VISA & VF Sponsor Biz Conf

Ariba Technologies Inc., announced the second Operating Resource Management Supplier Summit, to be held on March 24, 1998 in Santa Clara California.  The invitation-only event, co-sponsored by Federal Express Corp., VeriFone, and Visa, promises suppliers a lively and interactive venue to discuss requirements with the technology and logistics companies that link them to users of operating resources.

“We have found that suppliers as well as buyers benefit when buying organizations adopt systems for managing operating resources,” said Keith Krach, President and CEO at Ariba.  “Operating Resource Management Systems increase a supplier’s revenue by enabling buyers to concentrate purchasing, while simultaneously lowering overall transaction costs.”

The sponsors of the ORM Supplier Summit, Ariba, Federal Express (NYSE FDX), VeriFone (NYSE VFI), and Visa each support a different part of the operating resource supply chain

— Ariba’s ORMS enables buying organizations to manage the acquisition of        operating resources and concentrate purchases with approved suppliers,

— FedEx offers business solutions that combine the power of the leading        global transportation network with world-wide information systems,        express logistics capabilities and Internet commerce,

— VeriFone, an industry leader in payment system solutions, provides        merchants with the technology to facilitate SET based Internet payment        transactions, which offer the highest available level of security and        reliability,

— Visa, through its Purchasing Card, enables buyers and sellers to        conclude financial transactions with unprecedented efficiency.

Together, these vendors can connect buyers and sellers of operating resources in an efficient and completely closed-loop system.

“The electronic commerce solutions offered by FedEx are focused on helping customers find optimum methods for managing inventory and distribution,” said Rohan Champion, Vice-President, Strategy & Alliances, Federal Express.  “Ariba Supplier Summits are an excellent venue for suppliers to examine leading-edge technologies that can link them to users of operating resources management systems.”

“VeriFone’s participation in Ariba’s supplier summit is an opportunity to educate key suppliers on emerging business-to-business Internet payment solutions,” said George Hoyem, VeriFone V.P. and General Manager of the Internet Commerce Division.  “As one of the key components of Internet payment, VeriFone’s SET based vPOS merchant software allows businesses to conduct Internet transactions securely and reliably.”

“With the resources of the Visa Purchasing Card and Ariba’s software solutions, buyers and sellers can reliably and securely connect and conduct business online,” said Ryan Ross, vice president of commercial commerce for Visa U.S.A.  “These summits will help suppliers discover new ways to maximize the value they receive from operating resource management solutions.”

The ORM Supplier Summit is held three times a year.  The purpose of the meeting is to exchange information on requirements and the state of the industry.  Although the event is an invitation-only meeting, companies and parties that have a vested interest in the topic should contact Ariba via e-mail at

Federal Express Corp.

Federal Express connects areas that generate 90% of the world’s gross domestic product in 24-48 hours with door-to-door, customs-cleared service and a money-back guarantee.  The company’s unmatched air route authorities and infrastructure make it the world’s largest express transportation company, providing fast, reliable, and time-definite transportation of 3 million items to 211 countries each working day.

FedEx employs approximately 140,000 people and has more than 43,000 drop-off locations, 600 aircraft and 39,500 vehicles in its integrated global network.  The company maintains electronic connections with more than 850,000 customers via FedEx Powership(R), FedEx Ship(R) and FedEx interNetShip(SM).  Federal Express reported revenues of $11.5 billion for its fiscal year ended May 31, 1997.  The FedEx Internet address is .


VeriFone, Inc., a wholly owned subsidiary of Hewlett-Packard Company (NYSE HWP), is the leading global provider of secure electronic payment solutions for financial institutions, merchants and consumers.  VeriFone has shipped more than six million electronic payment systems, which are used in over 100 countries.  The VeriFone Internet address is .


Visa is the preferred payment brand and the largest consumer payment system worldwide.  It plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions, their cardholders, and the global economy.  Visa is the only consumer payment system to facilitate $1 trillion worth of purchases of goods and services in a fiscal year.  Visa’s nearly 600 million cards are accepted at more than 14 million worldwide locations, including 380,000 ATMs in the Visa/PLUS Global ATM Network.  The Visa Internet address is .


