Euronet Up 49%

Euronet Services Inc., operator of the only independent automatic teller machine (ATM) network in Central Europe, announced today that it recorded third quarter revenues of $1,577,000. This compares with revenues of $378,000 for the third quarter of 1996 and $1,061,000 for the second quarter of 1997. Revenues for the third quarter increased 49% over the second quarter.

Consistent with its business plan, Euronet reported that its net loss for the third quarter was $1,521,000, or $0.09 per share. Euronet’s loss was $907,000, or $0.07 per share, for the third quarter of 1996. The increased loss results from expenses associated with the continued aggressive expansion of operations in existing and new markets.

Euronet also announced that cash withdrawal and other transactions by cardholders over its ATM network in Hungary, Poland and Germany reached 560,106 in September and 647,675 in October. These figures compare with 548,350 transactions in August. The transaction figures reported for September and October include, for the first time, a significant level of transactions acquired under Euronet’s outsourcing contract with Budapest Bank. Euronet is now “driving” 45 Budapest Bank ATMs under that contract, which includes a fixed monthly fee per ATMs and a correspondingly lower transaction fee than the Company’s other contracts with banks .

The number of ATMs in Euronet’s independent network (exclusive of Budapest Bank ATMs) has increased to 503 at September 30, 1997 and 534 at October 31, 1997, up from 375 as at of June 30, 1997 and 405 at July 31, 1997.Euronet’s last public report of network size on June, 30 1997

Established in 1994, Euronet operates the only independent, non- bank owned ATM network in Central Europe. Through agreements and relationships with local banks, international card issuers and ATM networks such as American Express, VISA, Plus, MasterCard, Europay and Cirrus, Euronet’s ATMs are able to process ATM transactions for holders of credit and debit cards issued by or bearing the logos of such banks and card issuing organizations. In addition, Euronet offers outsourced ATM management services to local banks that own proprietary ATMs.

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act and is subject to the safe harbor created by those sections. Euronet assumes no obligation to update the information contained in this press release. Euronet’s operating results can be adversely affected by a number of factors, including (i) the management of growth, (ii) changes in laws and regulations affecting Euronet’s business in the countries in which it operates, (iii) cancellation or re-negotiation of contracts on which the company is dependent, (iv) competition, and (v) the level of card growth in emerging markets, any of which could cause actual results to vary materially from current results or Euronet’s anticipated future results. Additional explanation of these risks, and other risks, are set forth from time to time in Euronet’s periodic reports filed with the U.S. Securities and Exchange Commission, including, but not limited to, Euronet’s registration Statement on Form S-1 and the prospectus dated March 6, 1997.

(In thousands, except per share data)

Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996

Revenue 1,577 378 3,433 638

Operating expenses
ATM operating costs (1,393) (410) (3,046) (941)
Other operating costs (2,010) (840) (5,034) (2,365)

Operating loss (1,826) (872) (4,647) (2,668)

Other income (expenses) 305 (29) 555 (106)

Loss before income taxes (1,521) (901) (4,092) (2,774)

Deferred income tax benefit – (6) 129 219

Net loss (1,521) (907) (3,963) (2,555)

Loss per common and common
equivalent shares
outstanding primary (0.09) (0.07) (0.24) (0.18)

Average common and common
equivalent shares
outstanding primary 17,222,997 13,838,078 16,626,719 13,838,078


Mondex Hong Kong

The largest full scale launch of Mondex took place this week in Hong Kong. HongkongBank and Hang Seng Bank Limited announced that all customers are now eligible for Mondex cards. Over 5,000 Hong Kong merchants have agreed to accept the card. The initial launch of the card was limited to two retail sites in Hong Kong nevertheless more than 40,000 cards were issued. Meanwhile Mondex says its Guelph, Ontario program has grown to more than 10,000 cardholders.


Losing Altitude

A least two major car rental firms are reconsidering dropping out of frequent flyer mileage award programs in the wake of the recently adopted 7.5% tax now levied on air miles purchased from airlines. Reed Travel Group’s ‘Travel Weekly’ reported this week that Hertz and Avis were already re-evaluating their participation in the programs before passage of the new tax. Hertz says it no longer makes sense to spend more than $100 million per year for bonus miles when the firm already provides substantial discounts to corporate customers. Avis also questioned the effectiveness of such programs due to the saturation of bonus miles programs awarded from all types of firms. ‘Travel Weekly’ suggests hotel chains, long- distance phone companies and credit card issuers are likewise reconsidering such programs.


