Motorola-Cartes ’97

Motorola’s Smartcard Systems Business (SSB) announced its initial smart card products at the Cartes ’97 Show here today. The introduction, which follows Motorola’s March announcement of the SSB unit as a new global provider of complete smart card solutions, unveiled the M-Smart(TM) series’ combination contacted/contactless smart card and two new families of terminals developed for the public transit and campus markets.

The products, which will be available for shipment in 1998, set the stage for future smart card product announcements and for Motorola’s extension into other market applications such as identification, health care and banking.

The new M-Smart Combination Card is a flexible, multi-purpose smart card designed to work with any industry-standard terminal. The card can be used in conventional contacted as well as contactless mode.

M-Smart terminals for transit applications include the Vehicle Terminal and Gate Terminal. Products for campus applications include M-Smart PC Reader and Access Control Terminal. The M-Smart Point of Sale Terminal and Vending Machine Terminal can be used in both campus and open transit environments. Motorola’s M-Smart products are based on open architecture, scaleable security and comply with established industry standards.

“With the introduction of our initial Motorola Smartcard Systems products, we are demonstrating our commitment to our customers, developing superior contactless/contacted products and providing innovative and flexible solutions that are customized to our customers’ needs,” said Mark Davies, Motorola vice president and director of the company’s Smartcard Systems Business.

“To effectively implement optimum smart card solutions, Motorola is building strategic relationships with customers and other leading industry players,” Davies added. “We will work closely with our strategic partners to create a vision for different programs, develop business cases and help drive demand for a universal smart card solution.”

The M-Smart Combination Card’s multi-application capability is designed to attract consumers and broaden merchant acceptance. The card can store cash value electronically and serve as a debit or credit card, which simplifies transactions and eliminates cash handling. The card could be conveniently used in vending machines and at retail merchants. Future applications could include storing health records and store loyalty information, as well as functioning as a identification card.

In a contactless environment, the Combination Card never touches the reader, which extends the life of both the card and reader. Faster transaction speeds generate cost savings for merchants and offer consumers added convenience which can create a platform for consumer loyalty.

The M-Smart Transit Vehicle and Gate Terminals facilitate automatic fare collection. Fares are stored on a smart card and then deducted when the user boards. The faster throughput speeds up the boarding process making it more convenient for passengers. Operators will appreciate the breadth of fares available on smart cards – period passes, stored rides and special concessions as well as the ability to modify fare tables immediately. This technology can provide a wealth of ridership data, which can be used to optimize routes and schedules. Also, smart card technology eliminates cash handling and the cost of producing, distributing, collecting and managing other fare media.

In campus environments, the M-Smart PC Reader and Access Control Terminal can interact with industry-standard smart cards. The Access Control Terminal allows universities, corporations and entertainment complexes to control physical access. The PC Reader helps to enable protection of computer system data, secures Internet purchases and facilitates other forms of electronic commerce such as home banking and electronic cash. Both readers allow systems to recognize individuals and the level of access they are permitted and also provide a definitive electronic record of individual access.

The M-Smart Point of Sale Terminal and Vending Machine Terminal can be used in both transit and campus environments. The terminals read smart cards that store value, transferring the appropriate amount from the card to the machine. The terminals improve transaction speed and eliminate the need for customers to hold cash, which can improve merchant and customer satisfaction, allow merchants more time to personalize each sale and help reduce theft.

Motorola’s Smartcard Systems Business (SSB) provides its M-Smart solutions portfolio of smart card products and systems ranging from combination contacted/contactless cards, readers and terminals, network infrastructure and system integration services that support multiple smart card applications for customers worldwide. The unit is based in Schaumburg, Illinois, U.S.A.

Motorola, Inc. is one of the world’s leading providers of wireless communications, semiconductors and advanced electronic systems and services. Major equipment businesses include cellular telephone, two-way radio, paging and data communications, personal communications, automotive, defense and space electronics and computers. Communications devices, computers and millions of other products are powered by Motorola semiconductors. Motorola’s 1996 sales were $28 billion.

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World MasterCard

The most direct assault on American Express cards will get underway this month as MasterCard rolls out its ‘World MasterCard’. No pre-set spending limit, flexible, frequent traveler benefits and concierge-level service have long been the hallmarks of American Express charge cards. The ‘World MasterCard’ is set to attack all three points-of-differentiation. MasterCard’s new product combines no pre-set spending limit with an option to revolve a designated portion of the charges each month. The new card also features a travel rewards program that permits cardholders to earn free travel on any domestic or international carrier without regard to blackout periods. ‘World’ cardholders will also access to MasterCard’s 24-hour ‘Global Service’ and a special concierge program providing a wide range of services including travel and dining reservations. Household and Bank of America will be among the first to offer the new charge/credit MasterCard.