Ariba is the leader in Operating Resource Management (ORM) solutions for Global 2000 corporations.  The company’s products deliver a high Return on Investment through reduced ORM transaction costs and improved management of the acquisition of the goods and services required to operate a company.  The products leverage the Internet and intranets to connect buyers to suppliers and thin-client network computing to make deployment to every desktop possible.  The Ariba Internet address is .


NOVUS Cards for Calif. Taxes

The State Board of Equalization announced Monday a new service that taxpayers can use to pay their sales and use tax. Starting March 1, 1998, taxpayers will be able to make their sales and use tax payments using credit cards issued by NOVUS (for example the NOVUS/Discover card). The following conditions apply

— NOVUS will charge a fee of $4 to $18 per transaction, depending on the amount charged.

— You may charge only the taxes that are due with your sales and use tax return, including prepayment forms.

— You may not charge tax liabilities for which you have been billed by the Board.

— You may not charge your tax payment if you are required to pay by electronic funds transfer (EFT).

— Other credits cards are not being accepted at this time.

To charge your sales and use tax return payment

1. First, complete your return or prepayment form to determine how much tax is due.

2. Then using your touch-tone telephone, call toll-free at 800/477-4141 and follow the recorded instructions. Have your return or prepayment form containing your seller’s permit number available when you call. At the end of your call, you will be asked to authorize or cancel your transaction.

3. After authorizing the payment and receiving your confirmation number, check the box on your return or prepayment form indicating you have paid by credit card.

4. Sign and mail your completed return or prepayment form in the envelope enclosed with your return.

If you have any questions about this new service, please call the Board’s Information Center at 800/400-7115. Customer service representatives are available Monday through Friday, 8 a.m. to 5 p.m., excluding State holidays.



Miros Inc. and Mr. Payroll Corp. announced Monday the the next wave of ATMs integrating face recognition technology into automated check-cashing machines. The Miros ‘TrueFace’ technology, currently in use in over 35 check-cashing machines since June 1997, will be integrated into all upcoming installations over a three year period. Recent alliances with Bank of America, BancOne, Kroger and Wells Fargo will yield additional licenses. Customers using the Mr. Payroll automated check-cashing machines simply choose their choice of language, then enter a social security number. Two cameras then capture a stereo view of the customer’s face, making fraudulent attempts with a photograph impossible. The live video image is then compared to a previously enrolled picture in the database. The match is based on a scale of zero to ten, with ten being a perfect match and a selected score halting the transaction. The varying degrees of matches allow the customer to alter his/her looks, such as growing a beard, getting a hair cut, or gaining/losing weight. The entire process takes only seconds. The technology also allows for an audit trail, notifying the customer of any crooked attempts at check-cashing. The automated check-cashing machines have successfully cashed more than 50,000 checks since June 1997, when the first machine was installed in a convenience store in Fort Worth, TX.


SFNB to Add 29 I-Banks

Security First Technologies and M&I Data Services, a division of the Marshall & Ilsley Corp., announced that M&I Data Services has implemented Internet banking systems for 11 financial institutions representing 19 banks in a M&I supported service bureau environment.

According to M&I Data Services officials, six other institutions representing 29 banks have contracted with them for Internet banking and are in the process of implementation, in anticipation of launching services in the first half of 1998.  The 11 institutions currently offering Internet banking services utilize software applications developed by S1, a wholly owned subsidiary of Security First Network Bank (SFNB), the first bank in the world to launch fully functional banking and other financial management services over the Internet.

Nancy Langer, vice president and general manager of M&I Data Services Home Banking said, “Our customers rely on us to provide them with the most advanced systems for delivering a brandable solution for Internet banking.  The Virtual Bank Manager application developed by S1 offers our customers the ability to deliver a customized, Internet-based branch that in turn, encourages their customers to maintain and expand relationships.”

