NCR 1,000th Milestone

Customers at the Kmart located at 20505 South Dixie Highway in Miami can now scan, bag and pay for their merchandise — in Spanish or English. This marks the 1,000th store installation with self-checkout units from NCR Corp. at Kmart.

“We are excited to offer our customers this added convenience,” said Kmart Operations Manager Lillian Jiminson. “Feedback from customers at stores already equipped with NCR Self-Checkouts has been resoundingly positive, and the bilingual capability enables Kmart to accommodate the needs of almost all our customers.”

A key component of Kmart’s chain-wide plan is to deploy these state-of- the-art NCR Self-Checkout units. They are easy to use and a hit with customers. Using an intuitive touchscreen customer interface, each machine is equipped to accept cash, ATM cards and credit cards. In some stores, up to 40 percent of total sales have been processed through the self-service lanes.

“Kmart shoppers appreciate the convenience provided by NCR Self-Checkout, which is great for quick purchases and shows shoppers the price of each item as it is scanned,” said Steven Hunter, divisional vice president of information systems and application development. “Self-Checkout use and customer response confirms that self-service technology wholly supports Kmart’s commitment to provide excellent service that centers around our customers.”

“As consumers become more comfortable with technology, they’ll expect to see new self-service technologies wherever they shop,” said Vice President and General Manager for NCR Self-Checkout Mike Webster. “Retailers who recognize and address this demand will clearly have a competitive advantage.”

Kmart, the first mass merchandise retailer to install self-checkouts, has completed installations at 57 store locations in Florida, including 6 within the Miami area. By the end of January 2002, Kmart and NCR will have fulfilled their agreement to install self-checkouts at about 1,300 store locations.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leader in providing Relationship Technology(TM) solutions to customers worldwide. NCR’s Relationship Technology solutions include the Teradata(R) database and analytical applications such as customer relationship management (CRM) and demand chain management, store automation systems and automated teller machines (ATMs). The company’s business solutions are built on the foundation of its long- established industry knowledge and consulting expertise, value-adding software, global customer support services, a complete line of consumable and media products, and leading edge hardware technology. NCR employs 32,900 in more than 100 countries, and is a component stock of the Standard & Poor’s 500 Index. More information about NCR and its solutions may be found at .

NCR and Teradata are trademarks or registered trademarks of NCR Corporation in the United States and other countries.

About Kmart

Kmart Corporation is a near-$40 billion company that serves all 50 states, the Caribbean Islands and Asia Pacific with more than 2,100 Kmart and Kmart SuperCenter retail outlets. Kmart gives back to the communities it serves through Leaders in Learning, an aggressive corporate giving and community outreach initiative focused on supporting diverse education programs and promoting lifelong learning. Kmart associates also provide their most valuable resource — time — every day in their local communities. More information about Kmart is available at the company’s e-commerce shopping site [][1] under the “About Kmart” section.



Issuers Downgraded

Capital One, MBNA, and American Express received stock downgrades Friday after analysts cut ratings from “buy” to “hold”. UBS Warburg says the card stocks are over-priced considering the companies’ challenging operating environments. Rising charge-offs, slowdown in consumer credit and intense competition were cited as reasons for ratings action. American Express charge-offs hit 5.6% in 3Q/01, while MBNA losses hit 4.90% and Capital One’s charge-offs inched up to 3.92%. Cap One ended the Friday trading day down 5%, to close at $51.90. American Express declined 3.7%, to close at $33.13. MBNA lost 2% Friday to close at $32.69.


Fujitsu 8000 Cleared

Fujitsu Transaction Solutions Inc. announced that its Fujitsu Series 8000 family of automated-teller machines has received certification to operate with eFunds Corp.’s ATM network. The certification assures banks and other financial services providers that Fujitsu’s newest, Windows 2000-based ATM products can immediately and seamlessly integrate into eFunds’ network system.

Scottsdale, Ariz.-based eFunds Corp. provides electronic payment, risk management and related professional services. It is one of North America’s leading independent ATM networks, providing computer technology that supports ATM transactions for financial institutions.

In order to achieve certification, the Fujitsu Series 8000 Model 8040, a through the wall, full-function ATM, was beta-tested at eFunds’ Milwaukee, Wis.-based test lab. The Model 8040’s success qualifies other Series 8000 models because they share the same basic architecture, allowing eFunds’ customers to immediately “plug and play” under a standard ATM emulation without any host changes.

“At eFunds, we strive to maintain internal data systems that are accurate, secure, confidential, responsive and compliant,” says J.A. Blanchard, eFunds’ chairman and chief executive officer. “Teaming with Fujitsu helps strengthen our customers’ competitive position and business objectives.” Fujitsu’s newest Series 8000 ATMs add a new dimension to automated banking by providing ATM owners with Web-enabled, advanced technology. The Windows 2000 operating system supports both traditional financial transactions and future services that may be introduced by eFunds — all with a single software platform. Potential services include coupon and stamp dispensing, airline and movie ticket purchases, phone cards and lottery tickets, bill payments, loan applications and personalized online information.

“For years, Fujitsu has provided eFunds’ customers with innovative ATM technologies — the certification continues this alliance. We look forward to collaborating on solutions that embrace, enhance and adapt to the Internet,” says Neill Collins, Fujitsu vice president of financial systems sales. “Achieving certification by all the major ATM networks will make Fujitsu ATMs ready for use by the widest range of financial services providers, both traditional and non-traditional — from banks, to convenience stores, to retail chains and more.”

About eFunds

eFunds delivers innovative, reliable and cost-effective technology solutions to meet its customers’ payment and risk management, eCommerce and business process improvement needs. eFunds provides its services to financial institutions, financial services companies, electronic funds networks, retailers, government agencies, eCommerce providers, and other companies around the world.

