HIGH END SMART CARD

Atmel Corporation announced the availability of the first high-end smart card secure microcontroller based on Atmel’s new secure AVR architecture.

This new architecture forms the basis of the AT90SC19264RC, which is a high-performance 8-bit secure microcontroller based on the AVR enhanced RISC architecture. Its low power consumption also makes it compliant with mobile phone requirements. The AT90SC19264RC is the first member of a family of very secure processors that Atmel is developing, to provide heightened security for electronic finance, e-commerce, and m-commerce transactions. The rest of the family will be introduced over the next quarter’s end with the objective being to offer a set of products ranging from 2-Kbytes EEPROM up to 128-Kbytes all being software compatible to each other.

The AT90SC19264RC features outstanding on-chip highly compact ROM program memory of 192-Kbytes, together with its flexible 64-Kbyte EEPROM for data occupies less than 25 square millimeters and is suitable for cost-sensitive high volume smart cards production. This capability provides all that is necessary for high-end smart card applications where security, fast computation, and short time-to-market are required.

This wide memory space, the powerful RISC core, and a large RAM working memory (6-Kbytes), makes this product particularly suitable to reach and even exceed JavaCard expectations. The high security level provided by the numerous dedicated security features (RSA, DPA/SPA resistant DES/TDES co-processor, true Random Number Generator (RNG), firewalls, and environmental protections), is above the state-of-the art, and is about to be certified against the more demanding security rules designed for banking and government applications.

Lucien Brau, Atmel’s Smart Card IC’s Division Director said, “We are very proud to offer this new highly secured microcontroller. This is the first one based on our new secure AVR architecture, which is a definitive step forward on the smart card microcontroller market. Our customers can now benefit from all the advantages afforded by this technology, such as flexibility of use, very high performances, advanced security features, and short time-to-market, giving them a key leading position to develop further innovative applications.”

A complete set of development tools is available, and the first ROM codes are already accepted for bulk production. In addition, evaluation kits can be delivered under specific security procedure.

Typical high-volume pricing is $4.00 for 100K units.
Glossary
RSA Rivest Shamir Adelman
DPA Differential Power Analysis
SPA Simple Power Analysis
DES Data Encryption Standard
TDES Triple Data Encryption Standard

About Atmel

Founded in 1984, Atmel Corporation is headquartered in San Jose, California with manufacturing facilities in North America and Europe. Atmel designs, manufactures and markets worldwide, advanced logic, mixed-signal, non-volatile memory, and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using CMOS, BiCMOS, SiGe, and high-voltage BCDMOS process technologies.

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Givex IRIS

Givex Corporation and Progressive Software, the operating subsidiary of Tridex Corporation has announced an agreement to integrate Givex’s gift card and loyalty technology with IRIS (Intelligent Restaurant Information System), Progressive’s leading Windows®-based point-of-sale system.

Under this agreement, Progressive Software clients can conduct real-time gift card and loyalty transactions directly through IRIS, their in-store point-of-sale system, as well as other sales channels including websites, kiosks, catalogues, and telephones.

To date, North Carolina-based Progressive has more than 14,000 sites installed and according to Christopher Sebes, chief operating officer of Progressive, “a large percentage of our customers are looking for ways to leverage their POS infrastructure, increase sales, and operational efficiencies. These customers recognize gift card and loyalty programs are one of the most effective ways to do this and are looking for an integrated solution. Now, with Givex on our side, we can meet these requests.”

Progressive Software users conducting Givex gift card and loyalty programs will receive the following services from Givex:

a.. Card design and production b.. Real-time tracking and reporting c.. Secure reporting website d.. 24/7 customer support e.. Training

According to Don Gray, president and chief executive officer of Givex Corporation, “by integrating our technology with IRIS, Progressive customer’s can not only choose between a gift card or loyalty program but also a program that utilizes both features on a single card. It’s this kind of flexibility which both companies provide that makes this marriage of technology ideal.”

About Givex Corporation

Givex Corporation (www.givex.com) is North America’s premier gift card and loyalty solution provider for the retail and hospitality sectors. Givex seamlessly integrates point-of-sale devices – LAN-based registers, credit card terminals, kiosks and telephones – with the Internet to create a secure real-time transaction processing environment that works across all sales channels. Givex provides a variety of turnkey and custom gift card and loyalty programs that ensure every merchant’s unique set of needs are met. Patents are pending for the Givex technology in the United States and Canada.