“We’re delighted that M&I Data Services has so many financial institutions serving customers over the Internet,” said James S. Mahan, III, chief executive officer of S1.  “Even more exciting are the 6 additional institutions planning to launch soon.  Bank transaction processors and software integrators, such as M&I Data Services, are a crucial part of the distribution mix for our applications.”  Mahan added that S1 also licenses its software to financial institutions that run the system in-house, and to institutions who chose to run the processing in S1’s data center.

M&I Data Services utilizes S1’s Virtual Bank Manager(TM) application, which allows institutions to offer their customers access to their information anytime, from any personal computer or other device that provides Internet access.  M&I Data Services provides all of the production, security and service components necessary in running this advanced Internet platform.

As a leading bank processor and system software integrator in the country, M&I Data Services processes transactions for more than 800 banks and provides home banking products and services to more than 300 financial institutions. In addition, M&I Data Services drives more than 5,400 ATM terminals for more than 700 financial institutions, and processes over 44 million transactions through their EFT (electronic funds transfer) switch monthly.

M&I Data Services offers advanced software and processing services to financial institutions worldwide.  The company is a division of Marshall & Ilsley Corp., a $19.5 billion holding company.  Both are headquartered in Milwaukee, Wisconsin.  For more information on products and services from M&I Data Services, visit their web site at or .

Security First Technologies (S1) is a wholly owned subsidiary of the world’s first Internet bank, Security First Network Bank (Nasdaq SFNB.)  S1 develops integrated, brandable Internet applications that enable financial institutions to offer products, services and transactions over the Internet in a secure environment.  S1 also offers strategic business consulting and marketing support, training, product integration, and customer and data service center outsourcing.  S1, through direct sales and channel partnerships, provides software applications and technology to 68 financial entities, including 17 of the top 100 U.S. financial institutions.

Forward-looking statements

Statements in this news release concerning future results, performance, expectations or intentions are forward-looking statements.  Actual results, performance or developments may differ materially from forward-looking statements as a result of known or unknown risks, uncertainties and other factors, including those identified in the company’s prospectus dated May 3, 1996 and those described from time to time in the company’s other filings with the Office of Thrift Supervision, press releases and other communications.


CyberCash Raises $15 Million

CyberCash, Inc. , a technology services company that enables secure financial transactions on the Internet, announced that it has raised $15 million in equity capital through a private placement of convertible preferred stock and options to two private equity funds.  In addition, the Company will receive a second investment of $15 million if certain conditions are satisfied.  James Condon, CyberCash CFO, stated that “We believe that, with this additional capital, CyberCash will be able to take advantage of opportunities that will reinforce its position as the leading provider of Internet payment services.”

The preferred stock issued in the transaction is convertible into common stock at a conversion price based on the market price for CyberCash stock on the Nasdaq National Market System during a specified measurement period immediately preceding the election to convert.  The holders of the preferred stock are subject to certain limits on the number of shares they can convert at any one time.  During the first five months, the holders may convert only if the market price of the common stock is above $11.65 per share or if the market price of the Common Stock increases by at least 25% during the measurement period.  The Company also issued to the preferred stock investors options to purchase common stock at an exercise price based on the current market price and the stock market price at the end of 1998.  The Company has agreed to register for resale the common stock underlying the preferred stock and options.

The Company is committed to sell, and the investors are committed to buy, convertible preferred stock and options for an additional $15 million upon the satisfaction of certain conditions, including that the market price of the common stock is at least $13.76 per share and that certain stockholder approvals are obtained at the Company’s annual meeting in late June 1998.

The Company intends to report its fourth quarter and full year 1997 results on February 9, 1998.

CyberCash, Inc., of Reston, Virginia, founded in August 1994, is a leading provider of secure Internet commerce solutions  that provides software and services to enable secure financial transactions on the Internet.  The Company offers a complete suite of Internet payment solutions, including a credit card service, which handles payments using major credit cards; the Company’s innovative micropayment service which enables cash transactions; and the secure electronic check service which allows consumer-to-business and business-to-business funds transfer via checking accounts.  CyberCash works with virtually all transaction processing institutions.

This press release contains statements that are forward-looking, including statements about the Company’s future profitability and stock price. They are based on the Company’s current expectations, and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risk 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, general economic conditions, and stock market developments affecting technology companies.  Further information abut 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.


