FREESTAR LAWSUIT

FreeStar Technology Corporation has filed a counter claim in the
vFinance Investments lawsuit. The lawsuit seeks $54 million in damages.
Freestar has charged vFinance for using a ‘death spiral’ strategy,
violations of the federal securities laws, breach of contracts, including
over-conversion of pledged securities, market manipulation, breach of
fiduciary duty and fraud. The litigation was initiated by vFinance
Investments, Boat Basin Investors, Papell Holdings, Marc Siegel, David
Stefansky, Richard Rosenblum as the result of Chapter 7 Petition for
involuntary bankruptcy filed against FreeStar
in January.

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ClearCommerce Engine 5.2

ClearCommerce Corporation, the leading provider of risk management and payment processing software for online retail, announced the availability of ClearCommerce Engine 5.2, the first solution to include merchant-configurable velocity checks with its arsenal of fraud detection technologies, adding expanded support for point-of-sale payment transactions, and improvements to the XML integration component.

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Debit Card Use

A new study has found that consumers prefer PIN to signature debit transactions by a 12% margin and that 19% would be willing to use a payroll card. The research also found that 42% of consumers surveyed stated they changed how they made payments last year, and 33% expect to make changes this year. The survey was conducted by Unisys, Global Concepts and Talson Associates. The study as found that most interest is in interbank transfers with a shared customer (“me-to-me transfers”) and cross-boarder payments, although RFID and “smart cards” still show some promise. The report noted that banks are loosing Internet payments to PayPal and other players. Based on the data, the researchers project that 15% of retail bill payment check writing will shift to electronic payments over the next 12 months and that electronic POS payments should grow substantially over 12 months with 34% of cash transactions shifting to cards.

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Wireless Wallet

Mosaic Software said yesterday that its “Postilion” solution now includes Boston Communications Group “Wireless Wallet” interface to support bcgi “ATM Recharge.” By using the bcgi “Wireless Wallet” interface, ATM deployers can quickly tap into the fast-growing trend for consumers to prepay their wireless service at ATMs. Through a nationwide real-time infrastructure, bcgi provides one or more of its services to approximately 70 wireless carriers and resellers, including five of the top six national carriers. bcgi handles more than four billion minutes of service a year. Mosaic Software provides software solutions to banks, telco’s, cellco’s, retailers, portals and processors worldwide to drive payments and other financial transactions through ATMs, POS terminals, phones and Internet access points on a truly multi-channel architecture. It also provides EMV enablement, debit card management and loyalty software solutions.

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Spiegel Update

The Spiegel Group announced it has received final Bankruptcy Court approval for the full amount of its $400 million senior secured DIP financing facility. A consortium of banks, led by Bank of America, Fleet Retail Finance and The CIT Group/Business Credit, will provide the DIP financing facility. Spiegel also announced that Alliance Data Systems will proceed with launching new private-label credit card programs for the company’s merchant divisions. The divisions include Eddie Bauer, Spiegel Catalog and Newport News. World Financial Network National Bank will administer the new private-label credit card programs. On April 28, The Spiegel Group filed a motion with the Bankruptcy Court seeking approval to enter into a private label credit card agreement with ADS, and the court approved the motion on May 2. With this approval, Spiegel and each of its three merchant divisions entered into separate but essentially identical 10-year agreements with ADS.

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GSM SIM CARDS

China Unicom has ordered six million “SIMtonIC” GSM SIM cards from
Oberthur Card Systems. The order follows the announcement in February of an
order for 7.5 million high-end 32K SIM cards for China Unicom_s CDMA and
GSM networks. The cards will be manufactured and personalized in Oberthur
Card Systems_ Shenzhen production site, which is “ISO 9001 version 2000”
certified.

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TRM 1Q/03

Portland, OR-based TRM Corporation reported net income for the first quarter of $753,000 compared to a net loss of $337,000 for 1Q/02. Net sales grew to $18.7 million, representing an increase of 9.2% over the first quarter of 2002. ATM operations produced net sales of $7.4 million during the first quarter, a 52.0% gain over 1Q/02. As of March 31st, the Company’s ATM network consisted of 3,100 revenue-generating machines deployed throughout the USA and UK, which represents an increase of 652 ATM machines when compared to the same date in 2002. For complete details on TRM’s 1Q/03 performance visit CardData ([www.carddata.com][1]).

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

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COF CFO

Capital One has lined-up a new CFO to take over July 1st. Gary Perlin, former SVP/CFO of World Bank, will join Cap One as EVP/CFO. Perlin spent 13 years at World Bank. He also spent four years on Wall Street and more than 11 years at Fannie Mae. Perlin will also serve as a member of Capital One’s Executive Committee. The Executive Committee, chaired by Fairbank, is comprised of the heads of key business lines and principal operating and functional groups. In March, Capital One confirmed that its former CFO, David Willey, received a “Wells” notice from the SEC and resigned. (CF Library 7/22/02; 3/4/03)

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