Household 4Q/01

Household reported a very small increase in fourth quarter VISA and MasterCard receivables from $17,303,700,000 for the third quarter to $17,395,200,000 for 4Q/01. For the full year, Household’s bank credit card outstandings were down 1.1%. Meanwhile HH’s private label credit card portfolio was up 15.1% for the year, to end at $13,813,900,000. During the quarter, the company purchased a private label credit card portfolio totaling approximately $725 million and the company sold approximately $1 billion in MasterCard/VISA receivables in the United Kingdom to Centrica, its former partner in the ‘Goldfish Card’ program, as part of a settlement agreement. Bank credit card charge-offs dipped slightly to 6.69% for the fourth quarter compared to 6.75% in the previous quarter. Delinquency (60+ day) was up significantly from 3.91% in the third quarter to 4.10% for 4Q/01. Charge offs within the private label portfolio were 5.40% and delinquency was 5.48%. For complete details on Household’s 4Q/01 performance visit CardData ([www.carddata.com][1]).

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

Details

CREDIT CARD BONDS

Standard & Poor’s recently completed a
review of two rated Turkish credit card future flow transactions and found
that they are performing as expected despite a significant deterioration in
the flow of tourists to Turkey in recent months.

“Our heightened surveillance effort reflects the close link between the
dollar value of credit card vouchers generated by the two Turkish bank issuers
and the health of the Turkish tourism industry,” Kevin Kime, a director in
Standard & Poor’s International Structured Finance group, wrote in a report
released today titled “Turkish Structured Transactions Perform Despite
Downturn in Tourism.”

The Turkish transactions under review, Credit Card Receivables Trust
1998-1 (issued by Turkiye Garanti Bankasi, T.A.S.) and Akbank 2001-A
Receivables Trust (issued by Akbank, T.A.S.), are securitizations of U.S.
dollar reimbursements payable to the issuing banks by several international
credit card companies, including MasterCard, Visa, and American Express. Both
transactions carry a full financial guarantee insurance policy from MBIA
Insurance Corp.. (triple-‘A’ financial enhancement rating) and are rated
triple-‘A’ by Standard & Poor’s.

“Evidence available to date indicates that Turkey’s tourism sector
suffered a significant drop in the number of arrivals shortly after the
September attacks on the U.S.,” Mr. Kime wrote.

The report points out that the decline has been accompanied by an increase
in the proportion of travelers from countries that are less economically
advanced. “The combination of a smaller and less affluent tourist pool
resulted in a significant decline in voucher generation by the issuing banks,
although coverage levels in both transactions currently remain adequate,” Mr.
Kime added.

Standard & Poor’s expects Turkey’s tourism sector-and with it the
performance of the two securitizations-will fully recover once meaningful
economic growth resumes in the U.S. and Europe and fears concerning air travel
and political volatility in the Middle East subside.

“Turkish Structured Transactions Perform Despite Downturn in Tourism” is
available on RatingsDirect, Standard & Poor’s Web-based credit analysis
system, at
http://www.ratingsdirect.com. It is
also available on Standard &
Poor’s Web site at
http://www.standardandpoors.com.

Details

Receipt Manager

Interlink Electronics, Inc., the world’s leading developer of intuitive interface technologies and solutions for home and business applications, and Bluepoint Solutions, developer of high performance document management software, announced an e-signature-enabled transaction solution for cash transaction applications. Called Receipt Manager, the new paperless solution integrates Interlink’s ePad electronic signature pad with Bluepoint’s document management software to electronically receive, process, sign and store teller-based transactions.

Bluepoint Solutions’ Vice-President of Sales, Chuck Bromley, explained, “As a teller initiates a new transaction, Receipt Manager also launches on the workstation to capture the transaction details, the member’s information and a hand-written electronic signature. The completed transaction is then processed and stored in a paperless process.

