TSAI Revenues Climb 13% in Q3 to $79MM

Omaha-based Transaction Systems Architects posted third calendar quarter revenues of $79.0 million, a 13% increase over the year ago quarter. Some highlights of the quarter include a twelve-month revenue backlog of $242.6 million versus $229.6 million, a 6 percent increase over the fourth quarter of fiscal 2004, signed 12 new customers and 24 new applications during the fourth quarter, signed 18 capacity upgrades over $100 thousand during the fourth quarter and fiscal 2005 revenues of $313.2 million versus $292.8 million, a 7 percent increase over fiscal year 2004. TSA provides software that facilitates electronic payments.

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TNS Transaction Alert System is Introduced

TNS Smart Network has introduced the “TNS Transaction Alert System” designed to
combat identity theft and ensuring consumer confidence when using an ATM.
Customers securely register their e-mail address and their card number free of
charge. Registered customers will receive an e-mail each time their card is
used at an ATM that processes through TNS, alerting them that a transaction has
occurred to verify transactions and to question any suspicious activity in a
timely manner. TNS Smart Network provides the gateway for networking services
between ATMs and financial institutions in both the financial and retail
marketplaces.

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Gift Cards Capture 4% of In-Store Sales

A new study has found that cash and checks now account for only 45% of consumers’ monthly payments, down from 57% in 2001 and 49% in 2003. Surprisingly, gift cards now account for 4% of all in-store purchases, up from 2% in 2003. Also, the percent of consumers who indicate using gift/prepaid cards to make at least one purchase per month in stores has increased from 12% in 2003, to 32% in 2005. Six years ago, debit represented only 21% of in-store transactions; today consumers report that one-third of in-store purchases are made with debit cards. The study by the American Bankers Association and Boston-based consulting group Dove Consulting, found that each month consumers make 58 individual payment choices, whether by buying things in stores or over the Internet or paying bills. The conclusion: increasingly, the payment method they choose is an electronic one.

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131MM Americans Purchased Gift Cards

The annual gift card survey by First Data Prepaid Services’ ValueLink has found 59% of American adults, an estimated 131 million people, either purchased or received a gift card in the previous 12 months, up 23% from 2001. However, the average number of gift cards purchased declined slightly from 6.9 cards last year to 6.2 cards in 2005. The research determined that the average value of gift cards purchased was $59 in 2004 and $44 this year. The average spent on all gift cards in the previous year also declined slightly from $247 to $228 this year. ValueLink says 56% of gift cardholders spend more than initial value of gift card. While major retailers continue to enjoy a 70% share of gift card purchases, restaurants accounted for 12% of gift card purchases, compared to 5% two years ago. Food stores accounted for another 6% of gift card sales in 2005 while entertainment-based businesses accounted for 5%.

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Lexcel Appeals MasterCard Court Ruling

Lexcel Solutions, Inc. has appealed the ruling by the district court, granting summary judgment to MasterCard in Lexcel’s suit against MasterCard for trade secret misappropriation and other causes of action. Lexcel’s founder and president, Mr. Carl Kubitz, said that “We must strive to protect U.S. Intellectual Property Rights including trade secrets and copyrights. We remain confident of our positions and expect to be vindicated on appeal.”

Lexcel Solutions, Inc., Scottsdale, Arizona, supplies simulation and testing technology to the EFT Industry. For over 20 years Lexcel has defined PC-based testing solutions for all facets of the EFT Industry. As industry leaders in testing technology and methodology we have collected and summarized over 200 man-years of historical test data. Lexcel’s analysis is used to shape new technology as well as to keep its customers better informed.

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ID Data Announces Five New Managers

ID Data Systems has appointed John Cooke as Commercial Director, Barry O’Brien
as Chief Technical Director and Marshall Haldane as Operations Director. In
addition, CardBASE Technologies, ID Data’s Irish-based card application
management software businesses, has appointed Pierre Heuze as Development &
Operations Director and Don Stapleton as Sales and Marketing Director. These
appointments follow recent investments by shareholders that have bolstered the
company’s balance sheet by GBP 8.7 million. ID Data Systems provides card
production and services.