Web site: [][1].

About Fujitsu Transaction Solutions Inc.

Fujitsu Transaction Solutions Inc., headquartered in Dallas, is a wholly owned subsidiary of Fujitsu Limited (TSE: 6702). The company provides strategic technology expertise to North American retailers and financial services providers. Fujitsu optimizes the customer’s technology lifecycle and reduces total cost of ownership with point-of-sale (POS) hardware and software, handheld devices and applications, Web-enabled automated-teller-machines (ATMs) and managed services. Fujitsu offers world-class customer-service support, call centers, product staging/integration and rapid-response rollouts. It serves customers such as Allfirst Financial, Albertsons, Recreational Equipment Inc., Safeway and Staples, among others.



Credit Store 3Q/01

SD-based sub-prime card issuer, The Credit Store, reported a net loss of $630,000 for the quarter ending Sept 30, compared to a net loss of $1.6 million for the same three month period last year. The company originated new credit card accounts totaling $20.0 million during the quarter. The aggregate balance of credit card receivables owned and managed increased 5.8% to $120.0 million as of Sept 30, compared to $113.4 million as of Sept 30, 2000. The company has 90,028 accounts at the end of the third calendar quarter. The Credit Store acquires portfolios of non-performing consumer receivables and offers a new credit card to those consumers who agree to pay all or a portion of the outstanding amount due on their debt. The new card is issued with an initial balance and credit line equal to the agreed repayment amount. For complete details on The Credit Store’s financial performance visit CardData ([][1]).



debit-it! Server

OR-based AmeriNet is introducing a new on-line transaction integration tool called ‘debit-it! Server’. The service is designed for customers who don’t have credit cards or don’t want to risk using them online. The service provides debits to checking accounts. In the past six weeks, the Electronic Retailing Association, DirecTV, Sony Music. Com, eUniverse, and, have reached agreements with AmeriNet for deploying Debit-it.



ValiCert, Inc., a leading provider of secure solutions for
paperless e-Business, announced that Credit Suisse Group,
one of the leading global financial services companies, has become a customer
and has selected ValiCert offerings to be integrated into their business
infrastructure. As part of this new business solution, Credit Suisse Group
will leverage the power and reliability of ValiCert Validation Authority
to provide secure electronic mail capabilities to its approximate
80,000 employees. Specifically, Credit Suisse Group will take advantage of
the ValiCert Stateful Validation mechanism, whereby the company will enable
application- and context-based validation and processing to rate the quality
of certificate authority (CA) registration and certificate owners for maximum

“Credit Suisse Group recognizes the importance of securing transactions
that travel via electronic mail, and has selected ValiCert to provide the
solutions necessary to secure all phases of a business transaction — before,
during and after,” said Ian Gardiner-Smith, Chief Technology Adviser, Group
Corporate Centre, Credit Suisse Group. “As a result, we can focus on our core
business of delivering financial solutions to the world market with the
knowledge that ValiCert solutions are safeguarding our critical business

“As organizations increasingly rely on the Internet to conduct business
activities, they are subject to risks of fraud, theft, loss, alteration or
dissemination of confidential data. To minimize these risks, a framework of
trust is required to ensure reliable and secure transactions,” said Bernhard
Werres, vice president, Europe, Middle East and Africa (EMEA) for ValiCert.
“ValiCert has clearly demonstrated their technology expertise, making them an
ideal partner for resolution of these critical issues.”

ValiCert is a recognized leader and innovator in bringing trust and legal
standing to high-value and highly sensitive electronic transactions. Its
products and services provide a complete infrastructure for initiating,
conducting and proving electronic transactions in a secure and legal-grade
manner. In recent months, ValiCert has introduced several new solutions and
services designed to meet the growing needs of businesses across all sectors
as they move paper-based processes to the Internet. Most recently, ValiCert
introduced its e-Pay Secure(TM) solution, a suite of products and services
designed specifically for banks, payment networks and payment processors to
allow them to develop secure payment solutions for trusted consumer

About Credit Suisse Group

Credit Suisse Group is a global financial services company domiciled in
Switzerland. In the areas of financial services and private banking, it
offers investment products and financial advisory services, including
insurance and pension solutions, for private and corporate clients. In the
area of investment banking, the Group serves global institutional, corporate,
government and individual clients in its role as a financial intermediary. It
also provides asset management products and services. Credit Suisse Group is
headquartered in Zurich and dates back to 1856. Its registered shares (CSGN)
are listed on the SWX Swiss Exchange/virt-x, in Frankfurt and Tokyo, and in
the form of American Depositary Shares (CSR) in New York. The Group employs
around 80,000 staff worldwide and reported assets under management of
CHF 1,452.1 billion as of June 30, 2001.

More information about Credit Suisse Group can be found on the company’s
Web site at

About ValiCert

ValiCert is a leading provider of secure solutions for paperless
e-Business. ValiCert Global 2000 customers in financial services, healthcare,
manufacturing and government sectors realize significant ROI from deploying
ValiCert solutions to help migrate costly or inefficient business processes to
the Internet, without losing any trust and security in the process.
ValiCert’s family of products conforms to the guidelines of the e-Sign
legislation and provides a secure, legal-grade environment for conducting
online commerce.

