Koehler Paper to Use NCR’s Technology

Koehler Paper Group has signed an agreement with NCR to license its simultaneous two-sided thermal-paper technology. NCR’s patented two-sided printing process reduces paper-roll receipt usage by as much as 50 percent and provides additional operational savings on freight, storage, disposal and roll changes. In addition to cost savings, two-sided paper also provides a host of environmental benefits. The Koehler Group is the leading, global provider of fine, colored, thermal, carbonless and decor papers. NCR Corporation is a leading global technology company helping businesses build stronger relationships with their customers.

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PULSE Network Hits 25 Year Anniversary

PULSE EFT Association is celebrating this month its 25th anniversary. The network was founded by seven TX-based bank holding companies who linked together for ATMs. Almost 10 billion transactions later, the network provides basic ATM services, as well as a wide variety of ancillary payment products, to more than 4,200 financial institutions across the nation. PULSE links an estimated 90 million cardholders to nearly 250,000 ATMs and approximately 3.4 million POS debit terminals at retail locations in all 50 states. In 2005, PULSE was acquired by Discover Financial Services. PULSE Chairman Stan Paur has been a long-term leader of the Company.

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Merchant Warehouse to Market POSLynx220

Boston-based Merchant Warehouse has teamed with Canada’s Precidia Technologies to introduce the “POSLynx220” with “NetVu” to North American ECR dealers. Merchant Warehouse will provide qualifying dealers with a $100 discount off each POSLynx220 unit purchased before September 30, 2006. In addition to its ‘one device’ approach to IP based processing, this solution is differentiated from existing options by several key features. Merchant Warehouse is a privately owned merchant service provider delivering low cost card processing equipment and services. Precidia Technologies is a global leader in the design and manufacture of IP access devices for a wide range of industries including retail payments and building automation.

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Buyout of NCO Group Moves Along

PA-based NCO Group has inked a definitive agreement to be acquired by One Equity Partners and Michael Barrist, Chairman, President and CEO of the Company for $1.26 billion. The price represents a 44% stock premium. Blank Rome acted as legal counsel to NCO and Bass, Berry & Sims acted as legal counsel to the Special Committee. Credit Suisse acted as financial advisor to the Special Committee. Dechert acted as legal counsel for OEP and Cleary Gottlieb Steen & Hamilton acted as legal counsel for Barrist. Morgan Stanley and JPMorgan Chase acted as financial advisors to OEP. The transaction is expected to close in the fourth quarter.

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Encore Capital is Up for Sale

Encore Capital Group, Inc., a leading distressed consumer debt management company, announced that the Special Committee of its Board of Directors that was formed to consider strategic alternatives has retained Deutsche Bank Securities Inc. to act as co-financial advisor to the Special Committee along with J.P. Morgan Securities Inc., which continues to act as a financial advisor to the Special Committee. Deutsche Bank will act in lieu of Lazard Freres & Co. LLC as a result of Lazard having advised the Special Committee of a potential conflict in connection with its engagement.

About Encore Capital Group, Inc.

Encore Capital Group, Inc. is a systems-driven purchaser and manager of charged-off consumer receivables portfolios. More information on the company can be found at http://www.encorecapitalgroup.com.

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Online Resources’ Q2 Revenues Rise 21%

VA-based Online Resources Corporation reported revenue for the second quarter was $17.4 million, up 21% from $14.3 million in second quarter 2005. Net income was $1.4 million, down 11% versus $1.6 million in the prior year. Online Resources serves over 8 million billable end-users and processes approximately $75 billion in bill payments annually. For complete details on ORCC’s second quarter results, visit CardData ([www.carddata.com][1]).

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

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American Express’ Card Profits Up 29%

American Express reported that its U.S. Card Services division posted second quarter net income of $616 million, up 29% year-over-year. Marketing, promotion, rewards and cardholder services expenses increased 15% due to higher rewards costs, marketing and promotion activities. However, provisions for losses declined 17% due to lower write-offs which benefited from last year’s bankruptcy legislation and improved collections. Bank partners that issue cards on the American Express network added 2.6 million cards-in-force from a year ago. Card volume in the U.S. increased 15.8% to $102.5 billion. The total number of domestic cards-in-force grew by 1.4 million from the prior quarter to 45.4 million cards. For complete details on American Express’ second quarter results, visit CardData ([www.carddata.com][1]).