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CNB to Issue the No Borders STV Card

Central National Bank of Enid, Oklahoma has inked a deal to issue and process the PIN-based No Borders’ prepaid stored value cards for distribution by No Borders to its customers nationwide. The bank issued cards permit PIN based Point of Sale and ATM transactions with value loaded and re-loaded via stored value card load networks, ACH transfers, at participating POS locations. No Borders provided a debit and stored value card platform through which a variety of financial and commercial services and products can be offered to residents of developing countries and to immigrants from those countries who reside in the United States and send money back home on a regular basis

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EURONET 3Q/05

Electronic payments provider Euronet Worldwide posted revenues of $137.4 million for the third quarter, a 38% jump over 3Q/04. Net income soared by 70% to $10.2 million, compared to one-year ago, and was triple the income reported for 2Q/05. The EFT Processing Segment posted third quarter revenues of $26.3 million, compared to $20.9 million reported for the third quarter of last year. The EFT Processing Segment processed 94.4 million transactions in the third quarter compared to 70.1 million transactions for 3Q/04. The segment completed the quarter with 6,841 ATMs owned or operated, compared to 5,404 ATMs at the end of the third quarter 2004. The Prepaid Processing Segment reported 3Q/05 revenues of $107.7 million, a 43% increase over the year-ago quarter. Total transactions processed by the Prepaid Processing Segment in the third quarter were 94.6 million, compared to 59.8 million prepaid transactions processed in 3Q/04. The Prepaid Processing Segment processes electronic point-of-sale prepaid transactions at more than 218,000 point-of-sale terminals across more than 109,000 retailers in Europe, Asia Pacific and the USA. For complete details on Euronet’s third quarter performance, visit CardData (www.carddata.com).

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CEO’s Job in Jeopardy Over AmEx Charges

The CEO of St. Louis-based SAVVIS, an IT utility services provider, has been placed on an unpaid leave of absence over the nonpayment of charges on an American Express Corporate credit card. Jack M. Finlayson, the company’s President & Chief Operating Officer, has been appointed as Acting Chief Executive Officer. SAVVIS’ Audit Committee is conducting a full investigation into matters relating to a lawsuit brought by American Express and its Chief Executive Officer, Robert A. McCormick, for nonpayment of charges on a corporate credit card issued to the CEO. The company also reiterated that Mr. McCormick did not submit the charges in question to SAVVIS for reimbursement and that SAVVIS has not made any payment to American Express related to the charges. SAVVIS Communications is a global IT utility services provider with an IT services platform that extends to 47 countries.

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Meta Financial Promotes STV Card Exec

Iowa-based Meta Financial Group has named Brad Hanson, current president of MetaBank’s prepaid debit card division, as Board Member and EVP. He has a proven track record for creating value and profitability by identifying market opportunities and bringing together experienced management teams focused on balancing strong growth with aggressive expense management. In addition, Hanson was appointed Executive Vice President and member of the Executive Committee for MFG and MetaBank and serves as president of Meta Payment Systems. Meta Financial Group is the holding company for MetaBank, MetaBank West Central and Meta Trust Company and had assets of $776.3 million and shareholders’ equity of $43.0 million, or $17.16 per common share outstanding.

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Diebold Net Income Plunges 45% in 3Q/05

Diebold reported that its net income for the third quarter plunged 45% to $26.4 million due to sluggish U.S. sales, installation delays and Hurricane Katrina. ATM sales in the third quarter declined 3% to $194 million. ATM services revenues were off slightly to $217.3 million. Diebold says financial self-service orders were essentially flat for the quarter, with order growth in EMEA well into the double digits offset by a decline in North America. However, product orders for the “Opteva” ATM increased significantly from the third quarter 2004. The Company says it must improve its cost structure by addressing inefficiencies in its manufacturing supply chain and software development processes. Diebold recently named a new COO and CFO and redesigned its organizational alignment. The Company says that full-year financial self-service revenues will most likely grow 1% to 2%. For complete details on Diebold’s third quarter performance, visit CardData ([www.carddata.com][1]).

DIEBOLD FINANCIAL SELF-SERVICE
3Q/04: $200.0 million
4Q/04: $281.3 million
1Q/05: $173.3 million
2Q/05: $221.0 million
3Q/05: $194.2 million
Source: CardData (www.carddata.com)

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

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