MasterCard reported third quarter net income of $74.4 million compared to $77.9 million one year ago. However, the network posted a year-to-date net loss of $319 million due to the $721 million charge taken in the first quarter for the settlement of the U.S. merchant lawsuit. Total revenues for the quarter were $594 million compared to $539 million for 3Q/02. Advertising and market development expenses rose 33% for the quarter to $183 million. During the quarter MasterCard filed a motion before a District Court judge seeking to enjoin VISA from enforcing a newly-enacted bylaw requiring VISA’s 100 largest issuers of debit cards in the USA to pay a fee if they reduce their debit volume by more than 10%. The motion is scheduled to be fully briefed by November 21st, and oral argument has been set for November 24th. Also during the quarter, the European Commission issued a “Statement of Objections” challenging MasterCard’s cross-border multilateral interchange fee. MasterCard’s response is due on December 25th. MasterCard’s application with the Federal Court of Australia seeking to overturn newly adopted RBA regulations was also rejected during the third quarter. MasterCard appealed the decision on the grounds that the Federal Court made a number of reversible errors. It expects to have a hearing on its appeal in February or March. MasterCard is also a defendant in a currency conversion lawsuit filed in California which has a trial date of October 10, 2005. For complete details on MasterCard’s third quarter results visit CardData ([www.carddata.com]).