The Real Enchilada

Don Pablo’s Mexican Kitchen restaurants, operated by the Don Pablo’s Division of Apple South, Inc., this month will become among the first national multi-unit restaurant brands to launch an innovative, customer-focused gift card program, offering consumers faster point-of-purchase processing times and a gift that is more convenient than traditional paper certificates to carry and use.

Beginning November 10, 1997 in time for the holiday season, consumers can purchase Don Pablo’s Mexican Kitchen gift cards in any amount from $10 to $50 that look and operate like traditional credit cards. Called “The Real Gift Card,” a play on the brand’s “The Real Enchilada” tagline, the p.pless gift program will be rolled out system wide in 89 Don Pablo’s restaurants.

According to Don Pablo’s Division President Larry Folk, “The Real Gift Card” program offers added benefits to consumers and restaurant operators. “It’s a win, win program. For gift card holders, it provides a more accessible and user-friendly gift program, while providing restaurant operators with a more cost-effective gift program that strengthens brand loyalty among consumers.

“Unlike paper gift certificates, consumers will carry the card in their wallet just like a credit card which encourages use and helps reinforce brand awareness. In addition, consumers will be more likely to use the card more than once if necessary to spend the balance of the gift because gift card holders will not receive cash back on the remaining balance as they do with conventional paper gift certificates,” Mr. Folk said.

The look of the gift card, designed by the Don Pablo’s Division’s full- service advertising agency Gleason-Calise Associates of Dallas, remains true to the brand with the front of the card highlighting the Don Pablo’s logo and “The Real Gift Card” tagline against a background that resembles an adobe- plaster wall with exposed brick — a design element featured inside the restaurants.

The gift cards were produced by Tulsa, Okla.-based Gift Card Services, a company that specializes in gift card technology and provides a host computer system to process gift card transactions.

To purchase “The Real Gift Card,” consumers simply make the request to a Don Pablo’s server or employee who loads the gift amount onto the gift card — a process that takes about 15 seconds — using a standard POS credit card machine that has been programmed to interface with the Gift Card Services host system network. Each card features a 17-digit card identification number and a magnetic strip that records the card balance data each time the card is used.

Consumers who purchase the gift cards receive an attractive card holder that features a sleeve to hold the card and a tag page that allows the purchaser to designate who the gift card is to, who it is from and the amount of the gift.

The gift card recipient uses the card just like cash with the speed and convenience of a credit card transaction. As the gift card is used for the purchase of food and/or beverages, consumers can always determine the balance of the card by calling a 1-800 number that is featured on the back of the card. The gift cards carry an expiration date of 1999 and will remain available throughout the year.

The Don Pablo’s Division is promoting the program through gift card pins worn by hosts/hostesses, cashiers and servers as well as point-of-sale materials. In-store posters and table-tents designed by Gleason-Calise emphasize the gift card and the brand’s positioning using three visual elements matched with taglines, including: a sombrero with the caption “The Real Enchilada,” the gift card with the caption “The Real Gift Card” and a Margarita with the caption “The Real Holiday Spirit.”

In addition, the Division will roll-out an employee gift card sales contest from Nov. 13 to Dec. 31, 1997 that rewards top-selling employees and management teams with wearables and cash prizes.

Don Pablo’s is truly “The Real Enchilada” of Mexican restaurant brands, delivering hot, fresh, authentic Mexican food in a casual and festive atmosphere reminiscent of an open-air Mexican village plaza.

