E-CONNECT VISA

Bank eConnect has signed with AAA America Direct Inc. to market the Bank eConnect guaranteed issued VISA card to the sub-prime marketplace. Through its network of over 1,500 telesales companies, AAA America Direct has access to over 75,000 individual telesales representatives. Bank eConnect is held by eConnect Financial, a division of eConnect that is the distributor of the eCashPad and the Bank Eyes Only service.

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INFINEON 2Q/02

Munich-based Infineon Technologies reported revenues of Euro 1.4 billion for the quarter ending June 30, an increase of 1% from the previous quarter, and 10% from the same quarter last year. Net loss for the quarter amounted to Euro 76 million, a sequential improvement from a loss of Euro 108 million in the previous quarter and from a loss of Euro 371 million year-on-year. During the quarter, Infineon expanded its smart card market share from 34% to 38%. In addition to plain chips, Infineon has produced more than 2 billion chip card modules to-date and signed a second calendar quarter agreement to supply smart card chips to MasterCard Financial Institutions.

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FDC & PAY-POINT

First Data announced Friday an agreement to acquire PayPoint Electronic Payment Systems from BP p.l.c. Created in 1984 to help ARCO launch PIN-based card payments at the gasoline island, PayPoint added non-petroleum clients in the 1990s while continuing to process payments for parent ARCO, which BP acquired in 2000. Earlier this year, BP agreed to switch its debit and credit processing transactions to PayPoint for its various retail sites throughout the U.S. That switch is expected to take place in early 2003. PayPoint’s existing contracts include Albertson’s, Costco, Trader Joe’s and McDonald’s. With the addition of PayPoint’s EBT acquiring capabilities, First Data says it will be able to offer direct EBT connections to any merchants anywhere nationwide.

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TVG & COMCARD

Rehovot-based smart card developer T.V.G. Technologies announced an agreement with Germany’s Comcard GmbH to manufacturer smart card based identification cards and read/write systems for IBM Israel Ltd. in the event that IBM is successful in its bid for a contract to supply the new ID cards to the Government of Israel. The winning bidder in the Israeli Government tender, which calls for production of 5 million smart card based ID cards over the next five years, will be announced in November. If IBM’s bid is successful, TVG and Comcard plan to establish a new production facility in Israel, for this and other projects, mainly for the Israeli Government and possibly including driver licenses.

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CHASE 2Q/02

J.P. Morgan Chase reported that second quarter credit card outstandings approached $50 billion while charge-offs remain high due to its recent Providian acquisition. During 2Q/02, Chase’s managed credit card outstandings increased 29% from one year ago to $49.5 billion due to the Providian acquisition in the first quarter of 2002 and organic growth. Managed credit costs of $736 million were 1% higher than the first quarter and were 17% higher than the second quarter of 2001, primarily due to increased charge-offs related to the full quarter impact of the Providian credit card portfolio. On a managed basis, the credit card net charge-off ratio was 6.42%, compared to 5.87% for the first quarter and 5.54% for the second quarter of last year. Chase says consumer credit trends continued to improve with positive trends in 30-, 60- and 90-day delinquencies in credit cards. For complete details on Chase’s 2Q/02 performance visit CardData ([www.carddata.com][1]).

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

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CAP ONE FALLOUT

Following the disclosure last week that Capital One has entered into an informal MOU with bank regulators addressing certain regulatory matters, and the subsequent collapse of the card issuer’s stock price, Cap One’s CEO announced Friday the purchase of $5 million in COF shares in an effort to bolster investor confidence. Meanwhile a number of shareholder lawsuits began to surface this weekend. Cap One’s stock closed Friday at $35.21, after hitting $33.15 during the day. In after hours trading the stock was slightly higher at $35.50. Los Angeles-based Glancy & Binkow filed a class action lawsuit alleging that Cap One failed to disclose its large percentage of sub-prime customers and failed to maintain adequate loan loss reserves, thereby artificially inflating the Company’s earnings and stock price. New York-based Milberg Weiss Bershad Hynes & Lerach charged that Cap One failed to disclose it was in violation of federal guidelines regarding adequate levels of capitalization and loan loss reserves and that it was not effectively managing its rapid growth. The law firm also alleged that Cap One insiders sold more than $8.2 million in Cap One common stock at artificially inflated prices. Finally, Washington, DC-based Cohen, Milstein, Hausfeld & Toll said Cap One failed to disclose that it did not maintain adequate loan loss reserves and failed to disclose the full scope and nature of its sub-prime lending and its inadequate internal controls. Cap One acknowledged last week that nearly 40% of its business is in the sub-prime segment. For complete details on Cap One’s 2Q/02 performance visit CardData ([www.carddata.com][1]).

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

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ASPECTIVE & NOVATEL

Aspective and Novatel Wireless have formed a partnership whereby Aspective will provide Novatel Wireless’ “Merlin G201” wireless PC card modem to its corporate customers with its complete wireless e-Business solutions. The “Merlin G201” enables fast, secure transfer of wireless data on GSM/GPRS networks, providing access to email, corporate applications and the Internet using both PCs and PDAs. Aspective is a major provider of mobile enterprise solutions in Europe, offering its clients a complete one-stop-shop for mobile e-Business services by bringing applications, devices and airtime together under a single contract.
Aspective customers include: Heineken, Pirelli, Electrolux, Janssen-Cilag and Commerzbank.

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DIEBOLD EXECUTIVE

Diebold has named William Rosenberg, formerly with Emerson Electric and Creative Management Services, as VP of corporate development. Rosenberg will help Diebold identify and consummate successful corporate growth strategies and investments with an emphasis on acquisitions and strategic partnerships. Diebold employs more than 13,000 associates with representation in more than 88 countries worldwide.

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PEOPLE’S 2Q/02

While CT-based People’s Bank credit card portfolio has significantly contracted over the past twelve months, its managed net charge-offs for have decreased for three consecutive quarters, and managed delinquencies have declined five consecutive quarters. From the peak level in 3Q/01, managed net charge-offs improved $14.3 million, or 22%, and were $5.1 million, or 9%, lower than the first quarter of this year. Managed delinquencies declined $19 million, or 16%, from the first quarter. Net charge-offs (as a percentage of average managed loans) for credit cards were 6.91%, compared to 6.95% for 1Q/02 and 6.99% for 2Q/01. Delinquencies as a percentage of quarter-end managed loans for the credit card services segment were 3.56% compared to 3.97% for 1Q02 and 4.11% for 2Q01. Average managed loans for credit card services declined $633 million, or 18%, from 2Q01. For complete details on People’s 2Q/02 performance visit CardData ([www.carddata.com][1]).

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

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EQUIFAX 2Q/02

Equifax Inc. reported second quarter net income of $47 million, an increase of 7% over last year. However revenues of $270 million, were down 4% compared to one year ago. The company also reported that its North America “Direct-to-Consumer” 2Q revenues were up 36%, to $9 million. Equifax is currently beefing-up its Small Business Financial Exchange. With the addition of 13 million records, Equifax will have over 20 million financial records representing approximately 10 million small businesses in the U.S. For complete details on Equifax’s 2Q/02 results visit CardData ([www.cardata.com][1]).

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

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