About Progressive Software

Progressive Software ([www.progressivesoftware.com][1]) is a leading provider of application software and enterprise solutions for the specialized needs of the restaurant industry. The company provides a broad range of high-performance technology and services designed to optimize productivity and profitability. Progressive Software is the solution of choice for Jack In The Box, Starbucks, Steak’n Shake, Golden Corral, Boddie Noell (dba Hardee’s), Ryan’s Steak Houses and many others, and is currently installed in more than 14,000 restaurant and retail outlets in the United States, Canada, UK and the Far East.

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

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Elan Renewals

First United National Bank has renewed its contract with Elan Financial Services to provide a wide range of financial services for five years. Based in Fryburg, Penn., First United National Bank has $128 million in assets and provides debit card and ATM services through Elan. They have been with Elan since 1996.

Elan Financial Services also has renewed its contract with Workers’ Credit Union in Fitchburg, Mass., to provide a wide range of financial services for five years. Workers’ Credit Union, with $400 million in assets, has been with Elan since 1991. Elan Financial Services will drive Workers’ Credit Union’s 10 ATMs and process its customers’ Visa check card transactions and electronic funds transfer (EFT) transactions. Elan will also provide fraud management reporting and alerts through its FraudWatch product. FraudWatch detects fraud as the debit card transaction is occurring, thereby preventing financial loss to the institution and reducing cardholder disputes.

Elan Financial Services supports more than 10,000 ATMs, and 12 million cards, for 3,000 financial institutions with a complete range of products and services including credit card issuing, ATM, debit card, and merchant processing. Elan provides full-service support and management tools that are offered uniquely through a single source.

Elan is part of Minneapolis-based U.S. Bancorp (NYSE:USB). With assets in excess of $171 billion, U.S. Bancorp is the 8th largest financial services holding company in the United States and operates the third largest bank-owned ATM network. Visit U.S. Bancorp on the web at [usbank.com][1].

[1]: http://usbank.com

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Zebra & Fargo

Edward Kaplan, Chairman and Chief Executive Officer of Zebra Technologies Corporation (Nasdaq: ZBRA), expressed disappointment over termination of the acquisition of Fargo Electronics (Nasdaq: FRGO), as announced today, but reaffirmed optimism for Zebra’s long-term growth and profitability.

In addition, the company announced that it would expense costs related to the acquisition in the first quarter of 2002. “No doubt, we are disappointed that we did not complete the Fargo acquisition, which would have helped Zebra achieve its long-term growth objectives,” stated Mr. Kaplan. “Our associates worked exceptionally hard to bring this transaction to a successful conclusion. At the same time, Fargo was only one of many avenues for growth for Zebra, in card personalization systems, bar code label and receipt printing, and related areas. The depth and breadth of our product line, global presence and superb financial condition position Zebra for long-term success and support an organization dedicated to building stockholder value. Because of Zebra’s size and financial strength, Fargo was not a critical transaction for Zebra’s long-term health and growth potential.

“Mr. Kaplan continued, “Zebra is very well positioned to pursue its business plans. In card personalization systems, we intend to build on record sales in 2001 by continuing to introduce card printers incorporating new technologies that address a rapidly expanding array of high-growth applications in security, access control and personal identification. We also expect that further distribution channel development, both in the U.S. and abroad, will contribute to capturing growth opportunities in driver’s licenses, national ID cards, employee ID badges, and membership and loyalty cards, among others. “Zebra’s larger bar code label and receipt printing business is well positioned to capitalize on applications in high-growth vertical markets. Our products and technology will continue to deliver real value by enabling users to lower costs, improve productivity, deliver better customer service and strengthen safety and security. In 2002, we also plan to build on our investments to provide mobile printing solutions to European customers, as well as to expand our presence in Eastern Europe and other international territories. With our abundance of cash and investments, we continue to expect that acquisitions will remain an important component for Zebra’s growth. Taken all together, the growth prospects for Zebra remain high.”

