Ingenico Sales Rise 17% in 2006

Terminal manufacturer Ingenico reported fourth quarter sales of $170 million, a 5.2% gain over 4Q/05. The Company says revenues were driven by strong sales Asia and Southern Europe while revenue from Latin America was virtually stable. For the full year revenues grew at a 17% pace. Ingenico also reported the start of a sharp decline in net debt as of December 31st, due to higher profit margins and greater control over working capital requirements. During the fourth quarter, Ingenico introduced “i6780,” the first color touch screen payment terminal with integrated tactile keypad to meet requirements for the visually impaired; teamed with Gilbarco Veeder-Root have joined to develop and deliver comprehensive integrated indoor and outdoor payment technologies that automate petroleum retail sites; and received “Class B” certification on the “i7780,” “i5100” and “3010” PIN Pad from Chase Paymentech Solutions. During 2006, Ingenico developed its business in prepaid card recharges, contactless and Near Field Communication payments. For complete details on Ingenico’s latest results visit CardData ([www.carddata.com][1]). (CFI Library 10/2/06; 10/10/06; 11/13/06)

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

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VISA Throws a Financial Football to Teens

VISA USA has released “Financial Football,” a free cell phone game developed with the NFL and PLAYERS INC to help teens learn how to manage money wisely. “Financial Football” puts students’ fiscal knowledge to the test by combining the structure and rules of the NFL with financial education questions of varying difficulty. To score points, a player needs to answer various money management questions correctly. Wrong answers and penalties can cost a player yardage. “Financial Football” is part of “Practical Money Skills for Life”, a comprehensive financial literacy program that teaches young adults personal finance skills. The free, computer-based version of “Financial Football” has already been downloaded and played over 100,000 times.

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FNMS Signs Retailers for Bill Me Later

First National Merchant Solutions is powering the Web sites operated by Home Decor Products, NetShops, Toshiba America Information Systems, and the Sharper Image to offer shoppers the ability to pay for purchases with the “Bill Me Later” credit-based payment option. Shoppers select the “Bill Me Later” option as they would any other payment option and receive instant credit from I4 Commerce to complete the purchase. I4 Commerce issues a bill in 14 days, giving consumers the option to pay in full or finance their purchase over time and pay in installments. First National Merchant Solutions is a top 10 payment processor.

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Wincor Nixdorf Q4 Profits Rise 44%

Wincor Nixdorf reported that fourth quarter consolidated net sales rose by 13% to $711 million. Earnings before interest, taxes and amortization climbed by 18% to $59.6 million. Net profit increased to $33.7 million, 44% up on the same period a year ago. Asia and the Americas each produced double-digit growth rates over the course of the quarter. The Americas net sales rose by 19%. Within the Banking segment, net sales for the quarter rose by 20% to $452 million driven mainly by buoyant growth in the company’s product and services business in Europe and other regions. The Retail segment recorded net sales growth of one percent, taking the total to $259 million. For complete details on Wincor Nidorf’s latest results visit CardData ([www.carddata.com][1]).

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

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Diebold Q4 ATM Orders Essentially Flat

Diebold posted fourth quarter revenue of $825 million, up 2% from 4Q/05. Sales for the Company’s ATM business rose 2.4% to $550 million and sales for its security business increased 15.8% to $220 million. Net income for Q4 was $27 million, compared to net income of $29 million in the third quarter, but 160% higher than the year-ago quarter when profits were impacted by restructuring charges. Total orders for financial self-service and security products and services were essentially flat compared to the prior year period due to continued softness in the Americas market but offset by stronger EMEA orders. The Company expects full-year 2007 revenue for its ATM business to grow between 2% and 3% while its security business is expected to grow between 8% and 12%. For complete details on Diebold’s fourth quarter results, visit CardData ([www.carddata.com][1]).

DIEBOLD REVENUE HISTORICAL
4Q/05: $810.6 million
1Q/06: $623.7 million
2Q/06: $726.4 million
3Q/06: $730.7 million
4Q/06: $825.4 million
Source: CardData (www.carddata.com)

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

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EGG & CITI

Citigroup has signed a deal to acquire Egg Banking from Prudential for GBP 575 million. Egg has 2.9 million Egg customers and will quadruple Citi’s UK credit card customer base. Egg lost GBP 39 million in the first half of 2006, compared to a profit of GBP 13 million in the first half of 2005. During the same period in 2004 Egg had a GBP 34 million profit in the UK. Egg, launched in 1998, also offers online payment and account aggregation services, personal loans, savings accounts, mortgages, insurance, and investments. Egg has a rocky experience in the credit card market. In July 2004 Egg announced it was exiting the credit card business in France after racking up nearly $178 million on losses for its “la Carte Egg VISA” in the prior five quarters. Prudential explored the sale of Egg in 2004 and 2005 when it owned 79% of the Company. However, Prudential subsequently took 100% control in 2005. The transaction is expected to close in the next 60-90 days. (CFI Library 2/2/04; 10/4/04)

