Fair Isaac Board

In conjunction with the closing of the merger between Fair, Isaac and HNC, the company announced Monday the appointment of two HNC directors to Fair, Isaac’s board of directors. Fair, Isaac’s board now totals nine members. The new board members include Alex “Pete” Hart, who has been an HNC director since October 1998. Currently, Hart is an independent consultant to the consumer financial services industry specializing in emerging payment and distribution systems within the consumer banking industry. Hart previously served as CEO of Advanta and as president and CEO of MasterCard International. He also serves on the boards of Sachez Computer Associates, Global Payments, Actrade Financial Technologies, and Silicon Valley Bank, as well as a number of privately held companies. Fair, Isaac also announced that Thomas Farb will join the board. He is general partner and CFO for the Boston office of Summit Partners, one of the country’s largest investment firms.

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Citi Affinity Cards

Citibank announced this morning that its Affinity & Agent Bank division has extended its credit card portfolio marketing agreements with Intuit and the American Bar Association through the next several years. The American Bar Association is the largest voluntary professional membership association in the world and has more than 400,000 members. Today, over 120,000 lawyers carry the Citibank ABA card in their wallets. Citigroup’s cards division now serves 108 million accounts in 47 countries. Second quarter domestic charge volume was $62.0 billion according to CardData ([www.carddata.com][1]).

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

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ePIN+

Experian launched a sophisticated Web-enabled data analysis solution that helps collections organizations reduce expenses and improve operations by tracking the location of payments and statements in the postal system. The “ePIN+” system utilizes the latest United States Postal Service tracking technology to give users precise information about any mail piece. It provides the date customers receive billing statements and when their payments have entered the postal system. Information gathered through “ePIN+” can be seamlessly integrated with a user’s predictive dialing capability providing relevant information on the status of the mailed invoice or returned envelope for the debtor with whom they are speaking.

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ActivCard 2Q/02

ActivCard reported 2Q/02 revenue of $9.6 million, an increase of 18% over the $8.2 million reported in the first quarter and a year-over-year increase of 13% from the second quarter of 2001. For the third quarter of 2002, the Company anticipates continued sequential growth with revenues ranging between $10.0 million and $11.0 million. Actual GAAP net loss for the third quarter is expected to range between $0.07 and $0.11 per share.

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GEMPLUS LAWSUIT

After being tied-up in appeals for three years, Gemplus has reportedly been ordered to pay damages to a small California firm. In February 1999, a federal court jury in San Diego awarded $17.5 million in damages to Humetrix, Inc. in a breach of contract and breach of partnership action against Gemplus, S.C.A.. The jury ruled that Gemplus’ actions caused a $15 million loss in potential profits for Humetrix. The jury also awarded $2.5 million in additional damages. The French newspaper Les Echos reported the appeals process has ended. The dispute centered over a 1995 agreement in which Gemplus agreed to a five-year contract designating Humetrix as a reseller of health-care applications of Gemplus smart card products in the U.S.. The contract also provided Humetrix with royalties for 10 years. Humetrix was in the process of developing ‘VaccicardT’, a smart card to track immunization records for infants, in the U.S., as well as other health care applications, when Gemplus allegedly breached its contract and partnership with Humetrix. Humetrix also filed a claim seeking priority trademark rights over the trademark “VaccicardT.” The jury awarded Humetrix with ownership of the trademark, but Humetrix made no claim of monetary damages on that count.

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COLES MYER CARD

Coles Myer Ltd is reportedly in final discussions to issue a co-branded VISA and MasterCard. The retailer currently has about two million cardholders in its private label card program. It will attempt to upgrade 350,000 store card customers to a VISA or MasterCard, according to the Australian Financial Review. GE will issue the card for Coles Myer. Last year, Coles Myer launched the new ‘Coles Myer Card’ to replace more than 1.7 million existing Myer, Grace Bros, Target and Kmart private label credit cards now in force in Australia.