For the first quarter of 2002, the company will expense approximately $3,300,000 of capitalized acquisition costs and other accrued acquisition expenses that would have been capitalized if the company completed the Fargo acquisition. The company expects to report 2002 first quarter financial results on April 19. For 2001, Zebra reported net sales net income before merger costs of $2.03 per diluted share on net sales of $450 million. At December 31, 2001, Zebra had shareholders’ equity of $445 million and total assets of $480 million, including $249 million in cash and investments. Zebra Technologies Corporation delivers innovative and reliable on-demand printing solutions to businesses and governments in more than 90 countries around the world. A broad range of applications benefit from Zebra(R)-brand thermal bar code label and receipt printers and Eltron(R)-brand plastic card printers, resulting in enhanced security, increased productivity, improved quality, lower costs and better customer service. The company, with an installed base of more than two million printers, also offers software, connectivity solutions and printing supplies. Information about Zebra Technologies can be found at

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E-Confidence

Yahoo! and ACNielsen reported this week that its Internet Confidence Index, a quarterly study designed to measure confidence levels in Internet products and services, dropped four points during the first quarter to 111, compared to the fourth quarter of 2001. The companies said it is normal for an Index such as this one to experience its first small decline. They note that the Internet Confidence Index is still well above the launch baseline of 100, which indicates that overall Internet confidence of the average consumer is still relatively high. This is further evidenced by more people intending to shop online. The study found that more than 40% of users manage some aspect of their personal finances online, while 26 percent intend to use the Web for tax research this year. These results provide evidence of a strong consumer demand for online personal financial services, and suggest a potential opportunity for e-commerce players in this space. The Internet Confidence Index’s dip during this wave of the study was prompted in part by heavy Internet users who expressed less confidence with the fulfillment process for online orders, relating specifically to customer service and the delivery of goods during the holiday season. Additionally, among all users, there was an increased concern over the security of credit card information and level of trust with how personal information is being used.

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S2 Board

S2 Systems Inc., a global provider of transaction processing, authorization, and integrated solutions for the banking, financial, retail, and travel sectors, announced the addition of Maurice (Maury) H. Hartigan II to its board of directors. Mr. Hartigan brings to S2 Systems more than 35 years of industry experience and a wide range of banking knowledge. He is now president and CEO of the Risk Management Association (RMA).

At RMA Hartigan is leading the only financial services association dedicated to promoting effective credit risk management practices in the industry, with a membership consisting of more than 3,000 commercial banks and financial organizations.

“Maury’s distinguished background greatly enhances the exemplary range of knowledge and experience retained by the S2 Systems board of directors,” said Stephen Clark, president and CEO of S2 Systems. “Along with other recent appointments, this important addition reflects S2’s strong commitment to acquire the senior level executive experience and leadership necessary to capitalize on our recent phenomenal success as well as spearhead a new phase of business growth for the company. We are delighted to have Maury join our board of directors.”

Prior to RMA, Hartigan held a number of prominent positions with Chemical Bank over a noteworthy career of 30 years, leading the institution’s most credit-intensive divisions. He has a thorough understanding of community bank issues as a result of his experience directing correspondent banking at Chemical in the early 1980s. Other leadership roles that Hartigan held at Chemical Bank included: senior vice president, Corporate Banking; senior vice president, Financial Services Division; executive vice president — head of International Division; chairman, Credit Policy Committee; and executive in charge — Chemical Realty Group.

“S2 Systems is in a unique position to build upon its consistent success in key market sectors,” said Hartigan. “I am excited to be a member of S2’s board of directors, particularly at this juncture. The company has a history of sound management, best business practices and exceptional financial performance. Best of all, S2 Systems has emerged against its competitors with a business model that ensures sustainable profitability and increased market share for open systems enterprise payment and transaction management solutions.”

The addition of Hartigan to S2 Systems’ board of directors marks a new chapter in the company’s history as S2 Systems repositions itself to meet soaring demand. Some of the noteworthy and recent customer wins of S2 Systems include a number of large bank groups, a major wireless communications provider, and several top ranking retail chains; long-standing customers include the leading travel industry service provider and the largest theme park in America. S2 Systems enjoys a global presence and solid customer base worldwide.

