People’s Securitizes $400 Million

People’s Bank announced Tuesday that People’s Bank Credit Card Master Trust has priced $400 million of five-year floating rate credit card asset-backed securities.

The securitization transaction features two classes of publicly traded securities (Class A and Class B) and a separate privately placed collateral invested amount.

The transaction, Series 1998-1, includes $343 million of Class A (senior) floating rate asset-backed certificates, $27 million of Class B (subordinate) floating rate asset-backed certificates and a $30 million privately placed floating rate collateral invested amount.

The Class A certificates accrue interest at 14 basis points over the one month London Interbank Offered Rate (LIBOR). The Class B certificates accrue interest at 34 basis points over the one month LIBOR. Both the Class A and Class B certificates were priced at par. Goldman Sachs & Co. was the lead manager of the transaction; J.P. Morgan & Co., Lehman Brothers, and Salomon Smith Barney were co-managers. The transaction is scheduled to close April 1, 1998.

The offering of these securities will be made only by means of a prospectus. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

People’s Bank is a 156-year-old financial services institution offering consumer and commercial banking as well as asset management, investment and leasing services. With managed assets of more than $10.8 billion and 128 branches, it is the largest independent bank in Connecticut. Based in Bridgeport, People’s leads the state in mortgage lending and Savings Bank Life Insurance sales. An international issuer of bank credit cards, People’s ranks as the 24th largest issuer nationally of Visa and MasterCard.

People’s Securities, Inc. in Bridgeport, People’s Capital and Leasing Corp. in Waterbury and Olson Mobeck & Associates in Rocky Hill and Litchfield, are subsidiaries of People’s Bank.


VISA Signature

VISA offered up its answer to the ‘World MasterCard’ yesterday with the introduction of the ‘VISA Signature Card’. Associates National Bank began test marketing the card last week and expects to begin national marketing by the end of April. The high-end, hybrid charge card/credit card, offers cardholders two key benefits: a ‘Preferred Access’ program and a ‘Preferred Travel’ program. The ‘Preferred Access’ program offers cardholders VIP access to exclusive and unusual events. For example, VISA says cardholders will enjoy special hospitality and access to the Sydney 2000 Olympic Games. VISA says the program will capitalize on other exclusive sponsorships. The ‘Preferred Travel’ program offers cardholders automatic upgrades, late check-out and access to special room blocks through VISA’s alliances with various T&E partners. Currently VISA has alliances with Ritz-Carlton Hotels, Le Meridien Hotels and Avis. VISA indicated it is developing an airmile rewards program that may include the option for cardholders to apply mileage bonus points to any line carrier.



MA-based LitleNet changed its name yesterday to OrderTrust and announced its has landed a deal with 1-800-FLOWERS. The firm process an average of 1.5 million transactions per day with an annual volume of more than $1 billion. OrderTrust offers a range of merchant services including complex electronic order processing, fulfillment integration, fraud screening, payment presentment and loyalty development. The company says it will now provide order processing services for real-time online credit card authorizations for 1-800-FLOWERS.


Cable TV Banking

Four major firms joined together yesterday to develop a system to deliver financial services to consumers over their television sets. BankAmerica, Intuit, TCI and the @Home Network have signed agreements to automate financial services for millions of cable subscribers who don’t have Internet access. @Home Network is a pioneer in high speed Internet access via the cable television infrastructure. TCI said yesterday it expects to deliver the new service to its cable customers, via advanced digital set-top devices, next year. Initially the service will provide access to a wide variety of financial services from Bank of America including e-bills, investments, mortgages, consumer loans, insurance and tax assistance.


NBD E-Banking

NBD Bank will offer the convenience of electronic banking at Detroit’s Renaissance Center Thursday when it powers up its first Access Banking Center available to customers.

NBD’s Access Banking Center in Tower 200 Level Two will offer electronic banking to save customers time and introduce them to a wide range of services, said Sandra E. Pierce, senior vice president for Metropolitan Banking.

“The Access Banking Center gives customers the freedom to do their banking electronically without waiting in a teller line,” she said, “We are committed to meeting customers’ financial needs now and into the future by offering them more convenient ways to do their banking.”