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HSBC 2Q/02

London-based HSBC Group reported that HSBC USA Inc. had 2Q/02 net income of US$198 million, an increase of 5% from US$188 million for the second quarter of 2001; however, cash earnings in the second quarter decreased to US$197 million from US$229 million in the comparable period in 2001. HSBC also reported that its Internet banking service had more than 335,000 customers registered at the end of the second quarter, up from approximately 275,000 at year-end 2001. HSBC Bank USA has more than 410 branches in New York State as well as eight branches in Florida, two in Pennsylvania, three in California and 17 in Panama.

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Concord Stock Repurchase

Concord EFS announced that its Board of Directors has approved the repurchase of up to $250 million of Concord’s common stock. Concord is a leading vertically integrated electronic transaction processor, providing transaction authorization, data capture, settlement and funds transfer services to financial institutions, supermarkets, petroleum retailers, convenience stores, restaurants, and other independent retailers.

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NDS 2Q/02

London-based NDS Group Plc reported that as of June 30th, they had approximately 29.6 million set-top boxes containing NDS technology were in use worldwide, up from 24.5 million at 30 June 2001 and an increase of 1.5 million in the quarter. Growth has been strong in US, UK, Israel and Asia Pacific, although less so in Europe due to uncertainties surrounding platform ownership; the subscriber base in Latin America has not grown through the year, mainly due to tough economic conditions. Asia Pacific has been boosted by the launch of SkyLife in Korea and initial rollout of set-top boxes is now occurring in China. NDS Group is a leader in providing conditional access systems and interactive applications for digital pay TV.

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Sprint Cards

Sprint and eBay have teamed sell Sprint Prepaid PhoneCards. To kick-off the launch of the new store, Sprint has placed one million minutes of prepaid domestic long distance up for bid on eBay with proceeds to benefit a camp for seriously-ill children. Under terms of the program, eBay shoppers will be able to choose from two different denominations, with rates as low as 4.2 cents per domestic minute, if buying a 25 pack of 480 minute cards. The single 120 minute cards will sell $5.40 while single 480 minute cards will sell for $21.60.The proceeds from the million prepaid domestic minutes Sprint donated will benefit Victory Junction Gang Camp. The Yankee Group’s Technologically Advanced Family Study shows that nearly 45% of all U.S. households used prepaid calling cards to make long-distance calls in the past year, up from 41% in 2000.

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Top 10 Mid-Year

At mid-year 2002, the average balance per active account, among the nation’s top ten issuers stood at $2,433. The average year-to-date volume per active account came in at $2,122. Bank One/First USA continued to lead the pack with the highest average balances and volume. Sub-prime specialists Providian, Capital One, and Household carried the lowest average balances and volume.

Top 10 Active Account Analysis
ISSUER BALANCE VOLUME
1. Citigroup $2437 $2444
2. MBNA $2437 $2392
3. Bank One $3340 $3420
4. Chase $2964 $2377
5. Discover $2111 $2034
6. Capital One $1702 $1226
7. Bank of America $2823 $2438
8. Providian $2279 $1105
9. Household $1510 $1676
10. Fleet $2722 $2111
Average: $2433 $2122
Source: CardData (www.carddata.com)

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Credit Store

Sioux Falls, SD-based sub-prime credit card specialist, The Credit Store, reported it has not arranged any new sources of financing or made any other arrangements to enhance its liquidity. As a result, the Company has been withholding payments to many of its unsecured creditors. The Credit Store was unable to extend the maturity of its credit facility with Coast Business Credit and is now in default under the credit facility. Coast has advised the Company that its parent, Southern Pacific Bank, has been under contract to sell a portfolio of loans, including the Company’s credit facility. The Company continues to engage in discussions with its various institutional creditors, including Coast and the potential purchaser of its portfolio of loans, as well as possible new sources of funding looking toward extensions of maturity dates or refinancing of its existing indebtedness. The Company has retained Marotta Gund Budd & Dzera as restructuring advisors to assist the Company in exploring its options.

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