ValiCert has technology and marketing alliances with a range of security,
e-Commerce, systems integrators and application specific companies. With its
products and services available through a worldwide direct sales force,
resellers and global affiliate network, ValiCert is headquartered in Mountain
View, California and has operations throughout the Americas, Europe and Asia.
More information about ValiCert is available on the World Wide Web at


NPC Signs Innkeepers

National Processing Company, a leading provider of merchant credit card processing and a wholly owned subsidiary of National Processing, Inc., announced an agreement with the Professional Association of Innkeepers International to be their endorsed provider of merchant processing services. Under the terms of the agreement, PAII members may qualify for discounted merchant processing rates and equipment rentals. NPC will provide authorization and/or settlement services for VISA, MasterCard, American Express, Discover and Diner’s Club transactions.

PAII is the world’s largest professional association for the innkeeping industry. Their membership consists of bed & breakfast/country inns of any shape and size located all over the world. Member benefits include preferred vendor discounts, educational conferences, newsletters and industry research for the bed & breakfast/country inn travel industry.

“We are excited to be the endorsed provider of merchant processing solutions for PAII,” said Drew Soinski, senior vice president of Travel and Entertainment for NPC. “Partnering with PAII allows us to deliver industry specific solutions to small size merchants — benefiting them with reduced processing costs. NPC’s economies of scale and skill allow us to provide cost-effective solutions that minimize a merchant’s cost of credit card acceptance.”

“Our association exists for the purpose of offering our members access to benefits and discounts that the large national chains enjoy,” said Pat Hardy, co-founder of PAII. “NPC represents the type of company we endorse to our members through its proven track record of providing quality products and premium customer service at very competitive prices.”

About Professional Association of Innkeepers International

Founded in 1988, PAII is the world’s largest association serving bed & breakfast/country innkeepers, aspiring innkeepers and those who serve them. Members receive benefits, discounts, education and research specifically designed for the B&B/country inn travel industry. PAII is the only resource to consult for access to technical assistance in innkeeping. For more information please visit .

About National Processing, Inc.

National Processing, Inc. through its wholly owned operating subsidiary, National Processing Company (NPC(R)) is a leading provider of merchant credit card processing. National Processing is 86 percent owned by National City Corporation (NYSE: NCC) ( [][1]), a Cleveland based $96 billion financial holding company. NPC supports over 600,000 merchant locations, representing nearly one out of every five VISA(R) and MasterCard(R) transactions processed nationally. NPC’s card processing solutions offer superior levels of service and performance and assist merchants in lowering their total cost of card acceptance through our world-class people, technology and service. Additional information regarding National Processing can be obtained at [][2].




Infineon Technologies AG, one of the world’s leading
semiconductor manufacturers, announced results for its fiscal year 2001
ended September 30, 2001, with revenues of Euro 5.67 billion, a decrease of 22
percent from the previous fiscal year. Revenue decrease resulted from a sharp
decline in the overall semiconductor market, which market analysts forecast
will experience negative growth of more than 30 percent in this calendar year.
Revenue decline was driven by weaker demand and deteriorating market
particularly for memory and mobile communication products. Annual revenues
increased by 10 percent in Infineon’s non-memory businesses with significant
growth in Wireline Communications, Security & Chip Card ICs and Automotive &
Industrial segments, although revenues in most of these segments declined in
the fourth quarter of this fiscal year.

EBIT (earnings before interest and taxes) decreased to a loss of Euro 1.02
billion down from a positive EBIT of Euro 1.67 billion in fiscal year 2000.
Earnings were negatively affected by strong price erosion, especially for
memory products, and costs of carrying currently unused capacity in most
non-memory segments. The loss includes charges of Euro 358 million in
connection with inventory write-downs, acquisition related expenses of Euro
million, restructuring charges of Euro 117 million, impairment charges of Euro
25 million and gains from the sale of non-core businesses of Euro 235 million.
Excluding these write-downs, expenses, charges and gains EBIT amounted to a
loss of Euro 648 million.

Net loss amounted to Euro 591 million, down from earnings of Euro 1.13 billion
last fiscal year. The net loss reflects an income tax benefit of Euro 428
million. Loss per share for fiscal year 2001 was Euro 0.92 compared with
earnings per share of Euro 1.83 in fiscal year 2000.
“Infineon has delivered a strong performance in its businesses based on our
technology leadership and expanded system solutions expertise in a very
difficult market environment. However, market conditions significantly
deteriorated, especially for memory products and wireless communications,
clearly impacted Infineon’s overall business development,” commented Dr.
Schumacher, President and CEO of Infineon Technologies AG. “We are making
significant progress in the implementation of our comprehensive “Impact” cost
saving program aimed at reducing operating costs by more than Euro 1 billion
until the end of the 2002 fiscal year.”
In addition, Infineon scaled back capital expenditure during the 2001 fiscal
year to Euro 2.3 billion from the previously planned Euro 2.8 billion. Capital
expenditures for the 2002 fiscal year (started October 1, 2001) will be
to approximately Euro 900 million. The cuts will not affect Infineon’s strong
technology leadership and the company’s plans to continue investments in its
strategic projects.

>From its capital increase in July, Infineon received net proceeds of Euro
billion. Also in the fourth quarter the company received Euro 653 million from
the sale of its infrared components business and its share of the joint
with Osram. With the addition of these resources, Infineon had a net cash
position of Euro 568 million at the end of the fiscal year 2001.
Infineon had a gross margin of 14 percent, a decline from 44 percent in the
previous fiscal year due to significantly reduced prices and under-utilization
of certain production facilities. Excluding the effect of inventory
write-downs, Infineon achieved a gross margin of 20 percent.
SG&A expenses of Euro 786 million were 14 percent of total revenues, up from 9
percent in fiscal year 2000. Higher SG&A expenses as a percentage of revenues
primarily reflect the decline in sales volume. The increase was also partially
due to the expansion of sales activities in Infineon’s growth markets,
particularly in Asia and Japan, to support the anticipated increase in sales
volumes in those regions originally forecasted for fiscal year 2001.
R&D expenditures totaled Euro 1.19 billion and were 21 percent of total
revenues, an increase from 14 percent in fiscal year 2000. This includes
in-process R&D charges of Euro 69 million compared to Euro 26 million in
year 2000. R&D expenditures were focused mainly on the development of next
generation products in Infineon’s target markets including next generation
mobile communications, 10/40 Gigabit optical networking, DSL products,
security solutions and process technologies to increase productivity.
Revenues outside Europe constituted 47 percent of total revenues, compared to
55 percent in fiscal year 2000. As of September 30, 2001, Infineon had more
than 33,800 employees worldwide, with research and development staff
for more than 5,500 of this total.

