2002 Resolutions

More than 62% of Americans say they plan to charge less to credit cards this year, but only 28% say they will use their debit cards less during 2002 than last year. A solid 94% indicate they will pay down credit card debt during 2002, according to a home page poll by CardWeb.com. Among other consumer resolutions for 2002: more than 80% plan to save more in 2002, but only 12% plan to consolidate credit card debt to a home equity loan or home mortgage in 2002. When it comes to travel, 56% of consumers say they will travel the same or less than last year.

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ADS 4Q/01

Dallas-based Alliance Data Systems reported Wednesday that fourth quarter revenue increased 18% to $208.6 million and that cash earnings for 4Q/01 increased 84% to $9.2 million. Transaction Services revenue, which accounts for approximately half of the Company, increased 21% to $136.9 million. Credit Services revenue, which accounts for approximately one-quarter of the Company, increased 16% to $77.1 million. Marketing Services revenue, accounting for the remaining one-quarter of the Company, increased to $51.7 million compared to $51.1 million for the fourth quarter of 2000. ‘Air Miles’ reward miles issued and redeemed each remained strong. EBITDA for this segment increased 10% due to continued strong growth in ‘Air Miles’ reward miles issued. ADS projects revenue for 2002 to range between $860 and $865 million. For complete details on Alliance Data Systems’ 4Q/01 results visit CardData ([www.carddata.com][1]).

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

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US ID Smart Card

The Smart Card Alliance released a white paper this week which describes key policy, process and technology considerations for a secure personal ID system weighed against the protection of individual privacy rights. The paper outlines why smart card technology is currently the best choice for delivering cost-effective, fraud-proof and accurate identity verification. The white paper will be the focus of the first day of the upcoming Smart Card Alliance conference, to be held in Austin, Texas next week. The conference will take up the personal ID card debate and its ramifications for the U.S. population, economy, and technical infrastructure. More than 20 organizations participated in the task force to develop the white paper including: Atmel, Avisian, Caradas, CrossCom National, Datacard Group, Datakey, Foley Hoag, Gemplus, Huntington Bank, IBM, Identrus, MasterCard, Northrop Grumman Information Technology, Oberthur Card Systems,SchlumbergerSema, SCM Microsystems, VISA, and Xansa. The white paper is available on CardFlash Online today.

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GO Software and @pos Team

Return On Investment Corporation and @pos.com, Inc. jointly announced the formation of a strategic alliance between GO Software, an ROI subsidiary and leading provider of payment processing solutions, and @pos, a leading transaction point-of-service provider of hardware, software and ASP services for information capture and retrieval alongside card-based payments. To launch the alliance, GO Software and @pos have signed a development agreement and a co-marketing agreement.

Under the terms of the development agreement, GO Software will develop and provide payment processing software to integrate with point-of-sale hardware terminals manufactured and marketed under the @pos brand. The co-marketing agreement allows each company access to the other’s primary markets. GO’s payment processing software is used by over 50,000 businesses, primarily in retail point-of-sale, mail and telephone order, and Internet e-commerce. State-of-the-art secure transaction terminals from @pos have been deployed in high profile mass retailers and department stores along with government and banking institutions. On an average daily basis, @pos’ terminals capture over 8 million electronic signatures worldwide.

Tony Abruzzio, Vice President and General Manager of GO Software, said, “This alliance is a win-win situation for both parties. @pos’ expertise in information capture and retrieval and next-generation payment technologies complement GO Software’s proven payment processing software for brick-and-mortar and online retail merchants. The collaboration of our respective core competencies will provide superior products and services to @pos point-of-service merchants. Additionally, introducing @pos products to the businesses GO serves will provide a more compelling and comprehensive solution for our customers.”

“@pos is confident in its selection of GO Software as the provider of payment processing software for our point-of-sale payment terminals because of GO’s superior product development and customer service,” John Wood, President and CEO of @pos stated. “Now, with GO, @pos can extend our point-of-sale expertise to all classes of merchants from mass retailers to smaller neighborhood stores. We look forward to a long and successful relationship.”