Madison, Ga.-based Apple South, Inc., a rapidly growing, multi-concept restaurant company, operates six decentralized, entrepreneurial divisions organized by brand to ensure a strong guest focus. The Company’s divisions operate a total of 412 restaurants, including 254 Applebee’s Neighborhood Grill & Bar restaurants, 89 Don Pablo’s Mexican Kitchen restaurants, 16 McCormick & Schmick’s seafood dinner houses, 27 Hops Grill & Bar restaurants, 16 Canyon Cafe restaurants and 10 Harrigans Grill and Bar restaurants.


e-Christmas Launched

A consortium of European electronic trade organizations and businesses, including key partners Hewlett-Packard Company, KPMG, Microsoft, UPS, Eurocard-MasterCard and Visa, announced `e-Christmas’ – an initiative to increase knowledge of electronic commerce among European businesses.

The project centers around the creation and operation of an innovative multi-lingual, multi-currency retail Web site which will market holiday gifts from retailers and manufacturers in nine European countries to Internet consumers around the world. The e-Christmas site goes live on Nov. 10, 1997 at e-Christmas has two objectives. First, it will educate and excite consumers, retailers and merchants, by demonstrating the opportunities and benefits of electronic commerce. Second, the initiative will assist European businesses in keeping pace with competitors in other regions, helping to prevent the creation of a technology gap between Europe and the United States.

Developed using Internet technologies from Microsoft and HP, the site is available to consumers in Dutch, English, French, German, Italian and Spanish. Payments systems differ according to the consumers country of origin, but cover major credit cards including Visa and Eurocard-MasterCard.

The e-Christmas initiative provides European businesses with a focus for learning more about this critical new channel and its impact upon all aspects of their organizations. The project will be monitored by consultants KPMG and their analysis of the results and experiences will be published in a report available to all businesses.

The e-Christmas site (at will feature hundreds of gifts from European retailers. The site and its supporting service will overcome many of the barriers holding back wider adoption of electronic commerce. e-Christmas is multi-lingual; can handle payments in local currencies; provides information about tax and import duties at the `point of sale’; and gives high levels of service for delivery and online tracking of orders to most countries of the world, within a single purchase price and as part of an integrated service.

e-Christmas is a concrete response from industry to the challenge from the European Commission (EC) to raise awareness among businesses and consumers, which the EC identified in its recent communication A European Initiative in Electronic Commerce, as key to the vigorous growth of electronic commerce in Europe. The objectives of the project are also consistent with the electronic commerce policies of the International Chamber of Commerce.

Partners supporting the project with contributions of computing technology, software and professional services include: Eurocard-MasterCard, HP, KPMG, Microsoft, UPS and Visa. Additionally, within the nine participating countries 21 Internet Service Providers and over 20 solution developers are working with retailers and merchants to establish and host stores. The number of retailers participating in the initiative will continue to grow throughout the duration of the project. Electronic trade organizations participating in the initiative include the IMRG (UK) L’Echangeur (France), Berinor Associates (Spain) and DETECON (Germany).

Retailers are able to participate easily through the rapid creation of an e-Christmas storefront – a process which can take as little as two days of programming. A Merchant Agreement ensures consistent service across all retailers within the site.Purchases can be delivered to most countries of the world by the projects fulfilment and logistics partner UPS, which has also integrated its online tracking capability with the e-Christmas service to allow consumers to check the delivery status of their purchases. For more information on how consumers interact with the site and the technology used to build it, read the e-Christmas FAQs.

About the e-Christmas project:

e-Christmas is an independent European initiative in electronic commerce inspired by a group of electronic trade organizations and supported by business partners in retailing, payments, management consulting, package distribution and information technology. e-Christmas aims to educate and excite consumers, retailers and merchants about the benefits of online retailing, and increase levels of awareness, knowledge and understanding among European businesses. Among over 100 companies participating in the e-Christmas initiative are leading partners Hewlett-Packard Company, KPMG, Microsoft, UPS, Eurocard-MasterCard and Visa. The e-Christmas site goes live at [][1] on Nov. 10, 1997.



New VisaNet Head

Scott Thompson has been named Executive Vice President, Systems Development and Customer Service, for Visa U.S.A., with overall responsibility for the VisaNet Services Group.

Thompson joins Visa after five years as Chief Information Officer for Barclays Global Investors in San Francisco, where he spearheaded all systems and technical operations activities for the firm, which manages mare than $400 billion in assets. In addition, he successfully implemented a new strategic platform and technology infrastructure based on UNIX technologies, overseeing a staff of more than 200 technology professionals. He also redirected development efforts at the firm toward client-served methodology.

