SPYRUS SET for Japan

SPYRUS announced that Toyo will be its partner in Japan for its SecureWeb Payments SET toolkit developed by its subsidiary, Terisa Systems Inc.

Toyo is a leading systems integrator for the financial industry in Japan and will use SecureWeb Payments to enable SET product development and integration in Japan. TIS also announced today its commitment to develop the Japanese Payment Option (JPO) module for SecureWeb Payments. Together TIS and SPYRUS will develop the electronic commerce market for SET in Japan, a leading market for SET product deployment.

At the RSA Data Security(R) Conference last week, SPYRUS/Terisa announced SETCo(R) (a joint venture between Visa and MasterCard) is using SecureWeb Payments as the basis for all SET compliance test suites. To obtain a license to use the SET trademark requires that the product pass a series of compliance tests developed for that application (SET Cardholder, Merchant, Payment Gateway or Certificate Authority). Only those products that pass all the SET Compliance tests will be granted a license to use the SET trademark. This mark, issued only by SETCo, signifies an official SET compliant application. The relationship between SPYRUS and TIS ensures timely certification and deployment of SET-certified products to the Japanese market in 1998.

TIS has been developing and operating credit card application systems for 15 years. “They have demonstrated skill in handling credit and financial systems on mainframe and front-end processors, and have been aggressively developing application package products under the client-server environment in the fields of science and industry,” said Sue Pontius, SPYRUS CEO. “In addition, they have been successfully running Internet service provider and content delivery for the past several years. Therefore, we expect TIS will provide competent products and services related to SET for us in Japan and will play a significant role in SET solution development for the electronic commerce industry.”

“TIS has selected SPYRUS/Terisa’s SecureWeb Payments SET toolkit for its recognized position by Visa, MasterCard and SETCo as the SET standard in the market,” said Yoshiyuki Uenishi, Director of Cyber Business Unit, Cyber Commerce Department at TIS. “The availability of the SET Toolkit with the JPO from SPYRUS and TIS is a key step forward in the deployment and acceptance of SET as the global payment standard for Internet transactions in Japan. TIS is committed to providing the highest quality code from SPYRUS and will help make this a reality by enabling multiple vendors to develop and certify their applications to ensure compliance with the SET certification.”


SecureWeb Payments provides a complete development environment for creating CardHolder, Merchant, and Payment Gateway SET applications. SecureWeb Payments provides developers with the industry standard, tested, ready-to-use implementation of SET, in addition to a secure key database, certificate management system and the RSA Data Security BSAFE(tm) cryptography engine. The toolkit includes a complete set of sample applications and is shipped in C source code.


SPYRUS is the leading provider of high-assurance hardware cryptographic products that are Algorithm Agile(tm) and form factor independent. SPYRUS’ products provide encryption, digital signature, access control, and metering solutions for corporate IS, WWW/Internet and Intranet applications, electronic commerce, and government applications. The Company’s core products are built around its SPEX/(tm) library, a host-based API that supports application integration with a suite of hardware cryptographic products.

SPYRUS cryptographic products are intended for use with security-sensitive applications; protocols such as SET, SSL, S-HTTP, S/MIME, and Microsoft(R) Authenticode(tm) technology. The Company’s products are used with a variety of certificate authority products to provide critical infrastructure support for issuance and management of a deployed hardware token community.

Founded in 1992, SPYRUS is headquartered in San Jose, California and has branch offices in Columbia, Maryland; Waltham, Massachusetts; Somerville, New Jersey and London, England. In 1997 SPYRUS acquired Terisa Systems Inc., which operates as a wholly owned subsidiary in Los Altos, California.


TIS (Toyo Information Systems), since its founding in 1971, has continued to build on its solid foundation as a total information services business. Through its strength in Software Development, System Design, System Operation, Network Communication (VAN) and Database Services, TIS improves business performance for a diverse customer base.

A leader in a quickly changing industry, TIS is listed on the first section of the Tokyo and Osaka Stock Exchanges. The Company is officially recognized as a “systems integrator” and its facilities in Osaka and Tokyo are certified for “Computer Security for the Data Processing Industry” by the Japanese Ministry of International Trade and Industry (MITI). TIS is also registered by the Japanese Ministry of Posts and Telecommunication as a “Special Type II Carrier.”

Recognition for its expertise and dependability is reflected in a growing customer base both in Japan and internationally and the success of those customers in today’s competitive world markets.

Note to Editors SPYRUS is a registered trademark of SPYRUS. SPEX/ and Algorithm Agile are trademarks of SPYRUS. Terisa Systems(R) is a trademark of Terisa Systems Inc., a SPYRUS Company. SecureWeb Payments(tm) is a trademark of Terisa Systems Inc.

All other trademarks are the property of their respective owners.

This release is available on the SPYRUS web site at


Schlumberger Up 51%

Schlumberger Limited reported net income for 1997 of $1.3 billion and basic earnings per share of $2.62, 51% higher than in 1996. Operating revenue of $10.65 billion represented a 19% increase over the previous year and a record level for the company.


