KEYNOTE & ZANDAN

For EUR2 million, including shares and restructuring costs, Keynote
Systems has acquired the Zandan software company, bringing with it
big-name customers such as Telefonica and Bouygues Telecom.
Zandan supplies customer simulation solutions across the mobile service
life cycle, including monitoring, alerting, troubleshooting and SLA
management, while Keynote MAP allows wireless operators to measure
mobile content from 22 geographic locations worldwide through more than
1,000 wireless device profiles. Keynote implements 2,400 measurement
computers and devices in over 240 locations serving 160,000 consumers
through its 2,700 corporate clients.

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PAY-AS-YOU-GO BABEE MASTERCARD

MasterCard and Altair Financial Services have launched the pay-as-you-go
“BaBee Prepaid Card” targeting British mothers with access to a discount
club and cash-back rewards. Originally introduced by Blueberry Card
Services, the “BaBee Card” has an annual fee of GBP14.95, provides
hundreds of discounts and can be managed through SMS mobile phone
technology 24 hours a day. Also, obtaining the card requires no credit
checks, is accepted everywhere MasterCard is accepted at 25.9 million
locations worldwide and, with every BaBeeCard sold, Blueberry Card
Services will donate GBP1 to BLISS charity for special care babies.
Altair Financial Services International is headquartered in London and
provides card processing to organizations around the world on behalf of
MasterCard, which provides card processing for over 18 billion
transactions annually in 210 countries through MasterCard Worldwide.

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Experian Supports Red Flag FACTA Rules

CA-based Experian Fraud Prevention has been contributing its products and services to support development for the compliance of Red Flag rules. These rules were effective as of January 2008 and require institutions to implement procedures to detect, prevent and mitigate identity theft as part of the recent provisions to the 2003 Fair and Accurate Transactions Act (FACTA), for which full compliance is required by November 2008. Moreover, these rules are requisite of identity theft prevention procedures in a manner best suited to business operations and affect a wide range of financial institutions providing credit or allowing payments/transactions by consumers.

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Bank Processor DCI Adds Santarosa to the Board

Bank processor DCI has elected DCI client Ron Santarosa, executive vice current EVP and CFO at First California Bank to the company’s board of directors. Santarosa brings 17 years of banking experience to the board, joining fellow DCI customers and noted bankers Kim Capeloto (Bank of Clark County, Vancouver, Wash.), Lloyd Davidson (First Bank Kansas, Salina, Kan.), John Davis (Colorado Capital Bank, Castle Rock, Colo.), R.A. Edwards, (First National Bank, Hutchinson, Kan.), Kenneth Goering (Citizens State Bank, Moundridge, Kan.), Tim Kohart (Valley State Bank, Syracuse, Kan.), Reed Peters (First State Bank and Trust, Larned, Kan.) and Kathleen Steward (Chisolm Trail State Bank, Wichita, Kan.). iCore, DCI’s flagship product, is an integrated, relational core processing and bank management solution used by in-house and outsourced institutions nationwide.

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WaMu Launches an Instant Online Paperless Account

WA-based WaMu has launched its “Instant Online Paperless Account” targeting small businesses as part of the organization’s mission to be a small business banking leader. The “Instant Online Paperless Account” allows businesses to open accounts online in less than 10 minutes in response to Barlow Research showing 40% of companies using Internet Banking indicated the ability to open a business checking/savings account(s) online is a top priority and very important. WaMu has assets of nearly $319.67 billion and operates approximately 2,500 consumer and small business banking stores through its subsidiaries across the country.

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TRM Gets Funding and Acquires Access to Money

ATM provider TRM has secured financing with LC Capital Master Fund and Lampe Conway for $11,000,000 pursuant to a Securities Purchase Agreement. The loan was used to pay the cash portion of the purchase price for TRM’s acquisition of LJR Consulting Corp., d.b.a. Access To Money; to pay eFunds $2.5 million in satisfaction of the settlement reached last December; to satisfy all of the company’s remaining loan to GSO Capital Partners; to pay $1.0 million to “Notemachine Limited” in further reduction of the Company’s obligations under the Settlement Agreement dated as of November 20, 2007, to satisfy in full the Company’s loan from the Lender and the Administrative Agent dated February 4, 2008 and (f) to pay fees and expenses incurred in connection with the Purchase Agreement and the “Access To Money” acquisition. In connection with the Purchase Agreement, the Company issued warrants to the Lender to purchase 12,500,000 shares in aggregate of the Company’s common stock.

