Emergent Agreements

Emergent Financial Group, an electronic transaction data processing company for non-bank consumer financial services, has announced the execution of definitive agreements with Atlantic Payment Systems and Global Collect and the activation of its global electronic gateway with Global Collect.

The Agreement provides for payment processing agreements with various commercial banks providing Emergent access to important bank processing agreements to accept credit card payments for money transfers and other online payment transmissions. The companies have also agreed to co-venture the further development of various on-line money transfer services. Atlantic has several clients requesting technology-processing solutions offered by Emergent, including cross-border electronic transfers and online digital wallet services.

“Our agreements with these two recognized companies provides Emergent expanded markets and built in customers for its proprietary XTRAN person-to-person money transfer technologies,” said Jason Galanis, CEO of Emergent.

Atlantic Payment Systems is an independent provider of credit card and electronic check processing services to mail, telephone and Internet based merchants. Atlantic is headed by Dan Alcorn who was a senior officer at Chittenden Bank (NYSE: CHZ), a $3.8 billion Vermont-based bank.

GlobalCollect is an international payment solutions provider, with offices in Holland, San Francisco and Singapore. Founded in 1994, GlobalCollect has grown at 50% in each year since then, and is now a subsidiary of TNT Post Group (NYSE: TP), the $8 billion global postal and logistics company.

About Emergent Financial Group

Emergent ([www.emergentgroup.com][1]) is a holding company, which owns transaction processing subsidiary companies principally engaged in person-to-person (P-to-P) money transfers. Emergent is principally engaged in building a distribution network for non-bank financial services delivered through countertop point-of-sale devices in retail locations globally. We believe our proprietary technology is the only end-to-end fully electronic solution available for international wire remittances originated in-store. The Hispanic expatriate community in the United States is estimated to account for the majority of the $49 billion in cash transmissions originating from the U.S. in 2001, a market growing at 15% annually.

Emergent derives its revenues from transaction processing fees, net of commissions paid to certain selling agents, and/or for services such as non-bank wire transfer services.

More information is available from Emergent Financial Group, Inc., Boulder, Colorado, 303/544-0044.

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



APRIVA and Lipman have agreed to work together to offer a full end-to-end wireless point-of-sale solution for ISOs, processors, and merchants. The agreement combines Lipman’s Nurit 3010 and newly released Nurit 8000 POS devices with APRIVA Talk to form Lipman’s new preferred gateway solution: NuritGate: Powered by APRIVA. With this new agreement, Lipman’s 3010 and 8000 devices are now able to process transactions through NuritGate on either the Cingular or Motient networks, and can connect to many of the largest U.S. authorization and settlement processors. Additional processors will be connected rapidly due to the symbiotic development environment created by the two companies. Credit card transactions on the Nurit 3010 or 8000 terminals can now be processed in real-time from virtually anywhere in the United States using a powerful and robust gateway provided by APRIVA. NuritGate will provide a fast, reliable, and secure wireless bridge between the Lipman devices and the back-end processors and Web interface.


SPA Licenses

MasterCard confirmed Monday that 37 vendors have licensed its Secure Payment Application utilizing MasterCard’s Universal Cardholder Authentication Field infrastructure, enabling vendors to integrate the SPA security solution into new and existing platforms. MasterCard’s SPA is an online security solution that generates a unique transaction token each time a registered accountholder conducts an electronic transaction. This token is referred to as the Accountholder Authentication Value. This 32-character value incorporates elements specific to the transaction and effectively binds the accountholder to a transaction at a particular merchant for a given sale amount. MasterCard’s UCAF is a standard, globally interoperable method of collecting accountholder authentication data at the point of interaction across all channels, including the Internet and mobile devices. UCAF is intended to provide the basis for a guaranteed payment to online merchants by presenting, collecting, and passing cardholder authentication information generated by issuers. Once collected by a merchant and passed to their acquirer, this information is communicated to the issuer in the payment authorization request and provides explicit evidence that the transaction was originated by the accountholder. UCAF works with a myriad of security solutions, including SPA, smart cards, and more.