Fourth quarter net income of $373 million and basic earnings per share of $0.75, were 46% and 44% higher, respectively, than in the fourth quarter of 1996. Operating revenue of $2.91 billion was 16% above the same period last year.

Oilfield Services made substantial gains with a revenue increase of 19%, while rig count rose 15%. These results were driven by our ability to deliver leading-edge technologies along with cost-effective solutions which help our clients to continuously decrease the cost of finding and producing hydrocarbons.

Measurement & Systems revenue grew 7%, as strong growth at Automated Test Equipment and Electronic Transactions more than compensated for declines at metering.

Chairman and Chief Executive Officer Euan Baird commented “The strength of the results for 1997 speak for themselves as our oilfield revenue increased much faster than the average E&P spending of the oil companies. Our clients have budgeted a further increase in E&P spending of 10% in 1998. However, their plans may be modified when the impact of the economic problems in Asia on oil demand can be evaluated. Overall results of Measurement & Systems should improve in 1998, led by growth of the smart card systems and services markets and continuous growth of Automated Test Equipment.”


                          (Stated in thousands except per share amounts)
                                Twelve Months    Fourth Quarter(Unaudited)
For Periods
Ended December 31             1997         1996         1997         1996
Operating              $10,647,590  $ 8,956,150  $ 2,907,701  $ 2,515,693
Interest and other income  106,823       69,515       34,074       17,972
                         10,754,413    9,025,665    2,941,775    2,533,665
Cost of goods sold
   and services           7,836,952    6,835,444    2,123,854    1,902,105
Research & engineering     486,205      452,608      129,225      115,851
Marketing                  307,036      301,304       83,135       81,989
General                    369,030      355,392       97,671       92,674
Interest                    86,843       72,020       26,769       18,015
Unusual items                    –      333,091            –            –
Taxes on income            372,650     (175,677)     108,442       67,968
                          9,458,716    8,174,182    2,569,096    2,278,602
Net Income              $ 1,295,697  $   851,483  $   372,679  $   255,063

Basic Earnings
Per Share(1)           $      2.62  $      1.74  $      0.75  $      0.52
Diluted Earnings
Per Share(1)(2)        $      2.52  $      1.70  $      0.72  $      0.50
Average shares
outstanding(1)             495,215      490,041       497,732     492,647
Average shares
assuming dilution(1)(2)    514,345      500,498       520,149     506,783
Depreciation and
amortization included
in expenses            $   972,539  $   885,198  $    257,525 $   224,497

(1) Adjusted for two-for-one stock split on June 2, 1997. 
(2) The calculation of diluted earnings per share assumes that all
    stock options and warrants are exercised at the beginning of the
    period and the proceeds used to purchase shares at the average
    market price for the period. 

NOTE In September 1996, the Company recorded three unusual items which
largely offset one another

– With increasing profitability and strong outlook in the US, the
Company recognized a portion of the US income tax benefit related to
its US subsidiary’s tax loss carryforwards and all temporary
differences.  This resulted in a credit of $360 million. 

– A charge of $300 million after tax related primarily to the
Electricity and Gas Management and Geco-Prakla Land and Transition
Zone businesses. 

– A charge of $58 million after tax, including a loss on the
divestiture of the remaining defense-related activity, certain asset
impairments and other charges. 

                      CONDENSED BALANCE SHEET

                                                     (Stated in thousands)
Assets                                    Dec. 31, 1997      Dec. 31, 1996

Current Assets
Cash and short-term investments           $  1,761,077       $  1,358,948
Other current assets                         4,310,143          3,683,669
                                              6,071,220          5,042,617
Long-term investments, held to maturity         742,751            323,717
Fixed assets                                  3,768,639          3,358,581
Excess of investment over net assets
of companies purchased                       1,167,624          1,225,335
Deferred taxes on income, and other assets      346,497            374,801
                                           $ 12,096,731       $ 10,325,051

Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities  $  2,297,370       $  2,200,161
Estimated liability for taxes on income        384,167            367,562
Bank loans and current portion
  of long-term debt                             854,540            813,845
Dividend payable                                93,821             92,842
                                              3,629,898          3,474,410
Long-term debt                                1,069,056            637,203
Postretirement benefits                         396,559            383,129
Other liabilities                               306,294            203,929
                                              5,401,807          4,698,671
Stockholders’ Equity                          6,694,924          5,626,380
                                           $ 12,096,731       $ 10,325,051

                           BUSINESS REVIEW

                                                      (Stated in millions)
                             Oilfield Services       Measurement & Systems
Fourth Quarter           1997     1996  % change    1997     1996 % change
Operating Revenue     $ 2,060  $ 1,726    19 %   $   848  $   793    7 %
Operating Income(1)   $   437  $   305    43 %   $    54  $    41   32 %

Twelve Months
Operating Revenue     $ 7,663  $ 6,129    25 %   $ 2,986  $ 2,834    5 %
Operating Income(1)   $ 1,557  $   986    58 %   $   149  $   124   20 %

(1) Operating income represents income before income taxes, excluding
    interest expense, interest and other income, and the 1996 unusual


During the quarter, Oilfield Services operating revenue grew 19% over the same quarter last year with strong sustained activity from all businesses.  Operating income rose 43%.

