i-GEN MasterCard

While some teen payment cards have floundered, MasterCard is gearing up to make a stronger push for the i-GEN MasterCard. Yesterday, Pasadena, CA-based Next Estate Communications signed a deal to expand marketing of the personalized, prepaid card to retailers nationwide. In May 2001, Next Estate Communications and GA-based Synovus’ pointpathbank teamed to begin introducing the iGEN MasterCard to the teen retail market, via 3,600 Rite Aid stores in 30 states. The new card was initially made available in about 100 Rite-Aid stores in the metropolitan Washington, D.C. area. Next Estate is now in the process of rolling out the i-GEN MasterCard Card at The Pantry, Inc.’s 1,325 convenience stores throughout the Southeast. Under the program customers buy an activation card at a retail store and load money onto the card as part of the same transaction. The customer then activates the card by calling a toll-free phone number, after which the i-GEN MasterCard Card arrives in the mail within 5 to 10 business days. Meanwhile, the customer can immediately begin using the pre-paid balance via a MasterCard account number for online purchases, catalog purchases over the phone, and any other transactions that do not require the physical card to be presented. The card is available in any denomination between $20 and $500 for a convenience fee of $3.95 per card. iGEN MasterCard accounts can be reloaded at Rite-Aid stores, toll-free phone call or on the iGEN Web site. Columbus Bank and Trust Company is the issuer of the card. (CF Library 5/29/01)


Enron Fallout

The impact of the Enron scandal is spreading to the financial services industry. Household International announced Wednesday that it will switch its independent auditors from Arthur Andersen to KPMG for 2002. The appointment will be presented to Household’s stockholders for ratification at the 2002 annual meeting. Household’s Board of Directors said that due to the current uncertainty about the future direction of Arthur Andersen, it was in the best interest of the company to make this change.


Genpass Resigns Comm Fed

Genpass Service Solutions, a subsidiary of Genpass Technologies, LLC, and the largest independent ATM maintenance and servicing company in the U.S., on Wednesday announced a major, long-term, contract renewal with Commercial Federal Bank of Omaha, Nebraska

Genpass Technologies – operating arm of Genpass Inc. – is one of the top five ATM drivers in the U.S. and owner and operator of the MoneyMaker and MONEY BELT EFT networks.

Commercial Federal Corporation is the parent company of Commercial Federal Bank, a $13 billion federal savings bank, which currently operates branches located in Nebraska, Iowa, Colorado, Kansas, Oklahoma, Missouri, Arizona, and Minnesota. Commercial Federal Bank has a very active program of electronic banking, including bank-by-phone, web-banking and 235 ATMs that they operate to supplement their 190+ branch system.

Commercial Federal has signed with Genpass Service Solutions for the third time as Christine Christensen, assistant vice president and manager of ATM and Card Services for Commercial Federal, explains: “For over 100 years Commercial Federal has provided customers with the financial tools to help build better lives. Our customer service philosophy has been a pillar for our institution. Genpass Service Solutions shares this philosophy and proves it with their customer service standards, which is why we are pleased to continue our long-standing relationship.”

Christensen adds that the EFT program at Commercial Federal has become one of the leading sources of non-interest income for the bank and is an integral part for customers of its overall banking services package.

Genpass Service Solutions has experienced rapid growth over the past year, expanding its business more than 20%. Ownership of Genpass Service Solutions makes Genpass Technologies the only top processor and network owner that has a vertically integrated product line.

Service Solutions offers maintenance, supply and cash replenishment for ATMs, in addition to Genpass Technologies’ processing, gateways, card services, and ATM driving businesses.

Tim Connor, president of Genpass Service Solutions explains the importance of this complete servicing philosophy: “The management of Genpass is committed to providing quality EFT services on a broad scope. By offering our customers what we call `one source EFT,’ we insure that their service issues are dealt with quickly and without the typical passing of callers from one vendor to another.”

Connor added that customers like Commercial Federal Bank keep re-signing with Genpass because Genpass honors its commitment to keep every Genpass product technologically competitive and cost effective.

About Commercial Federal Bank

Commercial Federal Corporation is the parent company of Commercial Federal Bank, a $13 billion federal savings bank that currently operates branches located in Nebraska, Iowa, Colorado, Kansas, Oklahoma, Missouri, Arizona, and Minnesota. Commercial Federal operations include consumer and commercial banking, mortgage banking, commercial lending, insurance and investment services, and Internet banking. Commercial Federal operates 235 ATMs across the Midwest.