Fourth Quarter Results

Fourth quarter revenues were Euro 1.09 billion, a decrease of 54 percent
year-on-year and 15 percent from the previous quarter of this fiscal year. The
revenue decrease was principally due to continued deterioration of market
conditions which had a negative impact on all of Infineon’s business groups
by further price erosion for memory products.

EBIT decreased to a loss of Euro 882 million, down from a positive EBIT of
807 million in the same quarter last year and down from a loss of Euro 598
million in the third quarter of this year. Infineon’s loss was due to
increasing pricing pressure in all segments, further order cancellations and
costs of carrying currently unused capacity. The loss also reflects
restructuring charges of Euro 117 million, inventory-write-downs of Euro 142
million, acquisition-related expenses of Euro 67 million, impairment
charges of
Euro 14 million and gains from the sale of non-core businesses of Euro 33
million. Without these items, EBIT amounted to a loss of Euro 575 million.
Net income in the fourth quarter decreased to a loss of Euro 523 million, down
from net income of Euro 581 million during the same quarter of the last fiscal
year and down from a loss of Euro 371 million in the previous quarter of this
year. Loss per share was Euro 0.76 as compared with earnings per share of Euro
0.93 in the fourth quarter of the last fiscal year and loss per share of Euro
0.59 in the third quarter of this year.

Infineon had a negative gross margin of 32 percent, down from a positive gross
margin of 53 percent in the fourth quarter of last year and a negative gross
margin (including the effect of inventory write-downs) of 1 percent in the
third quarter of fiscal year 2001. SG&A expenses were 16 percent of total
revenues, up from 9 percent in the fourth quarter of fiscal year 2000 but down
from 17 percent in the previous quarter of this year.

R&D expenditures in the fourth quarter totaled Euro 344 million. R&D
expenditures were 32 percent of total revenues, an increase from 25 percent in
the previous quarter and from 15 percent year-on-year, primarily due to a
further decline in revenues. In absolute terms, R&D expenditures were down 1
percent year-on-year and up 8 percent from the previous quarter of this year
and also reflect Euro 56 million in-process research and development
related to
the acquisition of Catamaran Communications.

Business Group Performance

Infineon reorganized certain business units during the 2001 fiscal year to
better reflect target customer and market profiles. Effective October 1, 2000,
the Other Operating segment includes the results of certain activities
previously reported under Corporate and Reconciliation, the image and video
the infrared components businesses (previously reported under Wireline
Communications) as well as the gains on these divestments. The prior period
segment results have been reclassified to be consistent with the reporting
structure and presentation of the 2001 fiscal year, and to facilitate analysis
of the current and future operating segment information.
Infineon’s Wireline Communications group’s revenues increased to Euro 768
million in fiscal year 2001, up 15 percent from last year primarily due to the
strong demand for traditional access products and fiber optic solutions,
particularly in the first half of the fiscal year. EBIT amounted to a loss of
Euro 95 million, including the effect of acquisition-related expenses,
to a positive EBIT of Euro 47 million in fiscal year 2000. Excluding the
of these expenses, EBIT would have been Euro 16 million in fiscal year 2001,
down from Euro 106 million in fiscal year 2000.

During the 2001 fiscal year Infineon strengthened its wireline communications
business with the acquisition of Catamaran Communications, an emerging leader
for the fast growing 10 Gbps segment and next generation 40 Gbps optical
networking markets and Ardent Technologies, a supplier of LAN switching
technologies. Portfolio streamlining was completed with the divestment of
non-core business activities including its infrared components and image and
video businesses.

Major developments in fiscal year 2001 include:

— growing market penetration of access broadband communication
market with VDSL/10BaseS Ethernet to the home solution
primarily in Asia and significant design-in for Infineon’s 64
channel DSLAM (ADSL linecard) at a major European OEM

— strengthened leadership position in optical networking market
including Gigabit Ethernet modules, one of the industry’s
first suppliers of 10 Gigabit Ethernet modules, and advanced
parallel fiber optical solutions (Paroli(TM)) product line

— leading 10Gbps SONET/SDH PMD and PHY devices, including the
industry’s first 40GBps PHY solution, based on Infineon’s SiGe
process; devices designed into industry leading optical
players, including a strategic supplier relationship with
Lucent’s optical networking division

— maintaining strong position in the traditional telecom
infrastructure business with analog linecards and ISDN access

In the fourth quarter the group’s revenues were Euro 142 million, down 29
percent from the same quarter last year and down 24 percent from the previous
quarter of this year. The group’s EBIT decreased to a loss of Euro 138
down Euro 125 million from last year’s fourth quarter and down Euro 112
from the previous quarter of this year. The sequential EBIT decline was
primarily due to acquisition-related expenses of Euro 67 million,
impairment of
technology assets acquired from Ardent of Euro 14 million, lower revenues from
high margin products and the costs of carrying currently unused capacity.
Infineon’s Wireless Communications group’s annual revenues were Euro 997
million, down 18 percent compared with last year mainly reflecting the
significant deterioration of the mobile handset market. EBIT decreased to a
loss of Euro 178 million down from a positive EBIT of Euro 261 million
year-on-year due to strong pricing pressure, lower sales volumes and inventory