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Huntington Beefs Up Web Site

Huntington Bancshares Incorporated (HBI) has launched the next generation of its World Wide Web site. Earlier today, at a national video press conference, William Randle, executive vice president of Direct Access Financial Services, HBI, unveiled the new site.

The Huntington has created one of the most advanced, yet functional, web sites in the banking industry. The site’s next generation () was designed by Columbus-based Resource Marketing, a technology marketing firm.

“While many banks are using the Internet to provide limited online services to customers, there have been no clear leaders in this regard — until now,” said Peter Geier, Huntington Bancshares vice chairman. Some banks have successfully provided content, and even transactional capabilities, and others have blended business and personal banking services on a very limited basis, particularly by having customers dial into their bank’s system using bank-provided software. According to Huntington research, customers have indicated they want all three, seamlessly integrated, without having to use bank-proprietary software. There has been no comprehensive offering of all three available in the marketplace, especially over the Internet. The Huntington’s goal is to meet that need.

Like other bank web sites, The Huntington’s site provides corporate and product information, but distinguishes itself from the competition with an enhanced, online Transactional Center, as well as improved personal and business banking content.

These personal and business banking components feature a Customer Service Center, Internet Banking, as well as Personal Finance and Business Planning Centers, which include a wealth of information and “tools,” such as calculators for online use.

All of these components are presented by way of a contemporary, user- friendly, navigational system designed for use by a broad range of online users.

“Based on ongoing feedback from our customers and our assessment of current demands in the marketplace, Huntington.com delivers something more beneficial to the customer,” said Chet Thompson, senior vice president, manager of Electronic Commerce. “The new system is built around customers and the financial needs they have now and will have in the future, versus the typical information and basic services offered by other banks on their web sites. Currently, our strategic and technical teams are working on developing new applications which will support the additional products and services our customers are demanding, including credit cards, investments and mortgage services.”

According to Nancy Kramer, president of Resource Marketing, “Working with The Huntington’s marketing and technology teams, we delivered a customer- centered approach for their web site. This site design provides the capability to meet current customer needs and also has the architectural framework for adding services as those needs grow.”

The site is divided into three sections, including Huntington Web Bank, which not only describes personal and commercial products, but allows customers to utilize the planning tools and apply for Internet Banking. A second section, Corporate Information, features press and general information about the publicly-held bank holding company. Rounding out the site, and providing the most functionality, is the expanded and improved Transaction Center.

The center provides consumers with transactional capabilities, such as online bill paying, account reconciliation and reporting, in a secure environment. The Huntington Web Bank software was developed by Security First Technologies which spent years developing security technologies for the U.S. Department of Defense. This allows for multiple layers of security in place for the web bank service.

New features will include the ability to transfer funds between accounts and, eventually, will offer online investing and credit card statement reviews. Funds transfer services will be available in the next few weeks; investment and credit card services will be available in the first quarter of 1998.

“We’ve built a sophisticated web site, which is easy to use by a broad range of people and offers what our customers need. Rather than building in a lot of time-wasting bells and whistles, this is simply a practical, functional use of technology,” said Randle.

The site features a customized navigational system comprised of four components: universal functionality, primary navigation, secondary navigation and a wayfinder. While online within the system, a user is only one or two clicks away from any key area. The system also allows customers to manipulate data versus the view-only options found on many other bank web sites.

Work on the enhanced web site was launched by The Huntington and Resource in April, 1997. The work included detailed research and strategic planning, resulting in the creation of more than 2,000 frames of content and extensive user testing.

“We couldn’t be more pleased with the results of the work Resource put into making this site a useful banking tool for our customers,” Geier said. “There is a dramatic shift in the way we live, work and bank, and technology is the enabler. This web site will help ensure that all of The Huntington’s customers are at the forefront of the new ways to take control of their money.”

With over 131 years of serving the financial needs of its customers, Huntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio, with assets in excess of $25 billion. The Huntington provides innovative products and services through its 527 offices in Ohio, Florida, Georgia, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia and West Virginia.

The Huntington also offers products and services through its technologically-advanced, 24-hour telephone bank, a 906-unit ATM network and its Web Bank at . Corporate communications and financial information are also available at this web site address. Publicly traded as Nasdaq: HBAN, the stock is included in the S&P 500 Index.

Resource Marketing is a 16-year-old technology marketing firm based in Columbus, Ohio with an office based in San Francisco. Total employment exceeds 110; revenues for 1997 are projected to be $75 million.

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Wireless E-Commerce

Geoworks, a leading provider of smart phone software solutions, announced today that it will work with the Smart Card Forum to utilize smart card technology on wireless devices, including smart phones.

The Smart Card Forum is a McLean, Virginia-based organization dedicated to accelerating the widespread acceptance of multiple application smart cards. By working with the Smart Card Forum, Geoworks will be able to leverage its extensive smart phone market expertise to help the Forum develop wireless electronic commerce solutions for smart cards.