Hartigan holds a BA from Georgetown and an MBA from CCNY. He also attended the Advanced Management Program at Harvard University.

About S2 Systems

S2 Systems, Inc. is a leading global provider of mission-critical enterprise payment and transaction management solutions for the banking, financial services, retail and travel & hospitality industries. For more than 18 years, some of the world’s largest organizations have relied on S2 products to drive their high-volume e-commerce transactions. Today, our leading-edge technology enables businesses worldwide to implement Web-based initiatives that improve operational efficiency, enhance customer service and generate new revenue streams. S2 Systems is headquartered in Dallas and has offices in London, Paris, Amsterdam, Stockholm, Dubai, Riyadh, Johannesburg, Hong Kong, Beijing, Melbourne, and Sydney. For more information about S2 Systems, visit its web site at [www.s2systems.com][1].

[1]: http://www.s2systems.com

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Software Award

A Baltimore jury awarded a $276 million judgement against First Union/Wachovia this week after finding that the bank ripped off a Maryland man’s lending software. The jury awarded $76 million in compensatory damages and $200 million in punitive damages to Scott Steele. According to the Baltimore Sun, Steele Software Systems Corp., worked under contract for First Union and in 1997 implemented a computerized loan approval system. After naming Steele “Vendor of the Year” the bank allegedly covertly tried to find ways to terminate Steele’s contract. While Steele was still contracting with First Union, the bank formed a new company, called GreenLink, that employed many of the methods used in Steele’s system. Steele’s attorneys said the bank also refused to send hundreds of thousands of transactions to Steele’s company that he was entitled to process and get paid for. Snyder, Slutkin & Lodowski said GreenLink had projected that its profits over the next five years would be $2.4 billion—profit largely attributable to GreenLink’s use of Steele’s ideas and technology. Steele’s attorneys said the bank cut him out of at least 650,000 bank transactions that his company would have earned $80 a piece to process.

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Lucky Discover

The Discover Card is launching a national tour this weekend to promote shopping and a new sweepstakes. The Discover Card Shops America with Lucky Magazine will include a 12-city national tour and a chance to win a $5,000 “Shopping Spree.” Tour highlights include an information center, a “Style Station” featuring Sephora, Nine West, and GUESS?, and a VIP tent, where Discover cardholders can take a break to rejuvenate their spirits. Exclusive cardholder benefits at the VIP parlor include mini-makeovers, hair consultations, special discounts and other merchandise. Cardholders can also enter a national sweepstakes for a chance to win a $5,000 pre-loaded Discover Card and a trip to New York City for a shopping spree with a Lucky magazine editor. The tour will begin in Los Angeles tomorrow. Lucky Magazine is a publication solely devoted to shopping.

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UK PO EBT

The UK Post Office has awarded major contracts to EDS and IBM as part of a UK government initiative to provide low-cost bank accounts that are easy to access for citizens without conventional banking facilities and that improve the payment of social security benefits. EDS was awarded an eight-year contract to provide electronic benefits transfer, customer relationship management, and application processing services. eFunds Corporation said this morning it is working with IBM to provide universal banking services to UK’s more than 17,500 Post Office branches. eFunds will install its CONNEX EFT solution to help IBM provide a secure IT infrastructure to process financial transactions from retail Post Office outlets. EDS also announced Wednesday a multi-year agreement with ABN AMRO Bank to provide a full range of services including application hosting, data processing, and back office processing for the Amsterdam-based financial institution’s operations in India. EDS also signed a five-year IT outsourcing extension with OK Q8, Sweden’s leading petroleum company with a network of 1,000 petroleum stations countrywide.

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Citi Cash Card

As teen payment cards struggle to catch on, Citibank launched a prepaid MasterCard this morning targeted at students between 13 and 18 years of age. The Citi Cash Card for Students will carry a $25 annual fee and a $1.50 per transaction load-fee. However, the load fees will be waived if a Citibank debit or credit card, or a Citibank checking or savings account is used to replenish the card. The account can be monitored in real-time via a special Web site, which is accessible by parents and students. The card can be used at all MasterCard locations, including ATMs. Students under sixteen require a parent or other adult to apply for them and load money onto the card. VISA launched the prepaid VISA Buxx card in August 2000. To-date, six national issuers offer the VISA product including Bank of America, First Tennessee, First Union, National City, US Bank, and Wachovia. The issuers of the VISA Buxx charge annual fees up to $15.00 and load fees ranging from $1.00 to $2.50. (CF Library 8/10/00)