Major developments for fiscal year 2001 include:

— advances in wireless system solution expertise for

— important contract win with leading mobile handset
manufacturer in China

— expansion of leadership in short-range wireless applications
with market introduction and certification of advanced
Infineon Bluemoon(TM) Bluetooth solutions; start of Bluetooth
volume business with key market players in the wireless and
consumer market arenas

Fourth quarter revenues were Euro 188 million, down 46 percent compared with
the fourth quarter of the last fiscal year but up 7 percent from the previous
quarter of this year. EBIT in the fourth quarter amounted to a loss of Euro 79
million, down from a positive EBIT of Euro 72 million year-on-year and up from
a loss of Euro 176 million in the previous quarter.
In the Security & Chip Card ICs group annual revenues reached Euro 588
an increase of 57 percent from last year’s Euro 375 million. The revenue
increase was driven by a shift towards high-end products during the first half
of fiscal year 2001. However, sales volume in the second half was negatively
affected by the continued downturn in the mobile phone market leading to
cancellations of significant orders for security controllers used in
EBIT was Euro 27 million, down from Euro 49 million in the previous fiscal
year. The EBIT decline is mainly due to increasing pricing pressure, decreased
sales volume and write-down of inventory in the second half of the 2001 fiscal

Major developments in the year include:

— maintaining world leadership in the competitive chip card IC

— successful market introduction of the world’s first
16-bit/64Kbyte SIM card controller for high-end GSM platforms
with industry leaders and strengthened leadership in secure
chip card controllers, with the 66plus series achieving
highest security certification on the ITSEC scheme

— expanded technology leadership for MultiMediaCard(TM) through
strategic contracts with Palm for PDAs, Siemens mobile for
MP3-accessory and establishment of the Ingentix joint venture
with Saifun Semiconductors Ltd.; initially focusing on
MultiMediaCard(TM) storage products and NROM technology

Fourth quarter revenues were Euro 100 million, a decrease of 16 percent from
the fourth quarter of the last fiscal year and a decline of 31 percent from
previous quarter of this fiscal year. EBIT amounted to a loss of Euro 2
million, down from a positive EBIT of Euro 18 million in the fourth quarter of
fiscal year 2000, but improved from a loss of Euro 35 million in the previous
quarter of this year.
The Automotive and Industrial group’s annual revenues rose to Euro 1.1
up 25 percent from last year principally due to the strong performance of the
group’s automotive and industrial power business as well as increased sales of
power management and supply solutions. EBIT improved to Euro 145 million, up
from Euro 69 million in the previous fiscal year.

Major developments in the year include:

— successful introduction of the new AUDO 32-bit TriCore(TM)
micro-controller generation with design wins at all major
automotive suppliers

— strong growth with automotive and industrial power solutions
and successful penetration of Japanese automotive market with
power ASSP’s

— further market penetration with power management and supply
solutions for PCs/motherboards and strengthened technology
leadership with CoolMOS and SiC based products

Quarterly revenues were Euro 270 million, up 7 percent from the fourth quarter
of last year and a decrease of 6 percent from the record level of Euro 288
million in the previous quarter of this year. EBIT was Euro 32 million
to Euro 33 million in the fourth quarter of last year and Euro 38 million in
the third quarter of this year.

The Memory Products group’s revenues in fiscal year 2001 were Euro 1.59
billion, a decrease of 54 percent from Euro 3.47 billion in fiscal year 2000.
EBIT decreased to a loss of Euro 931 million down from the positive EBIT of
Euro 1.34 billion last year. The sharp decline in revenues and negative EBIT
development resulted primarily from a significant weakening of demand in
the PC
market, which led to a rapid decline in DRAM prices and further inventory
write-downs. Spot market average selling prices for 128Mbit DRAMs fell from US
$15 in September 2000 to slightly above US $1 in September 2001. Price erosion
was also fueled by fierce price competition among leading DRAM manufacturers.

Major developments for fiscal year 2001 include:

— maintaining top ranking as strategic supplier at all market
leading customers

— maintaining cost leadership position by following an
aggressive shrink roadmap with full conversion to 0.17 micron
technology at all memory production sites worldwide and
beginning the rapid transition to the next generation 0.14
micron technology for mainstream products (256Mbit SDRAM) on
200mm as well as on 300mm wafers

— strengthened market position for new specialty memory products
such as RLDRAM, Mobile-RAM and SGRAM for high-performance
applications, and for Double-Data-Rate (DDR) products in
Internet server target markets

Quarterly revenues amounted to Euro 243 million, a decrease of 81 percent from
the fourth quarter of last year and a decrease of 27 percent from the previous
quarter of this year. EBIT decreased to a loss of Euro 522 million, down
from a
positive EBIT of Euro 727 million in the fourth quarter of fiscal year 2000
down from a loss of Euro 340 million in the previous quarter of this year.
In the Other Operating Segments, which include the sales of opto products from
OSRAM, revenues were Euro 575 million compared to Euro 579 million in the last
year. The sale of Infineon’s share in the opto joint venture to Osram does not
affect the company’s continued sales of these products. EBIT improved to Euro
188 million, up from Euro 27 million in fiscal year 2000 due to the sale of
Infineon’s image and video as well as infrared components businesses.
Fourth quarter revenues were Euro 131 million, down 18 percent year-on-year
down 2 percent compared with the previous quarter. EBIT was Euro 3 million, up
from a loss of Euro 2 million year-on-year and a loss of Euro 33 million in
previous quarter.

