CARD VOLUME HOLDS

Royal Bank’s Streamline Merchant Services reports that holiday volume in
the U.K. on debit and credit cards is maintaining last year’s record
levels. Last weekend Streamline processed £630 million in more than 10
million transactions. Withdrawals from NatWest and The Royal Bank of
Scotland cash machines were also at high levels last weekend. Over 4.7
million withdrawals were made, with a total value of £302 million which
compares with a figure of £281 million for the same weekend last year. The
Royal Bank of Scotland Group has over 5,500 machines in the UK.

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IDC & DATAWAVE

Pennsylvania-based Integrated Data Corp. has acquired 41% of DataWave
Systems, Inc., a Yukon Canada company. IDC paid $1.8 million to six selling
shareholders, consisting of various individuals and companies, who acquired
the shares in a distribution that same day from Cash Card Communications
Corp., Ltd, a privately held Bermuda company. IDC says it is considering
the acquisitions of further shares of DataWave in the near future. Shares
if IDC are currently trading at a mid-price of approximately $4.15 per
share on the OTCBB.

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I-FRAUD INSURANCE

India’s United Insurance Company Ltd has developed a customized insurance
product that covers the risk of credit card misuse over the Internet.
Mumbai-based Rediff.com has become the first business to contract the
insurance coverage. The Rediff.com policy covers online Indian credit card
transactions undertaken by Indian nationals, up to Rs 10,000 per
transaction for any product shopped on its Web site.
Claims arising from fraudulent use of credit card on Rediff.com are
refunded within 15 days. For the third quarter, online shopping in India
grew by 238% over the same quarter last year.

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Incurrent Award

NJ-based EBPP systems provider, Incurrent, has been selected New Jersey’s “Growth Company of the Year” by the New Jersey Technology Council. The growth company award program was established to pay tribute to the region’s most outstanding technology companies in recognition of growth, achievement and excellence within the diverse technology sectors of New Jersey. Companies are judged on the basis of market penetration, growth in sales, and employee expansion.

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ICMA MEMBERS

Seoul-based IC Korea Co., Ltd has become a Principal Member among card
manufacturers in the International Card Manufacturers Association. Also
joining IC Korea are Huangshi G & D Wanda Security Card Ltd. (Branch
Member) of Huangshi, Hubei and US-based Travel Tags / Xtreme Graphics. New
personalizer members include·Discover Financial Services of Riverwoods,
Illinois. Associate Members among suppliers include: API Foils: Lawrence,
KS, USA; ·Hanwha L & C Corp. Seoul, Korea; Kora-Packmat Maschinenbau GmbH,
Villingendorf, Germany; and Unifoil Corp.of Passaic Park, NJ, USA. ICMA is
a non-profit association of plastic card manufacturers, personalizers and
related industry participants and has more than 230 members globally.

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GPN 4Q/02

Global Payments reported that revenue for the quarter ending November 30th grew 12% to $129.5 million. Net income for the quarter grew 17% to $13.6 million compared to $11.6 million in the prior year. For the six months ended November 30th, revenue grew 14% to $257.2 million compared to $226.6 million in the prior year. Organic revenue grew approximately 8% to $245.7 million. GPN says it expects to achieve fiscal 2003 full year guidance of $495 million to $514 million in revenue. For complete details on Global Payments latest performance visit CardData ([www.carddata.com][1]).

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

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Charge-Off Outlook

The regulatory scrutiny of credit card issuers this year along with the continued malaise of the U.S. economy are seen as key factors indicating that bankcard charge-offs will not begin to show sustainable improvement until the economy gets better traction during the second half of 2003. That conclusion was drawn yesterday by Standard & Poor’s Ratings Services. S&P says the weak consumer is likely to raise the losses for the credit card industry going forward. While the worst may be over, (charge-offs have declined from a record 7.6% in March to 6.5% in October), the unemployment rate is still creeping higher, and charge-offs are likely to rise further before finally falling later next year. Charge-offs are likely to move back above 7% in the first quarter 2003. S&P notes the two bright spots for the credit card industry are the relatively high levels of excess spread and stable payment rates.

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ContactMail v2.1

Experian has released the v2.1 of its “ContactMail” e-mail delivery and management solution that now offers increased reporting features and improved campaign management solutions. To complete the package, ContactMail’s conversion tracking features and web-based activity reports offer marketers the most efficient means to monitor and evaluate the success of their e-mail marketing efforts.

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Discover 4Q/02

Morgan Stanley reported this morning that profits for its Credit Services or Discover card division grew 9% during fiscal 2002 to $767 million, while profits for the fourth quarter, ending November 30th, were up 1% to $194 million. Discover card portfolio receivables increased a modest 3.7% during the year to $51.1 billion; however, fourth quarter transaction volume soared 14.5% to a record $25.3 billion, as a result of higher balance transfers and an increase in sales volume, presumably driven by Discover’s aggressive 0% APR offers. The 4Q/02 credit card net charge-off rate was 5.96%, 6 basis points lower than the third quarter, but 11 basis points higher than a year ago. Morgan Stanley says the increase in the charge-off rate from fourth quarter 2001 was largely the result of an increase in bankruptcy losses. During the fourth quarter, Discover added 300,000 net new accounts, but active accounts continued to decline. Discover active accounts are down 13% from one year ago. The interest rate spread on Discover’s credit card portfolio contracted by 20 basis points compared to last year’s fourth quarter, driven by a lower finance charge yield which more than offset a decline in the cost of funds. For complete details on Morgan Stanley/Discover’s fourth quarter performance visit CardData ([www.carddata.com][1]).

DISCOVER CARD PORTFOLIO SNAPSHOT
4Q/01* 1Q/02* 2Q/02* 3Q/02* 4Q/02* Y/Y CHNG
Receivables: $49.3b $49.6b $49.4b $49.7b $51.1b +3.7%
Volume: $22.1b $24.1b $23.5b $24.3b $25.3b +14.5%
Accounts: 45.7m 46.0m 46.2m 46.2m 46.5m +1.8%
Actives: 24.0m 23.8m 23.4m 22.8m 22.6m -5.8%
Chargeoffs: 5.85% 6.49% 6.30% 6.27% 5.96% +1.9%
Delinquency: 6.85% 6.75% 5.63% 5.72% 5.96% -13.0%
Yield: 13.48% 12.63% 12.64% 12.71% 12.45% -7.6%

4Q/01 fiscal quarter ended 11/30/01; 1Q/02 ended 2/28/02; 2Q/02 ended
5/31/02; 3Q/02 ended 8/31/02; 4Q/02 ended 11/30/02.
Source: CardData (www.carddata.com)

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

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