ATM Leader TRM Seeks Strategic Alternatives

Portland, OR-based ATM specialist TRM Corporation has engaged Allen & Company to explore strategic alternatives to enhance shareholder value. The Company’s stock has been in a tailspin after posting a weak third quarter. The Company also announced that it expects to expense in the fourth quarter certain costs related to its potential acquisition of the Travelex ATM portfolio in the United Kingdom, including a 1.5 million pound escrow and other professional and advisory fees. TRM operates one of the largest multi-national ATM networks in the world, with over 22,000 locations. TRM acquired eFunds ATM network in 2004, adding 15,700 ATMs to its network. (CF Library 11/15/05)

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Lipman Terminals Launch ICBC EMV Initiative

Lipman Electronic Engineering announced that its “Nurit 8000” terminals
were used to launch the EMV initiative of Industrial and Commercial Bank
of China (ICBC). Lipman has been working closely with ICBC on the EMV
migration, from development through implementation. In addition, Lipman
was selected to work with ICBC on an EMV pilot project at one of the
bank’s branches in the Shandong Province of China. On December 16, 2005,
ICBC and MasterCard International held a joint ceremony to introduce the
Peony MasterCard, the first EMV chip-based card available in China.
Lipman is a leading worldwide provider of electronic payment systems.

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McDonald’s USA to Accept AmEx ExpressPay

American Express has landed McDonald’s USA as the latest national merchant partner to accept its contactless “ExpressPay.” AmEx has been working with contactless payments since 2002. It is also the first issuer to launch contactless cards nationally with the rollout of “Blue from American Express” with the “ExpressPay” feature in June 2005. “ExpressPay” is also embedded in the “Clear from American Express Card” and available via a key fob that can be linked to any AmEx card. “ExpressPay” will be available at more than 12,000 McDonald’s restaurants nationwide. Merchants now accepting “ExpressPay” also include: AMC Theatres, Boater’s World, CVS/pharmacy, Duane Reade, Loews Cineplex Entertainment, Meijer retail supercenters, Regal Entertainment Group, Ritz Camera and Sheetz.

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VeriFone Vx 570 Cleared for PCI PED

VeriFone’s “Vx 570” payment solution has met the requirements of the PCI PED security standard for POS PIN entry devices, the third VeriFone payment system to meet PCI PED requirements. PCI PED (Payment Card Industry — PIN Entry Device) was established by Visa International and MasterCard International to ensure that PIN-based payment transactions meet the highest level of security. The PCI PED designation certifies that the physical and logical security of the Vx 570 was validated by an independent test organization recognized by Visa and MasterCard.

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ShopRite Opts for S1 Corp Postilion

Atlanta-based S1 Corporation announced that Wakefern Food Corporation has installed its “Postilion” software to provide POS payment authorization and transaction switching for over 200 ShopRite stores in five states. Postilion eSocket POS is a Microsoft Windows environment that is used for stand-in authorization capability as well as to provide the POS terminal interface without the need to modify existing POS software, providing Wakefern with a highly scalable and open architecture that permits easy implementation of new products to be delivered at the POS. Wakefern Food Corporation is the merchandising and distribution arm of ShopRite supermarkets and the largest retailer-owned cooperative in the United States, generating over $9 billion in retail sales. S1 Corporation (incorporating Mosaic Software) provides software solutions for financial services.

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Supercom Awarded Green Science Card Project

SuperCom announced it will provide Green Science International with a
customized “e-Living Contactless Smart Card System” and integrate it into
Green Science’s Retailer CRM (Customer Relationship Management) Membership
and Loyalty solution. Green Science’s Retailer CRM Membership and Loyalty
system enables the company to track and analyze customer usage patterns,
making it economical to implement, manage and measure innovative
points-based and other types of marketing initiatives. SuperCom provides
solutions in smart-card and e-ID technologies to the commercial and
government sectors.