NanoPierce Connection Sytems Inc., a subsidiary of NanoPierce Technologies, Inc., announced that Mr. G. William (Bill) Pfeiffer has joined NanoPierce Connection Systems, Inc., as head of Business Development. In his new position Mr. Pfeiffer will report directly to Dr. Herbert J. Neuhaus, President & CEO of the subsidiary, and will work closely with Dr. Michael E. Wernle, President & CEO of NanoPierce Card Technologies, GmbH in Germany.

Before joining NanoPierce, Mr. Pfeiffer was with 3M Company for 28 years. Most recently, as 3M Corporate Strategic Account Director, Mr. Pfeiffer was key in establishing 3M’s Strategic Account program. He coordinated worldwide projects with 3M’s global customers across diverse market segments. Through his interactions with customers at U.S., European and Asian locations, he led development of numerous successful partnerships for 3M. By initiating collaborative programs and a series of advanced technology seminars and significantly increasing awareness of 3M technologies and products, Mr. Pfeiffer identified partnering opportunities that led to multi-million dollar contracts for 3M. During Mr. Pfeiffer’s tenure at 3M he has also held the titles Program Development Manager, Professional Services Manager, and Senior Research Physicist.

Mr. Pfeiffer’s experience with electronics packaging began at the University of Iowa, where he was Project Manager for experiments flown on NASA satellites. Severe size and weight restrictions demanded a new form of electronics packaging. Working with his lab, a custom hybrid manufacturer, and NASA, the first hybrid circuits to survive space launch were developed and flight qualified. His international experience began as Project Manager for a University of Iowa experiment flown on the German satellite, Helios.

His education includes a Bachelor of Physics degree from the University of Minnesota, Institute of Technology, and a Master of Science degree in Space Physics from the University of Iowa, Department of Physics. He has completed courses in the Masters in International Management program at St. Thomas College, St. Paul, Minnesota, and in Technology Marketing at the University of Texas at Austin, Texas.

Commenting on his new position with NanoPierce Connection Systems, Mr. Pfeiffer said: “I feel fortunate to have this once-in-a-lifetime career opportunity to join a world-class team that will truly change an industry. I’m convinced NanoPierce is poised for explosive growth and I am extremely excited to be a part of it. It is my intention to quickly leverage this technology into significant contracts.”

“The addition of Bill is a critical part of our commercialization plan at NanoPierce Connection Systems,” stated Dr. Neuhaus. “His experience, personality and intellect make him the ideal market point man for our team. I have tasked Bill with the challenge of representing us to the industry and to literally close the sale. I am confident that his proven ability to form strategic partnerships with global organizations and his formidable knowledge of semiconductor fabrication technology, electro-optical components and electronics packaging will rapidly bring significant and profitable revenues to our enterprise.”

About NanoPierce Technologies, Inc.

NanoPierce Technologies, Inc. of Denver, Colorado, USA, is traded on the NASDAQ stock market (OTCBB:NPCT) as well as on the Frankfurt and Hamburg (OTC:NPI). In addition to the 12 patents it owns, NanoPierce has numerous applications pending, others in preparation, and various other intellectual properties related to NanoPierce’s proprietary NCS (NanoPierce Connection System). This advanced system is designed to provide significant improvement over conventional electrical and mechanical interconnection methods for high-density circuit boards, components, sockets, connectors, semiconductor packaging and electronic systems.

About NanoPierce Card Technologies, GmbH

NanoPierce Card Technologies, GmbH, is a 100% subsidiary of NanoPierce Technologies, Inc., located in Hohenbrunn, Munich, Germany. This subsidiary concentrates on application development and is responsible for the Company’s worldwide marketing efforts.

About NanoPierce Connection Systems Inc.

NanoPierce Connection Systems, Inc., is a 100% subsidiary of NanoPierce Technologies, Inc., located in Colorado Springs, Colorado. NanoPierce Connections Systems, Inc., has been chartered to undertake high volume production WaferPierce(TM), a revolutionary and enabling semiconductor wafer treatment for ultra-low cost flip-chip without the necessity of wire bonding, conductive adhesives, or soldering. Typical end-use applications of WaferPierce(TM) include Smart Labels, Smart Cards, and LED arrays. The new subsidiary has taken over all operations and business activities conducted in the Colorado Springs facility. In addition to WaferPierce(TM) production, NanoPierce Connection Systems will be responsible for licensing and new applications of other NanoPierce technologies to add value to electronic components.