North America

In North America, revenue increased 25%, representing 20% of consolidated revenue.  The rig count climbed 24%.  Operating income jumped 60%.  Activity increased most significantly in the Gulf of Mexico, Alaska and Canada.  The greatest contributions were from Wireline & Testing, up 28%, Dowell, up 21%, and Geco-Prakla, with a 21% increase.  IPM grew more than fivefold due to the Hibernia project.

Outside North America

Outside North America, revenue grew 18%, representing 52% of consolidated revenue.  The rig count grew 1%.  Operating income rose 40%.  All businesses experienced continued revenue growth, most prominently Sedco Forex, Wireline & Testing and Geco-Prakla, up 35%, 9% and 18% respectively.  Activity was strong in all areas.


During the quarter, Schlumberger continued to deliver customized solutions to our clients, with the following benefits

— Reduced time to first oil and accelerated cashflow generation for the clients.  Time is a critical element in oilfield projects, particularly offshore, given the current rig dayrates.  PLATFORM EXPRESS(a) technology continues to gain momentum at premium prices with 260 active tools worldwide at year end.  The PLATFORM EXPRESS tool reduces logging time through increased efficiency and multiple tool combinations.  In the North Sea, during a horizontal logging operation, PLATFORM EXPRESS service has been combined with the MDT(a) Modular Formation Dynamics Tester to measure important reservoir parameters more efficiently than ever before.  This combination has saved an average of 10 hours of rig time and over $150,000.  The new FIV(a) Formation Isolation Valve proved successful in allowing safe perforating of a long horizontal well in a single trip without inhibiting the flow of the well.  The client realized total savings of over $400,000 per well.  In the Gulf of Mexico, Dowell PERFPAC(a) service continued to be in high demand as it combines perforating and gravel packing service in a single trip and saves clients as much as $300,000 in rig time per completion.  Geco-Prakla installed a second Sun Microsystems Enterprise(TM) 10000 in the Houston processing center.  With these cost-effective machines, computing power has increased dramatically, and productivity per person improved almost 50%.  A combination of advanced technologies from Anadrill (PowerPak(a) steerable motors, SHARP(a) slim MWD technology and short-radius drilling) permitted a land operator to drill five wells ahead of schedule with significantly improved production.  Performance incentives doubled Anadrill’s resulting revenue.

— Increased hydrocarbon reserves.  New technology creates opportunities, such as the discovery of bypassed or untapped oil.  In November in the North Sea, CMR(a) Combinable Magnetic Resonance technology was used to log an exploration well.  The target sands held water, but higher uphole the CMR log analysis indicated some unanticipated oil in an interval that conventional log analysis would have missed.  Subsequent testing confirmed the presence of oil.  The oil company is now evaluating options, reviewing the seismic data and contemplating a sidetrack.  As a consequence of its success using CMR service, the oil company decided to run the application in Alaska, Angola and Norway the following month.  Overall, activity for CMR technology worldwide doubled in comparison with the same period last year.

— Increased production from existing fields.  The new Vision475(a) slimhole, full-logging-suite MWD/LWD service continued to contribute to growth.  In previous wells, geosteering using only resistivity permitted an operator to stay within a broad pay zone.  The unique Vision475 azimuthal porosity data has allowed the operator to keep a new wellbore within the most productive part of this pay zone for 91% of the interval.  The resulting production was 12,000 barrels of oil per day (BOPD), compared with 5,000 BOPD in previous wells.  The Vision475 system also significantly lowered the total well cost, with a smaller wellbore and shorter lateral, while maximizing production.

— Higher levels of efficiency.  Improved efficiencies are another result of effective applications of new technology.  A PLATFORM EXPRESS-CMR combination tool string was run in a gas well to evaluate producibility over a 1000-foot sand/shale sequence.  The combined technology provided reservoir parameters, such as water cut, permeability and bed thicknesses, which were then used to estimate a potential flow rate.  The analysis predicted a gas rate of 5,300 thousand cubic feet per day (Mcf/day), close to the actual production of 4,500 Mcf/day.  This successful application is now being used on subsequent wells to determine which zones to produce to optimize the well’s rate of return.  In November, GeoQuest announced the commercial release of the next-generation GeoFrame(a) 3.0 integrated reservoir characterization system.  The integrated capabilities of GeoFrame 3.0 let each member of a multidisciplinary team simultaneously view, edit and interpret data and results through all phases of a project and rapidly create an accurate reservoir model, thereby improving productivity.