About GTCR Golder Rauner, LLC, Genpass Inc., Genpass Technologies, LLC, and Genpass Service Solutions

GTCR Golder Rauner, LLC, a leading private equity investment firm, owns and operates Genpass Inc., the parent company of Genpass Technologies, LLC, and its subsidiaries. GTCR currently manages more than $4 billion in equity capital invested in companies providing transaction processing, information technology services, financial services and marketing services. Genpass Inc., with headquarters in Pennsylvania, owns the MoneyMaker(SM) and MONEY BELT(R) EFT networks through its Dallas-based subsidiary Genpass Technologies. Genpass Technologies is listed in The EFT Data Book (2002 edition) as one of the top five ATM drivers in the U.S., with over 20,000 ATMs spanning the country, and in the top 10 networks for annual transactions processed and for switch volume. Genpass processes over 360 million transactions annually. The company also operates Genpass ATM Solutions — providing a strategic solution to ATM-owning and placement — and Genpass Card Solutions, offering specialized card services such as payroll and medical benefits card programs. Genpass Service Solutions, a wholly owned subsidiary of Genpass Technologies, LLC, is the largest independent ATM servicing company in the U.S. The company serves over 500 financial institutions, independent sales organizations, and corporate customers providing monitoring, service dispatch, maintenance, cash replenishment, and operating supplies for virtually every model of ATM hardware.



Trintech Group Plc, a global provider of
secure electronic payment infrastructure solutions, unveiled PayWare
OpenPOS, the world’s first open source POS terminal architecture designed
to run a range of secure PIN-based card payment applications. Trintech plans
to target OpenPOS at the estimated 18 million POS terminals installed
today worldwide that are due to be upgraded to incorporate new technologies,
including chip.

The new technology, showcased at CeBIT 2002, will be available to create
powerful product suites — including in-store applications, such as PINPads
and PIN-enabled POS terminals, and applications in unattended environments,
such as kiosks and ATMs. Trintech will make the products and technology
modules available to Value Added Resellers (VARS), system integrators, and OEM

At Cebit (stand no. A24/35 Hall 18RG), Trintech will be demonstrating how
OpenPOS can dramatically reduce the transaction time of secure
PIN-based smart card payments. The demonstration will take place using the
German debit card scheme, electronic cash, which uses smart card technology
and requires the verification of the cardholder’s PIN number. OpenPOS(TM)
performs the encryption tasks required by the debit card scheme in
milliseconds, significantly shortening the overall transaction time for
cardholders at the point-of-sale. The higher encryption requirements of the
EMV standard that are expected to be fully adopted by in Europe by 2005 will
drive the demand for faster technology such as OpenPOS(TM).

In introducing the new technology, Trintech has leveraged its 10 years
experience in high security and tamper-proof PINPads to ensure the technology
meets the highest security requirements. OpenPOS(TM) is currently undergoing a
certification process with T-Systems ISS GmbH (previously called Debis), an
internationally recognized security certification institute.

The OpenPOS(TM) modules exhibited at CeBIT are deployed within a range of
concept devices including standalone PINPads, POS terminals with integrated
PINPads and screen-based terminals. OpenPOS(TM) will also be incorporated into
specific elements of Trintech’s product set following close analysis of
customer requirements and will be actively marketed to Trintech’s growing
international community of VARs.

“The move to embedded Linux is a very significant development for the POS
industry as it signals a move away from proprietary and incompatible vendor
and industry standards to a more widely available, open source development
environment,” said John Harte, EVP and General Manager of Trintech’s ePOS
Division. “OpenPOS(TM) is an industry first that will significantly reduce
transaction times providing multiple advantages to our customers and

A broad range of open source software is immediately available for the
OpenPOS platform. In particular, the embedded Linux real-time operating system
from Lineo Inc., will allow Trintech’s OpenPOS(TM) technology to overcome the
real-time limitations of standard Linux faced by VARs and system integrators.

About OpenPOS(TM)

OpenPOS(TM) utilizes the 32-bit ARM(TM) processor that supports a wide
range of interfaces such USB and Ethernet. It also supports an extensive range
of LCD displays — from small graphic LCD displays, to touch screen and TFT
displays. The new OpenPOS(TM) platform supports the use of multi-media cards
and compact flash, allowing memory to be scaled from 4MB to more than 64MB. Its
in-built Memory Management Unit also provides a very reliable and dynamic
system for application fire-walling. The use of ARM as a platform means that
software code is compatible across a range of different ARM processors,
including ARM10, Strong Arm, and X-Scale.

About Lineo, Inc.