About ExypnoTech GmbH i.G.

ExypnoTech GmbH i.G., is a 100% subsidiary of NanoPierce Technologies, Inc., located in Rudolstadt, Germany. ExypnoTech will produce smart inlays using the benefits of the new WaferPierce(TM) flip-chip process developed by NanoPierce Connection Systems, Inc.


Paystar Partners

PayStar Corporation, the nation’s leader in providing content based Internet Kiosks, Cashless ATM devices, Prepaid Wireless Banking Services and Telecom Services announced a strategic partnership with NetNearU Corp. of College Station, Texas, to be the exclusive software provider for PayStar’s Public Internet Access Terminals via PayStar’s InfoStation Network located in select Choice brand hotels. PayStar ISN is an endorsed vendor of the 3,200 Choice brand hotel franchises nationwide.

“PayStar is pleased to join forces with a world-class organization such as NetNearU,” stated Carla Buckner, V. P. of Sales and Marketing, PayStar InfoStations. “PayStar terminals powered by NNU’s Internet access software coupled with NNU’s remote management software allows each Choice franchisee the ability to monitor the success of the program through real-time remote access to the terminal, which is located in their hotel lobby. Franchisees will be able to monitor guest usage, including session length, web sites visited and peripherals used, as well as generate revenue and performance reports.”

PayStar Internet Terminals provide consumers with high-speed Internet access in fee-based format as well as complimentary access to a wide variety of products and services. The NetNearU software solution is designed to allow real-time monitoring and detailed information on revenues, operability and maintenance on any number of terminals located anywhere in the world. PayStar will use NetNearU’s interactive content management software to deliver digital media throughout the network and their specialized remote power control unit, which will allow the network to operate more efficiently.

“We look forward to the implementation of NNU software with PayStar’s product offerings,” commented Larry M. James, Chief Executive Officer for NetNearU. “Our relationship with PayStar will allow Choice to receive the best Internet kiosk solution in the industry.”

About NetNearU

NetNearU Corp. provides comprehensive point-of-access management solutions, including central administration systems and client software for distributed devices. The Company’s software solutions manage networks of broadband wireless access points utilizing the 802.11 standard, as well as Internet-based kiosks and web payphones used to provide public Internet access, mobile professional data services, e-commerce applications and customer service functions.

NetNearU’s proprietary software suite includes solutions for both wireless and wired networks. The Company’s TRACKOS™ product provides for centralized, near real-time remote monitoring, management and maintenance of any number of PIA solutions located anywhere in the world. TRACKOS is a scalable and flexible platform that collects, stores and reports data for analysis of point-of-access usage and operability as well as specific business activities and application effectiveness. The Company’s ADTRACKOS™ product provides for interactive content to be remotely uploaded and sent to designated devices. NetNearU offers technical support, hardware monitoring, maintenance dispatching and credit card processing services to its licensees, as well as a full range of professional services to integrate its software products with customer applications. The Company is headquartered in College Station, Texas. More information about NetNearU may be found at [www.nnu.com][1].

About PayStar

PayStar Corporation, a premier global distributor of telephony and financial services, provides its customers with an array of enabling devices. PayStar is comprised of three fully integrated divisions: Commercial Telephony Switch Services, Consumer Internet and Telephony Products including prepaid cards, and Consumer Services providing service and maintenance of Cashless Teller Machines (CTMs)

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



Cognizant Technology Solutions Corp., a leading provider of custom software development, integration, and management services, announced that it has been selected by Vauxhall Motors, a unit of GM, to build and manage the GM Card Online website, which provides GM Card holders with a personalized experience.

The GM Card, the credit card from Vauxhall Motors, was the first co-branded credit card in the UK, and provides rebate points on purchases allowing cardholders to earn discounts on new Vauxhall products. The site helps cardholders manage their accounts and shop for rewards.

