LML Earnings Report

LML Payment Systems Inc. announced Tuesday results from its 3rd quarter of fiscal 1999, ended December 31, 1998. During the quarter, the Company continued to introduce its “Electronic Checking” product to the retail point of sale market. Based upon our proprietary operating system, and supported by the legal protections embodied within our Electronic Checkwriting Patent, we continued to implement the first phase of our initial roll-out of “Electronic Checking”.

For the nine months ended December 31, 1998 we had revenues of $164,763, an increase of $38,971 from the corresponding period for the previous year. Operating and administrative expenses, exclusive of non cash items, were $973,485, an increase of $815,851 from the previous year. This increase is attributable to the operations of the Company’s ChequeMARK subsidiaries. There was an earnings before interest, income tax, depreciation and amortization (“EBITDA”) loss of $833,309 or $(0.0798) per share for the period ended December 31, 1998. This EBIDTA loss was consistent with the Company’s nine month projection as revised in December. There was a net loss of $1,190,927 or $(0.1141) per share for the period, which was again consistent with the revised projections.

The Company further announces that as of trading March 2, 1999 the “F” in its Nasdaq ticker symbol will be removed with the new symbol being: LMLA.

The Company owns U.S. Patent No. 5,484,988 with specific regard to a “Checkwriting Point of Sale System” and operates The ChequeMARK System, a central database and authorization system administering various consumer payment services, collectively referred to as “Electronic Checking.”


Expense Express

InterPro Expense Systems Inc. Tuesday announced the release of Expense Express Version 2.6.

Version 2.6 includes several new enhancements that further streamline and automate the expense management and time entry processes for global enterprises. InterPro is a leading provider of software solutions for enterprisewide administrative processes.

The centerpiece of InterPro’s new release is Time Express, a fully integrated time entry product line. Time Express offers service- and project-oriented companies the ability to record, track and manage labor hours from within Expense Express’ user friendly environment.

Labor hours may be recorded by accounting or project number and associated with specific project-oriented expenses. Users can also leverage Expense Express’ comprehensive workflow, approval and auditing functionality to support program-charging policies.

“It’s simply how many of our customers prefer to do business,” stated Ted Comfoltey, president of InterPro Expense Systems. “Integrating time entry and expense reporting capabilities can help shorten the costly time lag between work performance and billing while increasing the accuracy and traceability of project-related expenses.

“At InterPro, we are committed to working with our customers to understand their needs and providing them with integrated solutions that fit their businesses.”

Expense Express Version 2.6 also includes many new features that can increase front- and back-office productivity, efficiency and user satisfaction. An Automated Charge Dispute capability provides Corporate and Purchase Card users the ability to automatically generate credit card dispute forms for erroneous card charges, which may be electronically delivered to credit card vendors.

This capability provides significant time savings and captures revenues that might not otherwise be recovered, due to the amount of time and effort that is normally required by this process.

Enhanced audit and approval functionality has been included. Customers can now model complex, enterprisewide expense and time management policies utilizing Version 2.6’s improved workflow capabilities.

Expense Express provides automated management of multilevel approval processes and the ability to structure multilevel audits that can support corporate expense policies with category limits by country, division, user type, per diem (multinational), cumulative weekly sums, cumulative trip sums or cumulative program sums.

System administration capabilities have also been improved with new administration scheduling capabilities that enable system administrators to develop and automatically execute sophisticated administration schedules for system backups, currency exchange rate table downloads, policy distribution and charge card transaction downloads.

This new capability lowers operations costs, improves expense management process efficiency, and helps to ensure data integrity and timeliness.

About Expense Express

Expense Express is the most comprehensive and configurable expense management solution specifically designed to regulate, enforce and manage the unique expense policies and processes of large multinational corporations. It is easy to learn, easy to use and works with the systems and software global customers already have in place.

Expense Express handles every aspect of the expense reimbursement process from electronically preparing, auditing and approving expense reports to tracking payments and recording them in a customer’s existing accounting system. Expense Express leverages its users’ existing technology investments by integrating seamlessly with all major enterprise systems.

Companies using Expense Express experience a rapid return on their investment, improve employee satisfaction, work more productively, negotiate with vendors more aggressively, and reduce the cost associated with processing expense reports by more than 50 percent.

About InterPro

Established in 1998, privately held InterPro Expense Systems develops, markets, implements and supports administrative software solutions that fit the specific needs of global businesses. InterPro provides comprehensive highly configurable applications that integrate seamlessly with its customers’ existing information system infrastructure.

InterPro supports the global enterprise with feature-rich expense reporting and time recording products that include multilingual, multicurrency and multitax capabilities.