About Return On Investment Corporation ([www.roicorporation.com][1])

More than 50,000 businesses use ROI software to process payments on virtually any computer and to connect IBM midrange systems to the rest of the world. In the United States, in terms of the number of payment processing software licenses, GO Software (an ROI subsidiary) is the number one company in the IBM midrange market and is second behind First Data Corp. in all computing markets. Campana Data (an ROI subsidiary) markets consulting and transaction processing services. Net400 (an ROI subsidiary) provides software for IBM midrange computers that facilitates e-mail and e-commerce communications, system and device connectivity, web enablement of business applications, and business-to-business and business-to-consumer transactions.

About @pos.com

@pos (OTC BB:EPOS) is a leader in secure, interactive electronic transaction technologies. The company provides signature capture products, web-enabled payment platforms, smart card interfaces, encryption engines supporting DES and Triple DES, and an extensive suite of software tools. With complete end-to-end solutions, @pos offers internet-based, hosted services, under its Crossvue brand, for loss prevention and electronic receipt storage and retrieval. @pos currently services the retail, government and banking market for applications that include electronic signature capture, debit and credit payments. For more information, see www.atpos.com, email to info@atpos.com, or call 408-468-5400.

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

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TransLink Debuts

San Francisco Bay Area commuters will start using smart cards tomorrow as the Metropolitan Transportation Commission and a half-dozen transit operators kick off ‘Phase I’ of a six-month pilot program of the ‘TransLink’ electronic fare payment system. In preparation for the public launch, MTC and the TransLink Customer Service Center earlier this week mailed out ‘TransLink’ smart cards to approximately 4,300 program volunteers. Each card has $3 loaded in TransLink e-cash. All together, 18 rail stations, 31 bus lines, three ferry terminals, and two light-rail lines have been outfitted with ‘TransLink’ card-readers. Participants in the pilot can load value onto their fare cards at self-serve ‘Add Value Machines’ in transit stations and some 40 retail locations throughout the Bay Area, or by calling the ‘TransLink Customer Service Center’. After the success of the pilot program is determined, MTC and the participating agencies plan to install ‘TransLink’ equipment on all 21 Bay Area transit systems, which together carry in excess of 1.6 million riders a day. MTC has contracted with Motorola and ERG Limited to implement and operate the ‘TransLink’ fare-collection system.

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JCB CARDS

JCB International Company announced today plans to issue credit cards in China. In cooperation with the People’s Bank of China, JCB plans to grant card-issuing licenses to Chinese commercial banks such as Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank and Bank of Communications.

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COOP BANK OUTSOURCES

SchlumbergerSema, a business unit of Schlumberger Limited, today announced that it has won a comprehensive outsourcing contract from The Coop Bank to manage and operate its central information technology platform.

The Coop Bank awarded the contract, worth over US$7 million, to SchlumbergerSema because of its expertise and experience in managing outsourced IT services, and more importantly, because it offered the best value for money. The Coop Bank was also impressed by the SchlumbergerSema company culture and its strong representation in Sweden.

“We are now in the position to concentrate on our core business of banking and on the marketplace in general,” commented Thomas Idermark, managing director, The Coop Bank. “We are looking forward to working with SchlumbergerSema, a company we believe to be dependable and a long-term supplier of reliable data processing services. Efficient, well managed outsourcing is critical to our success.”

SchlumbergerSema will provide archive solutions, output services, server operation and hardware in addition to creating an interface between the post office, bank and benefit check cashing services. SchlumbergerSema also operates the payment card systems, making this a complete end-to-end IT solution.
“This is an important contract for SchlumbergerSema,” commented Tommy Boman, managing director, Sweden, SchlumbergerSema. “Strategically, it strengthens the position of the company in the financial sector. It is also further evidence that outsourcing is truly a commercial option for companies where time-to-market is an important factor for success.”

In Scandinavia, SchlumbergerSema employs more than 2,100 people at some 30 locations.

About SchlumbergerSema

SchlumbergerSema 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. More than 30,000 employees serving customers in 65 countries, SchlumbergerSema is one of two business segments of Schlumberger Limited, a global technology services company. For more information about SchlumbergerSema, visit http://www.slb.com.

About the Coop Bank

The Coop Bank is owned by Kooperativa Förbundet (the Swedish Cooperative Wholesale Society) with 45%, Skandia ( insurance company) 35% and Telia (the Swedish Telecom) 20%. The Bank will target the households economy and especially the 3,5 million MedMera cardholder within the Cooperative Wholesale Society. The Bank will mainly offer products for saving, borrowing and payment but will in the future mediate fond products, house-loan and other financial services close to daily life. The Coop Bank will offer its services via Internetbank, Telephonbank, shops and MedMera card. The Bank plans to start its operation during spring 2002.