Lineo(R), Inc. provides embedded systems and real-time solutions that
cover the full spectrum of embedded development, including operating system
software, host development environments and professional services. Lineo
distributes vertical solutions (Smart Handheld, Residential Gateway, Digital
Media/TV) that allow OEMs to create smart embedded devices and systems. While
helping OEMs to reduce system requirements, per-unit costs and time-to-market.
Lineo’s key product lines include: Embedix(R) SDK (a fully featured and
integrated embedded developer tool chain), Embedix(R) (embedded Linux system
software for MMU-less and MMU-full processors), Embedix(R) BridgeWorks(TM)
(operating systems and tools for multiprocessor device Support and legacy code
migration) and RTXC(TM) Quadros(TM) (a highly configurable microprocessor and
DSP real-time operating system). Contact Lineo at
http://www.lineo.com , via
e-mail to info@lineo.com or by calling 801-426-5001.

About ARM

ARM(R) is the industry’s leading provider of 16/32-bit embedded RISC
microprocessor solutions. The company licenses its high-performance, low-cost,
power-efficient RISC processors, peripherals, and system-chip designs to
leading international electronics companies. ARM also provides comprehensive
support required in developing a complete system. ARM’s microprocessor cores
are rapidly becoming the volume RISC standard in such markets as portable
communications, hand-held computing, multimedia digital consumer and embedded
solutions. More information on ARM is available at

About Trintech

Founded in 1987, Trintech is a leading provider of secure electronic
payment infrastructure solutions for card-based transactions for physical
world commerce, eCommerce and mobile commerce. The company offers a complete
range of payment software products for credit, debit, commercial and
procurement card applications, as well as being a world leader in the
deployment of payment solutions for Internet commerce that are fully SSL and
SET(TM) compliant. Trintech’s range of scalable open systems architecture
solutions for UNIX(R) and Windows NT(TM) platforms covers consumer, merchant
and financial institution requirements for physical payments and the emerging
world of electronic commerce. Trintech can be contacted on the Web at
http://www.trintech.com .


Siebel Enhances CRM Software

Siebel Systems, Inc., the world’s leading provider of eBusiness applications software, announced new and enhanced retail finance functionality for Siebel eFinance 7. Siebel eFinance 7 is a comprehensive suite of customer relationship management, employee relationship management, and partner relationship management applications. The retail finance features of Siebel eFinance 7 are designed to meet the most demanding sales, marketing, contact center, and customer service requirements of financial institutions that serve retail banking consumers, including mass affluent, high net worth, and small business customers.

Reflecting Siebel Systems’ proven domain, industry, and technology expertise, Siebel eFinance 7 provides depth and breadth of functionality in sales, marketing, service, and other retail banking customer-touching business processes, resulting in faster deployments, high rates of end user adoption, and a rapid return on investment. Siebel eFinance has been selected by retail finance industry leaders including American Express Company, Bank of America Corporation, National Australia Bank Ltd., FleetBoston Financial Corporation, Nykredit A/S, Societe Generale, and Westpac Banking Corporation as their CRM standard.

Unparalleled CRM Functionality Delivers Compelling Return on Investment

Siebel eFinance 7 launches with the industry’s most comprehensive, out-of-the-box eBusiness functionality mapped to support the business processes specific to the retail finance industry. With escalating competition and the proliferation of new delivery channels, retail financial services organizations must be able to recognize their most profitable sales opportunities and deliver superior customer service to survive. Siebel eFinance 7 supports this business requirement by enabling financial services organizations to adopt a customer-centric sales and service approach that spans multiple products (deposit, credit, advisory, insurance, investments and securities), multiple channels of communication (call centers, branches, Internet, kiosks, relationship managers) and multiple customer groups (consumer, small business, corporate). Furthermore, organizations can leverage their investments in existing legacy and back office systems while simultaneously providing users with a unified view of business information, functionality, and processes. With innovative eBusiness solutions that improve the customer relationship across all channels and touchpoints, financial services companies will increase customer loyalty and wallet share and thrive in a competitive and customer-driven environment.

“In the retail finance industry, ensuring customer satisfaction is a critical key to success. At ATB Financial, we wanted to build a world-class contact center that allows us to establish and maintain a customer-centric focus. And with Siebel eFinance, we have done just that,” stated Ken Casey, Senior Vice President, Electronic Banking and Central Service, of ATB Financial (formerly known as Alberta Treasury Branches). “Siebel eFinance has allowed us to improve our customer focus and increase customer satisfaction. Its powerful CRM capabilities enable us to provide the right level of service to the right customer. The latest release of Siebel eFinance 7 features new teller capabilities that will help meet the unique needs of retail finance organizations looking to drive revenue growth and improve customer retention.” Siebel eFinance 7 includes a range of new products and features that will be of particular benefit to retail finance organizations. Benefits of implementing Siebel eFinance 7 include:

— Increased Share of Wallet — With a holistic view of each client’s profile, financial accounts, loans, credit history, assets, and other relevant data, financial professionals are armed with the tools they need to understand and manage every aspect of their institution’s relationship with the customer. This consolidated view enables retail finance organizations to more effectively up-sell and cross-sell products and services and maximize lifetime value by increasing revenue per customer. Furthermore, the real-time personalization capabilities of Siebel Marketing and Siebel Analytics help financial institutions deliver the right offer, to the right people, at the right time, through the right channel and optimize every customer interaction.