American Express U.S. Card Portfolio Snapshot
2Q/06 1Q/06 4Q/05 3Q/05 2Q/05 Ann Chng
Volume $102.5 92.9 93.0 89.0 88.5 +15.8%
Cards 45.4m 44.0 43.0 42.0 41.0 +10.7%
Source: CardData (www.carddata.com)

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

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Diebold’s Q2 Revenues Climb 17%

Diebold posted second quarter revenue of $726.4 million, up 17.4% from 2Q/05. Net income for Q2 was $17.2 million, compared to net income of $32.0 million in the second quarter of last year. The Company says the process of realigning its global manufacturing operations, including the consultation process around the planned closure of the production facility in Cassis, France, continues to present a number of challenges. Production levels at the French facility are significantly lower than expected, resulting in higher levels of exports to Europe from its manufacturing facilities in North America and Asia. The Company anticipates this situation will continue, which will cause manufacturing costs to remain higher than usual. Total orders for ATMs and security products/services were down in the low single-digit range compared to the prior year period. Financial self-service orders were down in the high single-digit range, with solid order growth in Asia Pacific more than offset by double-digit order declines in the Americas. For complete details on Diebold’s second quarter results, visit CardData ([www.carddata.com][1]).

DIEBOLD REVENUE HISTORICAL
2Q/05: $629.2 million
3Q/05: $622.3 million
4Q/05: $817.6 million
1Q/06: $623.7 million
2Q/06: $726.4 million
Source: CardData (www.carddata.com)

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

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StoreNext to Market Hypercom’s Optimum

TX-based StoreNext Retail Technologies will market Hypercom’s “Optimum” payment terminals to independent grocers and regional chains via StoreNext’s nationwide dealer network. The integrated solution provides grocers with signature capture, debit conversion, electronic check conversion, Pay By Touch biometric payments and Blackhawk gift card support. Hypercom Corp. delivers a full suite of high-security, end-to-end electronic payment products and services. StoreNext Retail Technologies LLC is the No. 1 supplier of retail technology to independent grocers and regional chains.

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Just Pay It Convenience is Introduced

Metavante has launched an expedited payments solution that enables billers to accept credit and debit cards, PIN-less debit and electronic checks processed through ACH. The new “Just Pay It Convenience” also enables billers to comply with card association regulations, while alleviating or even eliminating ongoing transaction costs. “Just Pay It Convenience” also goes beyond expedited payments. It supports both enrollment and non-enrollment models, enabling customers to make one-time payments with minimal personal information, or to set up recurring payments. It can also be fully integrated with Metavante “Biller Service Provider,” an online bill presentment solution, which transforms existing paper statements into mirror-image electronic documents.

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Cap One and Consumer Action Hand-Out Grants

Consumer Action and Capital One announced that their joint “MoneyWi$e” financial literacy partnership will award stipends totaling $75,000 to community non-profit groups in 13 states. The stipends support the efforts of community educators to help individuals in their communities become financially fit. This year’s recipients – 22 community-based organizations – will provide more than 16,000 individuals with access to the MoneyWi$e curriculum. Capital One Financial Corporation (www.capitalone.com) is a financial holding company, with more than 324 locations in Texas and Louisiana. Consumer Action is a national non-profit education and advocacy organization founded in San Francisco in 1971.

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Smart Payment Solutions Lands a Risk Exec

VA-based Smart Payment Solutions has hired Shazia Philipsen as manager of risk management. Before joining Smart Payment Solutions, Philipsen was a risk manager for Lloyds TSB Bank in London, one of the top three banks in the UK, where she supported all non-retail lending business streams to ensure Basel II, FSA and Sarbanes-Oxley compliance. Philipsen earned an MBA from Southampton University and a bachelor’s degree in psychology. She is fluent in English, Urdu, Punjabi and Spanish. Smart Payment Solutions is a payment processing company that helps organizations of all sizes grow and prosper.

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