OBERTHUR 2Q/07

Oberthur Card Systems reported that its second quarter payment smart card volume rose 54.9%, compared to one-year ago, to $47.9 million, with 26 million units delivered in the second quarter. Overall, second quarter revenues increased 17% to $198 million. During the quarter, conventional card business grew slightly in value sequentially, to $19.8 million. Year-on-year, the 18% decrease was mainly due to EMV and contactless migrations. The personalization services increased compared to the same period a year ago, in line with the bounce-back of activity in the microprocessor payment card segment. Sales amounted to $31.4 million, up 6.1% compared to the same period a year ago. Lower activity in the United States was largely offset by strong demand in the United Kingdom, the Netherlands and Italy. The whole payment segment, which represented 50% of Oberthur Card Systems 2Q/07 sales, amounted to $99.1 million, a 16.8% increase compared to 2Q/06. For complete details on Oberthur’s second quarter performance, visit CardData (www.carddata.com)

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Town North Bank Deploys LANShield

CA-based ConSentry Networks announced that Dallas-based Town North Bank N.A. has deployed its “LANShield” platform to limit user access to customer information. The bank has deployed ConSentry platforms in both its primary operation center in Dallas and its disaster recovery back-up location. ConSentry’s LANShield platforms provide secure switching, enabling organizations to control every user and secure every port on the LAN. The comprehensive set of controls provides authentication and posture check for admission control, visibility into all user activity on the LAN, identity-based control to limit what users can access, and threat control to mitigate zero-day outbreaks. ConSentry Networks delivers secure switching, enabling enterprises to control every user and secure every port on the LAN through its LANShield product family.

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GCA & LV SANDS

Global Cash Access (GCA) S.A. will be providing cash access services
in The Venetian Macao Resort, owned by Las Vegas Sands Co., which
will be composed of 3,000 rooms, 7,000 slot machines, 850 gaming
tables, and 1 million square feet of retail space. In an effort for global
expansion, GCA’s agreement with The Venetian Resort will provide the
casinos’ customers with credit card cash advances, debit card withdrawal
transactions from GCAâ™s in-casino QuikCash kiosks, and a 3-in-1 ATM
functionality to automated slot redemption. GCA serves over 1,100 casinos
in the U.S., Canada, Europe, the Caribbean and Asia and provides
proprietary technology for access to cash via ATM, debit card, check
cashing and credit card cash advance transactions.

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OneBridge Offers VISA payWave

Credit and debit card processor OneBridge has added contactless payment processing to its suite of payment processing solutions. OneBridge’s clients are now able to issue Visa payWave as an added feature of their credit and debit card programs. OneBridge provides financial institutions with complete, one-stop card processing solutions to help them maximize the value of their in-house credit, debit and ATM programs.

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Ceridian’s Comdata Revenues Rise 15% in Q2

Minneapolis-based Ceridian reported that its second quarter revenues rose 5% to $408 million, while its payment processing and card issuing subsidiary posted a 15% gain over 2Q/06. The Comdata subsidiary, which primarily serves the trucking and retail industries, reported $133.5 million in second quarter revenues. Organic growth in Comdata’s retail segment was 20%+, driven primarily by robust demand for gift cards. Comdata’s margins for the quarter were modestly below expectations because of a higher mix of lower margin gift card sales, additional IT investments, and seasonal pressure related to the mall gift card program management business acquired in the fourth quarter. In May, Ceridian announced that Comdata will be going private following a merger deal with Thomas H. Lee Partners and Fidelity National Financial in an all cash transaction valued at $5.3 billion. Comdata recently launched its first national television advertising campaign featuring gift cards, fleet cards and payroll cards. For complete details on Ceridian/Comdata’s second quarter performance, visit CardData ([www.carddata.com][1]). (CF Library 5/31/07; 7/23/07)

COMDATA REVENUES
1Q/06: $104.4 million
2Q/06: $115.8 million
3Q/06: $123.8 million
4Q/06: $121.3 million
1Q/07: $117.4 million
Source: CardData (www.carddata.com)

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

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UNICAJA & GE MONEY

GE Money and Unicaja financial institution have signed an alliance
agreement for the creation of a consumer finance organization to
offer financial products such as loans and credit cards. Taking
advantage of Unicaja’s extensive sales network and GE Money’s
consumer lending experience, the partnership projects a prosperous
venture. Andalusia has a network of 870 branches and over 2.1 million
customers with operations throughout Spain while GE Money has
nearly 130 million customers in 54 different countries around the world.
A subsidiary of GE, GE Money employs over 24,000 and has assets of
$88.7 billion (2006) in EMEA, 45% of the total global assets of GE
Money. In Spain, It has 600 employees and 2,300 euro million in
assets. GE has operations in 100 different countries and employs over
300,000.