NetVERIFY Now Shipping

ICVERIFY Inc., the worldwide leader in providing electronic payment processing software for merchants, today announced that the company is now shipping NetVERIFY, a new product designed specifically for Web commerce sites and for Internet service providers (ISPs).

NetVERIFY processes VISA, MasterCard, American Express, Discover Card, Diners Club, Carte Blanche, JCB and private-label credit card transactions for Web commerce sites, including online stores. NetVERIFY has more than 250 processor certifications, enabling merchants to communicate with over 99% of U.S. banks. With NetVERIFY’s remote access, ISPs and individual merchants can perform the administrative functions of transaction processing from anywhere in the world, 24 hours a day, using a Web browser.

“We are extremely pleased with the feedback from NetVERIFY beta sites,” said Karen Tate, director of Internet markets for ICVERIFY Inc. “Internet service providers and Internet merchants are praising NetVERIFY’s ease of installation, integration and use.”

Barry Wadman, founder of C-Systems Inc. (, develops Web sites and online stores for major cities and Fortune 500 companies. He is also the author of two books on the Microsoft Electronic Commerce platform, including his latest, “Special Edition Using Microsoft Site Server”. According to Wadman, “NetVERIFY has the functionality that Internet merchants need today. It’s real-time credit card processing on the Internet.” He adds, “I also like that NetVERIFY’s Web-based remote access makes it easy for stand-alone merchants or hosted merchants to administer their systems.”

Ken Fricklas, director of Internet development for Eclipse Inc., also chose to provide NetVERIFY to his customers. Eclipse Inc. ([][1]) designs distribution management software, which handles everything from order entry to shipments for large, industrial companies. Fricklas says he selected NetVERIFY over its competitors, and now integrates the software with Eclipse’s products.

“NetVERIFY provides the best transaction processing option today. Its simple configuration, installation, and seamless integration make implementing NetVERIFY a breeze,” Fricklas said. “The software also allows our clients to handle Internet commerce transactions with security, efficiency and speed.”

NetVERIFY provides payment processing links between merchants and their banks. It gives merchants the flexibility to choose the communication method that makes the most sense for their business and transaction volume. The software can be used with a wide range of communications options Dial-up connections, leased-lines, or Secure Sockets Layer (SSL) Internet connectivity. Dial-up with a modem provides cost-effective data transmission for low-volume Web sites. Leased-line connections give high-volume Web sites and service providers a method for secure, timely transmissions. SSL connectivity is available through ICVERIFY’s strategic Commerce service provider (CSP) partners. NetVERIFY will provide direct SSL to processors this year, and will add support for Secure Electronic Transactions (SET) when the protocol is production ready.

NetVERIFY is a secure system; it resides on the merchant’s or ISP’s server behind a firewall, and allows users to select whether they process transactions in real-time or batch-mode. NetVERIFY is fully scalable; the basic product allows for 8 simultaneous connections from online shoppers and a single line out to processing networks, but additional licensing can be purchased to expand throughput, both in and out, as merchants increase sales volume.

NetVERIFY integrates with leading storefront solutions from Microsoft, Oracle, The Internet Factory, InterShop Communications, and Mercantec. In addition, ICVERIFY’s Integration Partnership Program provides the necessary sample code and technical support to enable Internet merchants or ISPs to easily integrate NetVERIFY into their existing systems.

NetVERIFY is available in an annual lease structure that includes upgrades, updates, maintenance and basic support. First year leases for Windows are priced at $900, with subsequent years at $450. For multiple merchant sites, additional merchants can be added for less than $250 per year.


ICVERIFY Inc. is a privately held, venture capital-funded corporation with U.S. headquarters in Oakland, Calif., and European headquarters in Munich, Germany. The company is the leading provider of software solutions for authorizing credit, purchase, debit/ATM card and check guarantee transactions for merchants. Web commerce sites, Internet service providers, retail stores and catalog companies use ICVERIFY at more than 250,000 point-of-sale locations worldwide. For more information about ICVERIFY, visit [][2] or call 800/666-5777.