Smart cards are the size of a typical credit card but are able to store and process information, such as electronic cash, on an integrated microprocessor chip embedded within the card. The card can be inserted into a device which allows users to access the information on the card. Geoworks intends to work with the Smart Card Forum and create new opportunities for wireless handset manufactures to utilize smart card technology. This will enable their customers to perform a wide variety of electronic banking activities or other financial transactions, such as paying for Web-based transactions or transferring funds from a banking account to the card.

“Smart cards are becoming more and more prevalent and the Smart Card Forum is driving the standards that define smart card technology,” said Dr. Paul Chen, technology marketing manager at Geoworks. “Every GSM-based handset already includes a Subscriber Identity Module (SIM) card, which is a smart card dedicated for use in the GSM standard for telecommunications. It makes sense that Geoworks should leverage its expertise in smart phone technology to help the Forum combine smart phone and smart card capabilities. This could create an entirely new paradigm for shopping by turning smart phones into mobile point-of-sale devices.”

Smart phone SIM cards include powerful security and encryption capabilities, which can be adapted to enable smart card users to perform secure transaction-based services, such as wireless electronic commerce and secure banking. For example, smart phones could be designed to accept smart cards through a special slot, enabling a smart phone user to access a bank on the Internet to download electronic cash into the electronic purse application of the smart card — in effect, making the smart phone a personal, mobile automated teller machine.

Palo Alto-based analyst firm Killen & Associates estimates that telephone companies will see a dramatic increase in electronic cash and Internet transactions, jumping to 25 billion transactions in 2005 from 250 million in 1996. The firm estimates that 30% of these transactions will be made using smart and stored-value cards.

About Geoworks

Based in Alameda, Calif., Geoworks is a leading software provider for the cellular industry and manufacturers of mobile communicating devices, including smart phones. The company has licensed its GEOS operating system to leading manufacturers such as Nokia, Ericsson, NEC, Toshiba Corporation, Hewlett-Packard Company, Brother International Corp. and Canon Business Machines. In addition, the company intends to work with content and services providers and international cellular operators. For additional information on Geoworks and the GEOS operating system, contact Geoworks at 510/814-1660 or on the World Wide Web at .

In keeping with U.S. law, Geoworks notes that this press release includes forward-looking statements, including the intention to work with the Smart Card Forum to develop applications for smart phones, the potential for wireless device users to perform electronic commerce functions using a wireless device, and the possibility of creating wireless POS terminals that can function as an automated teller machine. Actual results may vary significantly due to various risks and uncertainties, including, but not limited to, the following: i) the risks and uncertainties inherent in the development of complex new technologies; and ii), the smart phone and smart card markets may not emerge to the degree or in the timing anticipated. Additional information is available in the Risk Factors and Business discussions in the Company’s Forms 10-K, 10-Q available from the Company or from the Securities and Exchange Commission.

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PMT Buys Another ISO

Richardson M. Roberts, Chairman and Chief Executive Officer of PMT Services, Inc. today announced the signing of a definitive agreement for the acquisition of American Heritage Bankcard. An independent service organization, American Heritage produces annual revenues of approximately $26 million. In addition to its own merchant account portfolio with annualized charge volume of approximately $800 million, American Heritage services an account portfolio for others that generates annualized charge volume of approximately $1.8 billion. American Heritage brings an experienced sales force to PMT, which currently produces approximately 700 new merchant accounts per month. Consummation of the acquisition is subject to customary closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Act. PMT anticipates the transaction, which will be accounted for as a pooling of interests, will be completed by the end 1997.

![][1] “This acquisition of American Heritage further endorses PMT’s strategy of seeking out top quality management teams led by highly motivated entrepreneurs who are poised to benefit from PMT’s scale, product diversification and service organization. The company’s President, Nick Ferrante is also President-elect of the Electronic Transaction Association, the fourth ETA President to join forces with PMT. Nick has created a highly respected, talented management group and a sales force which, with PMT’s lower vendor costs, will be positioned to expand its presence in their markets. In addition to substantial revenues and a widely diversified merchant account portfolio, American Heritage’s processing relationships with approximately 150 banks primarily in the western United States directly complement one of PMT’s principal niche growth strategies.

“In fiscal 1997, PMT embarked on a strategy to build internal growth through targeted mergers and acquisitions of talented, entrepreneurial management teams. Following the American Heritage acquisition, we will generate over 3,000 new sales per month through 11 unique sales channels, in a variety of industry niches and located in every important market in the United States. The success of this strategy is important for our shareholders because the strengthening of our internal growth capabilities reduces our historical reliance on acquisitions. However, we remain a recognized industry leader in acquisitions in terms of the number and magnitude of completed transactions.