“Scott Thompson is a seasoned systems development professional, bringing more than 15 years of experience in information systems and operations to Visa U.S.A.,” said Carl Pascarella, president and chief executive officer, Visa U.S.A. “He has a proven track record in effectively mastering technology systems, and we are extremely pleased to have him on board.”

Prior to Barclays Global Investors, Thompson was a Partner at Coopers & Lybrand, where he was responsible for delivering information technology solutions to the firm’s financial services industry clients.

“I am excited by the size, scope, and importance of the VisaNet Systems, not only as they exist today, but also as we will develop them for the future,” said Thompson. “As the industry leader, Visa U.S.A. has assembled a stellar systems development team. I’m thrilled to be a part of it.”

VisaNet is Visa’s global payment processing network that provides the telecommunications and data processing infrastructure that connects 21,000 member financial institutions, nearly 600 million Visa cards and more than 14 million Visa acceptance locations. VisaNet recently set and all-time record, processing more than $1 trillion in Visa transactions in the 12 months ended March 31, 1997. VisaNet enables Visa member financial institutions to offer Visa cardholders a variety of services and a level of satisfaction that continually reinforces consumers’ preference of the Visa brand.

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 more than 21,000 member finanacial institutions, their cardholders and the global economy. Visa’s nearly 600 million cards are accepted at more than 14 million worldwide locations, including more than 370,000 ATMs in the Visa Global ATM Network. Visa’s Internet address is [][1]



Extra Card Insurance

If you’re like most people, each time you rely on the conveniences of automated banking — be it on-line or at the automatic teller machine (ATM) — you pause to wonder if your account will reflect the withdrawal, deposit (especially of cash) or transfer accurately.

You are rushing to a restaurant, do you really need that receipt? Will such an acknowledgment of the transaction stand up if a problem appears on your account?

As familiar as we have become with automation in most aspects of our lives, these and other concerns are still shared by a majority of people using ATMs and electronic banking services at a rapidly growing rate. The concerns are well-founded because the risk of theft, fraudulent use or other problems from various electronic aberrations are documented.

Meeting these concerns, some personal insurance companies offer protection against loss through electronic banking.

“Most people don’t realize that their homeowners insurance policies may cover loss through electronic banking when unauthorized access or other events affect their account unexpectedly,” said Randolph J. Smith, Senior Vice President for Atlantic Mutual’s Personal Insurance Division. “Recognizing that automation continues to assume a larger role in our lives, added protections like these for consumers are essential.”

The statistics tell the cold reality: The United States Secret Service, for one, has reports of computer hackers who have broken into on-line banking services and companies offering purchases via the Internet to obtain credit card numbers and other personal financial information. And, according to VISA USA, Inc., credit card companies’ fraud losses currently approximate $475 million per year from people using stolen or lost cards, or using fraud schemes to obtain account numbers of unwary cardholders.

Resolving these disputes can be very difficult when there is no clear coverage for liabilities, as not all institutions have or require uniform coverages regarding electronic banking transactions. And while credit card issuers now live by systems for coverage and limited liability that have become popularly understood, the question still remains, what about the risk of loss through banking directly? Who is responsible for what if there is a discrepancy that cannot be easily resolved?

No transaction in the electronic universe should be considered entirely fail-safe. But there are some simple precautions that people can take to minimize their risk when using electronic services:

On-line Banking from Home or Office

1. Your password is the key to your account — keep all passwords secret, never give them to anyone, including bank employees. 2. Always sign off when you leave your computer area: never leave your Internet bank account open when you leave your desk either at home or at the office — if the PC is left unattended with the browser running with a valid user name and password active, anyone can gain access to the account. 3. Keep your computer free of viruses. 4. Consider not banking electronically during the work day when distractions may cause you to forget that you have an account active and open, or to make erroneous entries.