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PULSE Beefs-Up its Executive Management

Debit network provider PULSE has promoted Judith McGuire to SVP of product management, James Cichy has been hired as VP, fraud management and Mike Urquizu has been promoted to VP of Sales. McGuire has been with PULSE since 2002 and now directs product management activities for all PULSE network products. She previously worked for First Data in multiple roles, including product development and marketing. Recognized fraud expert Cichy is responsible for PULSE fraud protection and prevention services, including “DebitProtect,” which provides risk scoring for all PIN, signature and PINless debit transactions on the PULSE network. Prior to joining PULSE, Cichy was employed at Fifth Third Bank, where he and his team were recognized for their outstanding efforts to minimize fraud losses. Urquizu oversees the national financial institution sales program and manages a team of sales executives. He is responsible for sales of PULSE network participation, as well as various processing solutions.

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Fulton Financial Unloads Cards to Elan

PA-based Fulton Financial has signed agreements to sell its credit card portfolio to U. S. Bank , d/b/a Elan Financial Services for the enhancement of the card offering. In doing so, Fulton will continue selling and providing support for the credit card products and services through its bank branches while the sales transaction is expected to result in a 2008 pre-tax gain of approximately $10 million. Fulton Financial Corporation employs over 3,900 associates and has more than 265 banking offices across the Mid-Atlantic States.

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PaySimple Waives Merchant Fees for Earth Day

E-payment provider PaySimple is celebrating Earth Day by waiving the initial startup fee of $199 for merchants. The PaySimple solution is an on-demand Software as a Service (SaaS) platform that enables small businesses to bill, collect, and manage their customer payments under one user-friendly system. The PaySimple solution includes recurring billing, email invoicing, web/telephone payments, ACH direct-debit, EFTs and direct deposits, credit card processing, e-check processing, check conversion, and business software/shopping cart integration. According to a study commissioned by the PayItGreen Alliance, if one in five households switched to electronic bills, statements, and payments, the collective impact would save 151 million pounds of paper, avoid filling 8.6 million household garbage bags with waste and avoid producing 2 million tons of greenhouse gas emissions.

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BofA Q1 Credit Card Profits Plummet 39%

Bank of America reported that its Card Services division net revenue increased 21% to $7.33 billion due to 15% growth in net interest income and 33% growth in non interest income driven by 14% growth in average loans and leases, Card Services allocation of the VISA, Inc. IPO gain and higher card income. However, net income of $670 million was down 39% as the higher net revenue and the reversal of litigation costs related to VISA were more than offset by higher credit costs. Managed U.S. consumer and business credit card loans at the end of the first quarter was flat sequentially at $161.4 billion. First quarter U.S. Card Services charge-offs were 5.67%, compared to 5.03% in the prior quarter and 4.82% one-year ago. The managed 30+ day delinquency rose to 5.93%, compared to 5.70% in the fourth quarter and 5.45% for 1Q/07. Purchase volume for U.S. consumer and business cards was $56.8 billion for 1Q/08 compared to $64.7 billion for 4Q/07 and $55.4 billion for 1Q/08. BofA also reported that mobile banking recorded approximately 224,000 activations in the first quarter reaching 840,000 active customers. The “Keep the Change” program reached 8 million net new enrollments since inception, with 974,000 customers alone signing up in the first quarter. For complete details on Bank of America’s 1Q/08 performance, visit CardData ([www.carddata.com][1]).

BOFA EOP CARD LOAN HISTORICAL
(U.S Consumer & Business Cards)
1Q/07: $144.9 billion
2Q/07: $148.7 billion
3Q/07: $153.0 billion
4Q/07: $161.4 billion
1Q/08: $161.4 billion
Source: CardData (www.carddata.com)

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

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Decision-Makers Focus on Technology Purchases

MA-based Aite Group has released its report revealing over the next 2 years, mobile banking, e-mail communications and enhanced fraud detection are the most common types of applications large U.S. financial institutions will be engaging and/or replacing. Specifics of the research include findings of Aite’s survey of 23 U.S. financial institutions, conducted between January and March 2008, with 59% disclosing likelihood to deploy a mobile banking application and 41% likely to deploy a mobile bill payment application before 2011. Aite Group independent research and advisory firm studies business, technology and regulatory issues and their impact on the financial services industry.

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