New Credit Reporting Laws

The ‘Consumer Credit Reporting Reform Act of 1996 will go into effect this week. The FTC will hold a briefing this morning to explain the new rules. The law takes aim at inaccurate consumer information by requiring credit bureaus to respond within 30 days to consumer complaints and by giving consumers the right to sue both the credit reporting firm and the credit provider over false information. The law also aims at eliminating obsolete information by defining the seven-year reporting rule on bad debts. Under the new law employers will now have to get written permission from current and prospective employees before obtaining their files. A broader discussion of the new law, prepared by noted consumer advocate Gerri Detweiler, is available exclusively via CardTrak Online ().


Schlumberger’s New Products

Schlumberger Electronic Transactions introduced new smart card products this week designed to support the Microsoft Smart Card Software Development Kit (SDK). The demonstration of smart cards in a Windows environment and the applications with Internet Explorer and Outlook Express, met with favorable response from Microsoft(R) Professional Developers Conference- goers.

The products, which include cards, readers, PC software and developer’s kits, enable ISVs and VARs to implement smart-card-based applications for Windows(R) with the most advanced smart card technology available today… These products support industry-standard interfaces providing opportunities to leverage new applications across a large platform base.

The new products introduced include:

— SmartWare(TM), a comprehensive smart card developers’ kit to build PC- based smart card applications using one of Schlumberger’s industry-leading smart cards, such as Cryptoflex(TM), Cyberflex(TM), Multiflex and Payflex.

— SafePaK(TM), a client PC package for information security supporting Microsoft Internet Explorer 4.0, based on the Cryptoflex smart card and a family of different smart card readers to fit any need.

“We are excited that Schlumberger is delivering smart card products for Microsoft Windows,” said Ed Muth, Group Product Manger for Security and Enterprise marketing at Microsoft. “This will enable our mutual customers to take advantage of smart cards to design and build unique new applications for a wide range of market segments.”

“Smart cards are the most personal, portable computing device, and these are the attributes that make them so exciting for application developers around the world,” said Jacques Cosnefroy, vice president and general manager of Schlumberger Smart Cards division. “The products that we are introducing show the power of smart card technology to bring the best security and privacy to browsers and other PC applications With them, developers in all different markets can catch the next wave in computing.”

SafePaK is an information security application product, supporting Internet Explorer 4.0(R) and Outlook Express(R). With SafePaK, individuals and corporations can improve the security of their network communications and assure the integrity of data and messages. SafePaK comprises Cryptoflex, the industry’s leading cryptographic smart card with strong 1024-bit RSA security, one several optional smart card readers and PC software.

SafePaK has been demonstrated during the Microsoft Professional Developers Conference. Cryptoflex cards have been issued to individuals, which are used to download X.509 certificates, and then used to demonstrate secure web site access and sending signed and encrypted e-mail, all with Internet Explorer 4.0 and Outlook Express.

With SmartWare, an application developer can take advantage of standardized APIs working in the Windows 95 and Windows NT environments to build PC applications of all types. Smart cards are ideal for applications personalized to individuals, such as home banking, health care, insurance, and personal identification. The built-in hardware security of a smart card makes it the logical choice for secure, controlled access to sensitive databases, protecting the privacy of such information.

Each of these products is built on the PC/SC Workgroup specifications, developed by the leaders in smart cards and PC hardware and software. The specifications provide a uniform API for smart card readers and smart cards themselves when used with personal computers.

Schlumberger’s complete line of PC/SC compliant smart cards are designed to offer features and performance for virtually any application:

— Cryptoflex(TM), the only smart card supporting 1024-bit RSA functions;

— Cyberflex(TM), the Card for Java(TM), adhering to the Java Card API;

— Multiflex, a general purpose card ideally suited for ID applications; and

— Payflex, the most cost-effective choice for secure financial applications.

A variety of PC/SC compliant smart card readers have also been announced including:

— Reflex 20 PCMCIA-slot reader for laptops;

— Reflex 60 serial port readers;

— Reflex 60 Chip Set for hardware integration into PCs and other devices;

— Pocket Dock(TM) serial port reader with secure keypad entry and display; and

— Floppy Dock(TM) smart card reader designed to use the floppy disk drive.