“The acquisition also again provides clear evidence of the high degree of fragmentation inherent in PMT’s small merchant markets. With the consummation of this transaction, we will have launched the first quarter of fiscal 1998 with three acquisitions that will be expected to contribute more than $80 million in revenues from their existing aggregate portfolio of approximately $3.3 billion annualized charge volume, excluding the $1.8 billion of annualized charge volume from the portfolio American Heritage services. In addition, these three acquisitions provide a combined sales force of more than 100 seasoned sales people, currently generating approximately 1,000 new merchant accounts monthly.”

Investors are cautioned that this release contains forward- looking statements, such as those relating to PMT~s ability to produce continued profitable growth and the continued consolidation of the electronic transaction processing industry, that are based upon current expectations and involve a number of risks and uncertainties. Actual operations and results may differ materially from those expressed in the forward-looking statements made by the Company. The factors that could cause actual results to vary include PMT’s ability to retain and expand its field sales force; the ongoing performance of the field sales and telemarketing personnel; the actual production of new accounts by alliance partners; the Company’s ability to integrate acquisitions successfully with its processing systems and products and to account for acquisitions as poolings of interests; the availability of attractive acquisition targets; the availability of capital, attrition of merchants from acquired portfolios; and other trends or uncertainties as noted in PMT’s periodic filings with the SEC.

PMT Services, Inc. is an independent service organization which markets and services electronic credit card authorization and payment systems to small retail and professional businesses located throughout the United States. PMT’s account portfolio has grown through the internal development of accounts using telemarketing and a field sales force as well as through the purchase of account portfolios. PMT is one of the largest independent service organizations in the country.

[1]: /graphic/pmt/roberts.gif

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Intellect’s Brasil Deal

Intellect Electronics, Inc., a leading provider of smart card enabling terminals and solutions, today announced an agreement to provide the security for the smart card applications in over 850 Banco do Brasil terminals as part of the bank’s massive technology improvements to supply thousands of new smart card-ready ATM machines. Intellect has partnered with leading worldwide distributor Mitsui, and Itautec, the largest ATM manufacturer in the Brazilian market, to deliver the security for Banco do Brasil to easily migrate to multiple smart card schemes in the bank’s efforts to drive leading technology in the Brazilian banking industry.

The agreement enhances Intellect’s strong presence in the Americas in providing smart card enabling strategies to large banks and retailers. With terminals that accommodate both magnetic stripe and smart cards, Intellect is driving the adoption of secure smart card technology and migration solutions for major retail outlets, mobile merchants, financial service providers, and banks around the world.

As part of phase one of the Banco do Brasil project, installation of Itautec’s ATMs which house Intellect 8530 terminals will begin in November, and will have a built-in smart card slot for easy migration to multiple card schemes, including Visa Cash, Mondex, and proprietary systems. Visa’s certification of the ATMs is evidence that Intellect’s solution brings added security features to a relatively non-secure existing ATM environment. The Itautec ATMs will be installed in bank lobbies in the Northern, West-Center and Minas Gerais regions of Brazil and can be used after normal banking hours.

“The Banco do Brasil has the second largest technology investments of any bank in the world, and is a driving force in setting the tone for the Brazilian banking industry,” said Milton Shizuo Noguchi, Research and Development Director at Itautec. “Banco do Brasil’s choice to award Itautec and Intellect with the ATM business demonstrates that the bank is committed to bringing cutting-edge technology, including smart card and stored-value capabilities, to its Brazilian customers in a timely fashion.”

The Intellect 8530 SAM Expansion Unit provides individual Security Authentication Modules (SAMs) to each card scheme, and the added flexibility eliminates the need to change hardware to accommodate new schemes. The SAMs are self-contained security modules that provide secure functionality, including storage of encryption keys, data, and security service functions. When fully configured, the 8530 may operate as a desktop unit providing the support of a full SVC terminal for attachment to any of Intellect’s current PIN pad products. The 8530 SAM Expansion Unit may also exist as a below counter junction box providing multiple SAMs, processing power, and memory.

The Itautec agreement represents another strategic extension of Intellect’s widening global presence in the Americas and abroad. Intellect expects its strong relationships with established Brazilian partners Mitsui and Itautec to expand the company’s deals with further Banco do Brasil and other institutions’ technology upgrades, which are estimated to be in the billions of dollars in the next few years.

“We are very enthusiastic about the potential for smart card technology in Brazil and other South American and Latin American countries,” said Thomas G. Ream, president of Intellect. “The partnerships and deals that we have established to date position Intellect as a key player in bringing smart card enabling technology to this rapidly expanding market.”

Intellect has also gained momentum in the Brazilian retail market with a 1995 contract with Itacomp, a major supplier of “smart” telephones used by retail stores to verify customer checking account information and to provide a vast number of transaction and telephony services. With Intellect’s technology, merchants can process magnetic stripe credit/debit cards and smart card transactions online with a single phone connection.