The center features a newly developed touch-screen kiosk that helps customers learn more about NBD’s electronic banking channels. The kiosk even has an electronic host, “Ed Access”, who appears on the screen to make it easy to find information on a variety of products and services, including online banking.

The kiosk also provides customers with access to the bank’s Internet site (), where they can explore NBD’s full range of retail, business, insurance and investment services and apply for loans and other products.

In addition to two large-screen, full-service ATMs, the Access Banking Center includes a telephone banking kiosk that will link customers with:

* NBD’s Telephone Banking Center for fund transfers, account balance inquiries, loan and mortgage applications and other inquiries.

* NBD Mortgage Information Hotline for prospective buyers seeking information about rates and qualifications.

* First Chicago NBD Investment Services for information on investments, including mutual funds and investment accounts.

From March 26 through April 3, NBD representatives will demonstrate the touch-screen and telephone kiosks, the Internet site and the ATMs to help customers see how NBD’s Access Banking Center can make electronic banking easy. NBD opened its first Access Banking Center for employees last August in the Bank’s Troy Tower on Crooks Road.

NBD Bank is a subsidiary of First Chicago NBD Corporation (NYSE: FCN), the 9th largest U.S. bank holding company and the Midwest’s number one provider of financial products and services to consumers, middle market companies and large corporations. NBD Bank serves about 1.1 million consumers in Michigan.


Tax Via Cards

American Express reported yesterday its ‘Everyday Spending Index’ shows 22% of Americans want to pay their annual tax bill with a credit or charge card. AmEx says last year its cardholders charged 49% more than 1996 for federal, state and local government services. The ‘Index’ also revealed the amount of taxes due had a strong influence on consumers’ willingness to use cards for taxes. Only 10% of those owing an average of $2,704 were inclined to use a payment card.


Odyssey Card Demo

Bull is demonstrating electronic purse and loyalty applications using its new Odyssey smart card at the JavaOne conference underway in San Francisco. The applications are based on the Java Card 2.0 API (application programming interface).

Bull introduced the Odyssey smart card range last month as further evidence of its ongoing principle of bringing products to market that embody a long term vision, address realistic criteria and reflect market needs. Bull’s Odyssey range of Java cards is based on the specifications of the Java(TM) Card Forum, currently presided over by Bull, and on the concepts developed in the European MASSC (Multi-Application Secure Smart Card) project. The Odyssey range is the most effective combination in terms of security, performance and price to date.

“Citibank is an enthusiastic supporter of Java Card and multi-application smart cards,” said Henry Lichstein, vice president in Citibank’s Advanced Development Group. “We are pleased that Bull is taking an active role in providing tools to facilitate the rapid deployment of Java Card-based applications. The availability of Odyssey confirms our confidence in the viability of Java Card’s open platform to support industry efforts to develop multiple application smart cards.”

“‘Odyssey 1’ is the first stage of Bull’s ongoing work to develop a Java smart card platform, incorporating Bull’s 20 years of expertise in developing optimized secure smart card operating systems, in order to give the most advanced solution to its customers,” said Gerald Hubbard, VP of marketing for Bull’s Smart Card & Terminals Division in the U.S. “Odyssey I complies with the Java Card API 2.0 specifications, defined by the Java Card Forum. In addition, the card’s Java Virtual Machine is one of the most powerful on the market, allowing us to use a less expensive microprocessor while at the same time improving transaction processing performance by several orders of magnitude.”

As a leading provider of secure smart card systems, Bull has designed the Odyssey card to combine openness and the latest security concepts. Odyssey controls access to partitioned memory zones, enabling it to separate applications efficiently. Its applet loader enables signed, encrypted applications to be downloaded on to the card, guaranteeing the highest levels of confidentiality and integrity. At the same time, Odyssey enables both symmetrical and asymmetrical cryptographic functions.