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WaMu/Providian Card Profits Up 16% in Q4

Seattle-based Washington Mutual reports that its acquisition of Providian added $166 million in net income for the fourth quarter. During the quarter, WaMu Card Services added $1.05 billion in managed receivables largely due to the cross-selling of cards to the company’s retail customer base. One year ago Providian posted about $145 million in net income for the quarter. At the end of the year Card Services managed receivables were $19.96 billion, which included a $365 million sell-off of higher risk loans. The 30+ day managed delinquency rate at December 31st was 5.07% of total managed receivables, up slightly from 5.00% at the end of the third quarter. At 7.28%, managed net credit losses as a percentage of average managed receivables were essentially flat with the third quarter. During the fourth quarter, Card Services added $313 million in revenue from sales and servicing of consumer loans and $139 million in credit card fees to the company’s total noninterest income. WaMu acquired Providian on October 1st. For complete details on WaMu’s latest performance, visit CardData ([www.carddata.com][1]).

Providian Net Income Track Record
2Q/04: $ 49.9 million
3Q/04: $ 93.1 million
4Q/04: $144.6 million
1Q/05: $133.0 million
2Q/05: $225.3 million
4Q/05: $166.0 million
Source: CardData (www.carddata.com)

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

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Elan Signs Bankers’ Bank of Kentucky

The Bankers’ Bank of Kentucky has entered into a marketing agreement for Elan to become the preferred provider of ATM, debit and credit card services. Elan Financial Services provides a complete range of products and services including credit card issuing, prepaid card solutions, ATM, debit card and merchant processing. Through the recent acquisition of Genpass, Elan offers processing services for more than 31,000 ATMs nationwide, supports more than 18 million ATM and debit cards and provides membership in the Fastbank ATM network, which includes deposit-sharing ATM locations.

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RCS Goes to Fiserv PLUS System

Illinois-based Retail Credit Solutions, a full-service provider of complementary solutions for retailers’ private-label credit card programs, has selected the Fiserv “PLUS System” to provide account management processing services. RCS focuses on small to mid-sized retailers that historically have been underserved by the major private-label servicers. Fiserv, Inc. provides information management systems and services to the financial and health benefits industries and reported $3.4 billion in processing and services revenues for 2004.

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New York Times Launches TimesPoints

The New York Times has launched “TimesPoints,” enabling members to register up to three of their credit or debit cards to earn points at thousands of merchants. Points can be redeemed to pay for the cost of a New York Times home delivery subscription, merchandise from The New York Times Store, or gift cards from select advertisers of The New York Times such as Bloomingdales, Apple iTunes Store and Barnes and Noble. The program utilizes two of the largest operators in the loyalty rewards industry, Rewards Network for dining and hotels, and Advantex Marketing International for online shops.

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Gemplus Tweaks 4Q/05 Projections Again

Smart card specialist Gemplus International says it now expects fourth quarter revenues to be about $316.2 million. The revised figure is attributed to a quality issue with a specific chip and overall pricing pressure. It is the second revision in six weeks as the Company seeks to merge with Axalto. Operating margin for the fiscal year 2005 is now expected to be around 7% versus 3% in 2004. This compares with the guidance previously provided of approximately 8%. Gemplus plans to announce its fourth quarter and fiscal year 2005 results on February 9th.

Gemplus Gross Sales Track Record
4Q/04: 242.5 million euros
1Q/05: 193.1 million euros
2Q/05: 236.2 million euros
3Q/05: 247.9 million euros
4Q/05: 262.0 million euros
Source: CardData (www.carddata.com)

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ECHO Plans for a Rapid Bankcard Expansion

Camarillo-based Electronic Clearing House plans to add new personnel and launch a go-to-market strategy to ramp up sales. The changes are being led by ECHO’s new President and COO, Chuck Harris. The Company recently hired Bill Wied, formerly the Director of Software Technology for TransCore LP/Roper, as CIO. ECHO plans to hire four to five new direct salespeople to focus on the card-not-present business. A new SVP of Sales is also sought. ECHO also wants to build a robust third-party reseller network to bolster the Company’s card-present business. Last month, ECHO reported that third calendar quarter revenue grew 21.5% to $15.2 million. Revenue from bankcard processing and transactions grew 23.3% to $11.5 million in the quarter, as the result of growth within the Company’s current customer base as well as from new merchants acquired through enhanced marketing programs. (CF Library 12/8/05)

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