“Receipt Manager with ePad is already being deployed in credit unions across the country,” Bromley continued, “with the goal of giving them direct local control over their data. The key, however, to keeping transactions paperless is the electronic signature. Now that e-signatures are legally binding, selecting and integrating Interlink Electronics’ ePad was a natural step. It’s intuitive and requires very little training to successfully deploy. Other credit union applications for ePad include electronic signatures associated with consumer loan, member application and signature card documents.”

“Bluepoint’s e-signature-enabled Receipt Manager allowed the Arizona Central Credit Union to reduce teller workload significantly while simultaneously cutting transaction and IT storage costs,” commented Adam Jones, Arizona Central Credit Union’s IT Manager. “Because the Receipt Manager system with ePad is a paperless solution, it gives us the flexibility to access and summarize member transactions in real time, simply with the click of a mouse.” “With more than 20,000 banks and credit unions in the U.S. alone, the immediate market for Bluepoint’s e-Pad-enabled Receipt Manager solution is significant,” added Rod Vesling, Vice President of Marketing and Sales, Electronic Transactions, Interlink Electronics. “Our relationship with Bluepoint is consistent with our strategy to enable industry applications providers who are spearheading the transition from ink and paper to electronically-signed forms.”

About ePad

Interlink’s ePad captures the handwritten signature and converts it to a biometrically secure e-signature for use in B2B, point-of-sale, Internet and end user applications. ePad e-signatures may be permanently bound into Microsoft(R) Word(R) documents, Outlook(R) e-mail messages, Adobe Acrobat(R) files, Internet documents, and many proprietary forms and transactions. ePad e-signatures contain a biometric handwriting profile that may be used to authenticate the identity of a signer. The ePad writing surface, which accepts signatures using any common stylus, has the natural feel of writing on paper.

About Interlink Electronics

Interlink Electronics, Inc. is the world’s leading developer of intuitive interface technologies and solutions for business and home applications. Products include electronic signature solutions for B2B, point-of-sale and consumer applications, interactive remote controls for business communications and broadband home entertainment markets, and integrated interface solutions for specialty and consumer electronics products.

Interlink’s customers include Compaq, SANYO, Sony, Microsoft, NEC, Sharp, Toshiba, Pioneer, Mitsubishi, and InFocus, worldwide. Within the electronic transactions market, the company’s industry partners include Cardiff, Communications Intelligence Corporation (CIC), Silanis Technologies, and Valyd Inc. Interlink Electronics maintains offices in Camarillo, California, Tokyo and Hong Kong, and is available online at [www.interlinkelectronics.com][1], or in Japan at [www.interlinkelec.co.jp][2].

About Bluepoint Solutions

Bluepoint Solutions supports the credit union industry with high performance software used for document imaging and management of electronic records. Its primary suite of applications consist of Receipt Manager, a digital signature capture and electronic receipt system; FASTdocs(TM), a document imaging and management solution which integrates directly into existing host data processing systems; imageABLE(R), a scalable, enterprise client/server system that allows users to utilize imaging, COLD and workflow management solutions; and ODOC, an object-oriented infrastructure that allows member information, records and document images to be easily retrieved on demand. Bluepoint can be reached online at [http://www.bluepointsolutions.com][3].

[1]: http://www.interlinkelectronics.com/
[2]: http://www.interlinkelec.co.jp/
[3]: http://www.bluepointsolutions.com/

Details

E-CHECK PATENTS

LML Payment Systems Inc. is pleased to
announce its subsidiary LML Patent Corp. has received a Notice of Allowance
from the United States Patent and Trademark Office for a new patent based upon
United States Patent Application Serial No. 09/851,609. The new patent
application contains seven new claims that address authorizing the debiting of
funds from bank accounts without the requirement of negotiating a paper
check.
The corresponding patent should be issued within the next few months.

The new patent will result in an improvement to the Company’s existing
intellectual property estate which includes US patents 5,484,988, 6,164,528
and
6,283,366, all of which describe the electronification of paper checks,
sometimes referred to as check truncation, check conversion, electronic check
acceptance and electronic check presentment.