— Increased Loyalty Through Superior Service — By helping organizations deliver a personalized, consistent, and seamless customer experience, Siebel eFinance 7 enables organizations to differentiate themselves and improve customer loyalty. Retail finance organizations can personalize the customer’s experience across all channels, including web self-service, to ensure that each interaction builds upon previous interactions to better target the specific needs of each individual.

— Increased Sales Effectiveness — The effectiveness of corporate, regional or branch sales and marketing campaigns can be increased with the new performance management, training and real-time executive reporting capabilities of Siebel eFinance 7. Furthermore, to increase the productivity of each relationship manager, Siebel eFinance 7 provides an aggregated view of their entire book of clients, allowing seamless management of all client relationships from a single user interface. The final result is less time spent on administrative tasks and more time spent generating revenue.

— Reduced Costs and Lowered Operating Expenses — Siebel eFinance 7 features workflow and automation tools to help retail finance organizations automate complex business processes to reduce cost. Cost reduction is achieved through improved consistency, fewer errors, and increased efficiency. By automating business processes, organizations can also shorten their training times and lower their training costs. Siebel Systems’ out-of-the-box retail finance functionality and template-based administration dramatically reduce set up times and total cost of ownership by reducing the amount of customization needed.

“Siebel Systems engages leading retail finance organizations and systems integration partners in the design, development, and testing of our applications to ensure that they exceed industry-specific business requirements,” said David Carter, General Manager, Siebel Retail Finance. “By distilling the best practices of industry thought leaders into our applications, we enable our customers to quickly deploy market-leading eBusiness functionality at the lowest total cost of ownership. On average, our finance customers report a 7 percent increase in revenue, a 17 percent increase in employee productivity, a 12 percent increase in customer satisfaction, and a 19 percent increase in customer retention after deploying Siebel eBusiness Applications.”

Smart Web Architecture Enables Rapid Deployment and High User Acceptance

Siebel eFinance 7 was built on the foundation of the newly announced Siebel 7 platform. With the release of Siebel 7, Siebel Systems introduced the Siebel Smart Web Architecture, the industry’s first and only zero-footprint Web architecture that provides high levels of interactivity previously available only from Windows desktop applications. Siebel 7 was built from the ground up to operate in heterogeneous environments and by supporting integration via an “application network,” allowing organizations to not only integrate front office and back office systems, but also hundreds of other applications essential to the institutional finance industries. By offering robust application network support, Siebel eFinance 7 ensures interoperability with the many applications within a financial services organization’s systems environment, including homegrown legacy systems, industry-specific niche applications, and external applications for collaborating with partner systems.

Robust Analytical Capabilities Provide Customer and Business Insight

Siebel eFinance 7 is also shipping with Siebel Analytics 7, which includes visual, prepackaged and fully configurable reports and interactive dashboards with best practice metrics for sales, marketing, service, partner management, and executive users. All Siebel Industry Applications deliver tailored and robust analytical and reporting capabilities that provide role-based analytics with insight into customer trends and overall business performance.

Automated Upgrade Path Provides Low Total Cost of Ownership

Siebel eFinance 7 offers a clear upgrade path for customers, including automated upgrade functionality, resulting in reduced deployment times and the lowest TCO. Unlike most applications software, Siebel eFinance 7 allows existing customers to employ an automated process to upgrade to the latest version of the application by combining and merging customizations with new functionality on the enhanced platform.

About Siebel Systems

Siebel Systems, Inc. is the world’s leading provider of eBusiness applications software. Siebel Systems provides an integrated family of eBusiness applications software enabling multichannel sales, marketing and customer service systems to be deployed over the Web, call centers, field, reseller channels, retail and dealer networks. Siebel Systems’ sales and service facilities are located in more than 32 countries. For more information, please visit Siebel Systems’ Web site at .