Keeping your ATM Card Yours Alone

1. Treat your ATM card like cash. Always keep your card in a safe place. 2. Keep your “secret code” a secret. Your ATM card will only work with your personal identification number (PIN). Memorize your code — never write it on your card or store it near the card. Never tell your code to anyone. And never let someone else enter your code for you (including bank employees). 3. Do not share any information about your ATM card over the telephone. No one needs to know your secret code, not even your financial institution. 4. Report a lost or stolen card at once. Even though your ATM card cannot be used without your secret code, promptly report a lost or stolen card. 5. Check your receipts against your monthly statements to guard against ATM fraud. You can get a receipt every time you make an ATM transaction. Verify each transaction by checking the receipts against your monthly account statements.

The Atlantic Mutual Companies, including Mutual Insurance Company and Centennial Insurance Co., provide personal, commercial and marine classes of property and casualty insurance through independent agents and brokers. Founded in New York in 1842, Atlantic Mutual has offices throughout the United States. Atlantic Mutual routinely offers advice to individuals and businesses on how to manage their environments safely and productively.


Digital’s New Debit Card

Digital Equipment Corporation today announced the Client Services Support Card, a prepaid debit card that enables customers to purchase telephone support service conveniently in time increments of 30, 60, 120 and 180 minutes. A new concept in desktop application support, the Client Services Support Card offers customers the same ease of use as a prepaid telephone calling card in buying and accessing services at any time, from any location. It offers an uncomplicated, affordable solution to the support needs of an increasingly mobile workforce in a multivendor, networked world.

“Anyone who has had a presentation crash at 2 a.m. with no help desk to call can appreciate Digital’s Support Card,” said Patrick O’Connor, director of marketing for Digital products and services at Pioneer-Standard Electronics, a Digital reseller. “Digital recognizes the fact that today’s PC users range from traditional, nine-to-five corporate users to road warriors and telecommuters, and the amount of application support they need is just as diverse. Digital is focusing the support on the user, not the hardware.”

Easy-to-Buy, Easy-to-Use Services

The Client Services Support Card takes its cue from popular debit cards similar to those offered by banks and phone companies. Individual users in small and large enterprises simply dial a toll-free number and enter a personal identification number (PIN). The service can be purchased and renewed over the phone with a credit card, and is available exclusively through Digital’s authorized resellers.

Customers can access service on more than 200 of the most popular desktop applications. The wide array of business software applications supported includes word processing, electronic mail, Internet access, spreadsheet, graphics, and presentation packages from major vendors such as Microsoft, Lotus, Adobe, and Netscape. Time is not debited until the customer is connected with a support expert, and satisfaction is guaranteed or Digital will credit the customer’s card.

Changing Face of Today’s Workforce

Large and small organizations today increasingly share a common end-user profile, the COHO (company office/home office) or mobile user. Moreover, as most companies rely on rapidly changing technology in a networked world in order to achieve their business objectives faster, the demand for available, high-quality service is also burgeoning.

“The Client Services Support Card is another innovative concept from the world’s leading multivendor, lifecycle services provider,” said Peter Mercury, vice president and general manager of Digital Worldwide Services’ multivendor customer services business. “This new service supports our strategy to address the service needs of an expanding audience of technology users while reducing the complexity of buying and using services. Digital is applying the expertise and sophistication gained from more than 10 years’ experience providing multivendor services to many of the world’s largest enterprises. Now, many more users can take advantage of Digital’s world-class support in an uncomplicated, packaged service offering.”

Managing IT Support Costs

Large and small enterprises alike face escalating costs and infrastructure issues in conducting business. The Digital Support Card helps companies improve productivity, reduce costs and manage technology to meet their business objectives by providing:

— A cost-effective alternative to fulfilling the off-hour service needs of an increasingly mobile workforce.

— Flexibility to obtain desktop application support anywhere, any time. Users control the amount of support time and pay only for the support they use.

— A world-class multivendor solution for companies that do not need annual, comprehensive service contracts or wish to supplement them with flexible departmental alternatives.

— A means to complement, supplement or, for smaller companies, replace the help desk, potentially reducing overall IT support and administrative costs.

— Accountability users can track and manage service usage.

Availability and Pricing

The Client Services Support Card is available now in the U.S. and Canada, and in select markets in Europe. Per-card prices in North America:

U.S. Canada

30 minutes @$69 $97 Cdn.
60 minutes @$119 $167 Cdn.
120 minutes @$219 $307 Cdn.
180 minutes @$319 $447 Cdn.