“Cognizant worked fantastically well with all parties involved including Vauxhall staff, our banking partner and the design agencies,” said Paul Harrison, Manager of the GM Card for Vauxhall Motors. “Their flexibility, resources, and capabilities helped make the GM Card site a success and they have recently been awarded a new project at Vauxhall Motors. Cognizant has proven itself a great partner for high value applications.”

Cognizant was able to quickly deliver the secure, custom, and personalized solution Vauxhall wanted. Cognizant used CMM Level 5 light process for e-business, and state-of-the-art e-testing and usability labs to deliver the final project in 14 weeks.

“The onsite/offshore model has become a mainstream delivery method for many large Blue Chip companies. In addition to our unique e-business capabilities, Cognizant used our expertise in credit card services, other financial services, and retail background for the GM Card site. Our flexible “can do” culture allowed us to work with a number of GM partners and deliver the project fast and on-budget,” said Kumar Mahadeva, Chairman and CEO of Cognizant. “We are continuing to expand our relationship with GM units globally.”

Founded in 1903, Vauxhall Motors is one of the oldest auto manufacturers in the world, and is now part of the world’s largest corporation – General Motors. The GM Card site is http://gmcard.ww-w.co.uk/gm-card-vauxhall-online-creditcard-uk.html.

About Cognizant Technology Solutions

Cognizant Technology Solutions (Nasdaq: CTSH) is a leading provider of custom software development, integration and management services that link e-business with core information systems for companies worldwide. Cognizant operates under a high quality, high value onsite/offshore model that enables better, faster and more cost effective development and deployment of large-scale systems across a wide range of transaction intensive business needs.

Its 3,900 employees are committed to partnerships that sustain long-term, proven value in order to win in today’s global marketplace. Cognizant was listed as one of the “Best Small Companies in America,” by Forbes and as the top solutions provider and one of the top 200 Hot Companies by Business Week. Cognizant has been assessed at SEI/CMM Level 5, the highest possible rating.


New ICMA Partners

The International Card Manufacturers Association, a global non-profit association for card manufacturers, personalizers and service providers, recently announced the addition of five new members. These new members include two associate members, or suppliers, and three principal members, or card manufacturers.

Associate Members (Suppliers) · Indigo USA, Woburn, MA, USA · MagTek Inc., Carlson, CA USA

Principal Members (Card Manufacturers) · IntelCav Cartoes Ltda, Getulioo Vargas – RS, Brazil · Mahavir Decorative Products Pvt. Ltd., Pune, India · SOKYMAT SA, Cards & Labels, Granges Veveyse, Switzerland

“ICMA’s strength is drawn from the vast knowledge and expertise we obtain from our membership base,” said Jeffrey E. Barnhart, executive director of ICMA. “The addition of new members enables ICMA to further expand its services and better serve the needs of this ever-changing industry.”

For information on becoming a member of ICMA, contact Lynn McCullough at (609) 799-4900; e-mail lmccullough@icma.com or visit the ICMA Web site at .

About ICMA

Based in Princeton Junction, NJ, ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants. With more than 220 members globally, the ICMA acts as a clearinghouse for industry issues, including the production, technology, application, security and environmental issues of plastic cards.



Commonly used to secure access on mobile phones, SIM cards will play an even more critical role with the arrival of 3G networks creating authentication and data integrity, securing payments made via mobile devices (m-commerce) or digital rights management (DRM) when accessing multimedia content. Oberthur is the first to launch a 3G card and to demonstrate games and music applications that run on SIMphonIC 3G, thus adopting a service approach rather than just a traditional hardware supplier. While 3G is the coming network for carriers to adopt, Oberthur’s range of SIM cards are fully interoperable and take advantage of the latest technologies available on current 2G networks. A summary of the announcements being made by Oberthur Card Systems:


Atlas Telecom Mobile and Oberthur Card Systems launch the KidPhone, the world’s first information and entertainment service by SMS for preteens. The KidPhone allows kids to send and receive short messages from any GSM phone, anywhere, anytime.



Oberthur Card Systems has successfully integrated its SIMphonIC(TM) Application Loader and Manager platform to WIND’s mobile network. SIMphonIC ALM is a complete remote management platform for SIM cards that enables WIND to manage the applications on the SIM card over-the-air as well as offer new services to its 7.9 million subscribers through its web portal.