Pittsburgh Taxis Take Cards

Customers using People’s Cab now have an added convenience available to them thanks to the latest technology from Bell Atlantic Mobile.  Cab fares can now be paid by credit card, since People’s Cab has begun using wireless point-of-sale terminals to obtain credit authorizations.

“Most business travelers and many others prefer to pay their fares by credit card,” explained Mayvis Baumann, general manager for People’s Cab. “Until now, we weren’t able to accept credit cards because our drivers could not get proper authorization on the road.  These wireless point-of-sale units not only make that step possible, they make it easy and provide an immediate receipt for the customer.”

Baumann worked with Bell Atlantic Mobile and ECS, an independent service organization for credit card services, to equip the company’s entire fleet with the wireless point-of-sale units and to train drivers to use them.  The wireless units enable the user to access data without the need for a conventional wired phone line.

“This technology puts us on a level playing field with our competitors,” Baumann said.  “Our drivers look for the business traveler, and often being able to accept a credit card makes the difference in being able to pick up a particular fare.  We also serve a large student population on the campuses in Oakland.  Students can have unscheduled trips and may not have cash, so being able to use a credit card is important to them.”

Bell Atlantic Mobile offers wireless point-of-sale technology to transportation companies like People’s Cab as well as to vendors that need to authorize credit card purchases at remote locations such as trade shows, craft festivals or sporting events.  This technology is an attractive alternative for fixed-site retailers as well.  The cost of a wireless transaction is comparable to one done via a landline connection but there are no line installation costs or monthly landline local access charges.

“Transmitting data wirelessly is now an everyday occurrence that impacts the lives of virtually all consumers,” said Jerry Fountain, regional vice president for Bell Atlantic Mobile in Pittsburgh.  “Point-of-sale is only one example of how our technology carries data wirelessly.  We also work with utility companies to monitor pipelines for safety, vending machine companies to ensure quantities and freshness of products in remote locations, and, of course, business people who use our AirBridge(R) Internet Access for e-mail when they are traveling.”

People’s Cab began accepting credit cards in mid-December and, according to Baumann, they expect the added convenience will have a positive impact on the firm’s overall business.

Anyone seeking additional information about Bell Atlantic Mobile’s point- of-sale or other wireless data applications can call 1-800-308-DATA or visit .


Credit Card Stability

While a few issuers continue to struggle with poor performing vintages, stability will remain the watchword for credit card performance measures through the first half of 1998. Fitch IBCA’s February issue of “Credit Card Movers and Shakers” says since reaching an all-time high last May, credit card chargeoffs closed 1997 with a seven-month string of flat or slightly improving results. In the meantime, issuers boosted excess spread margins by successfully repricing riskier accounts and raising fees to offset the high level of defaults.

Diving this period of stability are lenders’ continued adherence to the tighter credit and collection standards put in place over the past 18 months and a slight leveling in the growth of personal bankruptcy filings. Equally helpful, if not more so, are favorable economic conditions. Given these factors and the overall high level of chargeoffs, Fitch IBCA does not anticipate issuers to begin loosening underwriting standards any time soon.

Also detailed in the report is the introduction of two new bankruptcy reform bills in Congress last week by legislators — The Bankruptcy Reform Act of 1998 and The Consumer Lenders and Borrowers Bankruptcy Accountability Act of 1998.

The Bankruptcy Reform Act addresses what many believe are key flaws in the current code — that those with the ability to repay debts are not required to do so and that there is no mechanism to determine their ability to repay. The bill attempts to rectify this by creating a needs-based system, under which a debtor’s ability to repay determines filing Chapter 7 or 13.

The Accountability Act features similar needs-based guidelines, but would limit claims by creditors that extended credit while aware of the consumer’s inability or potential inability to repay debts. Hearings on the bills will begin early next month and are expected to be completed by late March.

For a copy of the report, visit the Fitch IBCA web site at or call 800-853-4824.


TSYS & CheckFree

Total System Services, Inc.announced an alliance with CheckFree that will allow cardholders of TSYS clients to receive and pay their credit card bills over the Internet.

