LA CARTE EGG

London-based Egg plc, a pioneering Internet bank, is launching the “la
Carte Egg” card, an international VISA card, in France this weekend. The
marketing campaign will include over 2,300 TV spots and 7.5 million press
and magazine inserts. Egg expects to reach over 20 million consumers
including 94% of Egg’s target market of consumers aged 25-49 with a
cosmopolitan lifestyle, above average income and with Internet access. The
“la Carte Egg” card will be the first VISA card in France to offer
cashback. The new french version of the Egg VISA will offer 1% cash back on
all purchases, as well as a 12.99% APR. Consumers applying before the end
of the year will have their annual fee waived for the first year (normally
Euro 35) and 5% cash back on purchases up to the year-end. The “Egg France
Index” shows that 32% of French adults (15 million) are using technology –
be it Internet, Digital TV or WAP. About 26% of French consumers (12
million) are using the Internet, with the geographic majority of users
residing in Paris. Approximately 24% of French Internet users are now
banking online, and this is expected to grow to over 7 million by the end
of 2004. The company will begin taking applications online, from France, on
Saturday, November 2nd. Launched in October 1998, Egg is an e-commerce
company created by Prudential.

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EURONET 3Q/02

Budapest-based Euronet Worldwide reported revenues of $17.9 million for
the third quarter, an increase of 20% over 3Q/01. The Company posted an
operating loss of $615,000 in the third quarter compared to an operating
loss of $1.1 million in 3Q/01. The Processing Services segment posted third
quarter revenues of $13.8 million, a 23% increase. These processing
revenues represent a 6.5% increase over the prior quarter’s revenues of
$12.9 million. At the end of the third quarter, Euronet owned and/or
operated a total of 2,951 ATMs compared to 2,840 ATMs in the prior quarter,
a 4% quarterly increase. Quarterly transactions on the network reached 22.3
million in the third quarter 2002, a 48% increased over 15.1 million in the
third quarter 2001. Third quarter transactions improved by 3.6 million
compared to the prior quarter. Euronet owns and/or operates ATMs in
Hungary, Poland, Germany, Croatia, Serbia-Montenegro, the Czech Republic,
the U.K., Greece and Egypt.

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MOBIL KNOWLEDGE DEALS

Mobile Knowledge has signed a key contract worth over US$300,000 with
Yellow Checker Cab Company of San Jose, California. Earlier this month, the
company signed a contract with Taxi Equipment Company. Taxi Equipment Co.
provides taxi dispatch, support and technology services to six related
operating companies, including LA Taxi Co-op and Long Beach Yellow Cab
Co-op in California. The company previously inked a deal with Washington,
DC-based Barwood Inc. All three contracts involve Mobile Knowledge’s
“Series 6000” terminals. The terminals provide taxi drivers with the
ability for customers to use credit cards and smart cards. The terminals
feature multimedia color touch screens for use by both drivers and
passengers, and full GPS location-tracking services.

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AmEx HK Cuts

American Express says it will cut up to 100 employees as a result of the merger with the Company’s consumer card and personal financial services businesses. The credit quality of the Hong Kong consumer market has been deteriorating this year with record bankruptcies and losses, according to The RAM Report ([www.ramreport.com][1]). Charge-offs have risen nearly 50% this year, and by year’s end, the number of bankruptcies in 2002 is expected to more than double, compared to 2001. The AmEx cuts represent 12% of the Company’s Hong Kong work force. There are nearly ten million credit cards in-force in Hong Kong.

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

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CELLBUCKS HAMILTON

The Hamilton Bulldogs in Ontario and CellBucks Payments Network announced
the launch of CellBucks’ “In Seat Services” for Hamilton Bulldog hockey
fans. In Seat Services allow sports fans to order and pay for tickets and
merchandise from their mobile phones and have it delivered in minutes right
to their seats using a secure wireless payment network. Once enrolled with
the CellBucks service, customers need only their mobile phones and their
passwords to conveniently access a wide array of services. CellBucks
operates internationally, and independently of mobile phone providers.

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Rewards Battle

Since the onslaught of co-branded cards in 1992, the industry has gone through a number of phases in regard to credit cards offering rewards. After a pull-back over the past three years, the rewards segment is now entering a re-birth. Providian and American Express are the most recent issuers to enter the rewards battle. Providian began testing three new rewards cards in August. Providian’s new suite of cards includes “Providian Airpoints,” “Providian Smart Rewards,” and “Providian Real Cash Rewards.” AmEx rolled out its new “Rewards Green,” “Rewards Gold,” “Preferred Rewards Green,” and “Preferred Rewards Gold” cards in late September. All the AmEx programs have the “Membership Rewards” program as a core feature. (CF Library 9/23/02)

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APAC 3Q/02

IL-based APAC Customer Services reported third quarter net earnings before special charges of $1.8 million. Third quarter revenue of $85.0 million declined in comparison to the prior year and the second quarter due to cutbacks by financial services clients including credit card issuers. The Company also reported Thursday it signed a multi-year contract to continue providing services to UPS. APAC Customer Services is a leading provider of customer interaction solutions for market leaders in financial services, insurance, telecommunications, healthcare and logistics. For complete details on APAC’s third quarter results visit CardData ([www.carddata.com][1]).

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

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DECT Terminal

SchlumbergerSema launched a new portable POS terminal that communicates via the “Digitally Enhanced Cordless Telecommunications” network. “DECT” is the digital wireless standard in Europe, the Middle East and Africa. The “MagIC X1000 DECT” terminal enables both off and on-line card payments to be transacted more than 100 meters away from its docking station. The new terminal is EMV approved and compliant with the latest PIN entry security standards. It also has TCP/IP capabilities for secure payment.

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Employment Data

As the payment industry continues to deal with declining transaction volume in the midst of a weak economy, the Bureau of Labor Statistics reported that the unemployment rate of 5.7% was un-changed in October. During October, manufacturing employment declined by 49,000, employment in the construction industry decreased by 27,000, and employment in business services fell sharply (-44,000). However, finance, insurance, and real estate added 34,000 jobs in October. After little change in the first half of the year, the financial services industry has added 70,000 jobs since June.

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