As announced during the quarter, Sedco Forex has received long-term contracts to build two new-generation Sedco Express(a) semisubmersible drilling rigs, one for Elf Aquitaine in West Africa, and one for Texaco in the Gulf of Mexico.  The Sedco Express is a fully integrated drilling unit which is expected to reduce well construction time by approximately 30%, compared to a conventional fourth-generation unit.  In September, Sedco Forex acquired the remaining 50% interest in the semisubmersible drilling rig Sedneth 701 and the jackup Sedneth 202.  At quarter end, there were 84 drilling units.  The total offshore rig utilization was 93.8%, compared with 94.3% in the same quarter last year.  The industry-wide average offshore rig utilization was 95.4%.

In addition to our client-focused enhancements, Schlumberger continues to improve its own internal efficiency and productivity.  A new business data management tool, BASIS(a) (Business Application Solutions In Schlumberger), has been successfully implemented across all Oilfield Services finance, logistics and human resources activities in all our US and Canada sites and is currently being used by more than 3,000 trained employees and managers.  This enterprise-wide software solution, based on the SAP R3 platform, seamlessly replaces dozens of existing discrete applications, thereby improving significantly our efficiency internally through increased sharing of data, tools and processes, and externally through increased understanding of our customers’ needs and improved service delivery, particularly for multiservice projects.  For example, upon completion of a project, all business data generated at the wellsite is automatically captured and transmitted to create an invoice, update the tool maintenance schedule and generate a tool service quality report.  The success of the North American implementation is the first step of the worldwide deployment of BASIS.


Measurement & Systems revenue rose 7% compared with the fourth quarter of 1996, despite the adverse effect of exchange rate fluctuations.  Continued growth at Automated Test Equipment (ATE) and Electronic Transactions and strong activity in Asia were the main contributors.  Operating income increased 32%.

In the fourth quarter, revenue increased 63% for ATE and 17% for Electronic Transactions, including previously announced acquisitions. The substantial growth at ATE was driven by higher sales of 200-MHz and 400-MHz high-end logic testers.  Shipments of such systems increased over 200% compared to last year, and contributed to a 117% gain at Test Systems.  Diagnostics Systems revenue rose 67%, highlighted by the first shipments of the IDS3000(a) systems.  Our Asia region and Japan were strong, accompanied by a doubling of revenue for North America.  ATE orders rose 31% over the prior year, due mainly to an increase in demand for high-end logic products, solid gains at Diagnostic Systems and significant activity in the Asia region.  Electronic Transactions growth was spurred by continued demand for subscriber identity module (SIM) cards in China, the Netherlands, and the US, and improved shipments of microprocessor cards for banking and pay television applications.  Retail Petroleum Systems declined 6% as the effect of unfavorable exchange rates more than offset stronger Centurion(a) dispenser sales in the US and improved turnkey station construction activity in parts of Eastern Europe.  Including previously announced acquisitions, orders improved 31%, led by strong card demand, customer acceptance of the MagIC(a) suite of terminals and the signing of a significant telecom contract in South America.

In the metering business, revenue decreased 11% compared with 1996, most of which was due to the adverse exchange rate effect.  The most significant decline was in Europe.  The UK business was impacted by a sharp drop in gas meter sales, while the Electricity business was affected in Germany by the reduced volume and price of polyphase meters and in Italy by a global suspension of electricity meter orders from ENEL, the national utility.  Deliveries to ENEL should resume in January 1998.  North America also declined slightly, mainly due to the cyclical falloff in electricity export sales, coupled with low demand for residential networking products.  These shortfalls were partially compensated for by South America which improved mostly due to growth in the Gas business, with the penetration of the Gallus 2000(a) meters in both Argentinean and Chilean markets.  Orders declined 16%, half of which was due to the adverse exchange rate impact, when compared to the fourth quarter of 1996.

                        CHANGE IN LIQUIDITY

   Liquidity represents cash plus short-term and long-term
investments less debt.  A summary of the major components of the
change in liquidity follows

                                               (Stated in millions)
Twelve Months                                   1997          1996
Funds provided by
  Net income                               $   1,296     $     851
  Depreciation and amortization                  973           885
  Employee stock option plan                      95           141
  Employee stock purchase plan                    50            39
  Net proceeds on sale of drilling rigs(1)       174             –
Funds used for
  Fixed asset additions                       (1,496)       (1,158)
  Businesses acquired                            (17)         (139)
  Dividends paid                                (371)         (367)
  Working capital and other                     (356)         (208)
Change in liquidity                              348            44
Liquidity, beginning of period                   232           188
Liquidity, end of period                   $     580      $    232

(1) In September, the Sedco Forex semisubmersibles Drillstar and Sedco
Explorer were sold to a newly
formed venture in which Schlumberger has a 25% interest. The rigs will be
operated by Sedco Forex under
bareboat charters. The gain on sale has been deferred and will be amortized
over a six-year period. This
transaction had no effect on 1997 results and will have no significant
impact on future results of operations.