MasterCard Board

MasterCard’s U.S. Region Board yesterday elected Capital One CEO Richard Fairbank as its new chairman to succeed MBNA Vice Chairman Michael Rhodes, who served as chairman since 2000. MasterCard also announced that Richard Srednicki, head of the credit card business at JPMorgan Chase, has been named as vice chairman of its U.S. Region Board. Additionally, MasterCard said that Jeffery Dye, president of GE Capital Financial, and Tom Wimsett, president and CEO of National Processing Company, were also named to its U.S. Region Board. Other continuing board members include Eula Adams, EVP of First Data; Steven Freiberg, president & CEO, North America Cards, Citigroup; Richard Hartnack, vice chairman, Union Bank of California; Alan Heuer, SVP of MasterCard International; John Klein, president & CEO, People’s Bank; Ruth Ann Marshall, president, North America, MasterCard International; Siddharth Mehta, group executive, Household International; Patrick Swanick, president & CEO, Key Electronic Services; Mark Wright, president & CEO, USAA Federal Savings Bank; and Ronald Zebeck, president & CEO, Metris Companies, Inc.


SIM Voice Card

SchlumbergerSema, a business unit of Schlumberger Limited, and Domain Dynamics Limited, the UK voice and signal specialist, announced a security breakthrough for mobile phones which safeguards access to handsets by means of voice authentication. This new system runs on a SIM (subscriber identity module) card and requires no additional hardware, making it cost-effective and simple to introduce.

The technology ensures that only legitimate users can access a phone by using a locking mechanism, which operates in the familiar fashion of a PIN code. Authentication simply requires the user to speak a phrase or word as the phone is switched on, which is compared in real-time with a reference voiceprint stored inside the tamper-proof SIM card’s memory.

Voice authentication is the most natural method of introducing state-of-the-art security into the mobile phone marketplace,” said Jorgen Rasmussen, president, Cards at SchlumbergerSema. “By basing the solution on the standardized SIM platform, it becomes cost-effective and simple, providing a highly flexible mechanism for operators to address the widespread public concern over privacy and security.”

The new system has been developed through a partnership between SchlumbergerSema, which provides the SIM ToolKit applet, Domain Dynamics Ltd, which provides the voice authentication algorithm, and Mitsubishi Electric Telecom, which has implemented the technology on the Trium Mondo GSM/GPRS PDA phone.

The system is provided as a SIM ToolKit applet, which may be loaded onto any standard Java Card(TM) SIM. Leveraging the unique nature of the signal processing algorithm designed by Domain Dynamics Ltd, and the lean nature of the man-machine interface program, the applet is extremely small — requiring just 2.5 Kbytes of memory in total.

SchlumbergerSema ([www.slb.com][1]) is a leading information technology services company providing consulting, systems integration, managed services, and products to the telecommunications, energy and utilities, finance, transport, and public sector markets. Domain Dynamics Ltd ([www.ddl.co.uk][2]) the voice and signal specialist provides powerful, compact and cost-efficient solutions for word recognition, voice authentication biometrics, signal processing, and machinery condition monitoring and is focusing primarily on solutions to applications in noisy or restricted environments. Java Card is a trademark of Sun Microsystems.

[1]: http://www.slb.com/
[2]: http://www.ddl.co.uk/



SCM Microsystems, Inc., a leading provider of
solutions that open the Digital World, announced that it will acquire
Towitoko AG, a leading supplier of smart card-based security solutions for
home banking and private PC access in the German-speaking market. With this
acquisition, SCM strengthens its PC Security business with the addition of
proven software applications for smart card data management and security, as
well as by increasing its market penetration in Germany.

SCM expects the acquisition of Towitoko AG will be completed during the
second quarter of 2002. The company further expects the acquisition to result
in additional revenues of approximately $5 million and operating income of
$500,000 in the current fiscal year. SCM is paying approximately $5 million in
cash to purchase Towitoko AG, a private company based in Munich.

Towitoko AG is a leading supplier of smart card readers and smart
card-based solution packages to the German market. Its customers include
leading German banks, such as Deutsche Bank and Dresdner Bank, who use its
smart card readers to deploy home banking applications to their account
holders. In addition, Towitoko AG provides a variety of offerings based on its
proprietary software applications that allow home PC users to implement their
own smart card-based security or data management systems.

“The acquisition of Towitoko will extend SCM’s market share and technology
leadership within the smart card-based PC Security sector,” said
Robert Schneider, chief executive officer of SCM Microsystems. “The
combination of its application software and our strong reader platform, which
is designed to be compliant with all emerging standards for the use of smart
cards, further strengthens our product offerings. In addition, Towitoko’s
strong position as a supplier to the German home banking industry boosts our
competitive position in this emerging market, at a time when financial
institutions worldwide are increasingly adopting smart card-based programs to
increase security and differentiate themselves with customers.”