For more information about obtaining the Client Services Support Card, call 1-800-311-3821.

About Digital

Digital Equipment Corporation, recognized for product and service excellence, is a leading supplier of high-performance, Web-based computing solutions which help enterprises compete in the global marketplace. Digital gives its customers a winning Internet advantage through a comprehensive portfolio of Internet solutions based on award-winning systems, advanced networking infrastructure, innovative software, and industry applications — including those from its business partners. The expertise and experience of Digital employees help customers plan, design, implement, manage and support Internet solutions in countries throughout the world. For the latest company information, visit Digital on the World Wide Web at .

NOTE: Digital, the Digital logo, and Client Services Support Card are trademarks of Digital Equipment Corporation.


Smart Data Expands

MasterCard expanded its business expense management software to all its corporate card programs this week via the introduction of ‘Smart Data for Windows 3.0’. MasterCard’s MIS ‘Smart Data’ package will enable corporate cardholders to generate more than 100 types of reports including multi-currency, multi-language reports for multinationals. The program can also be run on a LAN, client server or as a stand-alone application and offers extensive e-mail and export options.


Calif Phone Card Firm Charged

Attorney General Jim Ryan flied suit late Tuesday against a California multi-level marketing firm for allegedly cheating consumers through a calling card business opportunity scam.

Destiny Telecom International, 100 Hegenberger Road, Oakland, is charged with violating the state’s Consumer Fraud and Deceptive Business Practices Act.

“Consumers have a right to receive the goods and services they pay for — anything short of that is fraud,” Ryan said.

The suit alleges that the defendant charged Illinois consumers between $100 and $1,384 for “distributorships” in the company’s multi-level marketing plan promoting long-distance calling cards. Illinois consumers who became Destiny “distributors” and bought and sold the cards later found the cards were useless. The defendant allegedly failed to pay MCI Communications Corporation for outbound and inbound telephone calling services which rendered the cards inactive. Consumers say their repeated requests for refunds were ignored.

Ryan is seeking a permanent injunction, restitution, costs of the investigation, a civil penalty of $50,000 and an additional penalty of $50,000 for each act found committed with intent to defraud.


Consumer Credit Downshifts

Growth in consumer revolving debt is running about 20% lower than last year according to preliminary figures released by the Federal Reserve Friday. Total revolving debt (general purpose cards, private label cards and revolving lines of credit linked to checking accounts) now stands at $526.1 billion compared to $484.8 billion last September. The FRB says revolving credit is growing 4.5% annually versus 5.6% one year ago. Overall total consumer credit (short-term and intermediate-term credit extended to individuals exclusive of loans secured by real estate) is growing 1.9% annually, logging in at $1.23 trillion for September. Automobile loans are still sluggish, growing about 1.2% annually. According to CardWeb, Inc.’s CardData bank credit card debt is growing about 12% annually, based on mid-year data showing $405.5 billion of general purpose credit card debt. CardData will release third quarter tabulations later this week.

Sep97 Aug97 Jul97 Jun97 May97 Apr97 Mar97 Feb97 Jan97 Sep96
%GRWTH: 4.5 7.0 15.1 0.5 3.6 7.5 -2.6 12.7 17.8 5.6
$OWED: 526.1 524.1 521.0 514.6 514.3 512.8 509.6 510.7 505.3 484.8
Source: Federal Reserve; revised figures as of 11/07/97

September 1997 November 7, 1997

Consumer credit outstanding grew at a 2 percent seasonally adjusted annual rate in September, following a 4-1/4 percent rate of
increase in August. Growth of revolving and “other” credit slowed in September, while that of automobile credit edged higher.