TSYS is one of the world’s largest credit, debit, commercial and private- label card processors.  The Columbus-based company serves card-issuing institutions throughout the United States, Puerto Rico, Canada and Mexico. CheckFree is the leading provider of electronic bill presentment and payment services to financial institutions. The alliance brings together the strengths and expertise of two technology leaders.

As a result of the agreement, TSYS will provide for its client a new on- line bill presentment and payment service called SureRemit(sm), one of the components of the TSYS SureTransact(sm) family of Electronic Commerce products. SureRemit will work the following way CheckFree will facilitate transmissions of billing data from TSYS to individual cardholders who will then be able to view their statements and pay them with point-and-click ease.

TSYS President Philip W. Tomlinson said, “This partnership will allow Total System to offer unprecedented functionality to the 92 million cardholders we currently process on behalf of our clients. Our clients benefit from reduced costs in printing and mailing statements, as well as in remittance processing fees. Cardholders save postage and check costs. The alliance is a win-win situation for everyone.”

“As one of the largest billers in the world, producing approximately 500 million statements a year, Total System is a perfect partner for CheckFree’s E-Bill bill presentment and payment services,” said Pete Kight, president and chief executive officer of CheckFree.  “Our alliance brings unique and unprecedented capability to Total System’s clients.”

Along with SureRemit, other products and services in the TSYS SureTransact family of services include SureService(sm) and SureCommerce(sm).  The SureService product offers TSYS clients the ability to provide balance inquiry, transaction inquiry and bank and corporate setup to their customers. SureCommerce will allow clients to issue card payment certificates over the Internet securely following the Secure Electronic Transaction protocol set forth by Visa(R) and MasterCard(R).

The only company with a proven, in-market tested solution for electronic billing and payment, CheckFree has contracts with 23 of the nation’s largest billers, as well as the largest statement processor, for electronic bill presentment.  In addition, Atlanta-based CheckFree will announce soon the full market launch of bill presentment for some of the largest billers in the world.  Combined, these billers represent nearly 400 million billing and payment transactions per month.

Founded in 1981, Atlanta-based CheckFree () is the leading provider of electronic commerce services, software and related products for 2.2 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 over the Internet.

In March 1997, CheckFree introduced the nation’s first end-to-end system for electronic presentment of richly formatted bills over the Internet, as well as next-generation electronic payment and remittance capabilities. CheckFree’s E-Bill uses existing payment systems and allows consumers to access and pay their bills through the branded home-banking services of financial institutions.

Headquartered in Columbus, Ga., TSYS is one of the world’s largest credit, debit, commercial and private-label card processing companies, serving card- issuing institutions throughout the United States, Puerto Rico, Canada and Mexico, representing more than 92 million cardholder accounts. TSYS provides a comprehensive on-line system of data processing services marketed as THE TOTAL SYSTEM(R). In 1996, TSYS formed a joint venture with Visa(R) U.S.A. to create Vital Processing Services L.L.C. (), a leading full-service merchant services provider. TSYS’ 1997 revenues totaled $361.5 million; the company is an 80.7 percent owned subsidiary of Synovus Financial Corp. (NYSE SNV) (), a $9.3 billion asset, multi-financial services company and a component of the Standard and Poors 500 Index.  Synovus also includes 34 banking affiliates in four Southeastern states, a full-service brokerage firm, a comprehensive trust services provider and a mortgage services company. TSYS’ Internet address is .


AIG – Cendant

The fight to acquire credit insurance provider American Bankers Insurance Group is getting messy as AIG has taken on a public campaign to discredit Cendant. AIG is running full-page ads this week accusing Cendant of a highly leveraged balance sheet, few tangible assets and no experience managing insurance companies. According to this morning’s Wall Street Journal it is most likely AIG will have to boost its $2.2 billion bid for ABI even if it successfully discredits Cendant with state insurance regulators.


