BIBIT & AQUEDUCT

Bibit Global Payment Services and Aqueduct announced a partnership that will allow companies to implement an integrated global online commerce platform that will support international business in countries outside the United States. The two companies will offer this integrated solution to global manufacturers looking to implement online commerce capability on a worldwide basis. Offered as a hosted solution, this capability can be quickly and cost-efficiently implemented to provide companies with a turnkey approach without a large investment in software, hardware, personnel and infrastructure.

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CAPITAL ONE 2Q/02

Capital One reported second quarter card profits of $213.1 million, versus earnings of $155.3 million for the comparable period in the prior year. The company’s managed consumer loan balances increased by $4.6 billion in the second quarter to $53.2 billion. The managed net charge-off rate increased to 4.36 percent for the second quarter of 2002 compared with 4.00 percent for the first quarter of 2002. The managed delinquency rate (30+ days) decreased to 4.54 percent as of June 30, 2002, compared with 4.80 percent as of March 31, 2002. In the second quarter, Capital One added 2.0 million net new accounts, bringing total accounts to 48.6 million. The company’s managed revenue margin increased to 16.55 percent in the second quarter of 2002 from 16.47 percent in the first quarter of 2002. Marketing expense for the second quarter of 2002 was $320.4 million, down from $353.5 million in the first quarter of 2002. For complete details on Capital One’s 2Q/02 performance visit CardData ([www.carddata.com][1]).

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

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MONEY TRANSFERS

First Data Corp. announced that its
Western Union Financial Services subsidiary has signed multi-year contracts
with two of Turkey’s leading banks. Both Denizbank and Oyakbank will begin offering the Western Union Money
Transfer service and Western Union QuickPay, Western Union’s
international bill payment service, later this month. More than 100 Denizbank
locations and approximately 190 Oyakbank locations will offer Western Union
services, more than doubling the current number of Western Union agent
locations in the country.

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BANKONE 2Q/02

Bank One/First USA reported that credit card outstandings grew by $2.0 billion from the previous quarter and that 1.28 million new accounts were opened, up 28% from a year ago and the highest level in nearly three years. Credit card income for the second quarter was $296 million, up $103 million, or 53%, from the year-ago quarter, reflecting lower net credit losses, lower operating expenses and the addition of the Wachovia portfolio. Operating income improved $57 million, or 24%, from the first quarter due to a gain on the sale of a portfolio, increased securitization activity, lower credit costs and lower operating expenses. Managed loans were $66.8 billion at June 30th, up $3.8 billion, or 6%, from the year-ago period, including the addition of the Wachovia portfolio. Managed loans increased $2.0 billion, or 3%, from March 31, 2002. Total revenue was $2.012 billion for the quarter, up $218 million, or 12%, from one year ago, mostly driven by the addition of the Wachovia portfolio and the consolidation of Paymentech. The managed charge-off rate was 5.62%, compared to 6.09% in the year-ago quarter and 5.69% in the first quarter. The managed 30-day delinquency rate was 3.83%, down from 4.10% in the year-ago quarter and 4.27% in the first quarter. For complete details on Bank One/First USA’s 2Q/02 results, visit CardData ([www.carddata.com][1]).

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

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JCB OAKWOOD

Oakwood Worldwide has announced that all of its corporate housing and serviced apartment locations will now accept JCB, the fourth largest credit card in the world. JCB is the largest issuer of cards in Japan, and has over 40 million cardmembers worldwide.

Oakwood is the leading global provider of corporate housing and serviced apartments, with locations throughout the U.S., U.K., Japan, Korea, China, Thailand and the Philippines. The phrase “corporate housing” describes full-sized furnished apartments, a popular lodging option amongst extended stay business and leisure travelers. In many countries, the term “serviced apartments” is used to describe this segment of the lodging industry.

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ORANGE CARD

ING DIRECT announced it is making it even easier for Americans to save their money by offering easy access to an Orange Home Equity Account featuring no fees and rates as low as 4.75%. Instead of the standard book of checks, customers receive a card that allows for point of sale purchases, with the money coming from their loan. The loan is also linked to a customer’s existing checking account so a customer can simply electronically transfer money from the loan into their checking account in order to write checks to consolidate debt. Customers can get a loan for nearly 90% of the equity in their home, up to $250,000. The Orange Home Equity Account doesn’t accrue interest until a customer starts borrowing, which can be done for up to 10 years, with 25 years to pay back the loan (with no penalty for early repayment as well as the flexibility to decide how much is paid each month).