The 3G Composer, the most recent addition to Oberthur’s world-leading “SIMphonIC(TM) Composer” family, is intended to help mobile carriers as well as content and service providers in designing, developing and simulating new applications and services for UMTS networks. The new tool enables Java(TM) programmers to develop applications and simulate applications for 3G SIM cards but also, and this is unique today, for a selection of Java handsets. New applications can now be designed taking advantage of the processing power of the handset and the security features of the SIM card.


Oberthur Card Systems and Masq Inc. will showcase an extensible platform for mobile operators to rapidly implement secure mobile commerce solutions. Masq Inc. provides wireless network operators with the means to authenticate mobile device users and produce an electronic signature that enables a full range of secure, real-time mobile transactions such as prepaid airtime recharge, secure direct payment or protected remote access from a mobile device.

About Oberthur Card Systems

Oberthur Card Systems (listed on the Euronext Stock Exchange – Code Euroclear 12413) is a leading provider of card-based products, software and applications including SIM and multi-application smart card-based solutions, consulting, personalization and card services.

A global player and innovator in the smart card industry, championing EMV and open standards, Oberthur maintains a leading position in the payment cards market as the world’s number one supplier of Visa and MasterCard branded cards as well as in network security, m-commerce and Pay-TV fields.

With unrivalled expertise in Java(TM) and GSM technologies, Oberthur delivers the most advanced, open and interoperable SIM, WAP and 3G (IMT-2000/UMTS) solutions to mobile operators thereby transforming the nature of mobile communications.

With revenues of EUR 484.2 million in 2001, Oberthur Card Systems has an international reach with an industrial and commercial presence in 21 countries across the five continents.


Term-Master in a Box

Hypercom this morning introduced Term-Master In A Box, a plug and play terminal management software and hardware package that gives ISOs the ability to quickly and cost-effectively download and initialize Hypercom card payment terminals. The new turnkey package is a version of the company s popular Term-Master Suite terminal management software system with streamlined set-up and management. It features everything required to quickly and easily set up and operate any Hypercom terminal. The package includes a new pre-configured terminal profile database, Hypercom’s standard POS software, a Hypercom IEN 2000 with dial-up capability and an enhanced hardware and software installation module that significantly simplifies complete terminal set-up. The pre-configured database provides up to 12 terminal initialization templates that allow users to automatically create and set up a new terminal profile within seconds and the entire suite of features comes on one simple-to-use CD.


Paymaxx & b-50

PayMaxx, Inc., a national leader in payroll processing and an Internet-payroll pioneer and b-50, LLC, the industry leader of above store reporting to restaurants, announced their co-marketing agreement to offer PayMaxx’s Internet- and Windows-based payroll services to b-50’s current and prospective customers.

PayMaxx and b-50 have both developed a wide assortment of Web-enabled services, which are beneficial to restaurant operators. PayMaxx offers Internet- and Windows-based payroll services to companies with 1-20,000 employees. It has designed services to benefit both small businesses, such as single-location restaurants, and businesses with hundreds of locations. Additionally, PayMaxx offers several ancillary services, such as PayCard, a payroll Visa debit/ATM card, and Section 125 and 401(k) plan administration, that are beneficial to both owners and employees in the restaurant industry.

b-50 provides an integrated suite of low cost, high ROI business tools for multi-unit restaurant owners and operators. Their core product, FIRST (Franchise Information Reporting System Technology), is a subscription service decision support solution that analyzes information provided by point of sale (POS) and back of house (BOH) systems to track up to 50 mission critical performance metrics for each restaurant and distributes its reports via the Web or e-mail.

“PayMaxx’s Web-based HR and payroll services are uniquely positioned in the market and have strong synergy with our core product FIRST,” said Jeffery T. Engler, b-50’s president and CEO. “This newly formed relationship will expand our product offerings and add value to our respective companies and customers.”

“b-50’s ASP services were developed with the restaurant owner in mind,” said Kathey Palmer, PayMaxx’s vice president of business development. “PayMaxx’s line of restaurant-friendly products and services complement b-50’s FIRST software by providing 24/7 visibility of HR and payroll data to above store managers.”