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MOBILE PAYMENT FORUM

Trintech, a global provider of secure payment
infrastructure solutions, has joined the Mobile Payment Forum, a global,
cross-industry group formed to enable secure, user-friendly mobile payment
transactions and expand the overall market for mobile commerce. Founded
by American Express Company, JCB Co., Ltd., MasterCard International and Visa
International, the Mobile Payment Forum aims to standardize the building
blocks necessary to deploy global solutions for secure mobile payments.

Focusing on payment card transactions, which are used in almost 93 percent
of all e-commerce payments(1), the Mobile Payment Forum will address key areas
such as interoperability passwords, cardholder authentication, and encryption
methods. Led by a Board of Directors comprised of leading mobile, technology
and financial companies, the Forum will develop requirement documents, white
papers, case studies, and technical specifications. The Forum will also drive
collaborative work with other industry consortia and standards bodies.

Trintech is a leading provider of technology infrastructure solutions for
mobile payments. The company has leveraged its 15 years experience in the
payments industry to develop a range of secure mobile infrastructure solutions
that combine standards-based security and multiple channel support with
innovative features, such as support for micropayments, credit card payments
and device-to-device payments. The Trintech mobile payment range includes
PayWare mAccess, PayWare eIssuer and PayWare Guardian. Trintech’s mobile
solution suite meets the payment requirements of consumers, banks, merchants,
ISPs/CSPs as well as telcos, wireless operators and other large organizations.
Major customers for Trintech’s cutting-edge mobile solutions include Motorola
and Nextel.

“Without question, the mass availability of mobile devices creates a
significant opportunity for wireless payment,” said Trevor Healy, EVP of
Trintech’s ePayments Division. “The enabling technologies are there, but in
order for mobile commerce to achieve viral growth there needs to be payment
standards. For the first time, the major card organizations have agreed to
tackle this together, in conjunction with technology companies such as
Trintech, and this is an important step towards secure, device-agnostic mobile
commerce.”

“We are very pleased to welcome Trintech to the Mobile Payment Forum,”
said the Forum’s co-president, Simon Pugh, Vice President, Standards and
Infrastructure, at MasterCard International. “As a global, cross industry
organization, the Mobile Payment Forum places great emphasis on the
contributions from organizations such as Trintech. These contributions will
play a major part in helping us to achieve our goals quickly and efficiently.”

About Trintech

Trintech is a leading provider of secure electronic payment infrastructure
solutions for real world, Internet and wireless transactions. The company,
founded in 1987, offers a complete range of payment software products for
credit, debit, commercial and procurement card applications. Trintech’s
secure product range is deployed in over 35 countries worldwide and covers the
payment requirements of consumers, card issuing banks, merchant acquiring
institutions, merchants, eMerchants, telcos, wireless operators, ISPs/CSPs,
Portals and large corporations. The Group’s range of scalable, open systems
architecture solutions for UNIX(R) and Windows NT(TM) platforms covers
consumer, merchant and financial institution requirements for all card-based
payments, including eCommerce and the emerging world of mCommerce. Trintech
can be contacted in the U.S. at 2755 Campus Drive, San Mateo, CA 94403 (Tel:
650-227-7000) and in Ireland at Trintech Building, South County Business Park,
Leopardstown, Dublin 18 (Tel: 353-1-207-4000). Trintech can be reached on the
Web at http://www.trintech.com . Investor information can be found at
http://www.trintech.com/investor.

About the Mobile Payment Forum

The Mobile Payment Forum brings together leading organizations from the
mobile and financial industries to create a foundation for standardized,
secure and authenticated mobile payments, based on payment-card accounts.
Founders American Express Company, JCB Co., Ltd., MasterCard International and
Visa International all bring extensive experience in creating interoperable
global payment standards and specifications and a knowledge of payments in
emerging channels. Membership will include key financial institutions,
telecommunications operators, wireless-device manufacturers, merchants,
content providers and software and hardware developers and vendors. The
Mobile Payment Forum is a non-profit membership organization, incorporated in
the state of Delaware in the United States. For more information, visit
http://www.mobilepaymentforum.org.