In April, 2001, US BankCorp Piper Jaffrey reported that electronic checking is
in their opinion, the fastest growing retail payment method addressing the
largest potential untapped electronic payment opportunity in the United
States. The Federal Reserve study on checks vs. ePayments conducted in 2001
estimated that almost 50 billion paper checks were presented at retail
establishments last year. Recently released statistics regarding electronic
check transactions processed through the Fed’s ACH network (POP transactions)
indicate over 15 million electronic check transactions occurred in the 3rd
quarter of 2001 bringing the total transaction volume between January and
September, 2001 to over 38 million.

“We are encouraged by these numbers. 50 billion paper transactions annually
represents a very large market, while we believe the 38 million electronic
check transactions are beginning to reflect merchant acceptance and adaptation
of Electronic Checking technology. Naturally, our aim is to convert as many
paper transactions to electronic transactions as possible and, clearly,
this is
the driving force behind our comprehensive investment in related intellectual
property,” explained LML President and CEO, Patrick H. Gaines. “A patent
is a
government grant to exclude others from making, using or selling an invention
as claimed in the patent for a fixed number of years. We are pleased with the
development of our intellectual property estate which will shortly include
four
patents describing electronic checking. In light of market developments and
dynamics, we are at this time exploring licensing and other business
relationship opportunities. The allowance of this fourth patent strengthens
our ability to enforce our intellectual property rights,” added Gaines.

The Corporation, through its subsidiary LML Payment Systems Corp., is a
financial payment processor providing check processing solutions including
Electronic Check Conversion (whereby paper checks are converted into
electronic
transactions), electronic check verification, electronic check re-presentment
(whereby returned paper checks are re-presented for payment electronically),
and primary and secondary check collection to supermarkets, grocery stores,
multilane retailers, convenience stores and other national, regional and local
retailers. We also specialize in providing selective routing, including
real-time monitoring of check, debit, credit and EBT transactions for
authorization and settlement through our flagship transaction processing
product REPS (Retail Electronic Payment System). The Corporation’s
intellectual property estate, owned by subsidiary LML Patent Corp, includes
U.S. Patent No. 6,283,366 regarding corporate checks and electronic fund
transfers (EFT), in addition to U.S. Patent No. 6,164,528 regarding Internet
checking transactions, and U.S. Patent No. 5,484,988 which describes a
“Checkwriting Point of Sale System” which, through a database and
authorization
system, provides and administers various electronic payment services for
customers and businesses.

Details

WILDCARD & VISA

WildCard Systems, the leader in delivering stored-value e-payment solutions
today announced it has entered into a three-year global strategic alliance
with
Visa International. This alliance facilitates additional product development
opportunities for Visa International utilizing WildCard Systems’ expertise in
electronic host-based stored value cards, virtual stored value accounts,
Internet payment systems and Web-based applications for the mutual benefit of
Visa and Visa member banks.

Under the alliance, Visa and WildCard Systems will explore opportunities to
work together to develop and deploy applications and programs to enhance and
extend Visa’s consumer product offerings. Using WildCard’s technology and
systems, this may include development and deployment of Visa pre-paid cards,
including those designed to serve the teen market, gift cards, affiliate
program payment cards, identification cards, automobile insurance cards,
payroll cards, fuel cards, shopping mall cards, and other special purpose and
incentive-based cards. Examples of areas in which WildCard’s technology may be
used include:

— Enabling pre-paid accounts to be set up, including value loading, card
issuance and reporting for Visa and Visa members through a variety of
channels,
including web-based applications.

— Extending access to Visa-branded cards, based on WildCard’s stored value
technology, to individuals who do not have access to traditional banking or
credit card services.

— Building additional functionality into Visa product platforms.

— Enabling pre-paid capabilities within devices that are nontraditional
credit/debit card structures, i.e. Personal Digital Assistants (PDAs), mobile
phones, etc.