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Global Payment Quarterly Revenues Climb 17%

Atlanta-based Global Payments reported that revenues for the quarter ended May 31st increased 17% to $280.1 million. However, net income for the quarter slipped 3% year-on-year to $33.2 million due to restructuring and other charges. GPN says the revenue growth was primarily driven by expansion in its domestic ISO channel, as well as by its Asia-Pacific joint venture with HSBC. The merchant services segment growth also benefited from cost reductions and operating efficiencies. GPN noted that its money transfer segment performed as expected for the quarter, but the Company expects the segment to rebound within the next year. For the quarter, Merchant Services posted revenues of $246 million compared to $205 million for the prior year quarter. Money Transfer Services posted revenues of $34 million, compared to $33.5 million for the year ago quarter. GPN updated its annual fiscal 2008 revenue guidance to a range of $1,168 million to $1,220 million or an expected 10% to 15% over the fiscal year which ended May 31st. For complete details on Global Payments latest results, visit CardData ([www.carddata.com][1]).

GPN HISTORICAL
PERIOD REVENUES NET INCOME
2Q/06: $238.8mm $34.1mm
3Q/06: $260.3mm $44.2mm
4Q/06: $260.7mm $34.0mm
1Q/07: $260.4mm $34.3mm
2Q/07: $280.1mm $33.2mm
Source: CardData (www.carddata.com)

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

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RBS Lynk Hires a New Chief Technologist

RBS Lynk has appointed Larry Mandras, previously VP at Global Payments, as its Chief Technology Officer Mandras joined RBS Lynk earlier this year as senior vice president, product management. In his expanded role as CTO, Mandras adds the IT functions for RBS Lynk to his areas of responsibility, including transaction processing and application development. He brings to his new role more than 20 years of experience in product and project management, finance, financial systems and technology leadership, including seven years with Global Payments. RBS Lynk is a single-source provider of electronic payment processing services.

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Gemalto Q2 Smart Payment Card Revenue Flat

Smart card specialist Gemalto reports that second quarter revenue rose 6% to $545 million as it completed its first year as a combination of Gemplus and Axalto. However, revenues for smart payment cards was flat at $133 million compared to 2Q/07. But, deliveries of smart cards and modules were up by 10%, driven by on-going EMV4 deployment and card renewal programs, primarily in Europe. Revenue derived from related personalization services also increased. However, price pressure in certain EMV markets offset those gains. Gemalto’s POS terminal second quarter revenues soared by 34% to $20 million. The growth in this segment was supported by the introduction of a new range of products developed on a common, highly adaptable new technology platform. During the quarter, the health insurance company Allgemeine Ortskrankenkasse awarded Gemalto with a large contract to supply and personalize 35 million electronic healthcards for German citizens. The Company also delivered the first electronic driver licenses in Mexico from the 900,000 unit order received earlier in the quarter. For complete details on Gemalto’s latest performance visit CardData ([www.carddata.com][1]).

GEMALTO REVENUE HISTORICAL
2Q/06: $504.6 million
3Q/06: $535.1 million
4Q/06: $631.6 million
1Q/07: $495.9 million
2Q/07: $544.8 million
Source: CardData (www.carddata.com)

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

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CARD MARKET

A recent report from Mercator shows that the Canadian card
market is continually growing. In 2006, there were over 101
million cards in circulation with Canadian consumers being a
leader in general purpose card use. In response, the market
has become increasingly vibrant and diverse with new
developments in transaction security and technology. Of the
$ 372.87 billion market, 5% belongs to AMEX, 20% to
MasterCard, Interac has a 35% share and 40% belongs to
VISA.

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Arriva Card to Add Concierge Services

The casino-based “Arriva Card” is planning to add a set of new perks including five-star concierge services. It is the first credit card to treat casino cash advances as purchases and not as traditional cash advances. The new services will include transportation, accommodations, dining, and daytime and evening entertainment, plus VIP event access, golf outings, spa services, shopping excursions and tours of the Las Vegas region. Striker VIP will provide the new services. The “Arriva Card” also offers an instant credit line up to $10,000. Cardholders also receive 25% to 50% reduced casino service fees on “Arriva Card” cash advance transactions, complimentary accommodations with qualifying “Arriva Card” purchases up to $500 in free slot play with eligible “Arriva Card” enrollment and/or usage, $50 gift cards with “Arriva Card” cash advance purchases and up to 10,000 free players club points with play with eligible “Arriva Card” cash advance purchases. The “Arriva Card” was introduced to responsible in-casino cash advance customers with strong credit histories nine months ago and is issued by CIT Bank.

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