About Schlumberger

The Schlumberger Electronic Transactions division of Schlumberger, Ltd., supplies cards, terminals, and management systems across the entire range of magnetic and chip card applications around the world. The company offers its customers The Smart Village(R), a flexible portfolio of smart card-based solutions for businesses and communities of all sizes, including the telecom, banking, retail, network security, mass transit & parking, and health care sectors.

Schlumberger is a pioneer and is the leader in smart card technology, recently introducing Cyberflex, the first-ever smart card to use the Java Card API, and Cryptoflex, the first smart card to support strong public-key cryptography. For more information, contact the Schlumberger web site at:

Windows 95, Windows NT, Internet Explorer, and Outlook Express are trademarks or registered trademarks of Microsoft Corp. Java is a trademark of Sun Microsystems, Inc.; Cryptoflex, Cyberflex, SafePaK, SmartWare, Pocket Dock and Floppy Dock are trademarks of Schlumberger


IBM Brasil SET Pilot

IBM and Banco do Brasil today announced the launch of South America’s first secure electronic commerce initiative over the Internet using the Secure Electronic Transaction (SET) protocol. This makes IBM the first vendor to enable the use of SET on five continents. IBM has helped customers launch more than 30 SET pilots in a dozen countries — more than any other company in the industry.

Banco do Brasil, Latin America’s largest retail bank, is beginning a pilot of SET electronic debit card transactions for a select group of customers, and plans to offer SET credit card transactions in the near future. Banco do Brazil completed the first SET debit transaction in South America at the Brazilian Government Bank on August 21 when a customer purchased an IBM computer over the Internet.

SET is an industry standard for secure electronic commerce that encrypts transactions over open networks.

In addition to the SET pilot in South America, IBM has launched pilots with:

— Chase Manhattan, MasterCard and First Data Corp. to offer the first SET transactions in North America to employees and customers of Wal-Mart, the largest retailer in the US;

— Amalgamated Banks of South Africa Limited (ABSA), the largest banking group on that continent; which began with a SET pilot with MasterCard and Persetel, a local information technology supplier;

— PBS Denmark, which in April completed the world’s first multinational SET credit card transaction by purchasing a ticket from Norway’s largest Airline, Braathens SAFE, using a Eurocard MasterCard;

— Citibank Asia Pacific, which began a SET pilot in Singapore and Taiwan following the first SET transaction in Singapore on April 29. The Citibank pilot is expected to reach 500,000 Citibank customers.

“Global adoption of SET is true evidence that businesses around the world are becoming confident in the safety and security of online commerce,” said Mark Greene, vice president of electronic payments and certification, IBM… “IBM is well equipped to help our customers conduct e-business with SET.”

Banco do Brasil is also re-writing its banking applications using Java and is linking these Internet technologies to its legacy systems to create a full network computing solution.

Banco do Brasil is using a full suite of products from IBM*,s CommercePOINT family, including:

— IBM Net.Commerce(a) Merchant Server to link its databases and legacy systems to the Web;

— IBM CommercePOINT Wallet(a) to manage the purchase of goods using Banco do Brasil debit cards;

— IBM CommercePOINT Gateway(a) to route transactions through the Banco do Brasil processing systems;

— IBM Registry for SET(a) to certify the identity of parties involved in online transactions with this digital certification authority.

“It is extremely important that our customers are ready to compete in an electronic economy,” said Hugo Dantas, director of retail, services, technology and infrastructure at Banco do Brasil. “By enabling our customers to conduct online transactions using SET, we are taking a leadership role for businesses in this part of the world.”

About SET

In February 1996, Visa and Mastercard joined with other financial services industry participants to create a technical standard for safeguarding payment-card purchases made over open networks such as the Internet. IBM was instrumental in the development of the joint SET specification that enables the secure use of credit and debit cards on the Internet.

The comprehensive SET specification is based on advanced encryption technology, including digital signatures that electronically confirm the identity of each party involved in an electronic transaction.

About IBM

As the industry’s leading provider of electronic business solutions, IBM was the first company to bring to market in 1996 a comprehensive suite of secure end-to-end electronic commerce solutions, the CommercePOINT family of products and services. In April 1997, IBM announced the first merchant server in the industry to use the SET protocol, Net.Commerce. IBM creates, develops and manufactures advanced information technology products, including computer systems and services, software, networking systems, storage devices and microelectronics. More information about IBM*,s many Internet technologies, products and services is available on the Web at .