About Intellect

Intellect Electronics, Inc., is a subsidiary of Intellect Holdings, Ltd., a publicly-traded Australian corporation. Intellect products range from smart card readers, payment systems, electronic wallets and mobile terminals to cryptographic processors that secure facilities such as banking networks. Intellect products are sold in more than 25 countries, including Brazil, The Netherlands, Belgium, Norway, Australia, Singapore, and the U.S. For further information, contact Intellect’s home page at .

About Itautec

Itautec-Philco participate in the consumer electronics and computer businesses, and have annual revenues of US $1.2 billion. They have 30% market share in the banking automation and retail automation markets in Brazil. Itautec also has subsidiaries in Portugal and Argentina.

About Mitsui

Mitsui Brasileira — Electronic Products Dept. — the Brazilian branch of the Mitsui and Company Ltd., Japan — has been supplying electronic products like semiconductors and integrated circuits as well as state-of-the-art technology from the biggest Japanese manufacturers to the major Brazilian information system corporations since the early 1980s.

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State of Biometrics

Imagine being able to access your ATM account using only your thumb print, or an image of your retina. Banking and credit card institutions are only a few industries currently test-piloting biometrics as a weapon against rising fraud levels. Other applications for biometrics include network or computer security, welfare program beneficiary identification, drivers licenses, national ID cards, and law enforcement’s automated fingerprint identification system.

According to recent strategic research by Frost & Sullivan (), the World Biometrics Identification Markets, specifically the equipment and software markets, are expected to grow from $103 million in revenues in 1996 to $170 million in 2003, a compound annual growth rate of 7.5 percent over the forecast period. Several factors characterize the current competitive environment of the biometrics industry including market fragmentation, uncertain industry structure, and limited financial resources.

This research provides an in-depth analyses of the six major biometric technologies including hand-geometry, fingerprint, retina, voice, face and signature. Forecasts through the year 2003 are given for each individual technology, along with an explanation of key market drivers, issues, and trends. New product and marketing ideas are explored as well as new sales strategies and improvements by competitive benchmarking.

World Biometrics Identification Markets gives revenue and market trends for five major applications (access control/time & attendance, law enforcement, government, network security and financial) in four geographic regions (North America, Europe, Asia Pacific, and Latin America).

According to Roberto Torres, Frost & Sullivan automatic identification industry research analyst, “The underlying driver in the commercial arena is the business community’s search for tools which can prevent fraud. Problems stemming from false identification of individuals have seriously hurt the financial industry, government agencies and business establishments for decades.”

This automatic identification industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the automatic identification market.

Technologies covered in this report include: world hand geometry biometrics equipment, world fingerprint biometrics equipment, world retina biometrics equipment, world voice biometrics equipment, world face biometrics equipment, and world signature biometrics equipment.

Companies participating in the market include: Manufacturers, AEA Technology, Autosig Systems, Inc., Cadix International, Inc., Cambridge Neurodynamics, Ltd., Checkmate Electronics, Inc., Communication Intelligence Corporation, Cross Check Corporation, Digital Biometrics, Inc, EyeDentify, Inc., FingerMatrix, Inc., Identicator Technology Identification , Technologies International, Inc., Identix, Inc., International Electronics, Inc., Miros, Inc., The National Registry, Inc., PenOp, Inc., Printrak International, Inc., PrintScan International, Quintet, Inc., Recognition Systems, SQN Peripherals, Inc., Startek Engineering, Inc., Ultra-Scan Corporation, Veritel Corporation, Viisage Technology (Division of Lau Technologies), Voice Strategies, Inc., VoicePrint Security Systems, Start-Up Manufacturers, Advanced Precision Technology, BioMet Partners, Inc., British Technologies Group (BTG), Ltd., Biometric Security Systems, Ltd., Cogent Systems, Inc, ColourByte Computing Corporation, Comparator Systems Corporation, Cross International Engineering Company, Harris Corporation Corporate Headquarters, ImEdge Technology, Inc., International Automated Systems, IriScan, Inc., Jasper Consulting, Inc., Keyston Manufacturing, Ltd., Micro Identification Systems, Inc., WD Biometric ID Equipment, Mytec Technologies, Inc., Personix, Ltd., Sensar, Inc., Technology Recognition Systems, Inc., Xenetek Corporation, Systems Integrators, Accu-Time Systems, Inc., BT Laboratories, Controlled Access, Diebold, Inc., EDS (Electronic Data Systems), Fingerscan, Ltd., Honeywell, Inc./Corporate Development, IBM Corporation, Lockheed Martin IMS, Morpho Systems, NEC (Nippon Electronics Corporation), North American Morpho Systems, Oracle Corporation, Security by Design, SEPT, Siemens Nixdorf, Totally Managed Security, Inc., Industry Publications, Access Control (and Security Systems Integration), Biometric Digest, Biometric Technology Today, Personal Identification News (PIN), Security Distribution and Marketing (SDM), Security Management, Industry Organizations, American Society for Industrial Security, Security Industry Association, Underwriters Laboratories.