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TSYS 2Q/02

TSYS reported net income for the second quarter increased 13.0% to $29.3 million, up from $26.0 million in the same period last year. Revenue for the second quarter was $237.0 million, an increase of 7.3%, compared with revenue of $220.9 million one year ago. Revenue for the second quarter of 2002, excluding the amounts for reimbursable charges, was $177.1 million, an increase of 9.8% compared to one year ago. Consumer and commercial accounts on file grew by 16.4% and 14.4%, respectively, over June 2001. With this growth, TSYS improved its net profit margin before reimbursable items for the first six months to 16.4% from 15.3% a year ago. During the quarter, TSYS expanded its reach in Europe by signing a letter of intent to process about 500,000 card accounts in a three-year pilot program for Barclaycard, one of Europe’s largest consumer credit card issuers. International accounts on file grew by 25.4% over the second quarter last year. For complete details on TSYS’s 2Q/02 results, visit CardData ([www.carddata.com][1]).

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

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SEARS PAYROLL CARD

Comdata Corporation announced the launch of the Sears PayCard, a card-based payroll product to be offered as an electronic alternative to paper paychecks for Sears employees nationwide. Sears is the latest national retailer to supplement its direct deposit and paper check payroll programs with the Comchek eCash card, the flagship payroll product from Comdata. Introduced in 1994, the Comchek eCash product enables employees with or without banking relationships to receive payroll and other company-provided funds on their own secure, personal payroll card they can use just like an ATM card for cash at Cirrus ATMs, and for debit purchases wherever MasterCard is accepted. More than 500,000 individuals currently receive payroll and other funds via the Comdata card.

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AGILIS POWER

Diebold, Incorporated introduced Agilis Power, a new development environment that enables Diebold Professional Services to create vendor- independent custom applications for automated teller machines. Using Agilis Power, Diebold’s worldwide software and self-service experts can help financial institutions implement customized applications that run across a multi-vendor ATM network. This gives consumers a consistent user experience every time they access their financial institution, while reducing the operating costs associated with running a multi-vendor network. Built on an industry-leading INvolve middleware platform from Nexus, Agilis Power provides an open architecture that takes advantage of industry-standard technology. Diebold’s dedicated software development resources experienced in large-scale customer applications and specialized solutions use Agilis Power to assist financial institutions in the implementation of a solution customized to their needs. Diebold Professional Services’ project managers, technical trainers and systems engineers are also deployed to support development efforts and coordinate these engagements.

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TSYS Italy

TSYS is establishing a sales and marketing office in Italy and has named Fabio Micheli as regional sales manager for Italy, Turkey, Greece and France. Before joining TSYS Europe, Micheli was Italian country manager for First Data. He has worked in sales for more than 20 years, including numerous management positions with Citibank in its cards Italy division. TSYS entered Europe in 1999 and operates a business development office in London, professional services center in York and a data center in Harrogate, United Kingdom, which support all of TSYS’ European operations. TSYS expects to open additional offices throughout Europe to service clients.

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Under $100M 2Q/02

The second quarter was a mixed bag for smaller issuers. Suntrust posted a 15% increase in outstandings from the year ago quarter while Trustmark experienced an 8% decline. United Airlines Employees Credit Union was flat while Broward Schools Federal Credit Union posted a 4.5% drop.

Outstandings Growth
2Q/02 2Q/01 YAG
Suntrust $97,801,360 $85,146,000 +14.9%
United Airlines Empl CU $70,029,029 $69,777,008 +0.4%
Trustmark Natl Bank $56,408,283 $61,043,630 -7.6%
Broward Schools CU $51,636,094 $54,072,380 -4.5%
Source: CardData (www.carddata.com)

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Coinstar Expectations

Coinstar announced that it expects revenues of its North American core business to hit $36.5 million, exceeding previously issued guidance for the second quarter. Based on preliminary data, the company anticipates revenues for its North American core business of approximately $36.5 million. Due to higher than projected earnings before interest, taxes, depreciation and amortization, and non-cash stock-based compensation, and lower than projected interest expense, net income before an extraordinary loss due to the early retirement of debt is expected to exceed the high end of the previously issued guidance.

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