About Towitoko AG

Towitoko AG is a leading supplier of intelligent IT security solutions in
the area of smart card readers and smart card solutions. The company addresses
the dramatically increasing demands on security for electronic data transfer
with products that emphasize quality, functionality and terrific
price-performance ratio. As a result, Towitoko is a leader in the growing
market for smart card readers and smart card-based solutions. Towitoko’s
customers include a large number of extensive reference projects, including
Motorola, Giesecke & Devrient, Visa, Dresdner Bank and UBS. For more
information, please visit the company’s Web site at

About SCM Microsystems

SCM Microsystems is a leading supplier of solutions that open the Digital
World by enabling people to conveniently access digital content and services.
SCM’s Security business provides smart card reader technology for the PC
platform and conditional access modules for the digital TV platform to OEM
customers in the government, financial, enterprise and broadcasting markets
worldwide. The company’s Digital Media and Video business provides hardware,
software and silicon solutions for creating and sharing digital media content
to the worldwide retail market under the Dazzle(TM) brand. Global headquarters
are in Fremont, California, with European headquarters in Ismaning, Germany.
For additional information, visit the SCM Microsystems Web site at


Online Ads 2002

While online ad spending by credit card issuers collapsed during 2001, some tracking firms are predicting an 8% to 10% rise in Internet marketing this year. Two of the most active online credit card marketers, NextCard and Providian, withdrew ads during the fourth quarter following financial turmoil spurred by accounting problems. According to NYC-based Taylor Nelson Sofres, Providian spent $29.3 million last year for online ads, the third largest amount behind eBay and GM. Boston-based Compete says NextCard and Providian each received about 260,000 online credit card applications monthly. Troubled sub-prime issuers CompuCredit and Net First National Bank, also active during 2001, have stopped online marketing. Other major issuers such as Bank of America and Capital One reduced online marketing last year. Juniper Bank is currently cutting back on Internet marketing. Nevertheless, Taylor Nelson Sofres says overall ad spending will grow by 8.8% this year after falling 14.7% last year. The research firm estimates total online ad spending hit $2.5 billion during 2001. Meanwhile, the suspension of online marketing by the most active credit card advertisers has proven to be a boon for other issuers during the first two months of 2002. Response rates for current advertisers, such as Discover, have soared by 75% this year, according to CardWatch ([www.cardwatch.com][1]). (CF Library 10/31/01; 1/11/02)

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


ICMA Card Training

International Card Manufacturers Association, a global non-profit association for card manufacturers, personalizers, and service providers, recently launched its password protected Basics of the Card Industry Training Program located on the ICMA Web site at [http://www.icma.com][1].

The program provides member company employees with a basic understanding of the history, breadth, and technical information about cards of all types including manufacturing, personalization, and application processes. Members of ICMA and their employees have free access to the training program.

Contents of the program include history, card markets, industry scope, card product categories, plastic card manufacturing, materials and components overview, post manufacturing, industry trade associations, and a glossary of industry terms.

“We wanted to develop an innovative program that would not only teach new employees of member companies about the card industry, but also familiarize those within the company that are not directly involved with the manufacturing or personalization process,” said Jeffrey Barnhart, executive director of ICMA. “The association’s goal is to enhance the program each year by expanding on a particular manufacturing process, such as chip card production and personalization.” For more information about the Basics of the Card Industry Training Program, or 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 [http://www.icma.com][2].

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.

[1]: http://www.icma.com/
[2]: http://www.icma.com/


Coinless Licenses AGC

Coinless Systems Inc. a leading developer, manufacturer, and supplier of coinless technology and products for the gaming industry, announced that the Company has signed a licensing agreement with Alliance Gaming Corporation.

Under terms of the licensing agreement, Alliance Gaming Corporation’s Bally Gaming and Systems business unit is allowed to use Coinless System’s patented technology, Scan After Print(TM), in all of the slot machines manufactured by Alliance Gaming Corporation. In the agreement, Coinless Systems grants Alliance Gaming Corporation a non-exclusive license to use devices within the scope of Coinless System’s U.S. Patent Nos. 6,012,832 and 6,340,331 entitled “Cashless Peripheral Device for a Gaming System” for limited purpose of making, using, offering to sell, and selling Alliance Gaming Corporation gaming machines incorporating devices within the scope of (the ‘832 and ‘331 patents) so long as such devices are acquired from Coinless Systems Inc. or a licensed manufacturer or licensed supplier of CSI.

“We have observed Alliance Gaming Corporation’s development as a leading gaming supplier and are excited about this relationship with a quality company within the gaming industry. Alliance Gaming’s worldwide presence makes this very interesting for us at Coinless Systems. As I have stated before, we anticipate 2002 to be our best year in the history of the company,” commented Dennis Sorenson, CEO of Coinless Systems Inc.