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JCRMI

Gemplus International S.A. the world’s leading provider of smart card-enabled solutions, announced that its labs have developed, in concert with Java Card Forum, Java Card Remote Method Invocation (JCRMI), a technology that will help to speed the design and adoption of multiple application smart cards worldwide. Most multiple application smart cards today are based on the Java Card platform, opening up the world of smart cards to a creative pool of approximately 2.3 million Java application developers. Java Card technology ensures that the smart card applets are interoperable at execution level, but it does not cover the exchanges between the smart card and the terminal. The message format used to transport communication between the smart card and the terminal, APDU (Application Protocol Data Unit), is a complicated language often not understood by programmers outside of the smart card industry.

Hence, it forces programmers into a time-consuming process of writing cumbersome code. JCRMI greatly increases the productivity of all developers working on Java Card applications, allowing the programmer to develop distributed applications quickly and easily. It provides a model to manage the relationship of Java applications interacting between different machines and frees developers from having to manage low-level exchanges, significantly reducing major design, programming and testing difficulties. Off-card programmers no longer need to have extensive smart card expertise to develop smart card applications. JCRMI framework allows programmers to ignore the APDU message-passing mechanism in order to focus on interfaces with Java Card applets. Because the Java Card 2.1 RMI is a strict subset of the Java Standard Edition RMI framework, it provides a familiar development methodology, and facilitates the integration of Java Card applets into information systems. JCRMI gives off-card programmers many advantages, including object-oriented methodology, reliable deployment and better integration into global systems.

What Java Card RMI Means for Off-Card Programmers

Off-card programmers no longer need to have extensive smart card expertise to develop smart card applications. JCRMI framework allows programmers to ignore the APDU message-passing mechanism in order to focus on interfaces with Java Card applets. Because the Java Card 2.1 RMI is a strict subset of the Java Standard Edition RMI framework, it provides a familiar development methodology, and facilitates the integration of Java Card applets into information systems. JCRMI gives off-card programmers many advantages, including object-oriented methodology, reliable deployment, and better integration into global systems.

What Java Card RMI Means for Application Providers

Application providers will also benefit from JCRMI, since today’s Java platforms have largely implemented RMI, making the deployment of distributed applications easier and faster. The reliability associated with JCRMI will actually reduce network problems and thus boost confidence that an application has been properly executed. Today, Java Card technology is deployed by governments, banks, retailers and mobile phone operators around the world. With strong support of Java Card technology, Gemplus Labs started developing JCRMI more than three years ago, when RMI was present in mainstream Java technology, but absent from Java Card technology. Today Gemplus and the Java Card Forum are working together to enhance the initial successful implementation for distribution to Java Card licensees. “Gemplus’ success with JCRMI was driven by two key visions: the evolution of Java Card technology to resemble mainstream Java technology, allowing many more developers to write applications for smart cards and to enhance the message dialog that is essential between applets in the world of smart cards, mobile devices and networked systems,” said Tony Engberg, Chief Technology Officer and Pierre Paradinas, Software Labs Director at Gemplus. For more information, please visit the Gemplus booth #726 at the JavaOne 2002 Developers Conference.

About Gemplus GEMPLUS: the world’s leading provider of smart card solutions. Gemplus helps its clients offer an exceptional range of portable, personalized solutions that bring security and convenience to people’s lives. These include mobile Internet access, inter-operable banking facilities, e-commerce and a wealth of other applications. Gemplus is the only completely dedicated, truly global player in the Smart Card industry, with the largest R&D team, unrivalled experience, and an outstanding track record of technological innovation. In 2001, Gemplus was the world number one in smart card shipments according to Gartner-Dataquest, IDC, Frost and Sullivan, Datamonitor and The Nilson Report. Gemplus trades its shares on Euronext Paris S.A. First Market and on the NASDAQ Stock Market as GEMP in the form of ADSs. Its revenue in 2001 was 1.0 billion Euros. Gemplus: Beyond Smart http://www.gemplus.com.

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