Record Profits

Based on results for 79% of the bank industry’s assets, SNL Securities estimates U.S. commercial banks generated $59 billion in net income last year with $15.1 billion occurring during the fourth quarter. The banking industry’s average ROA calculates to 1.26% while average ROE equaled 14.98%. Compared to 1997, ROAs grew three basis points and ROEs increased by 53 basis points. SNL notes as consumer credit concerns have subsided so have loan reserves, dropping by 1.83% from the third quarter. The most disturbing trend in the banking industry continues to be shrinking net interest margins, which dropped 10 basis points to 4.13% in the fourth quarter. For the bank credit card business the weighted, average, after-tax ROA stands at 1.56%, or 2.6% pre-tax, for 1997, according to calculations by R.K. Hammer Investment Bankers.


CyberCash Reports $4.5 Million 97 Rev

CyberCash, Inc. announced business and operating results for the fourth quarter and year ended December 31, 1997.  In addition, CyberCash announced on February 5 that it has raised $15 million in equity capital which will help fuel its strategy for expanding its leadership position in secure Internet Commerce Solutions.

                               CYBERCASH, INC.
                           Financial Summary Table

                          Three Months Ended                 Year Ended
                              December 31,                   December 31,
                           1997          1996            1997            1996
    Revenues        $2,005,174        $50,646      $4,487,173        $127,439

    Costs and
      expenses     $(6,592,824)  $ (8,603,655)   $(31,264,222)*  $(28,879,456)
    Interest and other
      income, net    $(544,078)**    $500,923        $555,139**    $2,197,276

    Net loss       $(5,131,728)   $(8,052,086)   $(26,221,910)   $(26,554,741)

    Net loss available to
      shareholders  $ (5,414,467) $(8,052,086)   $(26,504,649)   $(26,554,741)
    Net loss per share    $(0.49)      $(0.75)         $(2.43)         $(2.77)
    Weighted average
     outstanding      11,040,382   10,703,224      10,898,036       9,585,418

     *  Includes $2,162,500 for the acquisition of NetBill technology license
        from Carnegie Mellon University and a one-time $344,242 restructuring
    **  Includes $905,429 loss from investment in affiliates.

CyberCash reported revenues of $4.5 million for 1997, up from $127,000 in 1996.  The 1997 revenues were derived in substantial part from developing and licensing solutions for strategic alliances with financial institutions around the world.  CyberCash became the only Internet payment company handling payments in a multiplicity of currencies, including the yen, the pound and the mark. The year also saw a dramatic increase in the number of merchants using CyberCash services and in the number of transactions CyberCash is processing. At the same time, the Company delivered on its promise to hold its quarterly expenses to approximately $7.5 million.  “I am pleased with our fourth quarter and year-end performance.  Our accomplishments clearly illustrate the effectiveness of our strategy for 1997,” stated Bill Melton, President and CEO of CyberCash.  “For 1998, we are committed to a set of initiatives to solidify our position as the leader in secure Internet payment services worldwide and to promote the advancement of electronic commerce around the world.”

Strategies for 1998

CyberCash is undertaking a large-scale campaign aimed at increasing the number of merchants — and thus the number of transactions — using its payment services.  The Company’s strategy is to work with merchants, technical partners, Internet service providers, store builders and major credit card processors to bring CyberCash’s advanced technology to the attention of a wider audience.  The  Company is already seeing excellent results from this effort.  The number of merchants using CyberCash’s services increased over 50 percent in the fourth quarter compared to the third quarter.

The Company is adjusting its business model and fee structure to reflect the increasing acceptance of CyberCash’s suite of Internet payment services as well as e-commerce in general.  CyberCash is now charging merchants an initial set-up fee — which was previously waived — and a monthly service fee based on the number of transactions that take place.  This new fee structure is intended to have a positive impact on the Company’s revenue stream.

CyberCash is putting additional emphasis on its PayNow(TM) Secure Electronic Check Service.  The Company sees significant revenue growth potential in this market, because of the many benefits businesses can realize through electronic bill presentment.  Among the most important are cross- selling and marketing opportunities and reduced costs through a streamlined receivables process and better cash management.  The alliances we have forged with International Billing Services and NCR Corporation, two of the leading bill presentment companies, have already given CyberCash a firm foothold in this market.  In addition, the Company is licensing its check product software to an increasing number of companies offering on-line payment options to customers through their Internet home pages.