Frost & Sullivan is an international marketing consulting company that monitors the automatic identification industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications such as #5513-11, World Barcode Equipment Markets, and to support industry participants with customized consulting needs.

Report: 5701-11 Publish Date: October 1997 Visit Frost & Sullivan’s web site at:

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Motorola Powers NYC Smart Card Pilot

Shoppers in New York City’s Upper West Side will be able to purchase goods with the latest Visa Cash smartcard technology thanks to special integrated circuit chips provided by Motorola Semiconductor Products Sector.

Visa Cash Cards powered by Motorola microcontrollers and manufactured by Schlumberger and other leading card vendors, will be issued by Citibank to approximately 15,000 consumers and be accepted by more than 600 merchants. The New York program, which began Tuesday, marks one of the largest and most exciting U.S. programs for smartcards since the 1996 Olympics in Atlanta.

These cards are part of a stored value card program that is being conducted by Citibank, Visa, Chase Manhattan and Mastercard. Together, Citibank and Chase Manhattan will issue approximately 50,000 of the new chip cards, also known as smartcards. These smartcards will enable consumers to load cash value onto them by inserting them into special kiosks located within the program area.

The stored value on the smartcards will then transfer from the user’s card to the merchant’s card at Point of Sale (P.O.S.) terminals. Visa Cash cards give users a convenient alternative to cash for small-value transactions, while offering significant savings in cash handling costs for merchants and banks.

Commenting on the announcement, Mike Inglis, general manager of Motorola’s Smart Information Transfer Division, said: “Just as engine type and size govern the performance of a car, the chip within a smartcard determines its capabilities. That’s why companies such as Visa and Schlumberger specify Motorola’s microcontrollers, which help to ensure that their smartcard systems have the reliability, flexibility and security levels necessary for these new applications.

“Motorola’s microcontrollers are at the heart of Visa Cash card programs around the world. With this latest project, U.S. consumers will be able to experience the convenience that smartcards are already bringing to consumers across the globe. The U.S. market is ripe for the widespread adoption of smartcard technology and Motorola intends to be at the heart of this revolution.”

Motorola is a major provider of chip technology to Visa on similar trials in other parts of the United States, as well as in Hong Kong, the United Kingdom, Taiwan, Italy, Spain, Brazil, Argentina and Columbia.

Commenting on the announcement, Diana P. Knox, vice president, Visa U.S.A., said: “Consumers will be able to experience convenience and improved security that smartcards can offer. We are committed to developing a universal electronic cash system with Motorola and other valued partners.”

“Schlumberger is a leading supplier of Visa Cash products around the world and many of these products use chips from Motorola, whose technology includes the high security features required for a stored value application,” commented Jacques Cosnefroy, vice president and general manager, Schlumberger Smartcards Division.

“We commend Citibank and Visa on their leadership in developing and implementing this significant new card payment application.”

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INTERSHOP Expands

Customer Profiles included in this week’s eCommerce News Update from INTERSHOP:

— Computer Future/Worldwide Superstore Chooses INTERSHOP for its eCommerce solution

— French Mint Opens Online Store With INTERSHOP Technology

— INTERSHOP Store Wins Prestigious Awards at the 1997 National Audio-Visual and Multimedia Communication Festival in Biarritz

— French America’s Cup Challenger Launches INTERSHOP Mall

Computer Future/Worldwide Superstore Chooses INTERSHOP for its eCommerce Solution

Computer Future Inc. (DBA World Wide Superstore) an Indianapolis-based computer sales and service company, has chosen INTERSHOP’s technology for their eCommerce application. “Online business is very important to us, so we wanted to design and operate a store that is going to be among the Web’s best and most successful,” said Bret Garrett, VP of Marketing of Computer Future.

“We learned about INTERSHOP at last year’s Comdex show and thought it was the best choice for a packaged eCommerce solution,” he continued. “We monitored the product reviews in the press very closely and felt very confident about our decision.”

This well laid-out and structured store, boasting a catalog of more than 20,000 items, and thousands of product photos, offers computer components, software packages, peripherals and complete systems from over 850 brand name manufacturers. As a special feature, the Worldwide Superstore offers links to every manufacturer’s Web site, dramatically increasing the wealth of information for store visitors.

“As a service to our customers we are maintaining a separate toll-free number for shoppers who desire to place orders by phone,” Garrett explained. In the beginning, the operators are an option, but eventually he expects customers to take full advantage of INTERSHOP’s secure online payment systems.