“The growth in new payment products and services is a key element in our
vision
of universal commerce, the ability for buyers and sellers to conduct
transactions anywhere, anytime and any way. This alliance with WildCard
provides us with an opportunity to examine the enormous potential of pre-paid
card products and technology,” said Sarah Perry, senior vice president,
Strategic Alliances and Investments at Visa International.
The three-year alliance also allows for exploration of ideas for introducing
new electronic commerce, mobile commerce and payment technologies to the
marketplace; exploration of opportunities to work together on marketing,
promotion and/or sponsorship programs; and exploration of ways to bring
WildCard Systems technology, products and systems to an international
audience.

“We have had an ongoing, successful relationship with Visa for many years,”
said Larry Park, President and CEO of WildCard Systems. “While we have
initially focused on the U.S. market with Visa, specifically with the rollout
of Visa TravelMoney, Visa Buxx, and other stored-value products such as gift
cards, payroll cards and incentive/promotional cards, we look forward to
joining with Visa International to introduce and expand its stored value
product offerings in select international markets.”

WildCard Systems is the technology leader in complex stored-value financial
transaction processing, web-based applications and custom software
development.

In the relationship it has with its bank customers, WildCard Systems serves as
the issuing processor, hosts the Internet applications, and provides online,
real-time authorization, as well as all settlement functions, can coordinate
card production/fulfillment activities and can handle all customer servicing.

The WildCard Systems-Visa History

In 1999, WildCard Systems was chosen by Visa USA to be the Visa TravelMoney
processor and work with Visa to develop stored value cards for Visa members to
capitalize on the multi-billion dollar stored value market. Early U.S.
examples
include the AAA National Stored Value program featuring a card-based
alternative to traveler checks and cash when traveling abroad; Visa-branded
gift and incentive card; and in South Africa the launch of Visa TravelMoney
with Thomas Cook through Standard Bank of South Africa. In 2000, WildCard
Systems and Visa launched the first Visa Buxx programs with Bank of America,
U.S. Bank, National City, Capital One and Wachovia. Throughout 2001, WildCard
has further expanded into additional strategic markets with Visa including
payroll cards, promotion cards and other solutions based on WildCard’s
proprietary stored value platform, including the introduction of insurance
ClaimCards(TM) to several of the largest U.S. insurers.

About Visa International

Visa is the world’s leading payments brand and the largest payments system
worldwide. Visa branded cards generate almost US $2 trillion in annual volume
and are accepted at over 22 million locations around the world. The Visa
organization plays a pivotal role in advancing new payment products and
technologies to benefits its 21,000 member financial institutions and their
cardholders. Visa is a leader in internet-based payments and is pioneering the
creation of u-commerce, or universal commerce – the ability to conduct
commerce
anytime, anywhere, over any type of device.

About WildCard Systems

WildCard Systems is an e-payments company that is the technology leader for
electronic stored-value accounts and related Web-based software. Stored-value
(prepaid) type products, particularly those designed to make purchases on the
Internet, represent one of the biggest untapped markets for consumer payments.
WildCard’s secure e-transaction platform is supported by a full range of
services to deliver a complete host-based stored-value solution for a wide
range of vertical markets. The company has been selected by Visa, USA as a
Preferred Processor for stored-value payment systems. WildCard’s clients
include leaders in each of its vertical markets and some of the top financial
institutions in the country. Founded in 1997, WildCard Systems is a privately
held, venture capital backed company. The company is headquartered in Sunrise,
Fla. with offices in Silicon Valley, Orlando and Atlanta. For more
information,
visit
http://www.wildcardsystems.com.

Details

POST OFFICE ATMS

Euronet Worldwide, Inc., a leading provider of secure electronic financial
transaction solutions, has contracted to drive merchant-replenished ATMs in
Post Office branches throughout the United Kingdom. This project is in
addition to the full-service ATMs Euronet already operates in 65 Post Office
branches.