Finally, the Company intends to continue to develop strategic relationships with financial institutions and technology companies around the world with a view toward expanding its range of offerings and broadening its geographic coverage. “The Internet,” said Mr. Melton, “offers the potential for dramatic increases in global electronic commerce. As a provider of payment services to enable that commerce, CyberCash must be global, too.”

“In summary,” Mr. Melton concluded, we look forward to an excellent year in 1998.  As of December 31, 1997, we had over $22 million of cash and short- term investments.  Combined with the proceeds of our just-completed financing and projected revenues for the year, this will provide the Company both with the funds we need for our operations in 1998 and with resources to take advantage of strategic opportunities.”

Fourth Quarter Highlights

— CyberCash and Barclays Bank, UK, announced that BarclayCoin(TM) is now        available to UK consumers via Barclay Square, the UK’s most popular        e-commerce shopping environment with over 2 million visitors since its        launch.   Barclays and CyberCash formed the alliance to enable        consumers in the UK to make small purchases of between 25p and        10 pounds on the Internet.

— CyberCash announced it will deliver the payment options for Pandesic        LLC.  The partnership provides Pandesic’s merchant customers with all        the tools they need to run successful businesses on the Internet,        including marketing, order processing and fulfillment, payment        processing, shipping and handling logistics and vendor payment.

— CyberCash was selected by Imark Technologies, Inc. (Nasdaq MAXX) for        use in extending its award-winning NET-MAX(TM) service to offer local        currency credit card processing to electronic publishers, enhancing        their ability to localize their product offerings.  The service will        initially support Canadian dollars.

— CyberCash announced the appointment of Steve Crispinelli to the new        position of Vice President, Global Business Development.  Mr.        Crispinelli will oversee all strategic relationships and business        development outside the U.S., expanding CyberCash’s reach in Asia,        Europe and Latin America.

— The number of merchants using CyberCash’s services increased by over        50% and the average number of transactions per day increased by over        100% during the fourth quarter.

About CyberCash

CyberCash, Inc., headquartered in Reston, Virginia, USA, provides enabling technology and services that allow secure payment transactions on the Internet.  The Company offers a complete suite of Internet payment services including a credit card service which handles payments using major debit and credit cards, an innovative micropayment service which enables 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.

To receive CyberCash’s latest news and corporate developments via fax at no cost, please call 1-800-PRO-INFO.  Use company code CYCH.

                               CYBERCASH, INC.
                     Consolidated Statement of Operations

                          Three Months Ended                Year Ended
                          December 31,                     December 31,
                           1997          1996           1997          1996
    Revenues         $2,005,174      $ 50,646    $ 4,487,173      $127,439
    Costs and
      expenses      $(6,592,824)  $(8,603,655) $(31,264,222)* $(28,879,456)
    Interest and
      other income,
      net             $(544,078)**   $500,923      $555,139**   $2,197,276
    Net loss        $(5,131,728)  $(8,052,086) $(26,221,910)  $(26,554,741)
    Net loss available to
      shareholders  $(5,414,467)  $(8,052,086)  $(26,504,649) $(26,554,741)
    Net loss per share   $(0.49)       $(0.75)        $(2.43)       $(2.77)
    Weighted average
      outstanding     11,040,382   10,703,224     10,898,036     9,585,418

     * Includes $2,162,500 for the acquisition of NetBill technology license
       from Carnegie Mellon University and a one-time $344,242 restructuring
    ** Includes $905,429 loss from investment in affiliates.

                               CYBERCASH, INC.
                         Consolidated Balance Sheets

                                             December 31,
                                         1997            1996
    Cash and cash equivalents   $  13,222,234    $ 33,687,076
    Short-term investments      $   8,779,773    $         —
    Other assets                $   4,685,917    $  1,733,341
    Property and equipment, net $   4,671,350    $  5,629,664
       Total assets             $  31,359,274    $ 41,050,081

    Current liabilities          $  1,748,993    $  2,940,595
    Series C Preferred Stock     $ 13,013,772    $         —
    Total stockholders’ equity   $ 16,596,509    $ 38,109,486
    Total liabilities and
      stockholders’ equity       $ 31,359,274    $ 41,050,081