MasterCard’s Board to Change Post IPO

Following an upcoming $2.7 billion IPO, MasterCard announced yesterday it will change most of the Directors on its current Board to outside members. Six new board members were named and four more will be selected within the next year to serve with two current members, including MasterCard’s CEO. The six new directors are: Manoel Amorim of Brazil’s Telefonica International; David Carlucci of Connecticut-based IMS Health; Richard Haythornthwaite of the UK’s Star Capital Partners; Marc Olivie of Belgium’s Agfa-Gevaert Group; Mark Schwartz, formerly of Soros Fund Management; and Edward Suning Tian of China’s China Netcom Group. The six new directors will join the Board after the IPO. MasterCard says it expects all of its other current Directors will resign. However, two current members, Bob Selander, MasterCard’s CEO, and Norman McLuskie, chairman of the retail division at Royal Bank of Scotland Group will remain. Over the next twelve months two more Directors will be elected by the company’s public shareholders and another two Directors will be elected by MasterCard’s bank shareholders.

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Axalto and S2M Launch EMV Cards Personalization

Axalto has supplied an EMV personalization solution to the Moroccan-based
“Societe Maghrebine de Monetique” (S2M). Axalto provided S2M with a
complete EMV package including consulting services, data preparation tools
and a personalization software suite. The first smart banking cards will be issued by mid-2006. Axalto also supplied the associated
training to allow S2M to adapt their own personalization scripts to
specific profiles, cards and applications that banks may request. S2M
provides payment system solutions.

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PELORUS Hosts a Stored Value Conference

USA Technologies reports that 48 Dave and Buster’s Games Arcades and Restaurants nationwide have deployed “e-Port” equipped vending machines. USA Technologies’ e-Port cashless transaction technology is expanding into the games arcades and family entertainment and restaurant business. The e-Port devices were deployed by Universal Vending Management, a distributor of USA Technologies cashless transaction product line and USALive Network and support services.

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AT&T And First Data Sign Networking Contract

AT&T has entered into a three-year networking contract with First Data
International for the provision of a new MPLS-based virtual private
network The new network will connect First Data offices in
Sydney, Hong Kong and the newly opened Singapore office. The AT&T
solution will give First Data’s staff in both Sydney and Singapore an
integrated, converged VPN solution for voice and data. This agreement
is AT&T’s first local deal in Australia, as its continues
to ramp up its presence in the region.

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CompUSA & Kroger to Offer PrivacyGuard

CT-based Affinion Group has inked a deal with CompUSA to offer its “PrivacyGuard” ID theft protection service. The service will be available at more than 240 CompUSA locations nationwide. The CompUSA “PrivacyGuard” service will offer daily credit monitoring, access to credit reports and scores, and an identity fraud resolution service with insurance. Last month, Affinion launched “PrivacyWatch” with Kroger. The new service will initially be marketed in more than 200 Kroger stores in the Houston and Dallas metropolitan areas. Also in April, Affinion signed a deal to incorporate Edentify’s “IDBenchmark” solution into its product offerings. Additionally, Affinion entered into an exclusive marketing agreement to incorporate CardCops’ “ID Protect” solution into its product offerings. Affinion Group currently offers its programs and services worldwide through more than 4,500 affinity partners worldwide.

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MASTERCARD 1Q/06

MasterCard posted a 36% year-on-year increase in net income for the first quarter to $126.7 million, following a fourth quarter loss of $53 million. Revenues climbed to $739 million, a 12% gain over 1Q/06, driven by higher volume and pricing changes that went into effect on April 1st of 2005 but offset by currency fluctuations. Advertising and market development expenses grew 6.4% versus the same time period in 2005. General and administrative expenses rose 13% in 1Q/06, compared to one-year ago. As of March 31st, MasterCard’s customer banks issued 772.4 million MasterCard cards. MasterCard is currently preparing for an IPO. MasterCard Inc. plans to offer up to 61.5 million shares for between $40 and $43 a share and will be listed on the NYSE under the symbol “MA.” For complete details on MasterCard’s first quarter performance, visit CardData (www.carddata.com).

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Lighthouse Credit Settles FTC Charges

Lighthouse Credit Foundation has settled FTC charges that it deceptively marketed itself as a not-for-profit enterprise providing debt management plans and then failed to deliver on promises of personalized credit counseling and interest rate reductions. Under proposed settlements, Lighthouse Credit Foundation Inc. and its co-defendants will pay more than $2.4 million in consumer redress, and they are prohibited from making deceptive claims about credit counseling or debt management services.

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Maybank Purchases AmEx Local Card Business

Maybank and American Express have signed a Business Transfer Agreement
related to the sale and licensing of American Express’s consumer card,
corporate card and merchant acquiring service business in Malaysia.
The agreement provides a framework for discussion to eventually enter into
a final independent operator agreement, in which Maybank will be the
issuer and manager of the charge card and merchant acquiring business of
American Express in Malaysia. Under a separate arrangement, Maybank has
been issuing the Maybank-American Express credit card in Malaysia since
December 2003.

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Hypercom’s Q1 Revenues Climb 20.5%

Hypercom posted a 20.5% increase in revenue for the first quarter of $61 million. The terminal maker says its Mercosul and Latino product and service businesses drove the gain. Income before discontinued operations for the first quarter was $2.8 million, compared to an operating loss of $6.6 million in the same quarter of 2005. Operating expenses were down nearly $5 million over the year ago quarter due to management restructuring, headcount reduction, the off-shoring of select software research and development and the elimination of redundant facilities and infrastructure, among other cost management activities. During the first quarter, the Company introduced the 32-bit, 7.1 ounce wireless “Optimum M4100 Blade,” universal contactless “P4100 PIN Pad” and “Optimum L4200” and “L4250” for multi-lane retail and financial markets. The Company also signed relationships during the first quarter with Catuity, EVO Merchant Services, U.S Bankcard Services and Communications Intelligence Corp. For complete details on Hypercom’s first quarter results, visit CardData ([www.carddata.com][1]).

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

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Wright Express’ Q1 Revenue Jumps 24%

Maine-based fuel card specialist Wright Express reported total revenue for the first quarter of $64.6 million, a 24% jump over 1Q/05. Net income for the first quarter was $11.4 million, compared with a net loss of $18.5 million for the comparable quarter last year. Total fuel transactions processed increased 11% to 58.1 million. Payment processing transactions increased 16% to 43.5 million, and transaction processing transactions decreased 3% to 14.6 million. The average expenditure per payment processing transaction grew to $48.63, an increase of 25% from the same period last year. Total MasterCard purchase volume for 1Q/06 grew 5% to $269.4 million. For complete details on Wright Express’ first quarter performance,visit CardData ([www.carddata.com][1]).

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

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ADS Completes a $500MM Note Offering

Alliance Data Systems has completed the issuance of asset-backed notes worth an aggregate principal amount of $500 million. The notes are rated AAA through BBB, or its equivalent, by each of Standard and Poor’s, Moody’s, and Fitch, and are secured by a beneficial interest in a pool of receivables that arise under WFNNB’s private label revolving credit card accounts. Alliance Data is a provider of transaction, credit and marketing services.

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