CitiDirect Card Management System Upgraded

Citigroup’s Global Transaction Services has upgraded its “CitiDirect Card Management System” to support more than 10 languages and to provide access to consolidated transaction data from 14 countries, as well as integrated cross-border card program support. The system is used by corporations to manage their card programs, enabling them to review, reconcile, split and reallocate transactions; create and modify accounts; set up or change controls for individual cardholders and review and approve cardholder statements. It provides a single, consistent interface in all of the countries where it is available. The advanced system was developed by Citigroup to meet the increasingly global demands of corporations using its purchasing and T&E cards, as well as their need for tighter control over their card programs.

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OBERTHUR 3Q/05

Oberthur Card Systems reported its best third quarter ever as revenues
climbed nearly 16% to 124.5 million euros, driven by a 31% increase in
the shipment of smart cards. Sales of payment smart cards were 30.1
million euros in 3Q/05, a 7% decline over the year-ago quarter when
sales were up sharply. During the quarter Oberthur shipped 47 million
smart cards. Sales of “Other Cards,” including magnetic stripe cards,
scratch cards and memory cards, were very dynamic driven by increased
U.S. sales. “Other Cards” sales rose 18% to 18.7 million euros.
Microprocessor or smart cards account for nearly two thirds of
Oberthur’s total revenues. The EMEA region contributed about 71% of the
card manufacturer’s total sales during the third quarter. Oberthur says
the payment market, which represents 57% of sales as of September 30th,
should remain the major engine for growth for the company in the years
to come as a result of the EMV migration. For complete details on
Oberthur’s third quarter performance, visit CardData (www.carddata.com).

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TSYS Q3 Revenues Climb 38%; Profits Up 23%

TSYS reported that third quarter profits rose 23% year-on-year to $48 million, but $2.5 million below the second quarter. Revenues hit a record $422 million, a 38% rise over 3Q/04. Accounts on file increased to 430.1 million as of September 30th, up 36% from one-year ago. TSYS also reports that stored value accounts rose by 500,000 accounts from the prior quarter, ending at 13.7 million. During the third quarter, TSYS converted the account portfolio of JPM Chase and signed an agreement to process Capital One’s credit card accounts. Also, TSYS’ Vital Processing Services subsidiary renewed its service agreement with Bank of America. Internationally, TSYS renewed agreements with C&A Modas in Mexico Allied Irish Bank and announced an agreement with Sonae Distribuicao of Portugal to provide gift card services. TSYS says it believes it is on target to be at the higher-end of its earnings projection for 2005 of 25%-28%. For complete details on TSYS third quarter performance, visit CardData ([www.carddata.com][1]).

TSYS REVENUE HISTORICAL
3Q/04: $305.0 million
4Q/04: $307.2 million
1Q/05: $350.0 million
2Q/05: $410.2 million
3Q/05: $422.0 million
Source: CardData (www.carddata.com)

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

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ID Data Opens Bydgoszcz Plant Early

ID Data has opened its new manufacturing plant one month ahead of
schedule and is now fully operational. The new manufacturing facility
is based in Bydgoszcz, and is a joint venture with Ortis, a
leading Polish print group, and Argo, a Polish card services company.
The plant currently has the capacity to produce 150 million cards per
year, rising to 250 million cards over the next 15 months. ID Data’s
newly created trade division will supply cards to customers based
throughout Europe, the Middle East and Africa. ID Data is a provider of
secure, card-based transaction systems and services to the international
banking, retail, government and secure access sector.

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Allegiant Air Uses Abanco In-Flight System

Allegiant Air has selected Illinois-based Abanco’s “Mobile Data Technology In-Flight” solution to enable Allegiant to process cash, credit cards and attraction tickets on-board all its flights. The capability of the mobile technology can be expanded in the future to include inventory management, flight-specific financial analysis of its service programs, and the different product and service offerings. Abanco expects to implement the solution during the fourth quarter of 2005. Allegiant Air is an all-jet, low-fare, low-cost passenger airline. Abanco provides payments and data-transaction technology.

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BofA’s Debit Card Volume Rises 28% in Q3

Bank of America’s credit card loans grew 8% in the third quarter ending with $59.7 billion. The issuer opened a record 1.5 million new credit card accounts during the quarter while purchase volume on debit cards soared 28% year-over-year. Debit card revenue increased 29% to $421 million. Pre-tax income was up slightly year-over-year to $734 million but up significantly from 2Q/05’s $414 million. Third quarter credit card charge-offs were 5.74%, compared to 6.23% in the prior quarter, and 5.48% one year ago. The managed 30+ day delinquency was 4.59%, compared to 4.25% in the second quarter and 4.30% for 3Q/04. Managed 90+ day delinquency was 2.17%, compared to 1.96% in the second quarter and 1.98% for 3Q/04. BofA also reported that its merchant acquiring business handled $91.3 billion in processing volume during the third quarter from total transactions of 1.9 billion. For complete details on Bank of America’s 3Q/05 performance, visit CardData ([www.carddata.com][1]).