About Alliance Gaming Corporation.

Alliance Gaming Corporation is a diversified gaming company with headquarters in Las Vegas. The Company is engaged in the design, manufacture, distribution and operation of advanced gaming devices and systems worldwide, and is the nation’s largest gaming machine route operator and operates two casinos. Additional information about the Company can be found on the Alliance Gaming Web site at .

About Coinless Systems, Inc.

Coinless Systems Inc. is a Las Vegas; Nevada based developer, manufacturer and supplier of coinless technology and products for the gaming industry.

Its principle products are tickets for coinless gaming machines and Scan After Print(TM), a patented process that instantly verifies and ensures the accuracy of bar coded tickets at the slot machine as well as the cashier cage.



global vendor of integrated banking software for banks and financial
institutions, announced its results for the year and quarter ended December
2001. Revenues for the quarter were US$34.7 million, up 9% compared to
the same period last year, bringing revenue for the fiscal year ended December
31,2001 to US$140.9 million, an increase of 48% compared to the previous

Operating profit for the quarter was US$29 thousand compared to US$4.8 million
for the same period last year. Operating profit remained constant at US$15.6
million for the years ended December 31, 2001 and 2000.

“2001 was a challenging year for TEMENOS. We emerged from nine months of
intense corporate activity including our Initial Public Offering in June, to
face what was one of the most challenging and unpredictable periods in recent
history,” said George Koukis, Chairman and CEO .”Management has responded to
the challenges by focusing on the execution of our business plan both in
relation to increasing revenues and to streamlining our operations and
cost. During the last quarter we continued to increase market share with
initial license fee signings, a key performance indicator for our business,
growing by 50% compared to the same period last year. At the same time we
undertook a comprehensive restructuring of our business, seeking to ensure
our operating cost structure is optimally positioned to deliver increased
shareholder value. Across sales, services, and product development we are
focused to leverage our investment efforts and our business plan for 2002. We
believe we are on track to deliver on our commitments for 2002 as communicated
during the last quarter’s results announcement”.



Revenues for the quarter were US$34.7 million, up 9% compared to the same
period last year, bringing full year revenues to US$140.9 million, up
48% compared to the prior year. Licensing revenues for the quarter were US$16.0
million, down 19% compared to the same period last year while licensing
revenues for the year were US$79.7 million, up 35% compared to the prior year.
Services revenues for the quarter were US$18.6 million, up 54% compared to the
same period last year and services revenues for the year were US$61.2 million,
up 68% compared to last year.

“We are particularly pleased to deliver quarterly revenues ahead of our
commitments to the market,” said Andreas Andreades, Deputy CEO. “Our licensing
revenues, although higher than our prior guidance, remained depressed as we
absorbing the impact of the recent slowdown in new business. The services
business continued to exhibit robust growth, driven by continued demand for
GLOBUS skills within our client base even at times of economic uncertainty.”
“During the quarter we managed to complete four deals with Tier 1 banking
institutions (Rabobank, Schroders, Fortis, Mellon) bringing our total
penetration to 23 in this market segment, ” said George Koukis, Chairman and
CEO. “We see increased activity across all markets and segments with some
markets such as Russia, emerging particularly strong. I am pleased to be able
to announce that we have decided to pursue a direct sales model in the Russian
market with our 26th office opening in Moscow this month”.

Operating profit

Operating profit for the quarter was US$29 thousand, compared to US$4.8
for the same period last year, while operating profit was consistent with the
prior year at US$15.6 million.

Gross service margins for the quarter increased to 9%, compared to 1% for the
same period last year while the full year margin for our services business was
13% compared to a modest 2% for prior year. “Services profitability, following
the repositioning of our services business as an independent profit center
within TEMENOS, is growing in line with our internal plans as we continue to
drive efficiencies in training our consultants and packaging our offering,
“said Andreas Andreades, Deputy CEO. “We expect our gross services margin for
2002 to continue to improve toward industry standard levels.”

R&D costs for the quarter were US$5.4 million, up 7% when compared to the same
period last year.”2001 represented a year of significant investment in new
product functionality, such as database and platform independence, our new
asset management solution, enhanced treasury functionality, GLOBUS Internet
Bank, and the TEMENOS Integration Platform. Over the past three years we have
invested more than US$60 million in product delivery which we believe has rendered
GLOBUS the most functionally rich, technologically advanced, open universal
banking platform in the market place today,” said Andreas Andreades, Deputy

“At the same time, we have started to see the results of our restructuring
program taking effect, with quarter on quarter R&D costs decreasing
significantly. Our program for transferring development processing capability
to lower cost countries and specifically to our development centers in India
and Thailand, will be completed during the second quarter of the current
year. We remain confident that our 2002 R&D cost will be in line with our long
term target model, representing between 16%and 18%of revenues,” said David
Arnott, Chief Financial Officer.