About Banco do Brasil

Established in 1808, Banco do Brasil was the first Brazilian bank to operate in domestic and international markets. Its excellent grasp of the markets has enabled Banco do Brasil to operate abroad for more than five decades. Beyond its large branch network of more than 4,500 locations in more than 30 countries, Banco do Brasil widens its scope of action by using correspondent banking services with nearly 1,000 top banks located in 145 countries. The extended scope of action is enlarged by Banco do Brasil’s private communication network called BBNET, with which the bank promotes foreign trade transactions among clients in different countries. For more information on Banco do Brasil visit their Web site at . (a) Indicates trademark or registered trademark of International Business



EDS, a leader in the global information services industry, has been named the overall winner in the 1997 REACH Awards, a competition sponsored by MasterCard’s U.S. Corporate Products Group and CFO Publishing Corporation. EDS was named the overall winner among 18 other finalist organizations and seven category winners whose programs detailed how reengineering has become an integral component of their cost cutting and operating strategies.

“We’re honored to have been chosen this year’s REACH Awards winner from among such an established group of corporations,” said Paulett Eberhart, Corporate Controller of EDS. “We commend MasterCard and CFO for continuing to educate corporate America about reengineering and the ways in which it makes companies operate smarter and more efficiently.”

In addition to the overall award, EDS was honored for its exceptional customer processing program which reduced costs and cycle time and resulted in the consolidation of collection centers, as well as for its employee processing program, which features very sophisticated employee information access and self service. The 1997 REACH Awards also honored the following companies: Pepsi-Cola Co. for vendor processing, Case Corp. for internal audit operations, and Dell Computer for treasury operations. Moreover, the accounting processing and tax operations categories, underwritten by Andersen Consulting, recognized Case Corp. and TNT Express Worldwide, respectively.

“In the last decade, we’ve watched reengineering evolve from an 1980’s management trend to an established part of the organization,” says Steve Abrams, MasterCard Senior Vice President, U.S. Corporate Products Group. “At MasterCard we now look at reengineering as an essential part of business operations — companies need to be able to find new ways to operate more efficiently. We believe that our sponsorship of the REACH Awards is one way that MasterCard can continue to educate the market about the tools and strategies that will enable companies to do this successfully.”

MasterCard’s sponsorship of the REACH Awards reflects its continuous commitment to corporate innovation and excellence. MasterCard pioneers innovative corporate products used in financial reengineering and, based on its experience, believes companies of all sizes can successfully use reengineering to streamline costs and improve efficiencies. For instance, Owens Corning, winner of the 1996 REACH Award in the control and compliance reengineering category, used the MasterCard Corporate Purchasing Card and was able to dramatically transform its reporting and budgeting process. As a result of this improvement, the global manufacturer has made forecasting more timely, reporting more relevant and budgeting less burdensome.

“The REACH Awards are a highly competitive program with stringent judging criteria,” says Greg Hackett, president of the Hackett Group, a consulting firm that specializes in transforming staff functions. “We have been extremely impressed with the quality and sophistication of the entries and believe that the increasing number of participants in the REACH Awards program is a reflection of how reengineering has manifested itself in today’s successful organizations.”

The REACH Awards recognize companies with leading reengineering programs which have successfully reduced costs, improved productivity and facilitated strategic goals within organizations. The awards were created as a vehicle for promoting understanding of the continuing improvement in finance operations and their impact on the overall operations of companies today. Since the inception of the award competition in 1995, the number of entries has more than doubled with submissions from world-renowned companies including Pepsi-Cola Co., Sun Microsystems, Honeywell, Dell Computer and Amoco. Prior years’ overall winners include Owens Corning in 1995 and IBM Corp in 1996.

MasterCard has continually led the market in designing corporate payment programs, beginning with the launch of the first bankcard for small businesses through the development of programs for travel and entertainment, business-to-business purchasing and commercial fleet management. More than one million businesses in over 50 countries have come to rely on MasterCard Corporate programs, which include the MasterCard BusinessCard®, MasterCard Corporate Card, MasterCard Corporate Purchasing Card, MasterCard Corporate Fleet Card and MasterCard Corporate Executive Card, as a better way to monitor, manage and control business expenditures.