The Worldwide Superstore also offers several variations of award-winning INTERSHOP eCommerce technology. “Our experience setting up stores with INTERSHOP’s technology, has placed us in a key position to offer affordable eCommerce solutions to other businesses,” Garret declared. “Customers who want to build their own store can buy the INTERSHOP Online package or they can rent a store in our INTERSHOP Mall.”

French Mint Opens Online Store With INTERSHOP technology

Even people who are in the business of producing money choose INTERSHOP to run their electronic commerce application. It is hard to imagine a more flattering compliment. La Monnaie de Paris, the French mint, which has been fabricating money for 1133 years (since 864 AD), recently broke new ground for numismatic aficionados worldwide, opening a world-class Internet store.

Even if Web surfers do not intend to buy immediately, the store is worth a visit to check out 13 beautifully designed catalogs displaying 200 distinctive and sophisticated products.

INTERSHOP’s multilingual capabilities came in handy when the decision was made to build the store in English and French, so the richness and variety of the treasures of MDP can be viewed and purchased by a broader clientele. The flexibility and the dynamic display of new information at the store level allows MDP to change the product offering frequently, providing variety to its customers. In addition to the advanced catalog design, MDP is taking

advantage of INTERSHOP’s powerful back-office administration, which allows them to manage all business aspects such as billing, shipping inventory and marketing statistics in a secure and convenient environment. Pending approval by the French Ministry of Economy, Finances and Industry, the INTERSHOP solution will integrate SG2’s Payline system of secure payment by credit card, an important step to make online shopping in France even more convenient.

So far the MDP store has attracted visitors from 80 countries around the world and continues to draw a lot of attention from numismatic experts especially in North America. The store catalogs show the numismatic series, the collection’s pieces in gold, silver and platinum featuring the 1998 World Football Cup, treasures of European museums, cinema, art and calendar medals, jewels, crosses, bronze art, office objects and official decorations.

INTERSHOP Store Wins Prestigious Awards at the 1997 National Audio-Visual and Multimedia Communication Festival in Biarritz

For the second year in a row, Home Shopping Arcade, a multilingual French/English/German Internet store built on INTERSHOP technology, scored big among the best French Websites at the annual National Audio-Visual and Multimedia Communication Festival in Biarritz, France. Home Shopping Arcade was chosen over 70 other participants to receive a special mention by the jury at the Palmares des Sites Internet and the special prize Internet Professionell.

Home Shopping Service, creators of Shopping Arcade chose INTERSHOP Online as core technology for Home Shopping Arcade. Scalability, flexibility, completeness and security of financial transactions over the Internet influenced the decision to select INTERSHOP’s technology for this electronic commerce solution.

“We are proud of the cooperation between INTERSHOP and Home Shopping Service that helped get this store online,” declared Sven Lung, General Manager of INTERSHOP Communications in Paris. “Electronic commerce is a field with great potential for companies like Home Shopping Service who are marketing their products and services online. We expect businesses with experience in content management to attract thousands of Web surfers to Internet stores.”

Lung expressed confidence, other companies will follow the successful example of Home Shopping Service, a pioneer in online marketing, who manages programs such as “M6 Boutique on Teleachat. “As soon as companies realize the benefits of INTERSHOP technology, they understand how easy it is to grow their business through eCommerce.”

French America’s Cup Challenger Launches INTERSHOP Mall

INTERSHOP was chosen as key technology to help raise money for an ambitious French sailing team that prepares to challenge for the next America’s Cup. To win the world’s oldest continuously contested sports trophy it takes great technology, talent, determination and — most of all — deep pockets.

Although France has never won the right to defend the Cup, they always brought formidable challengers to the starting line. For the next America’s Cup competition, slated for March 2000 in Auckland, New Zealand, France-Today, the French challenger of the Yacht Club de Cannes, has selected INTERSHOP’s electronic commerce technology to sell merchandise and sponsorship packages through a virtual shopping mall on the Internet.

With this move France-Today leaves the charted waters of traditional fundraising and embarks on a global trip. Their boat France-Today.com will sail around the world to promote electronic commerce and the concept of and marketing sports events over the Internet. During this trip, potential sponsors will learn about INTERSHOP eCommerce technology and the benefits of using the Internet as the most cost-effective marketing and sales channel.

