Nuevo Banco to Issue American Express Cards

Nuevo Banco Comercial has signed an agreement to affiliate new establishments to the American Express merchant network and issue AmEx-branded products in the local market. This first Uruguayan
partnership for AmEx. Nuevo Banco Comercial has 48 branches and is the top issuer of credit and debit cards in the country. Under terms of the deal, the bank will be responsible for all operations supporting the card as well as acquiring and servicing local merchants accepting the AmEx cards in Uruguay.

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Wachovia Names a Contact Center Chief

Wachovia has named John McCabe to be General Manager of its contact center organization, replacing Steven Boehm, who recently was named president of the newly formed Wachovia Credit Card division. McCabe will be responsible for approximately 5,500 employees at Wachovia’s 12 large-scale contact center sites. Prior to joining Wachovia in 2000, McCabe served as president and managing director of ICT Group, one of the largest customer outsourcing companies in the world. McCabe earned a master’s in business administration from City University of New York at Baruch College. Wachovia had assets of $532.4 billion, market capitalization of $73.9 billion and stockholders’ equity of $46.8 billion at September 30, 2005.

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MS & GOLDFISH

Morgan Stanley has agreed to purchase Lloyds TSB “Goldfish” credit card
unit for GBP 1 billion which includes a 22% premium. The deal adds
800,000 credit card accounts to the MS card portfolio which currently
has 1.5 million accounts in the UK. Lloyds TSB fully acquired the
“Goldfish” business in August 2003 in a GBP 112.5 million deal with
energy supplier Centrica (f/k/a British Gas). At the time Centrica held
a 70% stake in Goldfish Bank Ltd. At the time of the 2003 deal, the
“Goldfish” credit card portfolio had 1.18 million cardholders, 11,000
personal loan accounts and 17,000 retail savings accounts. However,
Goldfish Bank had an operating loss of GBP 30 million in the first half
of 2003. Centrica began the “Goldfish” credit card program in 1996 in a
partnership with Household International. In September 2001 Centrica
purchased HFC Bank’s entire rights and interests in the “Goldfish”
credit card for GBP 85 million. (CFI Library 8/7/01; 8/1/03)

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NCR Expands its Self-Serve Kiosk Business

NCR has acquired another self-service kiosk provider. FL-based, privately held Galvanon has been purchased by NCR for an undisclosed amount. Galvanon offers kiosks, Web self-service applications and technology for health care organizations. Founded in 2002, Galvanon has more than 50 customers, including Baylor Health Care System, Westchester Medical Group, Providence Health Systems and numerous urgent care centers nationwide. Galvanon’s operations and its founders will remain in Maitland, Florida and will operate as a wholly owned subsidiary of NCR Self-Service LLC. In October of 2004, NCR acquired Kinetics, a privately held provider of self-service solutions for the travel industry for $26 million. (CF Library 10/4/04)

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ACS Acquires Ascom Transport Revenue Division

Ascom has sold its Transport Revenue Division to ACS for CHF 130
million. ACS acquired the Transport Revenue Division with its businesses
in Fare Collection and Parking with locations in Switzerland, France,
USA, Italy, Great Britain, Spain, Hong Kong, Mexico and Chile as well as
the North and South American part of the Toll business unit. All 789 employees and related business activities have been transferred from Ascom to ACS. Ascom provides analysis and consulting, system design and system integration, project management, engineering and implementation.

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USTT Seeks a Reverse Stock Split

Pennsylvania-based USA Technologies has completed a $4 million private placement and is planning to do a 1-for-100 reverse stock split to end its penny stock days. As a condition of the transaction, and at the request of the Investor, the Company has agreed to file a proxy and call a Special Shareholder Meeting. Proceeds will be used for working capital and other general corporate purposes. The Company issued to the Investor 40 million shares of common stock at $0.10 per share. USA Technologies provides networking of wireless non-cash transactions, associated financial/network services and energy management.

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BOC Finalizes Diebold Opteva ATM Deal

Diebold and Bank of China have finalized the purchase of 642 “Opteva”
ATMs. Under the present guidance of the State Council and China’s Banking Regulatory Commission, BOC is undergoing an aggressive and resolute reform to raise the efficiency and profitability of its bank branches. The bank aims to transfer about 40 percent of its traditional teller transactions to its self-service delivery channel by 2008, while increasing surcharge revenue through self-service transactions. BOC has
more than 560 international offices in 25 countries and regions.

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Citibank Launches American Express Cards

One-year after reaching an agreement, Citibank announced this morning the launch of credit cards on the American Express network. Citibank will introduce five AmEx cards this month with the full suite of card products to be available as of January 15th. The new card products include the “Platinum,” “Dividend,” “AAdvantage,” “PremierPass,” and “Diamond” AmEx card. The “Platinum,” “PremierPass,” and “Diamond” cards offer rewards via the Citi “ThankYou Network.” The “Dividend” card is a cash-back program and the “AAdvantage” offers American Airlines miles as a reward. Citi is the largest MasterCard issuer and is the third bank to offer cards on the American Express network in the USA. MBNA began issuing AmEx cards one-year ago and USAA FSB expects to launch AmEx cards in the second quarter of 2006. (CF Library 1/30/04; 12/14/04; 6/1/05)

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3C and Allied to Offer MoneyGram Services

MoneyGram has reached an agreement with Currency
Connections Corporation (3C) to provide MoneyGram’s international money
transfer services through 3C’s subagent, Allied Banking
Corporation. The service began December 19th. Allied Banking Corporation with its subsidiary, Allied Savings Bank, is among the largest banking groups in the country. MoneyGram has 84,000 money transfer agent locations worldwide in approximately 170 countries.

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Parking Payment System to Snag Non-Payers

A Canadian firm is launching a trial of a self-enforcing parking meter that provides cash and card payment options. Vancouver-based Photo Violation Technologies will pilot its patented “PhotoViolationMeter” next month. The system uses a combination of sensors, photography and wireless technology to detect non-payers. The system also offers a “No-Fine” option, “Grace Periods” and “Instant Notifications.” Access to all functionalities will be available via the Internet.

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Mercantile Renews the Metavante Contract

Baltimore-based Mercantile Bankshares has renewed its merchant processing contract with Metavante. Metavante will continue to provide Mercantile merchant processing services, including transactional approval and authorization, settlement and accounting solutions and fraud detection. Metavante Payment Solutions delivers electronic money movement through an integrated payments network, including an ATM/PIN-debit network in NYCE, online bill pay, a complete suite of payment cards and automated clearing house (ACH) processing. Mercantile Bankshares Corporation has assets exceeding $16 billion.

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MasterCard Sponsors a Free Snack on American

MasterCard has teamed with American Airlines to give away a “snack and a movie” to all Economy Class passengers this week on nearly 600 transcontinental flights. The “movie and snack” sponsorship is supported by a brochure that will be distributed to all First, Business and Economy Class passengers. The handout includes activities, games and puzzles. The promotion expects to reach more than 85,000 Economy Class travelers.

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