MasterCard International, a payments company with one of the world’s most recognized brands, is dedicated to helping more than 23,000 financial institutions around the world offer consumers a viriety of payment options. MasterCard remains focused on helping shape the future of money by expanding acceptance of its global brands (MasterCard®, Maestro® Mondex(TM) and Cirrus®, the world’s largest ATM network) and maintaining reliable, secure networks facilitating global value exchange. MasterCard has 400 million credit and debit cards that are accepted at more than 14 million acceptance locations worldwide. In 1996, gross dollar volume generated exceeded $550 billion. MasterCard can be reached through its World Wide Web site at [][1]



IBM-M&I Marketing Agreement

IBM and M&I Eastpoint, an operating group of M&I Data Services, a leading software products and services provider in banking and finance, have announced the signing of a partnership agreement to promote, license, distribute, market and support top-of-the-line banking software solutions to the worldwide market, excluding North America.

IBM will complement its line of products and services for the banking and financial industries with the Eastpoint Banking System, a UNIX-based software solution that supports the core processing needs of today’s small- to medium-sized financial institutions. M&I Eastpoint provides complete information management for banks, finance companies and other specialized financial institutions.

“This marketing and support agreement with IBM offers financial customers worldwide a modern, functionally innovative open-system solution,” said Joseph Delgadillo, president and COO of M&I Data Services. “We at M&I Data Services are excited to team up with IBM worldwide which will lead the marketing efforts and customer support.”

According to Dan Shannon, president of M&I Eastpoint, the Eastpoint Banking System stands out among software programs in the financial marketplace by offering flexibility and ease-of-use, along with strong company support. “It is a proven solution that has been jointly installed with IBM in several financial institutions in Europe,” he said. “Based on customer needs, financial institutions can choose from a complete turnkey solution, licensed product and consulting services or full-facilities management.”

The M&I Eastpoint Banking System encompasses Customer Information, Deposits, Loans and Product Builder. In addition, the product provides Loan Collections, Financial Management and Teller Systems with more modules available.

M&I Eastpoint has more than 60 customers throughout Europe, South America, Australia and the United States. The company is part of M&I Data Services, which offers financial software products and services to institutions worldwide. M&I Data Services is a division of Marshall & Ilsley Corporation, a $15.4 billion holding company. M&I Eastpoint is located in Bedford, N.H., while both M&I Data Services and Marshall & Ilsley Corporation are located in Milwaukee, Wis.


Another Metris Acquisition

Metris Companies picked up another $420 million in receivables yesterday with the acquisition of Mercantile Bank’s cobranded portfolio. Less than two weeks ago Metris acquired $330 million in receivables from KeyCorp. The two acquisitions will bring total Metris receivables to about $2.8 billion.. According to CardData, Metris had 2,053,000 accounts at mid-year. The KeyCorp transaction involved 280,000 accounts and the Mercantile deal involved 500,000 accounts. For Mercantile the sold accounts represent about 35% of its total portfolio. Mercantile has struggled with cobranding especially with its Southwestern Bell VISA. Mercantile pulled the plug on the program in January after realizing substantial losses due to the high incidence of convenience use among cardholders.


DecisionOne-Corillian Support

DecisionOne Corporation and Corillian Corporation today announced that DecisionOne has been selected to provide end user technical support for Corillian’s line of products for financial institutions.

DecisionOne will provide help desk service and support for thousands of users who subscribe to online services with their financial institution, and utilize Corillian’s Voyager web banking system to access accounts from their homes and/or offices. Financial institutions use the Voyager platform to make it possible for their customers to utilize their personal computer to view balances and cleared transactions, transfer funds, pay bills, exchange secure e-mail messages and apply for loans from a financial institution’s World Wide Web site.

DecisionOne will provide over-the-telephone, technical support to Corillian users from its network of call centers located strategically across North America.

“As more and more consumers use the Internet to make their everyday lives easier, financial institutions must step up and make it easier for these kinds of customers to access their accounts,” said Ted Spooner, Corillian Chairman and CEO. “Our Voyager platform makes it easy for financial institutions to be accessible via their Web site. DecisionOne makes it easy for both the financial institution and its customers to get quality technical support when they have questions about Corillian products,” he said.

