive or malicious acts. JAWS will provide ongoing consultative services to its partner for all security matters.

“Our strategic relationship with Cheque Free complements our business objectives to integrate JAWS security solutions into the electronic commerce and ISP markets,” states Robert Kubbernus, CEO, JAWS Technologies. “We are pleased to partner with a leader in e-commerce and offer our security technologies and practices through Cheque Free’s full service Electronic Funds Transfer technology. E-commerce reaches far beyond simple online transactions between a customer and a vendor. Trillions of dollars in securities, currencies, payment vouchers and settlements move electronically each year. The commercial need for security is astronomical.”

Cheque Free Corporation’s Vice President, Marc Bourgeois confirms that “Working closely with JAWS Technologies will further our mission to increase our clients’ profitability by providing reliable, accurate, timely and now the most secure electronic commerce services in a cost effective manner.”

About Cheque Free Corporation

Cheque Free Corporation is the pioneer in user-friendly, preauthorized payment processing. The company’s Preauthorized Payment program incorporates all of the benefits of Electronic Fund Transfer technology into one complete, full-service package. The benefits of the full-service system are being enjoyed by a variety of industry types such as insurance, health and Internet Service Provider organizations. Visit the company’s web site at for further information about Cheque Free Corporation.

About JAWS Technologies

JAWS Technologies, Inc. (NASD-OTC BB: “JAWZ”) is dedicated to the development and integration of information risk management strategies for secure business practices on a global scale. JAWS Technologies offers an extensive security consulting practice that addresses explicit business requirements. The JAWS IT Security Practice, performed by a team of high caliber security experts, encompasses a robust series of IT audit routines. JAWS Technologies is at the forefront of the cryptography industry with uncompromised security technologies. The sophistication of proprietary security technology solutions coupled with leading edge packaged data encryption software products provides JAWS clients fast, strong and easy-to-use security management tools. For more information, visit the company’s web site at .

Forward-looking statements and comments in this press release are made pursuant to safe harbor provisions of the Securities Exchange Act of 1934. Such statements relating to, among other things, the prospects for the companies to complete the transaction and enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These risks may be further discussed in periodic reports and registration statements to be filed by the Company from time to time with the Securities and Exchange Commission in the future.