About Bull’s Smart Card & Terminals Division

With more than 200 million card customers worldwide, Bull Smart Cards & Terminals division is the industry leader in secure smart card solutions for financial transactions. Every card manufacturer in the world has signed a license with Bull. All microprocessor smart cards throughout the world use Bull technology, and roughly half of these use either an operating system or application developed by Bull. Bull is the leader in banking, where more than 60 percent of the smart cards use a Bull operating system. Bull has supplied 27 million electronic purse smart cards in 10 countries.

Bull develops and offers a range of products, including: contact/contactless smart cards, secure card operating systems, turnkey payment cards and electronic purse systems, automated teller machines (ATMs), electronic cash dispensers, POS terminals and software. Services include full technical and applications consulting, training and customer service support. More information is available at: .

About Bull

With a presence in more than 85 countries, more than 21,000 employees and combined revenues of more than $4.2 billion in 1997, Bull offers a wide range of systems, infrastructure software and IT services through focused innovation, alliances with the best partners and its own integration expertise. Based in France, the company’s worldwide software division and its North/South America operations are headquartered in Billerica, Mass. The company’s Web address is and, in the U.S., .

All trademarks, service marks and company names are the property of their respective owners.


CyberCash Expands Condon’s Title

CyberCash, Inc. announced that James J. Condon, 41, has been appointed to the newly created position of Chief Operating Officer. Mr. Condon continues as the Company’s Chief Financial Officer.

Commenting on the appointment, CyberCash CEO Bill Melton said, “Since joining CyberCash as Chief Financial Officer in March 1997, Mr. Condon has successfully trimmed our operating expenses significantly while our revenues have increased by almost $2 million, from $51,000 in the fourth quarter 1996 to $2,005,000 in the fourth quarter 1997, and has been instrumental in raising $30 million in equity through private placements. His charge is to manage our growth as CyberCash realizes its revenue potential and solidifies its position as the leader in secure Internet payment software and services — globally.”

On Tuesday, March 17, 1998, CyberCash announced plans to merge with ICVERIFY, Inc., a leading provider of software solutions for authorizing credit card, purchasing card, debit/ATM card and check transactions for merchants. The merger is expected to be completed in the second quarter of 1998.

Mr. Condon has more than 15 years of broad-based experience in strategic planning and operations cost management. Most recently, he was director of performance improvement services in the information communication and entertainment (ICE) sector of KPMG, led a re-engineering effort for a software and services company, and provided expertise in the selection and implementation of accounting and operational systems for technology companies. In 1996, Mr. Condon was elected to KPMG’s Global Software Leadership Council.

Additionally, Mr. Condon was corporate vice president, financial planning and administration and vice president operations — customer support and development divisions for Legent Corporation where he led the business practice re-engineering effort which significantly reduced annual operating expenses. Mr. Condon received his Bachelor of Arts degree in Mathematical Sciences from Johns Hopkins University and graduated Dean’s Honor List with a Master of Business Administration in Finance from the University of Chicago.

About CyberCash

CyberCash, Inc., headquartered in Reston, Virginia, is a pioneer and leading provider of payment software and services — globally. The Company offers a complete suite of Internet payment solutions including a payment card service which supports credit, debit and purchase cards; an innovative electronic cash service which enables micropayments and other cash transactions; and a secure electronic check service which allows consumer-to- business and business-to-business payments from a bank account. CyberCash is traded on the Nasdaq Stock Market, under the symbol CYCH. CyberCash’s Web address is .

This press release contains statements that are forward-looking. They are based on the Company’s current expectations, and are subject to a number of uncertainties and risks. The Company’s actual results may differ materially. The uncertainties and risks include the pace of growth of Internet commerce, the development by the Company and its competitors of new products and services, strategic decisions by major participants in the industry, competitive pricing pressures, legal and regulatory developments and general economic conditions. Further information about these and other relevant risks and uncertainties may be found in the Company’s report on Form 10-K and its other filings with the Securities and Exchange Commission, all of which are available from the Commission and from the Company’s worldwide web site , as well as other sources.


Fannie Mae Exposes Card Pitfalls

Fannie Mae joined Jerome Williams of the Detroit Pistons at a Credit Awareness Training class for 85 Martin Luther King Jr. High School students in Detroit yesterday.