“With Web-based access, end-users are accessing their accounts at all hours, and expect service and support on demand, making it critical for Corillian to choose a service vendor that can deliver support any time,” said Spooner. “DecisionOne’s reputation for outstanding technical support, combined with its industry-leading multivendor experience, made it an obvious choice for Corillian, as we work to deliver outstanding customer service to the financial institutions that use our products,” he said.

“We were particularly impressed with DecisionOne’s key industry relationships, including their technical support with Netscape for the Netscape Navigator, and their status as a Microsoft Authorized Support Center,” said Kirk Wright, president of Corillian. “We knew financial institutions would require support for remote banking customers with virtually any personal computer running Windows, OS/2 or Macintosh operating systems.”

The Voyager platform supports the industry accepted OFX data standard allowing support for popular personal financial software programs like Intuit’s Quicken, BankNOW, and Microsoft Money. The Corillian Voyager suite of products includes:

— Voyager Gold, a turn-key banking transaction engine which offers end-users real time host access to their institutions’ services via the World Wide Web.

— Voyager OFX (Open Financial Exchange), an advanced middleware server solution that supports the electronic exchange of financial data.

— Voyager Platinum, a high-performance server designed to exchange secure financial transactions for banking and bill payment utilizing OFX specifications. V/Platinum is bundled with a standard Web-based transaction interface.

“DecisionOne technical support personnel are prepared to provide high quality technical support for Voyager end-users — wherever they are located, whenever they need service, and regardless of their hardware and software configurations,” said Tom Farrell, vice president of End User Technical Support Services for DecisionOne. “This is another example of an industry leader turning to DecisionOne for help desk service and support, as they concentrate on their core competency — in this case, developing and marketing online information systems for financial institutions. We are very pleased to have this new service relationship with Corillian,” said Farrell.

“Remote banking users have unique support needs — they will link differently to accounts, their PCs run on different platforms, and they have varied hardware setups. DecisionOne’s independent, multivendor status makes us uniquely qualified to provide service and support to the online banking community,” said Farrell.

Farrell reported that DecisionOne operates remote help desk service centers in Bloomington, MN, Tulsa, OK, and near the company’s headquarters in Frazer, PA. Providing help desk support for a broad range of business software applications and operating systems, Decision0ne services range from basic end-user software support to second level IT professional technical support.

About Corillian

Corillian is a developer and integrator of products that enable a financial institution to deliver services via the Internet. The highly flexible and brandable products allow banks, credit unions and other institutions to differentiate themselves and their product offerings on the World Wide Web. Corillian solutions include Internet server systems and Web-based software accessories that handle various financial transactions and services to consumers and other financial institution customers.

Corillian’s management, designers and engineers have years of industry experience with remote electronic banking and Internet commerce. The Corillian Voyager platform is a third generation product, designed and created with the benefit of these years of experience.

For two years Corillian operated as a business unit of CheckFree Corporation. A change in corporate strategy led to the spin off of the business unit in a management-led acquisition in 1997. Corillian is supporting products currently in market which have the benefit of three years design and development. The company is headquartered in Beaverton, Oregon. For more information, visit

About DecisionOne

Employing more than 6,000 people, DecisionOne is the largest independent provider of multivendor computer maintenance and technology support services in North America. Headquartered in Frazer, PA, the company provides services for a broad range of computing environments, from the data center to the desktop. DecisionOne provides service and support on more than 15,000 computer hardware products from more than 1,000 original equipment manufacturers. More than 4,000 field technical personnel operate from more than 150 service centers located across the United States and Canada, providing service and support for more than 51,000 customers at 182,000 sites.

Decision0ne’s parent company, DecisionOne Holdings Corp. (Nasdaq: DOCI) is publicly traded on the Nasdaq National Market System under the symbol “DOCI.” For more information on DecisionOne services, refer to the company’s Web site at .


Integrion On a Roll

Seeking to become the AOL of online financial services the Integrion Financial Network announced two major banks have taken equity positions in Integrion, joining 17 other North American financial institutions.. Thursday, Citibank and First Union have agreed to acquire positions subject to regulatory approval. The addition of the two will boost Integrion’s market penetration to 75% of consumer households in North America.