Initially, this comprehensive ATM solution will place merchant-replenished
ATMs in approximately 130 Post Office branches, and the potential exists for
many more future installations. Merchant-replenished ATMs are filled with
cash provided by the operator of the retail site in which the ATM is
located,
thereby reducing the cost of operating and maintaining each machine. The
concept has already been proven – Euronet currently drives more than 70
merchant-replenished ATMs in other locations – and Euronet plans to expand
this Post Office Ltd. ATM program right away, with many locations currently
under review.

“Euronet’s low-cost solution will help us meet our strategic goals of
providing a new level of customer service, said Peter Davies, ATM Client
Manager, Post Office Ltd. “As part of an overall program, this arrangement
with Euronet will enable us to provide ATM services across the United
Kingdom, including in many small and rural areas, often where there is no
traditional access to banking services. We want to provide ATMs in as
many of
our 18,000 branches as possible.”

The Post Office serves over 28 million customers per week. The Post Office
branch network is the largest retail chain in Europe, and on average, 95% of
the UK population live within one mile of a branch.

This contract will rapidly expand Euronet’s business in the United Kingdom.
In July 2001 the company gained certification to drive ATMs in the UK from
the LINK Interchange Network Limited, the national ATM network. Euronet is
the first independent ATM operator and transaction processor to drive
ATMs in
the United Kingdom from a processing center located outside the UK.
Transactions are driven from the Operations Center in Budapest, Hungary.

“Providing ATM convenience to the UK’s more than 60 million citizens at
their
local Post Office branch is an exciting venture, and post offices could host
one of the largest ATM estates in the UK,” said Michael Brown, Chairman and
CEO of Euronet Worldwide. “This agreement was a substantial accomplishment
for our UK staff.”

About Euronet Worldwide

Euronet Worldwide is an industry leader in providing secure electronic
financial transaction solutions. The company offers financial payment
middleware, financial network gateways, outsourcing and consulting services
to financial institutions and mobile operators. These solutions enable their
customers to access personal financial information and perform secure
financial transactions — any time, any place. The company has processing
centers located in the United States, Europe and Asia, and owns and operates
the largest independent ATM network in Europe. With corporate headquarters
in Leawood, Kansas, USA, and European headquarters in Budapest, Hungary,
Euronet serves more than 200 clients in 60 countries. Visit our web site at
www.euronetworldwide.com.

About the Post Office Ltd. (UK)

The Post Office and Post Office symbol are registered trademarks of Post
Office Ltd. in the UK and other countries. Details of the Post Office
products and services can be found at
www.postoffice.co.uk

Details

Providian Sale

Chase will tack on $8.2 billion to its credit card portfolio following an agreement to acquire a securitized batch of Providian’s super-prime accounts. Both issuers confirm the premium being paid is a “mid single-digit”. Providan said this morning it is also making progress toward the sale of its international operations and is continuing to explore the sale of $3 billion of high-risk, sub-prime accounts. Chase says that 86% of the $8.2 billion Providian portfolio, or $7.0 billion, are ‘Platinum’ cards while the remaining 14% or $1.2 billion are ‘Classic’ cards. Chase also noted the acquired Master Trust is a seasoned portfolio with accounts averaging 51 months. The acquisition will boost Chase’s market share and narrow the gap with its closest competitor, the $50 billion ‘Discover Card’ portfolio. Providian will announce its fourth quarter results in late January and expects to announce a loss for 4Q/01.

Details

TOURISM VANCOUVER

Tourism Vancouver and Visa Canada
announced a three-year marketing partnership to promote both domestic
and international travel to the city. Currently more than 8.4 million domestic
and international tourists spend approximately $3.5 billion visiting Vancouver
every year.

In British Columbia, 2.8 million Visa cardholders spend approximately
$2.3 billion on the travel and entertainment industry each year, representing
approximately 16 percent of Visa travel and entertainment business in Canada
overall. This new partnership is designed to increase tourism spending while
providing a number of benefits to tourists, Visa cardholders and to Tourism
Vancouver and its members.