About b-50

Founded in 1999, b-50 developed and markets an innovative suite of Web- enabled decision support and business integration software tools for multi- unit franchised businesses. b-50’s customer base is comprised of national brands in the multi-unit Quick Service Restaurants and casual dining segment.

About PayMaxx

Founded in 1991, PayMaxx offers state-of-the-art products and services to meet a variety of employer needs including Windows- and Internet-based payroll processing, nationwide tax filing, Section 125 and 401(k) Administration, human resources management systems, employee self-service, manager self- service, employee communications, Internet-accessible W-2s, pay-as-you-pay workers’ compensation, health insurance and paycards. PayMaxx processes payroll for employers in all 50 states, for companies with 1-20,000 employees.

Named to Inc magazine’s prestigious Inc 500 list of America’s fastest- growing private companies for four consecutive years, PayMaxx is also the recipient of Smart Business Magazine’s 2001 MVP (Most Valuable Product) Award.



Workflow Management, Inc., the nation’s leading outsourcer of graphic services, reported that its iGetSmart.com subsidiary has signed a new 2-year contract to provide electronic vendor management services for The FACS Group, Inc., a division of Federated Department Stores, Inc..

Under the terms of the contract, iGetSmart.com will provide vendor management and fulfillment services for The FACS Group’s graphic suppliers. iGetSmart’s customized technology provides an outsourced, vendor neutral platform to manage print procurement, resulting in cost savings by consolidating suppliers and aggregating volume.

“We are very pleased with this new contact as it represents a significant win for our Workflow Solutions Division,” stated Tom D’Agostino, Sr., Chairman, President and Chief Executive Officer. “Workflow Management has the capabilities to provide numerous solutions for companies seeking to significantly strengthen their operations by targeting and reducing the hidden costs within their supply chain.”

Tom D’Agostino, Jr., President of the Workflow Solutions Division and President and CEO of iGetSmart.com, stated, “We are extremely proud to have been chosen by Federated’s FACS Group. The selection of the iGetsmart system by yet another customer validates the power of a fully customizable and complete end-to-end solution. iGetSmart’s flexibility allows it to simultaneously manage new and existing vendors selected by the FACS Group. The platform, which is vendor neutral, enables our customers to realize meaningful cost savings while working with suppliers of their choosing. We look forward to a long, mutually beneficial relationship with Federated and FACS.”

Mr. D’Agostino, Sr., concluded, “Within the $900 billion corporate outsource industry, our ability to provide a complete end-to-end outsource solution that utilizes our proprietary iGetSmart.com technology drives growth as we increase our market share. We believe the current challenging economic and industry environment will continue, presenting us with opportunities as companies look to reduce costs through outsourcing. We expect to gain additional relationships in the future due to the strong benefits produced by the iGetSmart system.”

About FACS Group and Federated Department Stores, Inc.

FACS, founded in 1989 and headquartered in suburban Cincinnati, services all proprietary credit card accounts on behalf of FDS National Bank for each of Federated’s retail operating divisions. FACS is also responsible for financial services such as insurance, banking and investments, club programs and human resources services such as centralized payroll, employment and benefits processing for all Federated divisions.

Federated, with corporate offices in Cincinnati and New York, is one of the nation’s leading department store retailers, with annual sales from continuing operations of more than $15.5 billion. Federated currently operates more than 450 stores in 34 states, Guam and Puerto Rico, under the names of Macy’s, Bloomingdale’s, The Bon Marche, Burdines, Goldsmith’s, Lazarus and Rich’s, as well as macys.com and Bloomingdale’s By Mail.

NOTE: Information on Federated and its operating divisions is available on the Internet at [www.federated-fds.com][1].

About Workflow Management, Inc.