Some advantages of eCommerce for France-Today

— Dramatically expanded marketplace — reaching customers locally or worldwide at very low cost

— Online stores are open around the clock and accessible from everywhere in the world

— Opportunity to merchandise the entire product line cost-effectively

— Bilingual English/French

— Better value for the customer’s money — trade margin is shared between manufacturer and final customer

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Prepaid Gas+Phone Card

Mobil and MCI announced yesterday it will begin testing, this Friday, a new co- branded card which combines the prepaid ‘Mobil GO Card’ with MCI’s ‘PrePaid’ long distance calling card. The new ‘Mobil-MCI GO Card’ will be sold in $10, $25, $50 and $100 denominations and is rechargeable via a toll-free phone number. MCI will charge 25 cents per minute for the calling card feature. Cardholders may use the card for gasoline purchases, services and merchandise at Mobil service stations in addition to make pre-paid long distance calls. The pilot will be conducted in the greater St. Louis area. Mobil and MCI partnered in the summer of 1996 to offer Mobil/MCI branded calling cards.

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Private Issue Garcia Road Trip Ends

They weren’t afraid to let the people see them cry. Dozens of vintage Volkswagen buses and their owners drove from Phoenix to Albuquerque this weekend laden with food to rendezvous with a restored 1959 VW bus dubbed “The Jerry Garcia Fan Bus” as the Garcia- mobile made its last stop on a nine-city road trip and food drive to benefit local food banks.

The cross-country Private Issue(R) Jerry Garcia Road Trip and Food Drive, named after the credit card that bear’s the late Grateful Dead member’s artwork, has to date collected more than 36,000 pounds of food for local food banks in cities across the U.S.

In Albuquerque, the final stop on the food drive, fans of the late Mr. Garcia remembered the artist and musician with a display of tears under the headlights of their VWs as the 60s-style caravan rolled into town bearing groceries destined for the Roadrunner Food Bank of New Mexico.

“The road trip sponsored by Private Issue provided us with a rare opportunity to remember someone we admired and also reach out to help the community,” Pat Kelly, of the Arizona Bus Club, said. The Arizona Bus Club is a non-profit organization dedicated to the restoration and preservation of pre-1967 Volkswagen buses.

“The Private Issue Jerry Garcia Road Trip has raised a significant amount of food and money for local food banks such as ours, but just as importantly, it has helped to raise public awareness of the plight of the hungry in their community,” Melody Wattenbarger, Executive Director, Roadrunner Food Bank of New Mexico said. “Private Issue is helping our food bank provide families in our area with something most Americans take for granted — a meal. I think Jerry Garcia would be pleased.”

For each pound of food collected — up to 10,000 pounds per city — Private Issue has made a monetary contribution to the local food bank recipient in each city.

“The public, local corporations, radio stations and others across the country have dug deep into their pockets and their hearts, contributing groceries and helping raise food, money and awareness for food banks,” Vicki L. McMannon, Vice President, Marketing, Private Issue, division of NOVUS Services, Inc. said. “We are pleased to see this outpouring of support in memory of the late Mr. Garcia.”

The Private Issue Jerry Garcia Road Trip and Food Drive was launched June 14 in San Francisco with the unveiling of the Jerry Garcia Fan Bus — a 1959 restored VW bus painted to replicate the Garcia artwork on the Private Issue credit card. On hand for the kick-off were Garcia friends Paul Kantner of “Jefferson Airplane” and “Jefferson Starship,” his daughter actress China Kantner, and favorite Deadhead Wavy Gravy (who donated the first boxes of food to the bus). Before reaching Albuquerque, its final destination, the bus traveled to eight cities visiting art or music festivals and collecting food for local food banks in San Francisco, Boston, Buffalo, Minneapolis, Chicago, Philadelphia, Columbus, and Denver. The custom-painted VW bus will become the grand prize in a Private Issue sweepstakes at the end of a college campus tour later this year.

The art featured on the Jerry Garcia Private Issue Card — and recreated on the VW bus — is a multi-media work bearing a whimsical raspberry-red colored fox darting across a background of psychedelic colors. Jerry Garcia is one of three celebrity artists whose artwork appears on the 1997 series of Private Issue credit cards. In addition to Mr. Garcia’s creation, Private Issue Cards also feature artwork by rock music diva Tina Turner and New York Knicks center Patrick Ewing.

To apply for a Private Issue Card, consumers can call toll-free 800-PI-CARD (800-474-2273) or visit Private Issue on the Internet at .

The Private Issue Card, issued by a business unit Morgan Stanley, Dean Witter, Discover & Co., is a general purpose credit card that is accepted nationwide wherever the NOVUS(R) sign is displayed. NOVUS Services, a business unit of Morgan Stanley, Dean Witter, Discover & Co. operates the Discover(R) Card, the NOVUS Network and a growing number of new card brands accepted at all NOVUS Network locations.

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Revived Brand Measurement Study

Landor Associates is bringing back its ‘ImagePower’ brand measurement study with results expected next month. Landor has joined up with Louis Harris & Associates to study brand perceptions among business executives and will include evaluations of credit card brands. Brand and company names will be evaluated on five key attributes: share of mind, share of heart, appropriateness, uniqueness and momentum. Landor previously conducted two ‘ImagePower’ surveys, one in 1988 and another in 1990.

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