The training session educated high school students on the benefits and pitfalls of using credit cards, as well as other basic money management information.

“Credit cards, and other forms of financing are available to people at younger ages than ever before, and used wisely, can help build a history of financial responsibility than can lead to homeownership and business opportunities,” said Rita Hillman, deputy director of Fannie Mae’s Detroit Partnership Office. “But far too often, young people are out of the game of life before it even starts for them because of credit trouble.”

The presentation today involved real-life applications of possible credit problems students may face. In one example, students were informed that the cost of financing a $400 shopping spree at the mall, and paying for their purchases with a minimum payment of $10 per month at 22 percent interest would cost an extra $327 in interest and take six years to pay off — long after the clothing was discarded.

The training capped off a four week mentor program presented by Williams and P.S.B. Inc., in which students also learned job interview techniques, goal-setting, and the importance of education.

“I am proud to be involved with this important training seminar and mentor program,” said Williams. “By giving these students this important information, we are making sure they are well prepared when they enter the job market. It is our hope that by being honest and up front with these students about the benefits and potential problems of credit use, they can avoid some of the most common credit pitfalls.”

Fannie Mae is a congressionally chartered, shareholder-owned company and the nation’s largest source of funds for home mortgages. It has committed to provide $1 trillion in targeted lending for ten million homes by the end of the decade.

The targeted lending will serve low- and moderate-income families, minorities, new immigrants, residents of central cities and other underserved areas, and people who have special housing needs. More information about Fannie Mae can be found on the Internet at .

Style usage: Fannie Mae’s board of directors has authorized the company to operate as “Fannie Mae,” and the company’s stock is now listed on the NYSE as “Fannie Mae.” In order to facilitate clarity and avoid confusion news organizations are asked to refer to the company exclusively as “Fannie Mae.”



Following nine months of development, Fleet Financial Group unveiled Monday its turnkey web service that offers small businesses a virtual store with secure on-line payment systems. ‘storefronts@fleet’ will also enable established on-line merchants to offer secure credit card payments. Among the services offered by ‘storefronts’: catalog builder, web site development and hosting, registration of the merchant among Internet search engines, site activity reports and key credit card transaction reports. Fleet also provides VeriSign Digital Certificate registration and secure payments with CyberCash. Fleets’ ‘storefronts’ will charge set-up fees ranging from $995 to $1495 and monthly fees ranging from $99 to $249.


Advanta Update

Advanta National Bank, a subsidiary of Advanta Corp., Monday announced that it intends to offer to purchase its outstanding promissory notes (“Bank Notes”) that were not assumed by Fleet Credit Card LLC (“Fleet”) in connection with the acquisition of Advanta Corp.’s consumer credit card business by fleet and certain of its affiliates.

The Bank Notes were issued at various times since July 1993 and at various maturities and rates. Approximately $113 million of these Bank Notes are currently outstanding. ANB expects to commence the offer within the next three weeks.

ANB currently anticipates offering to purchase all such Bank Notes at their par (or face) value plus any accrued and unpaid interest thereon, subject to the satisfaction of certain conditions. ANB will use available cash to purchase the Bank Notes and following this purchase will continue to be in a strong position to support its future growth.

Advanta is a highly focused financial services company with 2,200 employees, approximately $6.6 billion in managed assets and an additional $9.2 billion in assets serviced for third parties.

Advanta provides consumers and small businesses with innovative products and services including mortgages, equipment leases, corporate credit cards, insurance and deposit products. The company also provides a full range of loan purchasing, contract servicing and securitization services to the mortgage industry.

This press release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected and/or cause the offer described herein not to occur.

The most significant among these risks and uncertainties are: (1) factors that affect consumer debt; (2) competitive pressures; (3) the level of delinquencies and charge-offs; (4) the rate of prepayments; (5) the level of expenses; (6) the timing of the securitizations of receivables of the company and its subsidiaries; and (7) the ratings on the debt of the company and its subsidiaries.

Additional risks that may affect the company’s future performance are detailed in the company’s filings with the Securities and Exchange commission, including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.