Transaction Systems ArchitectsUp 32%

Transaction Systems Architects, Inc. , a leading supplier of application software for electronic payments and electronic commerce, reported record earnings of $.25 per share (diluted) on revenue of $61.1 million for the first quarter of fiscal 1998 ending December 31, 1997.

Operating income was $11.2 million for the quarter compared to an operating income of $7.6 million for the same quarter last year, an increase of 47 percent.  Operating income for the first quarter of 1997 included acquisition related charges from the company’s 1993 leveraged buyout totaling $851 thousand.  Without these charges, operating income on a pro forma basis was $8.5 million for the first quarter of 1997.  Compared to 1997 pro forma operating income, the current quarter increase over last year was 32 percent.

The company reported net income of $7.2 million, $.25 per share (diluted), for the current quarter as compared to $4.3 million, $.15 per share (diluted) in the first quarter 1997.  Compared to net income and earnings per share for first quarter 1997, the current quarter increase was 70 percent and 67 percent, respectively.  Net income and earnings per share on a pro forma basis for the first quarter of 1997 was $5.0 million, $.18 per share (diluted). Compared to pro forma net income and earnings per share in 1997, the current quarter increase was 44 percent and 39 percent, respectively.

The company finished the quarter with $149.5 million in backlog consisting of  $51.3 million in non-recurring revenue and $98.2 million in recurring revenues.  Backlog increased $38.1 million, a 34 percent increase compared to December 31, 1996.  Non-recurring revenues are composed of  fees specified in software and services contracts the company expects to recognize in the next 12 months.  Recurring revenues include all monthly license fees, maintenance fees and facilities management fees that the company expects to recognize over the next 12 months.

Cash flow from operating activities was $5.7 million  for the first quarter of 1998.  The cash balance on hand for the first quarter of fiscal 1998 ending December 31, 1997 was $47 million.

“We are pleased with our first quarter results, as it provides us with a very good start for fiscal year 1998,” said William E. Fisher, chairman, chief executive officer and president of Transaction Systems Architects.  “Revenue growth in our European and Americas region was solid with 28 percent and 21 percent, respectively. Asia/Pacific which represents less than 12 percent of total revenue achieved a 15 percent growth rate despite the economic challenges within its region.”

Transaction Systems Architects software facilitates electronic payments by providing consumers and companies access to their money.  Its products are used to process transactions involving credit cards, debit cards, smart cards, home banking services, checks, wire transfers as well as automated clearing and settlement.  Transaction  Systems’ solutions are used on more than 2,800 product systems in 69 countries on six continents.

           (unaudited and in thousands, except per share amounts)

                                      Three Months Ended December 31,
                                     1997                    1996
     Software license fees        $35,774                 $27,139
     Maintenance fees              11,349                  10,106
     Services                      12,548                  12,041
     Hardware, net                  1,388                     553

        Total revenues             61,059                  49,839

     Cost of software
      license fees
     Software costs                 7,282                   5,555
     Amortization of
      purchased software               —                     801
     Cost of maintenance
      and services                 13,335                  12,712
     Research and development       5,505                   4,079
     Selling and marketing         13,752                  10,569
     General and administrative
        General and administrative
         costs                      9,674                   8,291
        Amortization of
         goodwill and purchased
         intangibles                  315                     217

        Total expenses             49,863                  42,224

    Operating income               11,196                   7,615

    Other income (expense)
     Interest income                  591                     442
     Interest expense                (20)                    (57)
     Other                           (80)                   (317)

        Total other                   491                      68

    Income before income taxes     11,687                   7,683
    Provision for income taxes    (4,447)                 (3,415)

    Net income                     $7,240                  $4,268

    Earnings Per Share Data
       Net income                   $0.26                   $0.15
       Average Shares outstanding  28,071                  27,756
       Net income                   $0.25                   $0.15
       Average Shares outstanding  29,064                  28,613

                         (unaudited and in thousands)

                             December 31,           September 30,
                                     1997                    1997

    Current assets
     Cash and cash equivalents    $46,966                 $46,600
     Billed receivables, net       40,501                  39,864
     Accrued receivables           25,399                  25,063
     Deferred income taxes          4,044                   3,517
     Other                          3,184                   3,043

        Total current assets      120,094                 118,087

    Property and equipment, net    16,392                  16,263
    Software, net                   6,504                   6,105
    Intangible assets, net          9,431                   9,539
    Installment receivables         1,298                   2,394
    Investment and notes receivable10,844                   7,969
    Other                           4,792                   4,877

        Total assets             $169,355                $165,234

    Current liabilities
     Current portion of
      long-term debt                 $802                    $768
     Current portion of
      capital lease obligations       551                     524
     Accounts payable               6,325                   7,896
     Accrued employee compensation  4,278                   5,559
     Accrued liabilities            8,105                   9,048
     Income taxes                   8,419                   6,230
     Deferred revenue              26,574                  28,792

        Total current liabilities  55,054                  58,817

    Long-term debt                  1,609                   1,465
    Capital lease obligations       1,013                     914