S&M costs for the quarter were US$7.1 million, up 22%compared to the same
period last year while full year costs were US$24.0 million, up 63%
compared to
the previous fiscal year.”We can now boast a world class sales organization
with coverage and capability to deliver increased initial license fee
signings,” said Andreas Andreades, Deputy CEO. “2002 will be a year where we
will seek to maximize productivity of the sales organization which we put in
place during 2001.”
G&A, at US$5.0 million for the quarter, was up 29% compared to the same period
last year, bringing the full year growth in G&A costs to 25% compared to
48% revenue growth. “All of our planned cost saving measures were
implemented in
this quarter and the full benefit has begun to show through in 2002. With our
lean cost base and efficient operating structure, we are now well
positioned to
manage our growth and direct new resources to exactly where they are most
needed.” said David Arnott, Chief Financial Officer.

Earnings per share

Diluted earnings per share for the quarter were US$(0.02)per share compared to
US$0.04 per share for the same period last year. For the year to December 31st
2001, diluted earnings per share were US$0.11 per share compared to US$0.20
the prior year. Fully diluted earnings per share for 2001, when adjusted for
one-off non-recurring equity repurchase financing costs, were at US$0.25
compared to US$0.22 for the previous year, up 14%.”I am very pleased that
despite the unstable economic environment and our aggressive investment in
term objectives, we have been able to deliver increased earnings per share
adjusted for non-recurring items,” commented Andreas Andreades.



On January 24th 2002, TEMENOS acquired a minority equity stake in FINANTIX
(formerly known as INFOservice),a company based in Venice, Italy, with offices
in Germany, Finland, the UK, and the US, by injecting US$2.5 million cash into
the company. We were also granted an option to acquire the remaining equity
a combination of equity and cash. The purchase will be based on an earn-out
agreement which is expected not to exceed US$20 million. This option
expires on
November 30,2002. FINANTIX develop, market, and support “One Wealth,” a
Financial Relationship Management product suite, with full multi-channel
capability, targeted at retail, private, and wealth management banking
institutions to enable them to manage their customer relationships.”The market
for Financial Relationship Management, including the provision of automated
advice is at the top of CIOs priorities,” said Ralf Emmerich, FINANTIX CEO.
provide what we believe is the most technologically advanced j2EE component-based product available in the market place today that enables banks to manage
their multi-channel customer relationship issues in the context of their
specialized financial environment”.

“CRM is probably the fastest growing sub-sector within financial services
traditional horizontal CRM vendors providing only general expertise. Our
ability to understand the financial services business provides us a unique
opportunity to deliver to banks what is missing from traditional CRM systems,”
said George Koukis, Chairman and CEO.


In January 2002,TEMENOS acquired all the shares of Quetzal Informatique SA, a
Paris-based supplier of sophisticated regulatory reporting software, as
well as
the intellectual property rights for their software for a total consideration
of approximately US$2.5 million in cash and shares. “Following the events of
September 11th regulatory reporting has come very much back in focus, and
are being asked to react to changes in regulatory demands very quickly,”
commented George Koukis. With the acquisition came a strong pipeline, in
addition to an already strong installed base in France and other French
speaking countries. More importantly it extends the GLOBUS offering to an area
historically dominated by other vendors.

2002 Guidance

Based on our existing backlog of signed contracts, which amounts to US$52.7
million (September 30,2001 US$46.1 million)and represents visibility in excess
of 9 months, combined with our expectations for converting our existing
pipeline, we are in a position to reconfirm prior guidance of revenues of
approximately US$170 million for fiscal 2002. Operating margins are
expected to
return to approximately 18% in line with our pre-Initial Public Offering
targets. Our major cost restructuring plans are expected to be completed
the first half of the year and therefore margins are likely not to accrue
evenly during the year.


TEMENOS is a global leader in providing financial institutions with integrated
banking systems that increase productivity, profitability, and allow them to
respond to changing market conditions. The company’s solutions, TEMENOS
are utilised in a variety of segments including retail and wholesale
banking as
well as for treasury and accounting functions. TEMENOS has 26 offices in 20
countries and over 270 installed client bases. The company had revenues of
US$140.9 million for the year ended December 31, 2001. In June 2001, TEMENOS
became a public company, quoted on the SWX Swiss Stock Exchange (TEMN).