InterPro is located at 4125 Hopyard Road, Pleasanton, Calif. 94588-8534. Phone: 925/730-3700 or toll-free at 800/290-2010. FAX: 925/730-1192. URL: .


Cardxx Passes Test

Cardxx, Inc., developer of the System T-9 smartcard manufacturing process, announced it has completed its test samples of contactless smartcards that had been requested by Indala, the Smartcard Division of Motorola, Inc. , a global leader in advanced electronic systems and services.

Cardxx is currently qualifying their contactless smartcards in Motorola’s access control program. The production-run sample cards contain 125kz low frequency long-range radio-frequency devices designed specifically for the access control market. The qualification test by Motorola will cover all ISO standards and some proprietary testing on thermal dye quality.

“Acceptance into Motorola’s access control program would be a strong endorsement of our contactless smartcard technology and would strongly position Cardxx as a leader in providing contactless cards to the access control market,” said Harry Tiffany, President and COO of Cardxx.

The System T-9 is a state of the art, cost-effective, new core technology that is a superior alternative to the lamination process for the production of contactless (RFID) smartcards that are used in the access control market.

The System T-9 card manufacturing system utilizes a unique proprietary low pressure, room temperature process that encapsulates an integrated circuit and/or an antenna while the card is being formed. Because the process does not use high temperatures or pressures associated with the lamination process, the resulting encapsulated devices are not subject to stresses that can adversely affect the performance of the card. This results in a longer life card with less field failures.

The System T-9 is currently being used for both short and long runs providing for minimal waste and damage to the implanted devices.


Cardxx manufactures contactless smartcards utilizing a proprietary break-through process that securely encapsulates an integrated circuit within a plastic card. In addition, the Company supplies and licenses its proprietary technology to current card manufacturers and systems integrators.


Xtranet Mexico

Xtranet Systems says it has increased its ownership interest in DataBank International S.A. de C.V. from 49% to 80%. Xtranet operates its credit card processing operations in Mexico under DataBank. The company also announced that it is processing credit card transactions in Mexico through the Mexico City branch of one of the world’s largest international banks. The firm says it anticipates this particular merchant banking relationship to lead to the opening of additional operational offices in other offshore, European and Pacific Rim jurisdictions through branches of this same merchant bank. Xtranet projects that it will process over $800,000,000 in total credit card transactions in 1999.


Gemini Verify Score

Equifax and HNC Financial Solutions announced the joint development of an identity authentication service. The ‘Equifax Gemini Verify Score’ will give U.S. credit grantors an enhanced application fraud risk predictor as part of a credit file. It combines the strength of Equifax’s credit data with HNC’s neural network technology and fraud control experience to systematically identify credit applications that present a real fraud risk. Initial test results show that 50% or more of potential frauds can be detected by inspecting just 5% of the lowest scoring applicants. Performance improvements over other scoring solutions range from 150% to over 500%. And because the score is being developed on a broad range of data, ‘Gemini Verify Score’ will provide a measurement tool that will aid in exploring markets and customer segments not previously considered.


50 Billion Viewers

MasterCard International announced from Zurich yesterday it has renewed its official sponsorship of soccer’s FIFA World Cup, which will be held during the summer of 2002 in Japan and South Korea. In Tuesday’s press conference MasterCard also announced the continuation of its relationship with three-time World Cup champion Pele, who has been MasterCard’s exclusive World Cup spokesman since 1991. Under terms of the four-year FIFA agreement, MasterCard maintains exclusivity for all card account access devices such as credit and debit cards, ATM cards, telephone cards, etc., and receives exclusive global category rights to use the FIFA World Cup official marks, logos and designations in advertising, promotions and merchandising. The Pele contract requires the champion to appear in company and member advertisements and promotional materials, and to make personal appearances at various functions such as meetings with MasterCard’s member financial institutions. MasterCard also unveiled yesterday its first two 2002 FIFA World Cup card designs for 1999. The marketing program will feature a total of eight World Cup card designs, with two card designs introduced each year. MasterCard estimates it will receive a cumulative global television audience in excess of 50 billion through the sponsorships.


Check Cashing Machine Tested

Greenland Corporation confirmed that on February 26, 1999, it had installed its second automated check-cashing machine in Santa Ana, CA for beta testing. This machine, like the first machine which was installed on January 7, 1999, is a freestanding kiosk with automated payroll check-cashing capability, full ATM functionality, and money order dispensing services.

The Company announced that the second machine features improvements including easier interior access for module maintenance and more robust software for enhanced diagnostic capabilities.

Lee Swanson, CEO of Check Central, a wholly-owned subsidiary of Greenland that is developing this technology, stated, “The response to the first machine has been fantastic. We have had very positive feedback from the storeowner and his customers, and potential distributors and purchasers of the machine who have visited the first installation site. We are very excited about our second machine and expect the public response to be just as enthusiastic.”