Workflow Management, Inc. is the leading provider of end-to-end outsource solutions for print. By providing a variety of print solutions; including the printing of promotional items with a company logo to multi-color annual reports, Workflow has built a reputation of reliability and leadership within the industry. Workflow’s complete cadre of service solutions includes unbiased outsource and enterprise document strategy consulting, full-service print manufacturing and outsourcing; warehousing; fulfillment and Workflow’s proprietary iGetSmartTM system; the industry proven, e-procurement, management and logistics system. Utilizing a customized combination of these services, the Company is able to deliver substantial savings to its customers by targeting and eliminating much of the hidden costs within the print supply chain. And, by outsourcing these non-core business processes to Workflow, customers are able to streamline their operations and focus on their core business objectives.

[1]: http://www.federated-fds.com


Visa Medical

KingThomason Group, Inc., a diversified financial and insurance services and products company, reported that it has signed an exclusive financial services contract with the Los Angeles Foundation for Medical Care, according to a joint statement by T.E. “Tim” King III, president and chief executive officer, and Hume A. “Tommy” Thomason, chairman of the board. The contract calls for KingThomason to make available a bank specific, private label, Visa medical accounts receivable credit card to those patients of the Foundation’s 9000 physicians and 80 hospitals who have past due accounts payable.

The Foundation’s medical care provider members currently have approximately $1.4 billion in past due non-insurance-covered accounts receivable. Richard Michel, the Foundation’s President and Chief Executive Officer, commenting on medical care providers’ escalating problem of past due accounts receivable, said, “While 75% of our members past due accounts receivable average less than $1,000 and are less then one year old, heretofore there has been no patient-friendly, non-aggressive means to recover these sums even though a 1999 Neilson Report stated that 94% of all consumers, who owe money on accounts that have been written off by their creditors, would pay their bills if there was a reasonable way of making payments. We believe the KingThomason Credit Card Program is a viable answer and will enable our medical care provider members with a vehicle to recover a significant percentage of their outstanding accounts receivable, and we wholeheartedly endorse it.”

King noted that although, as indicated above, there is information to support the thesis that a very high percentage of past due accounts receivable may be recoverable, the Company, for planning purposes, is using only a 25% recovery percentage.

In summary, the Program works as follows. The approved patient has their accounts receivable amount transferred to the Visa Card. The credit limit on the card is for the amount of the balance owed. As the principal is paid down, these monies are placed on deposit at the issuing credit card bank as collateral for any additional charges that may be made on the card and are subsequently defaulted. Twelve months from issuance, the now-performing credit card debt is “seasoned” and portions of the growing asset base, the amount and timing of the sale being at the discretion of the Company, can be sold in a liquid market at par (face value) with 65% of the proceeds accruing to the client physician or hospital, and 35% to KTG. There is also a monthly interest component on the credit card that generates cash flow for both KTG and physicians/hospital clients, and KTG also earns approximately four percent interest on the collateral reserve monies held at the credit card issuing bank.

Thomason, co-founder of KingThomason, commented, “The past due medical accounts receivable problem is nationwide in scope and has now reached what can only be characterized as crisis proportions. Indeed, in California, for example, only 44% of physicians and physicians groups are currently able to meet state solvency standards. Our Medical Accounts Receivable Credit Card Program is specifically designed to help the medical community address this problem, first in Los Angeles County and California, and eventually nationwide.”

About the KingThomason Group, Inc.

King and Thomason founded what is now KingThomason Group, Inc. in 1998 on the belief that there was a growing and unmet need, as well as financial opportunity, in providing proprietary products and services for overlooked and/or underserved financial and insurance niche markets. The past three years have principally been spent in researching, developing, and market testing a wide range of unique products and services for these markets, assembling a group of 6,500 independent agents and brokers, as well as forging the crucial insurance and reinsurance relationships vital to the insurance side of the Company’s business model. KTG’s insurance operations (excluding the sale of non-proprietary insurance products such as “off-the-shelf” life, accident, health, and automobile insurance where KTG simply acts as a traditional insurance broker) actually function as a hybrid insurance company, i.e. KTG is not involved in either adjudication of claims or the issuance of policies, and assumes no insurance underwriting risk.

About the Los Angeles Foundation for Medical Care

Los Angeles Foundation for Medical Care provides medical industry business support, contract negotiations with insurance companies, and member services support to all of their physician/hospital members and strives to maintain the integrity of the patient-physician relationship.