Strategic Highlights Fiscal Year 2001

Infineon continued its strategy to strengthen the company’s system expertise
based on its broad technology portfolio and to offer system solutions for
future applications such as complete turn-key solutions for GSM/GPRS mobile
phones. In addition, Infineon is combining expertise in business groups across
the company to provide advanced system solutions; for example combining its
wireless and automotive technologies for automotive infotainment and
systems solutions.

Infineon has successfully implemented its aggressive shrink roadmap for memory
products. The company has also completed the conversion of logic products from
6 to 8 inch wafer production. In addition, Infineon strengthened its world
leadership in 300mm production, with the ramp-up of its 300mm module in
according to plan. The company believes that these technological advances will
enable it to maintain its position as one of the lowest cost producers of
memory ICs.

Outlook for 2002

In fiscal year 2001 market conditions in the semiconductor industry
deteriorated significantly. Leading market analysts have again lowered their
expectations for the semiconductor market as a whole and currently predict a
decline of more than 30 percent for calendar year 2001 as well as a moderate
single-digit growth rate for 2002. The market development in the next six
months remains uncertain and will be impacted by the slowdown of the world
economy and the uncertainty of the current global political environment. These
factors will impact the overall product demand, the intensity of
competition in
an already very competitive market environment, continued pricing pressure and
excess manufacturing capacity.

After the sharp drop in demand for mobile handsets in the beginning of 2001,
market conditions further deteriorated and growth estimates from market
analysts have been significantly reduced. Infineon anticipates that the
introduction of the next GSM/GPRS generation for mobile phones in the first
half of 2002 will generate a moderate recovery in mobile phone demand. The
ongoing slowdown of the global economy, especially in the United States, has
led to a significant investment decline in telecom infrastructure development
which will impact Infineon’s Wireline Communications business. Macroeconomic
conditions may also lead to a weaker demand in the automobile market,
particularly in Europe and Germany. Following the terrorist attacks in
September in the United States, the Security & Chip Card IC business has seen
increased interest in its security expertise and advanced biometric solutions.
Last month Infineon announced that it will supply secure micro-controller
for the U.S. Department of Defense smart card program. Infineon believes that
these markets will have significant long term growth potential as demand grows
for heightened security solutions.
Market conditions for memory products remain difficult, primarily due to
aggressive pricing by leading DRAM manufacturers. Although inventory levels
declined towards the end of the fourth quarter, Infineon expects price
for memory products to continue during the next quarter.

The current macroeconomic uncertainties and current market conditions make it
difficult to forecast results for the entire 2002 fiscal year. In light of the
difficult semiconductor market environment, Infineon expects to incur
losses during such time as selling prices for memory products persist at their
current low levels and adverse market conditions continue to affect other
of our business. Infineon believes the company has sufficient liquidity and
fiscal flexibility to mitigate the effects of the current market conditions
through the successful implementation of our Impact cost savings and
restructuring program, the reductions in planned capital expenditures,
available funds and financing opportunities, as well as the potential for
strategic sales of non-core assets.

“Despite the currently difficult semiconductor market environment and
macroeconomic uncertainties, we are well positioned in our target segments. We
are successfully focusing on our core competencies, system expertise and cost
leadership. Only through continued investment throughout all market cycles can
we capitalize on the opportunities of any future upturn,” concluded Dr.


Greenland & Seren Settle

Greenland Corporation announced that it has entered into a comprehensive settlement agreement with Seren Systems effectively providing a complete and total release of any and all claims made by Seren to Greenland’s Check Central and MAXcash Automated Banking Machine software and related intellectual property. No additional legal action(s) may be taken by either party, related to any previous activity between the parties, now or in the future.

All rights, title and interest to the work product Seren provided to Greenland have been retained in whole by Greenland. The settlement effectively ends all legal issues and disputes arising from the original court actions, including Greenland’s claims for specific performance, damages and Seren’s counter-claims and demand for rights of ownership. All pending and scheduled legal proceedings, including the previously announced AAA Arbitration action have been dismissed and the mutual settlement agreement is a full, complete and final release between the parties.

Mr. T.A. “Kip” Hyde, Jr., President and CEO of Greenland stated, “One of the first and most important goals the management team set earlier this year was resolution of the very costly and time consuming Seren legal battle. After lengthy negotiations, we are pleased with the final settlement results and that all liabilities surrounding these proceedings have been eliminated. By removing the barriers imposed by the Seren dispute, our ability to complete acquisitions, raise new investment capital, and generally move Greenland forward will be greatly enhanced.”

Mr. Tom Beener, COO and General Counsel for Greenland added, “While our case against Seren was strong, and our legal representation by Duckor, Spradling & Metzger, and Fitzmaurice & Demergian is considered among the best in Southern California, the risks and uncertainties inherent to any litigation are such that most parties try to create absolutely certain results through negotiated settlement. The resolution of this dispute removes once and for all, the cloud of software ownership, asset impairment and further potential legal liability.”

Hyde concluded, “I have never been more optimistic about the future of Greenland, and we thank all of our nearly 6,500 shareholders who have stood by us through this difficult time. We can now better focus our energies towards the more productive goals of building Greenland into a strong and viable company, and increasing shareholder value.”

About Greenland Corporation

Greenland Corporation is an information technology holding company, with equity interests in data storage and systems integration, and whose wholly owned subsidiary, Check Central, is the developer of the Check Central Solutions(TM) transaction processing system software and related MAXcash(TM) Automated Banking Machine(TM) (ABM(TM)) kiosk designed to provide self-service check cashing and ATM-banking functionality, as well as open platform capability for future products and services. The Company’s common stock trades on the OTC Bulletin Board under the symbol “GLCP.” Visit Greenland Corporation on the Internet at [][1].