Mr. Swanson further indicated that the beta results for the first machine will be available for public release in about one week.


Amex Canada Promotions

Amex Canada Inc. Tuesday announced the promotion of two senior managers to key executive positions. Michael Bingham has been named Vice President and General Manager, Corporate Services. Peter Drutz has been appointed to the newly created position of Vice President and General Manager, Consumer Travel Services Network (TSN).

Mr. Bingham will head Amex’s Canadian Corporate Services strategy by directing all aspects of its Corporate Travel, Corporate Card and Purchasing Card businesses. This position is key to continuing the success and growth of Amex Canada as the market leader in corporate travel and expense management.

Mr. Drutz will directly manage Amex’s retail travel service network in Canada. He will also be actively involved at an international level, providing strategic development counsel on the company’s aggressive global travel network expansion initiative to grow from 1,700 to 5,000 travel offices worldwide.

![][1] Both Mr. Bingham and Mr. Drutz have a long history with American Express.

Mr. Bingham joined Amex in 1986 and has held progressively responsible positions in the company’s finance and travel areas. Most recently, he was Vice President in charge of business travel centre operations, management information systems, account administration and supplier relations.

Mr. Drutz joined American Express in 1982 and has held several key management positions in the company’s human resources and travel areas. Most recently, his leadership responsibilities included product development, support and training, along with general management accountability for Amex Canada’s 80 retail travel offices coast-to-coast.

Alan Stark, President of Amex Canada Inc., says the track records of Mr. Bingham and Mr. Drutz are impressive. “1998 was a record year of growth for Amex Canada. This was in large part due to the success of our corporate and consumer travel businesses and, in particular, the result of the strong leadership given by Mike and Peter. The fact that they have been chosen to take on even larger roles in these key areas for Amex, both in Canada and internationally, further speaks to their leadership capabilities,” says Stark.

American Express in Canada operates as Amex Canada Inc. and Amex Bank of Canada. Amex Canada Inc. is a leading provider of travel related services in Canada and assists companies in managing and controlling their business and travel expenses. Amex Bank of Canada is the issuer of American Express Cards in Canada. Both companies are wholly-owned subsidiaries of the New York-based American Express Travel Related Services Company, Inc., the largest operating unit of American Express Company, which provides a wide range of financial and travel related services for consumers and companies.

[1]: /graphic/americanexpress/drutz.gif


Off-Premise ATM Deal

Non-bank ATM deployer, Access Cash International, has won the contract to deploy NCR ATMs for more than 700 stores operated by Salt Lake City-based American Stores, Inc. The ATM-placement program will be implemented for all Sav-on and Osco retail outlets throughout the U.S.. Access Cash anticipates in excess of 300,000 transactions per month from the American Stores placement once the ATMs are fully deployed. Together, NCR and Access Cash are collaborating on several placement programs that may total more than 2,400 ATMs in 1999. Deluxe Electronic Payment Systems will provide the ATM transaction processing.


For Sale

A New Jersey speculator is trying to sell an Internet domain name to credit card issuers for at least six figures. ‘Plasticash.com’ is being auctioned off this week on the online auction site eBay at an opening bid of $100,000. The domain name owner, Anthony Bufort, says he registered the name last June. He points to the fact that AltaVista paid more than $3,000,000 for its domain name as a basis for his offer. Most catchy domain names sell for less than $10,000.



The world’s most powerful person realized yesterday that membership does not always have its privileges. President Clinton’s American Express card was denied Monday. He was attempting to purchase four books for $62.66 from Dolly’s Books in Park City, UT. The President’s AmEx card expired Sunday. Reportedly, a store clerk called American Express requesting manual approval after identifying the cardholder. The transaction was still denied. The President was forced to pay in cash for John Grishman’s “The Testament”; Raymond Chandler’s “Playback”; Octavia Paz’s “In Light of India” and Stanley Wolpert’s “India”. The President was preparing to return to Washington following an Utah vacation.



Wells Fargo says it is going forward with plans to place advertisements on the ATM screen and on the back of transaction receipts. Amazon.com will be the first to advertise on more than 340 Wells Fargo ATMs in the San Francisco area. AT&T will begin advertising next month. The ‘Wells Fargo Media Express ATM Network’ allows Wells Fargo to showcase advertisements from other companies and Wells Fargo products while donating screen space to community organizations in the markets where the ATMs are located. Amazon.com is using the transaction receipt to offer customers who enroll for ‘Wells Fargo Online Banking’ a $10 discount off any Amazon.com purchase. Later this spring, AT&T will use the receipts to offer customers discounted Internet access. The network utilizes Novadigm’s software management technology for ATMs.