        Total liabilities          57,676                  61,196

    Stockholders’ equity
     Class A Common Stock             135                     134
     Class B Common Stock               6                       6
     Additional paid-in capital   104,626                 103,708
     Accumulated translation
      adjustments                   (618)                   (260)
     Retained earnings              7,542                     462
     Treasury stock, at cost         (12)                    (12)

        Total stockholders’
         equity                   111,679                 104,038

        Total liabilities and
         stockholders’ equity    $169,355                $165,234


Super Bowl Transactions

Souvenir credit card purchases at this weekend’s ‘Super Bowl XXXII’ will be literally flying through the air. U.S. Wireless Data says its ‘TRANZ Enabler’ wireless technology will be used to process all credit card transactions at its 35 vendor locations throughout San Diego. CT-based N&D Sports says about 50% of its special merchandise sales are made on credit cards. N&D is the ‘Official Concessionaire for the San Diego Super Bowl Host Committee’.


Cap One Dividend

Capital One Financial Corporation today announced a quarterly dividend of $.08 per share payable February 20, 1998 to stockholders of record as of February 9, 1998. This is the Company’s twelfth consecutive quarterly dividend since its February 28, 1995 spin-off from Signet Banking Corporation.  Dividends declared by the Company are eligible for direct reinvestment in the Company’s common stock under its Dividend Reinvestment and Stock Purchase Plan.  For additional plan information, stockholders should contact First Chicago Trust Company of New York at 800-446-2617.

Headquartered in Falls Church, Virginia, Capital One Financial Corporation is a financial services company whose principal subsidiaries, Capital One Bank, and Capital One, F.S.B., offer consumer lending products.  Capital One’s subsidiaries collectively had 11.7 million customers and $14.2 billion in managed loans outstanding as of December 31, 1997, and are among the largest providers of MasterCard and Visa credit cards in the world.


Consumers Need Organization Says NFCC

If you answered yes to any of these questions, your finances could use an organizational overhaul. Turning chaos into order may seem like a tough job, but the National Foundation for Consumer Credit (NFCC) believes you can organize your finances and keep them that way. All it takes is an initial commitment of 30 minutes per day for a couple of weeks and then an hour per week after that. The big pay-off is a firmer handle on your money.

“The first step,” says Durant Abernethy, president of NFCC, “is to dedicate an area in your home to manage and store financial documents.” According to Abernethy, the area should have all of the supplies needed to run the family’s finances such as envelopes, stamps and a calendar. He adds that if you use a computer for financial management purposes, put it in this area as well.

The next step is to establish effective bill paying, budgeting and storage systems. For tax or bill paying purposes, it doesn’t really matter which system you use, just that you have a method that you and others in your family understand and can keep up. Here are some organizational tips.

Important documents–Make a complete listing of your important papers including your will, insurance policies and stock certificates. Write down the locations of safe deposit boxes. As a precaution, be sure to store originals of your most important papers in a fireproof box or another secure location. Store one copy of your will somewhere else other than in a safe deposit box.

Budget–To set up a budget, have all family members track their spending for a month. Then, tally the family spends in various categories, compare the total to your income and, if necessary, look for areas where you can reduce spending.

Spending–Categorize your spending regularly. This helps you stick to your budget. If you have a computer, you can use money management software programs to track spending categories. Or you can use a notebook to record expenditures. Another simple system is the envelope method–put money in envelopes labeled with particular categories such as lunch money or entertainment. Take out funds as needed. With this method, you can always see how much you have left in the category.

Bill paying–Designate one person as the bill payer. That person should allot time twice a month to pay bills. One system is to set up a master list of monthly bills and check off each bill as you pay it. Another idea is to use a wall calendar to write down when bills and irregular payments such as quarterly tax payments are due. Or, you can write out checks, seal them in envelopes and write on the outside when payments are due. Be sure to mail payments a few days before the due date. Also, make sure to review all of your credit card and loan statements for accuracy.

Taxes–Each January, establish an expandable file folder for the year’s tax records. Have different sections of the folder labeled with categories such as property tax, charitable donations, health and business expenses. As tax-related items like medical bills and canceled donation checks come in, file them in the appropriate category in the folder. Use your appointment calendar to record day-to-day unreimbursed business expenses. Monthly, transfer those records to the business expense section of that year’s tax folder. Keep old tax returns and supporting documents for seven years.

Investments–Keeping a record of investments. That way you’ll know the cost basis of your stocks, bonds and mutual funds, and when you sell them, you can quickly calculate the gain/loss for tax purposes. One system workable for an active trader is to keep buy orders in a trading folder. As the sell orders come in, match them up with the corresponding buy orders and file them both with your tax records for the year.


Intrapay Funds Disbursement Launched

CitX Corporation of Quakertown, PA, and its strategic partner Priority One Electronic Commerce Corporation of Akron, PA, Thursday announced the development of Intrapay Funds Disbursement, a new Internet-based E Commerce service, that enables the automatic disbursement of funds via the Internet.