Third quarter 2001 net earnings per share
increased 22% to 50 cents from last year’s 41 cents. Trailing year net
earnings per share improved 24% to $1.93 versus the $1.56 earned during the
comparable period at the end of the third quarter of 2000.

Sales of $6.7 billion for the quarter, were 7% ahead of last year (over
9% ahead excluding the sales of certain non-core Cash and Carry status tobacco
and Quebec food service operations, both of which were discontinued in 2000
and have now cycled as we go into the fourth quarter). The strong sales growth
was evident across the country including positive improvements in Quebec as
the rationalization program continues. Same-store sales for the quarter
increased 4% for the Company, including the effects of some food price
inflation, which eased considerably in the latter half of the quarter. The
sales growth rate in the third quarter, has accelerated as compared to the 6%
growth in the first half of the year.

During the third quarter of 2001, 22 new corporate and franchised stores
were opened (2000 – 10 stores), increasing net square footage during the
quarter by 2%. For the first three quarters of 2001, a total of 43 new
corporate and franchised stores were opened (2000 – 34 stores), resulting in a
4% increase in net square footage.

Operating income for the quarter increased $46 million or 18% to $296
million. Operating margin improved to 4.4% from 4.0% in 2000, while trading
margin (EBITDA divided by sales) improved to 5.9% from 5.4% in 2000. Operating
income for the first three quarters of 2001 has increased $106 million or 17%
with an operating margin of 4.6% as compared to 4.2% in the comparable period
of 2000. These margin improvements resulted from better mix management and
cost control.

Interest expense for the quarter increased 19% to $51 million and 14%
year-to-date as a result of increased net average borrowing levels partially
offset by a decline in borrowing rates. Interest coverage (operating income
divided by interest expense) of 5.8 times for the quarter was equal to that of
the comparable period in the prior year and improved to 6.0 times from 5.8
times on a year-to-date basis. The effective income tax rate for the quarter
and on a year-to-date basis decreased as compared to the prior year in line
with statutory rate reductions to approximately 40%.

The financial position of the Company remains strong. The .87:1 total net
debt to equity ratio at the end of the third quarter of 2001 increased
slightly from the second quarter of this year mainly as a result of increased
debt levels associated with the financing of the President’s Choice Financial
MasterCard receivables. This ratio is expected to improve during the remainder
of the year as the cyclical investment in working capital decreases,
consistent with previous years.

Capital investment of $355 million during the quarter and $730 million on
a year-to-date basis reflects the Company’s continuing commitment to maintain
and renew its asset base and invest for growth across Canada. The estimated
capital investment for 2001 remains at approximately $1.1 billion.

Operating cash flow for the quarter and year-to-date improved primarily
as a result of higher earnings. Cash flows from operations are expected to
approximate capital investment in 2001.

During the third quarter of 2001, $100 million of 7.34% Medium Term Notes
matured. This is in addition to the activity in the first half of the year
which included the issuance of an aggregate amount of $1.04 billion of Medium
Term Notes with interest rates ranging from 6.0% to 7.1% and maturity dates
ranging from 2008 to 2016, the redemption of $50 million of debentures and the
maturity of $100 million of debentures. This net activity contributed to the
increase in debt levels of $722 million.

In last year’s first quarter, the Company adopted, retroactively without
restatement, the new Canadian accounting standards for “Income Taxes” and
“Employee Future Benefits”. The combined effect of the initial adoption was a
decrease in retained earnings of $152 million in 2000.

During the first quarter of 2001, the Company renewed its Normal Course
Issuer Bid to purchase on The Toronto Stock Exchange or enter into forward
contracts for up to 13,812,265 of its common shares, representing
approximately 5% of the common shares outstanding. The Company, in accordance
with the rules and by-laws of The Toronto Stock Exchange, may purchase its
common shares at the then market prices of such shares.


Sales and earnings are expected to continue to grow solidly in the last
quarter of 2001 and into 2002. The Company maintains a strong balance sheet
with solid cash flow, while continuing its billion dollar per year capital
investment program.

Notes (unaudited)

1. Basis of Presentation

The unaudited interim period consolidated financial statements have
been prepared by the Company in accordance with Canadian generally
accepted accounting principles. The preparation of financial data is
based on accounting policies and practices consistent with those used
in the preparation of the audited annual consolidated financial
statements. These unaudited interim period consolidated financial
statements should be read together with the audited annual
consolidated financial statements and the accompanying notes included
in the Company’s 2000 Annual Report.

For 2001, the Company adopted the new Canadian Institute of Chartered
Accountants accounting standards, Section 1751 “Interim Financial
Statements” and Section 3500 “Earnings per Share” (“EPS”),
retroactively with restatement of the prior period. Section 3500
requires the presentation of basic and diluted EPS on the face of the
income statement regardless of the materiality of the difference
between them. In addition, the Company is required to use the
“treasury stock method” to compute the dilutive effect of options
versus the “if converted method”.

Certain prior period’s information was reclassified to conform with
the current period’s presentation.

2. Stock Options

The Company has granted common stock options, 4,762,643 of which were
outstanding at period end. Stock options have up to a 7 year term, are
exercisable at the designated common share price and vest 20%
cumulatively on each anniversary date of the grant after the first
anniversary. Each stock option is exercisable into one common share of
the Company at the price specified in the terms of the option or
option holders may elect to receive in cash the share appreciation
value equal to the excess of the market price at the date of exercise
over the specified option price.