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eFunds 4Q/01

eFunds Corporation reported this morning 4Q/01 revenues of $130.1 million, a 15.4% increase over 4Q/00. Net income for the fourth quarter rose 119% to $11.6 million versus net income of $5.3 million in the fourth quarter of 2000. Revenue from Transaction Processing products and services, which represented approximately 46% of total fourth quarter revenue, increased 13% over the fourth quarter of 2000. The primary contributors to this growth were revenue increases from certain network customers, the Company’s ATM deployment business and its government services business. Transaction volumes increased an average of 25% over the fourth quarter of the previous year across all categories of ATM, POS and ACH processing. The Company recently reached an agreement to further expand its ATM network with the purchase of an additional 2,500 ATMs. eFunds is targeting revenue growth of 15% in 2002, with total revenue expected to be approximately $596 million for the full year. For complete details on eFunds’ 4Q/01 results visit CardData (www.carddata.com).

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COMBO CARD

The Taiwan Cooperative Bank is gearing up to issue a multi-functional card that enables consumers to use ATMs as well as access a credit line. The ‘Combo card’ will also have international access to ATMs carrying the ‘Maestro’ and ‘Cirrus’ brands. Cardholders will be permitted four free withdrawals at ATMs of other banks per month, gold card-holders will be able to make six per month, while platinum card-holders will get unlimited free withdrawals. The Bank projects 1 million accounts within two years.

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TSAI 4Q/01

Transaction Systems Architects reported Tuesday that revenue for the quarter ending 12/31/01 was $65.3 million. However the Company incurred a net loss during the quarter in the amount of $28.5 million. The loss reflects the Company’s decision to adopt new accounting rules relating to the amortization of goodwill and other intangibles primarily related to its acquisition of MessagingDirect, Ltd. The Company completed the first quarter of fiscal 2002 with $175 million in backlog. TSAI expects revenue for the current quarter to be in the range of $66 to $70 million. The Company hired Gregory Derkacht as its CEO during the fourth quarter. For complete information on TSAI’s 4Q/01 results visit CardData (www.carddata.com).

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Thales & GCF Deal

General Credit Forms, Inc., the leader in the worldwide manufacture and distribution of credit card Point of Sale supply products, has signed an agreement with Thales e-Transactions, the fastest growing POS equipment manufacturer in the U.S., Europe, Asia and Latin America. The agreement between the companies is for GCF to act as a reseller of and to provide warranty and non-warranty repair services for Thales’ Talento and Artema line of POS products.

Under the GCF/Thales agreement, GCF will perform repair on the Thales products at GCF’s headquarters in Saint Louis, MO. Units that are under a manufacturer’s warranty will be repaired at no charge, as if they had been shipped to the manufacturer. The GCF/Thales reseller agreement provides merchant acquirers with an opportunity to purchase Talento and Artema products from a renowned independent distribution company that has been servicing the merchant industry for over twenty-five (25) years.

“The POS product lines from Thales e-Transactions are gaining considerable momentum in the U.S. merchant market. The GCF/Thales repair program will allow us to offer our mutual customers a convenient and economical solution for the repair of Thales products,” said John McCormick, Director of Marketing for GCF. “We are excited to bring this new product offering to our customers and look forward to a long partnership with Thales.”

General Credit Forms, Inc. is a privately owned business, founded in 1973 with headquarters in Saint Louis, Missouri. GCF is the nation’s largest manufacturer and distributor of POS supply products to the merchant and money-order industries and currently distributes product to more than one hundred fifty (150) countries on six (6) continents. For more information, contact John McCormick, Director of Marketing, or Mistee Spry, Operations Manager-Terminal Services, at (314) 216-8600 or visit GCF on the web at [www.gcfinc.com][1].

Thales e-Transactions, Inc., is a subsidiary of The Thales Group, a global business with operations in nearly 50 countries and over 65,000 employees worldwide supporting a full range of products, systems and solutions for three broad markets: Defense, Aerospace, and Information Technology and Services. The company continues to enjoy a worldwide leadership role in the POS industry that began over 15 years ago. Thales is currently among the top 4 companies in worldwide POS installations and ranks 1st in installed Smart Card terminals globally. Find more information about Thales e-Transactions, Inc. at the site: [www.thales-e-trans.com][2].

[1]: http://www.gcfinc.com
[2]: http://www.thales-e-trans.com

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