The new network-centric service will permit businesses to electronically pay vendors, employees or taxes using their web browser and a special Internet-based middleware platform developed by CitX and NCR Corporation.

The first application of Intrapay Funds Disbursement will be launched with Sibley Services Inc., of Philadelphia PA, who provides payroll and other accounting management services to small and medium sized businesses in the eastern region. Sibley Services Inc., will offer the Funds Disbursement service to their clients as a way to facilitate automatic direct deposit of payroll funds to their employee’s bank account.

“Intrapay Funds Disbursement is easy to use, works on any computer platform and requires no additional software to be purchased. All that is needed is Internet access and a JAVA enabled web browser”, said Bernie Roemmele, CEO of CitX Corporation. “We also plan on integrating automatic EDI translation support to enable simple utilization by EDI based businesses without changing their legacy systems,” continued Roemmele.

To use the Intrapay Funds Disbursement service,

1. clients have CitX build a private web site platform called Intrapay, and open an EFT cyber bank account with Farmers First Bank.

2. The client then logs into their private web site and sets up their Disbursement Schedule listing payee, date due, and the amount to pay. When it is time to make the scheduled disbursements, the system first transfers the total amount to be disbursed from the clients business bank account, into their EFT Cyber bank account.

3. Next, the funds are individually distributed to each payee listed on the Disbursement Schedule via EFT and the banking network.

The Intrapay Funds Disbursement service is facilitated by CitX, Priority One, and NCR Corporation.

CitX provides a secure transaction system called SETX, that enables automatic pre-processing of transactions, builds and maintains the Intrapay Platform, and provides all technical support.

Priority One handles the payment processing activities, data exchange with the banks, and customer account support.

NCR will provide their Top End embedded middleware and computer servers to operate the SETX system, Intrapay Platform, disbursement service and interface to heterogeneous systems and networks that may need to be interfaced to.

Recently, CitX and NCR formed a strategic relationship to develop and market Internet-based Electronic Commerce services world wide, in the health care, insurance, retail, banking and general business sectors.  CitX and Priority One have also formed a strategic partnership to jointly market and support Internet-based E Commerce services. One of the first services deployed was “Intrapay – Bill Collect”, a service that enables any business to automatically collect their receivables on the date due via the Internet.

“The Intrapay Funds Disbursement service will enhance our current business-to-business and business-to-consumer cash management services. It is a great complement to our Bill Collect service which has been in operation for several months”, said Sid Lieberman, Chairman of Priority One.


Card Tester

The UK’s Barnes International Ltd rolled out its new ‘MAG- Tester 2000’ mag stripe analyzer for credit cards and paper tickets. The new analyzer will test HiCo, LoCo cards as well as Thin Flexible Tickets for quality assurance, diagnostics or for special applications. The unit uses PC-controlled software. Freehold, NJ Meyer & Co. is handling U.S. sales of the analyzer.


Advanta’s Hemorrhage Slows

Advanta’s credit card chargeoffs dropped below 7% while delinquency edged up slightly during the fourth quarter. The chargeoff rate for managed card loans stood at 6.81% for 4Q/97 compared to 7.39% for 3Q/97. The delinquency rate (30+ day) rose from 5.20% in third quarter to 5.29% in the fourth. Card outstandings ended 1997 at $11.2 billion compared to $12.7 billion one year ago.


CU Journal Sold

Thomson Financial Services unit, Faulkner & Gray, announced Thursday that it has acquired the assets of CU Journal Inc., publisher of the weekly Credit Union Journal. Terms of the agreement were not disclosed.

“It has been a long-standing goal of ours to enter the credit union publishing market,” said Jack Love, President of Faulkner & Gray. “With our coverage of most sectors of financial services, the vibrant credit union market is an important one for us to enter. We have had a number of credit union subscribers to our other financial services publications and attendees to our conferences through the years, and recognize the vital role they play in financial services delivery. With the Credit Union Journal we now have a top-notch publication geared exclusively to the needs and concerns of this market, and it will be the cornerstone of what will be a family of products targeted specifically for the needs of credit union executives.”

Credit Union Journal was founded in early 1997 by Frank J. Diekmann, Editor and Co-Publisher, and Timothy J. O’Hara, Advertising Director and Co-Publisher, and has quickly become the leading news authority on the credit union industry. “I am pleased to have the opportunity to enter the credit union market with the services of Frank Diekmann and Tim O’Hara, who will remain with the publication and will spearhead Faulkner & Gray’s credit union efforts,” said Andrew L. Goodenough, Executive Vice President and Group Publisher of Faulkner & Gray. “Combined, these executives have nearly 20 years’ experience in the credit union publishing field, a tremendous asset to us as we build our credit union business.”

Credit Union Journal will continue to operate out of its West Palm Beach offices, located at 224 Datura Street, Suite 709, West Palm Beach, Florida, 33401. Additional personnel will be hired in West Palm Beach to round out the publication’s editorial and advertising staff.