Fleet-Kmart ATM Deal

New England’s largest bank, Fleet Financial Group (NYSE: FLT), today announced an agreement with Kmart to deploy over 200 remote Automated Teller Machines (ATMs) at Kmart store locations throughout the Northeast and into the MidAtlantic region. Fleet will install the new ATMs at Kmart stores in nine states which include Maine, New Hampshire, Rhode Island, New York, New Jersey, Pennsylvania, Vermont, Delaware, and Maryland.

“With the addition of ATMs at Kmart locations, Fleet is able to increase the superior access and service that we provide to customers,” said Robert B. Hedges, Jr., senior vice president of the Direct Financial Services Group at Fleet. “The continued expansion of our ATM network fulfills part of Fleet’s mission to invest in technology for better customer service and positioning in the future marketplace. It also represents an important source of growth beyond our traditional geographic franchise.”

Fleet is the nation’s seventh largest provider of bank-operated ATMs. In addition to in-branch ATM machines, the bank has pursued a strategy of choosing remote locations not currently serviced by automated teller machines, such as convenience stores and gas stations. Recently, the bank announced the addition of 26 ATMs at Grand Union stores in New York and New Jersey, and 105 ATMs at Cumberland Farms stores across the Northeast.

Kmart is the second largest department store chain in the United States with 2,200 store locations in all 50 states and Puerto Rico.

Fleet Financial Group, headquartered in Boston, is an $83.4 billion diversified financial services company listed on the New York Stock Exchange. The nation’s sixth largest commercial lender and New England’s leading small business lender, Fleet’s lines of business include consumer banking, government banking, mortgage banking, commercial real estate finance, corporate finance, insurance services, discount brokerage services, equipment leasing and asset-based lending. Fleet also provides investment management services for both individuals and institutional clients and currently has $52 billion in assets under management. With more than 1,200 branches and 2,000 ATMs located throughout the Northeast, Fleet also provides 24-hour telephone banking as well as electronic banking services through the Fleet PC Banking Center.


Jigsaw NOVUS Certified

DataCard Corporation announced today at the American Bankers Association (ABA) Bank Card Conference that NOVUS Services, a leader in payment processing, has certified the DataCard Jigsaw modular POS solution for its network. NOVUS Services will begin selling the new terminals and PIN pads into retail stores and restaurants later this year.

![][1] “NOVUS Services selected Jigsaw because if offers both magnetic stripe and smart card capabilities in one low-cost platform. This solution fits well with our commitment to provide our customers with best-of-breed solutions as well as value pricing,” said Ken Williams, director of link services for NOVUS Services.

In addition to the dual magnetic stripe and smart card capability, Jigsaw offers a feature-rich design and ease of operation, according to John Mamalakis, senior vice president for DataCard’s financial systems buisiness unit.

“Plus, we’ve developed some breakthrough software applications that are both feature-rich and user-friendly,” Mamalakis said. “These new software applications will make transactions faster, smoother and simpler for both merchants and their customers.”

Jigsaw’s contoured design-which recently won a prestigious Essed Red Dot Design Innovatino Award-also makes Jigsaw an attractive solution for a variety of merchant applications.

“Most transaction terminals and PIN pads look ordinary, low-tech boxes,” Mamalakis said. “But the design of Jigsaw is different. It’s sleek and attractive. Instead of detracting from the appearance of a retail store or restaurant, it actually serves as a nice design element.” Mamalakis also said the agreement with NOVUS Services strengthens DataCard’s position as a leader in POS solutions.

DataCard Corporation, a privately held company based in Minneapolis, Minn., is a world leader in innovative plastic card solutions. The company offers a spectrum of card-related products and services, including transaction processing systems, card personalization systems, systems integration services, digital photo ID systems and badging services. ([][2])

[1]: /graphic/novus/novus.gif


UA Expands E-Ticket Service

United Airlines will kick off the airline industry’s most extensive international electronic ticketing service in October on flights operating between the United States and the United Kingdom. United will be the first airline to launch electronic ticketing service on non-stop flights between London and Chicago, Los Angeles, New York, Newark, San Francisco and Washington D.C.

International E-Ticket(SM) service from United Airlines (UAL) will open for sale on Oct. 1 and will be available for travel on flights beginning Nov. 1. By early October, E-Ticket service will offer itineraries that include up to 16 flight segments.

Tickets can be purchased in the U.S. and U.K. directly from the airline or through a U.S.-based travel agency. Upon completion of software development by computer reservations systems (CRS) companies in early 1998, U.K.-based travel agencies also will be able to sell United’s E-Ticket product.