For Visa, the partnership further demonstrates its commitment to the
travel and entertainment sector by adding a key market into its mix of
destination marketing alliances. Through its Destination Marketing Program,
Visa holds successful alliances with other key travel destinations including
Montreal, Toronto, Ottawa, Calgary, Whistler and the Canadian Intrawest
Resorts. The new partnership also provides Visa with the opportunity to
increase prominence in the important Vancouver market.

“We see tremendous opportunity in the Vancouver market where the number
of visitors has grown consistently for many years,” said Rick Pyves, Senior
Vice President, Visa Canada. “This partnership allows us to provide valuable
offers to domestic and international Visa cardholders traveling to Vancouver
and gives us the opportunity to support and build relations with key travel
and entertainment sectors.”

Tourism Vancouver Executive Vice President, Paul Vallee says the Visa
partnership will help the recovery of the Vancouver tourism industry.

“Tourism Vancouver has long recognized the power of partnership through
initiatives such as our Tourism Vancouver Signature Partners program. Forming
strategic alliances provides us with competitive advantage in this dynamic
industry allowing us to reach new customer targets and leverage our marketing
resources. We’re extremely excited about our partnership with Visa who are not
only leaders in their business but a key part of the tourism industry
internationally,” said Vallee.

The first key initiative within the partnership is The VISA Vancouver
Rewards program, a program allowing domestic and international Visa
cardholders to benefit from great savings and rewards. As part of the
agreement, Tourism Vancouver will promote Visa as the Official Vancouver
Destination Payment Card. Tourism Vancouver’s member businesses will sport
point-of-sale decals bearing the tagline and official partnership logo
“Vancouver’s Best Way to Pay.” Other activities include jointly branded
advertising and online savings programs.

The travel and entertainment sector also represents an important market
for Visa. “In Canada, travel and entertainment represents approximately 17
percent of Visa’s overall sales,” said Pyves. “While the industry has faced
some challenges over the last few months, we believe that partnerships and
alliances like this one will help get the industry back on track.”

As the “World’s Best Way to Pay”, Visa is the leading credit card payment
brand in Canada and around the world. There are more than 23.6 million VISA
cards in Canada accepted at more than 604,000 merchant locations across the
country. In British Columbia more than 119,000 merchants accept Visa, almost
double the amount of merchants accepting Visa in 1993. VISA is accepted at
over 23 million locations around the world including over 700,000 ATMs. The
Internet address for Visa is
http://www.visa.com.

Tourism Vancouver’s focus is on building exceptional customer
relationships with meeting planners, travel influencers, travel media and
independent tourists. Our efforts generate demand for the destination, thereby
creating value for members and stakeholders. Innovation, partnership, research
and accountability guide our approach. We utilize person-to-person and
technology-based sales, marketing and visitor servicing activities to achieve
results. Through positive positioning of both the organization and the
destination, our leadership benefits the society, culture, environment and
economy of Greater Vancouver.

Details

Saks Cuts Jobs

Retailer Saks Incorporated announced the planned consolidation of certain credit card functions currently located in Elmhurst, Illinois (metropolitan Chicago) into its credit card services center located in Jackson, Mississippi. The consolidation will begin immediately and is scheduled for completion by May 2002.

The consolidation of the credit operations will further streamline the Company’s organizational structure, improve customer service, and reduce overhead expenses by approximately $2 million (pre-tax) on an annualized basis.

The Company will eliminate approximately 200 of the approximately 250 current positions at its Elmhurst facility and add approximately 100 new positions to the Jackson center to handle the increased workload. Approximately 50 positions will remain in Elmhurst, where the Company’s credit card bank will continue its operations. The Company’s Jackson credit services center currently employs approximately 330 associates.