Seasonally adjusted
1996 1997
::::::_ ::::::::::::::_

Sept. Oct. Nov. Dec. Jan. r Feb. r Mar. r Apr. r May r June r July r Aug. r Sept. p
Percent change at annual rate 2
Total 2.4 5.8 4.3 0.2 10.9 7.7 2.3 8.0 0.9 -0.4 5.9 4.2 1.9
Automobile 2.2 4.9 -0.1 5.6 0.6 0.2 -1.6 12.0 1.3 11.0 7.4 -2.1 1.2
Revolving 5.6 13.5 13.3 5.5 17.8 12.7 -2.6 7.5 3.6 0.5 15.1 7.0 4.5
Other 3 -2.6 -5.4 -4.9 -15.4 12.9 9.1 15.7 3.6 -4.0 -16.7 -11.7 7.5 -1.7

Amount: billions of dollars
Total 1,173.9 1,179.6 1,183.8 1,184.0 1,194.8 1,202.5 1,204.8 1,212.8 1,213.7 1,213.3 1,219.3 1,223.5 1,225.5
Automobile 386.9 388.5 388.5 390.3 390.5 390.6 390.0 394.0 394.4 398.0 400.4 399.8 400.2
Revolving 484.8 490.3 495.7 498.0 505.3 510.7 509.6 512.8 514.3 514.6 521.0 524.1 526.1
Other 3 302.2 300.8 299.6 295.7 298.9 301.2 305.1 306.0 305.0 300.8 297.8 299.7 299.3

Percent except as noted: not seasonally adjusted
Institution, terms, and type of loan
Commercial banks
Interest rates
48-mo. new car n.a. n.a. 9.03 n.a. n.a. 8.92 n.a. n.a. 9.20 n.a. n.a. 8.99 n.a.
24-mo. personal n.a. n.a. 13.62 n.a. n.a. 13.46 n.a. n.a. 13.81 n.a. n.a. 13.84 n.a.
Credit card plan
All accounts n.a. n.a. 15.62 n.a. n.a. 15.88 n.a. n.a. 15.75 n.a. n.a. 15.78 n.a.
Accounts assessed interest n.a. n.a. 15.52 n.a. n.a. 15.13 n.a. n.a. 15.72 n.a. n.a. 15.79 n.a.

New car loans at auto finance companies
Interest rates 10.52 10.40 10.31 8.60 7.17 7.44 8.08 8.56 7.80 7.64 6.71 5.93 6.12
Maturity (months) 51.9 52.5 52.3 52.3 55.1 54.6 53.5 52.8 53.2 53.3 54.6 55.5 55.4
Loan-to-value ratio 91 89 90 90 92 92 90 91 93 93 94 93 93
Amount financed (dollars) 17,182 17,435 17,719 17,670 17,090 16,837 17,198 17,620 18,060 18,171 18,281 18,329 18,520
This release is issued around the fifth business day of each month. The exact date and time may be obtained by calling (202) 452 – 3206.
Footnotes appear on reverse.

(Billions of dollars)
Not seasonally adjusted

1996 1997
::::::_ ::::::::::::::_

Sept. Oct. Nov. Dec. Jan. r Feb. r Mar. r Apr. r May r June r July r Aug. r Sept. p

Total 1,177.3 1,180.2 1,190.3 1,214.9 1,204.4 1,196.7 1,193.2 1,200.9 1,203.6 1,207.7 1,212.3 1,223.8 1,229.0

Major holders
Commercial banks 517.1 521.3 523.0 529.4 525.5 518.5 511.3 515.5 515.5 513.0 516.7 518.3 509.6
Finance companies 154.6 151.4 151.0 152.4 153.5 153.3 153.0 151.9 154.2 155.8 156.1 157.5 158.2
Credit unions 140.9 143.0 143.3 144.1 144.2 143.4 143.9 145.6 146.7 147.6 149.0 150.2 151.0
Savings institutions 44.9 44.9 44.8 44.7 45.1 45.5 45.9 46.2 46.6 47.0 47.4 47.4 47.9
Nonfinancial business 68.5 68.0 69.8 77.7 73.6 70.6 70.0 69.4 67.7 68.0 67.6 68.6 68.5
Pools of securitized assets 5 251.2 251.7 258.4 266.5 262.5 265.4 269.2 272.2 272.8 276.2 275.4 281.8 293.8