BOFA EOP CARD LOAN HISTORICAL
3Q/03: $33.6 billion
4Q/03: $36.6 billion
1Q/04: $37.3 billion
2Q/04: $52.0 billion
3Q/04: $55.4 billion
4Q/04: $58.6 billion
1Q/05: $57.9 billion
2Q/05: $59.3 billion
3Q/05: $59.7 billion
Source: CardData (www.carddata.com)

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

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MBNA Q3 Volume Up 16%; Sets a New Record

MBNA’s profits slipped slightly in the third quarter to $717.9 million, however, the issuer posted its highest quarterly volume and increased managed loans by more than $5 billion. Total volume in the quarter rose to $61.3 billion, an increase of 15.6% over the third quarter of 2004. Total volume includes sales volume of $38.1 billion, which increased by 7.9% over the third quarter of 2004, and cash advance volume of $23.2 billion, which increased by 31.0% from 3Q/05. U.S. card loans grew from $75.0 billion in 2Q/05 to $78.5 billion in 3Q/05 but remain 1.5% lower than one-year ago. Total managed loans as of September 30th were $122.5 billion, compared to $117.4 billion in 2Q/05. Managed charge-offs continued to improve, declining to 4.29%. One-year ago managed charge-offs stood at 4.61%. Delinquency on managed loans was 3.99%, flat sequentially. For 3Q/04, delinquency stood at 4.11%. For complete details on MBNA’s third quarter results, visit CardData ([www.carddata.com][1]).

MBNA TRACK RECORD
Profits Loans
3Q/04: $728.3 MM $117.8 B
4Q/04: $768.9 MM $121.6 B
1Q/05: $ 31.7 MM $116.6 B
2Q/05: $632.1 MM $117.4 B
3Q/05: $717.9 MM $117.8 B
Source: CardData (www.carddata.com)

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

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Lexcel Suit Against MasterCard Fizzles

A U.S. District Court has granted summary judgment in favor of MasterCard on all claims asserted by AZ-based Lexcel Solutions, ruling that the firm failed to produce enough evidence to support the allegations and justify a trial. Lexcel filed a civil lawsuit against MasterCard in July 2003, shortly after MasterCard gave notice that it was switching to another vendor to supply simulation software. Lexcel accused MasterCard of breach of contract, copyright infringement, misappropriation of trade secrets, breach of fiduciary duty and unfair competition. MasterCard has filed a motion seeking an award for attorneys’ fees in the case. Also, MasterCard has separately filed an action seeking a declaratory judgment that certain Lexcel patents are invalid. That suit, including a counterclaim of infringement by Lexcel, continues to be litigated.

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Smart Card Alliance Elects Executive Committee

The Smart Card Alliance elected Greg Garback, executive officer, department of finance for the Washington Metropolitan Area Transit Authority in Washington, DC, as its new chair of the Executive Committee overseeing Alliance activities. Garback has represented WMATA at Alliance meetings and events since 1999 and has served on the board of directors since 2002. The Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology.

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U.S. Bank Q3 Corp Card Volume Up 24%

U.S. Bancorp reported that its third quarter merchant acquiring volume grew nearly 13% over 3Q/04 to $44.6 billion, produced from more than 744,000 merchants. Debit card volume surged by 23.0% and corporate credit card volume increased 24.5% during 3Q/05, compared to one-year ago. Debit card volume was $6.164 billion for the third quarter compared to $5.006 billion for 3Q/04. Consumer credit card volume for the quarter was $8.917 billion, up 8.6% over 3Q/04. Corporate credit card volume was $7.626 billion, compared to $6.124 billion for the year-ago quarter. For the quarter, U.S. Bancorp’s Payment Services net income was up about 25% to $207 million. For complete details on US Bancorp’s 3Q/05 performance, visit CardData ([www.carddata.com][1]).

MERCHANT ACQUIRING VOLUME HISTORICAL
2Q/03: $26,432,000,000
3Q/03: $27,995,000,000
4Q/03: $27,447,000,000
1Q/04: $27,335,000,000
2Q/04: $33,646,000,000
3Q/04: $39,385,000,000
4Q/04: $39,891,000,000
1Q/05: $39,477,000,000
2Q/05: $43,231,000,000
3Q/05: $44,600,000,000
Source: CardData (www.carddata.com)

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

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BofA Acquires Corp Card Technology Firm

Bank of America has acquired the commercial card technology and related business of Austin-based Works. The Company provides solutions to give organizations the control, spending visibility and automated workflow needed to seamlessly integrate cards into their procurement and accounts payable processes and make commercial cards their payment method of choice. The acquisition enables BofA to consolidate multiple card payment platforms and rapidly expand both its product capabilities and commercial card market share.

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