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Top Card Issuers’ Loans Expand 6.5% in 2006

Credit card outstandings among the top five U.S. issuers, holding more than $575 billion in total card loans, grew by an average of 6.5% in the fourth quarter. The nation’s top issuers’ growth was led by American Express with Citigroup ranking at the bottom. AmEx posted a 17% increase in U.S. credit card loans hitting $53.6 billion at year-end 2006. Citi’s U.S. bank credit card outstandings dipped nearly 2% to $111.6 billion. However, Citi’s U.S. private label portfolio expanded by 16% last year. Bank of America and Chase, which includes some international cards, both gained more than 7% last year. BofA’s Card Services includes U.S. Consumer and Business Card, Unsecured Lending, International Card Operations and Merchant Services. Chase’s fourth quarter included 9 million accounts from the acquisition of the BP and Pier 1 Imports private label portfolios. For the latest fourth quarter portfolio figures, visit CardData ([www.carddata.com][1])

TOP 5 U.S. ISSUER OUTSTANDINGS*
ISSUER 4Q/06 3Q/06 4Q/05 Y/Y CHG
BofA $203.4 $194.9 $189.2 +7.5%
Chase $152.8 $143.8 $142.3 +7.4%
Citi $111.6 $110.3 $113.7 -1.8%
AmEx $ 53.8 $ 49.5 $ 46.0 +17.0%
Cap One $ 53.6 $ 51.1 $ 48.7 +10.0%
TOTAL $575.2 $549.6 $539.9 + 6.5%
* BofA & Chase include international;
Citi, AmEx and Cap One are U.S. only.
Source: CardData (www.carddata.com)

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

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Cash Now to Acquire Global Visions

Cash Now has executed an agreement in principle to acquire CA-based company Global Visions, a developer and worldwide wholesale marketer of prepaid financial service products and e-wallet-type services. The deal is comprised of cash and stock. Cash Now provides a Web-based payday-lending portal, offering the payday loan license program, “Payday Express;” and a payday loan and check cashing license known as “Check Express.”

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Citi to Acquire U.S.’s Egg Bank for $1.1B

Citigroup has signed a deal to acquire Egg Banking from Prudential for $1.13 billion. Egg has 2.9 million Egg customers and will quadruple Citi’s UK credit card customer base. According to CardFlash International, Egg lost $76 million in the first half of 2006, compared to a profit of $25.5 million in the first half of 2005. During the same period in 2004 Egg had a $66.6 million profit in the UK. Egg, launched in 1998, also offers online payment and account aggregation services, personal loans, savings accounts, mortgages, insurance, and investments. Egg has a rocky experience in the credit card market. In July 2004 Egg announced it was exiting the credit card business in France after racking up nearly $178 million in losses for its “la Carte Egg VISA” in the prior five quarters. Prudential explored the sale of Egg in 2004 and 2005 when it owned 79% of the Company. However, Prudential subsequently took 100% control in 2005. The transaction is expected to close in the next 60-90 days. (CFI Library 2/2/04; 10/4/04)

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GE Money Renews Linens ‘n Things Store Card

Linens ‘n Things and GE Money’s Retail Consumer Finance unit have agreed to continue their credit card agreement, established in 2002. Under the renewal agreement, Linens ‘n Things will promote the Linens ‘n Things credit card in its internal and external marketing activities. GE Money will be responsible for managing the credit card program, providing customer service, billing, database management and analytics support, and credit management. The card loyalty program offers cardholders a broad range of benefits including a rewards program with a first purchase incentive, exclusive offers and discounts throughout the year and $10 reward certificates for every $250 spent.

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Ameribanc National to Offer Catuity Products

Catuity has launched a national reseller gift card program with Chicago-based Ameribanc National, a firm that offers a free “Hypercom T-4100” terminal to merchants and that actively market a flat-rate, no-risk gift card program. Ameribanc has specialized in selling value-added services on a free, 32-bit terminal since 2003 and today has more than 12,500 merchants in their portfolio. Catuity is one of the few processors to support loyalty and gift card programs on the 32-bit terminal platform. Catuity retailer clients have more than four million cardholders participating in its loyalty and gift card programs.

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