Major types of credit 6
Automobile 390.4 392.7 392.1 393.2 389.3 387.3 386.3 389.5 391.2 397.1 400.5 402.1 403.8
Commercial banks 153.1 154.8 154.8 154.0 153.0 151.8 150.5 151.2 151.8 152.5 154.3 155.0 153.4
Finance companies 88.7 88.0 87.6 86.7 86.8 87.1 85.8 83.2 85.1 87.0 88.3 88.4 88.6
Pools of securitized assets 5 49.5 49.2 49.3 52.4 49.5 48.2 49.3 53.5 51.5 53.7 53.4 53.2 55.5

Revolving 483.3 487.5 497.8 522.9 513.5 508.6 503.0 505.3 509.4 511.3 515.9 522.2 524.5
Commercial banks 211.2 215.0 217.9 228.6 223.2 215.8 207.3 209.3 212.8 213.3 219.0 217.5 209.4
Finance companies 29.4 29.6 29.9 32.5 32.3 32.2 33.2 34.3 34.4 34.0 33.1 33.6 33.1
Nonfinancial business 38.8 38.1 39.3 44.9 41.9 39.8 39.4 39.0 37.1 37.3 36.8 37.6 37.7
Pools of securitized assets 5 178.0 178.6 184.0 188.7 187.9 192.3 194.5 193.8 195.8 196.7 196.6 202.5 213.0

Other 303.5 299.9 300.4 298.8 301.6 300.8 303.9 306.0 302.9 299.3 295.9 299.5 300.7
Commercial banks 152.8 151.4 150.2 146.8 149.3 150.9 153.5 155.1 150.9 147.2 143.5 145.9 146.8
Finance companies 36.5 33.8 33.6 33.2 34.4 34.0 34.0 34.3 34.7 34.8 34.7 35.4 36.6
Nonfinancial business 29.7 29.8 30.5 32.8 31.7 30.8 30.5 30.4 30.7 30.7 30.8 31.0 30.8
Pools of securitized assets 5 23.7 23.9 25.1 25.4 25.1 24.9 25.3 24.9 25.5 25.8 25.4 26.1 25.3

1. Covers most short- and intermediate-term credit extended to individuals, excluding loans secured by real estate.
2. Percent changes calculated from unrounded data.
3. Comprises mobile home loans and all other loans not included in automobile or revolving credit, such as loans for education, boats,
trailers, or vacations. These loans may be secured or unsecured.
4. Interest rates are annual percentage rates (APR) as specified by the Federal Reserve’s Regulation Z. Interest rates for new-car loans
and personal loans at commercial banks are simple unweighted averages of each bank’s most common rate charged during the first calendar
week of the middle month of each quarter. For credit card accounts, the rate for all accounts is the stated APR averaged across all
credit card accounts at all reporting banks. The rate for accounts assessed interest is the annualized ratio of total finance charges at
all reporting banks to the total average daily balances against which the finance charges were assessed (excludes accounts for which no
finance charges were assessed). Finance company data are from the subsidiaries of the three major U.S. automobile manufacturers and are
volume-weighted averages covering all loans of each type purchased during the month.
5. Outstanding balances of pools upon which securities have been issued; these balances are no longer carried on the balance sheets of
the loan originators.
6. Includes estimates for holders that do not separately report consumer credit holding by type.
r=revised. p=preliminary.


Advanta Still Rated Negative

Standard & Poor’s ratings of Advanta Corp. and its subsidiaries still remain on CreditWatch with negative implications. The senior bank notes, subordinated notes, and CD’s of Advanta National Bank remain on CreditWatch with developing implications following the announcement of a proposed transfer of its credit card business to a Fleet Financial Group subsidiary. Following a more detailed review of the company’s sub prime mortgage business as well as its small business leasing operations, Standard & Poor’s believes that the senior debt and counterparty ratings of Advanta Corp. should go no lower than single-‘B’-plus and the senior bank notes of Advanta National Bank should go no lower than double-‘B’ minus. The transaction is anticipated to close by late 1997 or early 1998, Standard & Poor’s.

Advanta Corp.
Senior unsecured debt BB
Preferred stock B+
Long-term counterparty BB
Short-term counterparty B
Advanta National Bank
Long- term counterparty BB+
Short-term counterparty B
Advanta Capital Trust I
Preferred stock B+
Advanta National Bank
Senior Bank Notes BB+/B
Subordinated Bank Notes BB-/B