“We are delighted to be joining the Faulkner & Gray team,” said Frank Diekmann. “The company is highly regarded in the financial services industry for its commitment to the highest journalistic standards. We look forward to bringing the resources of Thomson to bear on our enterprise.”

In a related move, Faulkner & Gray also acquired the publishing assets of Credit Union News, the nation’s oldest credit union newspaper, founded in 1980, from BKB Publications Inc. Credit Unions News’s subscribers will receive Credit Union Journal effective with the January 28 issue.

Faulkner & Gray is publisher of 18 specialty business magazines and newspapers in a wide array of financial service industry segments, including accounting, banking, credit collections, credit cards, mortgage banking, managed care and insurance. Its titles include National Mortgage News, Credit Card Management, US Banker, Bank Technology News, Financial Service Online and dozens of related, newsletters, daily fax news bulletins, statistical directories, sourcebooks and websites. The company is also the largest independent provider of conference events in financial services, and sponsors Credit Card Forum, Home Banking Forum, Mortgage Technology Conference and Banking Call Center Conference, among others.

Faulkner & Gray is a division of Thomson Financial Services, a leading provider of quality financial information, research, analysis, and software products to the global investment and corporate communities. Part of The Thomson Corporation (TTC), TFS employs more than 5,500 people in nearly 40 offices around the world.

The principal activity of TTC is specialized information and publishing worldwide. In addition, TTC has important interests in newspaper publishing in North America and in leisure travel in the United Kingdom and Sweden. TTC had sales of US$7.7 billion in 1996 and has some 50,000 staff members. TTC’s common shares are traded on the Toronto, Montreal and London stock exchanges. For more information, visit TTC’s Internet address at [www.thomcorp.com][1]

[1]: http://www.thomcorp.com


New AmEx EVP of  Service Delivery

American Express today announced the appointment of Steven Grant as Executive Vice President, U.S. Service Delivery, Consumer Card Services Group. In this role, Mr. Grant will be responsible for managing all U.S. operations that support the American Express Consumer Card Services, Corporate and Small Business Services, Government and Purchasing Card Businesses and Established Services through the customer service centers located in North Carolina, Florida and Arizona. He will also oversee the Illinois Payment Facility. Mr. Grant will report to Phillip J. Riese, President, Consumer Card Services Group.

“Steve possesses strong leadership skills and expert knowledge of American Express’ operations and business strategies,” said Phillip Riese, President, Consumer Card Group, noting that Grant replaces Louis Lombardo whose retirement was announced earlier last year. “Steve has been a key partner in integrating customer servicing throughout many of the U.S. Business Units. We look forward to him continuing the business partnership approach as leader of the U.S. Service Deliver Team.”

Previously Mr. Grant served as Senior Vice President, Service Strategy and Chief Quality Officer for Travel Related Services, a position he held since 1994, where he was responsible for overseeing the company’s service center structure and implemented comprehensive customer measurement and quality processes that increased the overall effectiveness of the centers. For the last years, Mr. Grant has played a key role in the company’s reengineering efforts, particularly in the reconfiguration of the service center structure. Hie efforts led to the development of the current three-center formation, which has resulted in enhanced customer service capabilities and significant economic savings for the company.

Mr. Grant joined American Express in 1981 to head voice and data communications for First Data Resources, which was part of American Express at that time. He advanced through increasingly senior positions in several areas of the company including systems technology, quality, reengineering and operations.

Prior to joining American Express, Mr. Grant held management positions in network operations and marketing at MasterCard International and Rockwell International.

Originally from Hampton, Iowa, Mr. Grant has a B.A. from Cornell College, and an M.A. from Duke University. He currently resides in New York City.

American Express Travel Related Services Company, Inc., is a wholly-owned subsidiary of the American Express Company — a diversified worldwide travel and financial services company founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking.


High Tech Card Gambling

Betting Inc. announced it is developing the Patented Second Line Computer KeyBoard device to allow US game players to use their ATM card with PIN to open or replenish their Sports Book or Off Track Betting accounts.  Usage of the ATM card with PIN will result in same day cash for the gaming operators and a small fee for the players.

In Europe and Asia and Latin America, Betting Inc. is seeking joint venture partners to develop home wagering with the Second Line Computer KeyBoard.

The Second Line Computer KeyBoard features a built in modem, printer, DES encryption and a credit, smart, and ATM card reader.  Functioning as a regular keyboard, it offers the consumer the option to send all bank data, toll free, by a second dial up phone line to the bank host.  The host will alert the Internet merchant as to payment.

The Second Line Computer KeyBoard prints a receipt using the built in printer and now opens up the usage of same day cash ATM card with PIN and smart card Internet commerce.

By the simple usage of a second phone line, the buyer’s bank data is completely secure as no information is being transmitted across the Internet.

Betting Inc. is the host and equipment supplier for personal encrypted remote financial electronic card transactions.