“United is an industry leader with electronic ticketing in the United States, and we believe the industry and the traveling public are ready for this major overseas expansion of our E-Ticket service,” says Sue Fullman, United Airlines director-sales distribution. “We foresee strong customer demand for international E-Ticket service, and our long-term goal is to introduce the service to more markets around the world.”

Check-in, security and customs procedures for international travel using an E-Ticket are the same as current procedures for passengers with paper tickets. Travelers using United’s international E-Ticket service will check in with their passport and the ticket receipt and, if booked by phone with United reservations, with the credit card used to purchase the ticket. Duplicate receipts and itineraries can be obtained at United ticket counters or via fax, and all customers are provided with a copy of the Warsaw Convention articles governing international travel.

“International travelers are telling us that they want a simplified and more efficient travel experience, and United’s E-Ticket service is an innovation that helps to accomplish that goal,” adds Fullman. “We expect that our strong entry into international markets will set the standard for electronic ticketing worldwide.”

United Airlines introduced its E-Ticket service in the United States on Shuttle by United flights in Nov. 1994. Less than one year later, United was the first airline to expand electronic ticketing nationwide on all its U.S. flights.

In August 1997, the usage of United Airlines E-Tickets reached an all-time high with 2.4 million coupons lifted. During the month, 45 percent of eligible itineraries were ticketed electronically, an increase of nearly 10 percentage points compared to January 1997.

As the largest air carrier in the world and the largest majority employee- owned company, United Airlines offers nearly 2,300 flights a day to 136 destinations in 30 countries and two U.S. territories.


ONSALE – Excite Team

ONSALE, Inc., a pioneer and leader in interactive 24-hour online auctions, today announced a strategic marketing agreement with Excite, Inc. (NASDAQ:XCIT), a leading brand on the Internet.

![][1] ONSALE now appears on the home page of Excite’s Shopping Channel under the “Auctions and Bargains” heading.

ONSALE also appears as a primary anchor tenant in the “Auctions and Bargains” department home page. ONSALE will receive promotional and banner.placements throughout Excite as part of this agreement.

“We are pleased to be an anchor tenant in Excite’s Shopping Channel,” said Jerry Kaplan, CEO and co-founder of ONSALE. “This agreement provides ONSALE with premier placement in the Shopping Channel of one of the Internet’s most popular search engines.”

This agreement represents ONSALE’s ongoing marketing effort to secure high-value real estate on the Web. It also addresses the changing distribution economics of the internet, where key market leaders are buying permanent placements on strategically important sites.

Shopping at ONSALE

Shopping at ONSALE is fun and easy. To place a bid, members need only click a button on their computer screen, fill out a registration form and submit their bid. Typically, a number of identical items are auctioned off simultaneously. When bids are received, prices change or merchandise is sold, ONSALE’s pages are automatically updated with the latest inventory and/or pricing information. Members will be able to monitor the bids and change them electronically. The winning bidder will be notified by e-mail and posted on the site.


ONSALE is a leading electronic retailer pioneering an efficient and entertaining new marketing opportunity — the interactive 24-hour online auction. The company currently specializes in selling computers, peripherals and consumer electronics exclusively over the Internet’s World Wide Web. More than a quarter of a million visitors have placed bids since the launch of the service in May 1995. ONSALE reported gross merchandise sales of $24.5 million for the quarter ended June 30, 1997.

ONSALE operates daily auctions Monday through Friday, and posts tens of thousands of items in a typical week. The company leverages the interactivity and sense of community generated online and on the Internet to create an effective new sales medium that generates a high level of customer loyalty and enthusiasm. ONSALE’s Web site is located at .

This press release contains forward looking statements regarding the company and future expectations, including but not limited to, reliance on merchandise vendors, the risks of the company’s purchasing merchandise in principal transactions, actual and potential competition, dependence on the Internet, uncertain acceptance of the ONSALE brand and reliance on automated technology. These risks and uncertainties are also described in the company’s prospectus dated April 17, 1997 and other documents filed by ONSALE, Inc. with the Securities and Exchange Commission. The company’s actual future results could differ materially from those discussed in the forward looking statements.

[1]: /graphic/excite/excite.gif