Charges relating to the consolidation including separation pay, relocation, systems conversions, and property write-offs are expected to be immaterial. R. Brad Martin, Chairman and Chief Executive Officer of Saks Incorporated, commented, “The planned consolidation of our credit operations is a result of a careful review of our organizational structure. We believe the restructuring will improve productivity and enhance customer service.” Martin continued, “We are very appreciative of the dedication and the many contributions of the Elmhurst credit team. We are committed to ensuring that all associates are treated fairly and provided with the appropriate assistance during this time of transition.”

Associates who are affected by the consolidation who do not take other opportunities within the Company will be offered appropriate separation pay, outplacement services, and other assistance in accordance with the Company’s policies.

Saks Incorporated currently operates Saks Department Store Group (SDSG) with 41 Parisian specialty department stores and 203 traditional department stores under the names of Proffitt’s, McRae’s, Younkers, Herberger’s, Carson Pirie Scott, Bergner’s, and Boston Store. The Company also operates Saks Fifth Avenue Enterprises (SFAE), which consists of 62 Saks Fifth Avenue stores, 51 Saks Off 5th stores, and Saks Direct.

Details

WAFER-PIERCE PRODUCTION

NanoPierce Technologies, Inc. announced commencement of WaferPierce production
and a
new operational organization.

Dr. Herbert J. Neuhaus has been appointed President and Chief Executive
Officer
of the newly formed, wholly owned subsidiary NanoPierce Connection Systems,
Inc.

NanoPierce Connections Systems, Inc., has been chartered to undertake
high-volume-production WaferPierce, 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 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 effective January 1,
2002. In addition to WaferPierce production, NanoPierce Connection Systems
will be responsible for licensing and new applications of other NanoPierce
technologies to add value to electronic components.

The strategic operational change was prompted by, among other factors, the
completion and operational readiness of the Class 1000 WaferPierce(TM)
production cleanroom in Colorado Springs and the recently announced plan to
commence production of smart inlays in NanoPierce’s German subsidiary
NanoPierce Card Technologies, GmbH (press release dated January 14, 2002).
Mr. Metzinger commented: “WaferPierce(TM) directly addresses the needs of the
flip-chip market segment of the semiconductor market. Over the next five
years,
Prismark Partners forecasts that the flip-chip market will grow at 45%
annually, far faster than the overall industry. Specifically, the market for
wafer treatment for flip-chip, currently at just over 4 million wafers per
year, will skyrocket to 24 million wafers per year. Moreover, WaferPierce(TM)
offers unique advantages to most rapidly growing segments of the flip-chip
market. For example, industry leaders have told us that Smart Labels, which
are
forecast to grow at 122% annually, cannot be produced cost effectively with
any
other technology.”

“I am very proud to take the helm of this new enterprise,” declared Dr.
Neuhaus. “To me it represents the realization of a vision Paul Metzinger and I
developed several years ago. Paul and I then laid the foundation, and together
our entire team has persevered since. Today the vision remains unchanged
and is
finally in reach: to transform the entire electronics industry; to make
NanoPierce the new industry standard for flip-chip.”

Dr. Neuhaus is an expert in materials for semiconductors and electronics
packaging. Since 1980, Dr. Neuhaus has been active in the development and
characterization of electronic materials and associated manufacturing. Dr.
Neuhaus received his Ph.D. degree in Physics from the Massachusetts Institute
of Technology. Dr. Neuhaus is associated with numerous professional groups and
is the current Materials Subcommittee chair of the National Technical
Committee
of the International Microelectronics and Packaging Society (IMAPS).
Paul H. Metzinger, President and Chief Executive Officer, said: “The new
structure will more closely align organizational reality to actual operations,
which we believe will enhance the successful execution of our Strategic
Plan. I
have the highest level of confidence that with the increased accountability
and
responsibility Dr. Neuhaus has assumed, he and his team will exceed their
already impressive levels of performance.”

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)
stock exchanges. 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.
For more information on NanoPierce Technologies, Inc., please visit this web
site: www.nanopierce.com.

Details