3. Income Taxes

In accordance with the income tax accounting standard, the cumulative
effects of a change in federal or provincial income tax rates on
future income tax assets and liabilities are included in the Company’s
consolidated financial statements at the time of substantial
enactment. The effect of the reduction in the Ontario provincial
income tax rate of 1.5% for each of 2002, 2003, 2004 and 2005 was
reported as a $1 million reduction to future income tax expense in

4. Goodwill Charges

Goodwill charges include income tax recovery of $.7 million
(2000 – $.7 million) for the 40 weeks ended October 6, 2001.

Corporate Profile

Loblaw Companies Limited is Canada’s largest food distributor, with
operations across the country. Loblaw concentrates on food retailing with the
objective of providing consumers with the best in one-stop shopping for
everyday household needs. Loblaw strives to provide superior returns to its
shareholders through a combination of share price appreciation and dividends.

Investor Relations

Shareholders, security analysts and investment professionals should
direct their inquiries or requests to Mr. Geoffrey H. Wilson, Vice President,
Industry and Investor Relations at the Company’s Executive Office.

Additional financial information has been filed electronically with
various securities regulators in Canada through SEDAR.


Transit Card Promotion

MasterCard International announced the results of its MasterCard card promotion with the Washington Metropolitan Area Transportation Authority and the Virginia Railway Express. Jay S. Creswell, Jr. of Vienna, Virginia and Jennifer Curtis Lombardo of Fredericksburg, Virginia are each a recipient of a grand prize vacation to Bermuda. The promotion, targeted to both SmarTrip Card users of the Metrorail system serving Washington, D.C., Maryland and Virginia suburbs and VRE ticket users in northern Virginia, offered commuters the convenience and flexibility of using a MasterCard card to replenish or purchase their travel passes. Commuters who credited or replenished their WMATA SmarTrip Card, or purchased a VRE ticket, using a MasterCard card were automatically entered into the weekly sweepstakes. In addition to the opportunity to win weekly first prizes of $500 MasterCard prepaid cards, two grand prize packages of a 7-day vacation for two were included in the promotion – one for each railway’s user. Pete Sklannik, Jr., chief operating officer, Virginia Railway Express, stated, “The promotional campaign with MasterCard has shown positive response for the VRE.”

“The sweepstakes added special value to the VRE tickets, and translated into increased ticket sales,” said Sklannik. “VRE wishes to thank MasterCard for this sweepstakes promotion, and looks forward to working together again as we expand our working relationship given the program’s success.” “This promotion was a great way to help us meet our goal of further integrating travel between VRE and Metrorail while promoting the convenience of consumer payment cards,” said Ralph Frisbee, manager, advertising and promotion WMATA. “WMATA is pleased with the results and welcomes the opportunity to further collaborate with MasterCard in the future.” “We’ve enjoyed measurable success with this promotion and look forward to working with WMATA and VRE on new programs to drive additional volume,” said Fred Gore, senior vice president, North America Acceptance, MasterCard. “There is great growth potential for MasterCard in the transportation arena. Additional plans to implement similar programs with other transit authorities are underway.”

Gore adds, “The WMATA SmarTrip and VRE ticket promotion is another example of MasterCard’s commitment to expanding payment flexibility and convenience to consumers, as well as helping merchants improve customer service and processing efficiency.” For more information about commuter ticket vending machines, ticket purchases or payment options, please visit or

About MasterCard International

MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCard(R), Cirrus(R) and Maestro(R). More than 1.7 billion MasterCard, Cirrus and Maestro logos are present on credit, charge and debit cards in circulation today. An association comprised of more than 20,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCard’s award-winning Priceless(R) advertising campaign is now seen in 80 countries and in more than 36 languages, giving the MasterCard brand a truly global reach and scope. With more than 22 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. At June 30, 2001, gross dollar volume exceeded US$458 billion. MasterCard can be reached through its World Wide Web site at [][1].




ID Data plc, the UK’s largest supplier of secure transaction systems and
smart card services, announces the appointment of Claire Stone as
Director of Retail Sales. Claire Stone, formerly the European sales
director of WorldPay plc will take over as Director of Retail Sales for ID
Data. Her experience is ideally suited to head the recently expanded retail
sales division at ID Data. This appointment is in line with the company’s
business expansion plans. Claire will be heading up the recently expanded
retail sales team.

Commenting on the appointment, Peter Cox, Chief Executive of ID Data, said:
“Claire’s skills in managing resources and relationships, developing people
and business planning will build on our existing strong position and the
healthy progress we are making. Her background in retail ideally fits our
business and will fuel further expansion. The wide range of skills brought
to ID Data by this appointment includes specific sector expertise in
e-commerce, telecoms, secure payment systems and banking.”

Upon her appointment, Claire Stone said: “ID Data’s products and services
offer real value to our customers’ businesses. I look forward to being part
of this new team and to widening the international retail markets.”

ID Data plc:

ID Data plc is the UK’s largest supplier of secure transaction systems and
smart card to the international telephony, banking, retail and secure access
sectors. The Company strategy has moved from commodity products into
value-added services and solutions, which has created a solid platform on
which to build further growth. Clients include Vodafone UK, BT and C & W,
Barclays Bank, Tesco, and Exxon Mobil. ID Data has formed agreements with
major global corporations to ensure rapid market development as shown by
their partnerships with Toshiba & Toppan, Total Systems Inc. of the United
States of America, PRISM Holdings (Pty) Limited of South Africa and most
recently OneEighty Software Limited. ID Data has now delivered in excess of
60 million chip cards for the telephony sector. The Company was founded in
1988, and was listed on the AIM in October 2000.