Priceless Promotion

MasterCard International said yesterday it has created a fourth quarter holiday promotion that, for the first time, will run throughout North America. The “Priceless Holiday Gifts” promotion will award the winning cardholder with five “Priceless” experiences including an African Safari, a visit from a celebrity chef, behind-the-scenes access to the Houston Space Center, enrollment in the Formula One Race and Racing School in Great Britain, and VIP treatment at the My VH-1 Music Awards. MasterCard said more than 140 member institutions are participating in the promotion and 8 of the top 10 MasterCard acquirers have ordered more than 275,000 point-of-purchase displays. To support the campaign MasterCard will roll-out two 30-second and two 15-second TV ads, as well as two print ads.

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FRAMEWORKS

724 Solutions Inc. has announced a reseller agreement with Iletisim
Teknoloji Danismanlik — a leader in speech recognition solutions and
one
of the largest solutions providers in Turkey — to enable ITD to resell 724
Solutions’ 724 FrameWorks (formerly known as the Wireless Internet
Platform) in Turkey, Poland, Romania and Central Asia.

Under the terms of the agreement, Elektronik Sanal Ticaret, a subsidiary
of ITD that focuses on the provision of wired and wireless e-commerce
solutions, can now offer its wide range of customers mobile banking services
enabled by 724 Solutions’ technology. The 724 FrameWorks, together with ITD’s
expertise in speech recognition solutions, will allow users to access account
balances, move money between accounts and pay bills from voice-enabled mobile
devices, simply by inputting their account information and passwords in the
most natural way — using speech.

“This relationship underscores our strategy to develop commanding distribution
partnerships with specialized partners in key markets worldwide. We will blend
ITD’s extensive local market knowledge and experience with 724 Solution’s
award-winning mobile transaction technologies and solutions,” remarked John
Sims, Chief Executive Officer, 724 Solutions. “Reseller partners represent a
critical component to our success in our goal to establish 724 Solutions as a
global leader in the wireless industry and ITD fits the bill perfectly.”
Beginning with the implementation of Turkey’s first interactive voice response
system and continuing with more recent ventures into smart card technology,
ITD
(http://www.itd.com.tr/english/in
dex.asp) has positioned itself as a regional leader providing technology
solutions to the financial service sector and other business.
“We selected 724 Solutions as our mobile banking solution provider because of
its global reputation and the open structure of the 724 FrameWorks platform.
Most importantly, and perhaps the deciding factor in our choice, was the
synergy between our speech recognition technology and 724 Solutions’
market-leading solutions,” commented Coskun Ural, President and Chairman, ITD
and EST.

The 724 FrameWorks consists of adaptors, gateways, core engine services and an
application framework for powering highly scalable, secure mobile transactions
on different devices, networks and protocols. The award-winning platform has
successfully completed performance testing confirming its capacity to support
10 million customers and handle the demands of 100,000 concurrent users
executing 10,000 transactions per second.

About 724 Solutions Inc.

724 Solutions Inc. (Nasdaq:SVNX)(TSE:SVN) is a leading provider of mobile
Internet infrastructure software and applications. It makes m-business happen
globally by powering the delivery of secure mobile transactions for financial
institutions and mobile operators. With dual headquarters in Toronto, Canada,
and Austin, Texas, the company has development and sales offices around the
world. For more information visit
http://www.724.com.

About ITD

Founded in Istanbul in 1991, ITD (Iletisim Teknoloji Danismanlik Ticaret A.S.)
provides services on payment systems, voice systems and e-business solutions.
Particularly addressing finance, telecommunications and retail industries, ITD
offers solutions on call automation, interactive voice response systems, call
management, speech recognition and customer service automation. The company
provides various services in transaction automation systems ranging from POS
terminals, to end-to-end payment solutions, smart card payment terminals,
Internet payment systems and card management systems. E-business solutions
rendered by ITD help banks, securities houses, finance portals and other
financial institutions to provide fast Internet services. These solutions
allow
customers to execute financial transactions, to obtain personal and market
information on financial status, to pay invoices and to have access to
financial services through Internet integrated tools. For more information
visit
http://www.itd.com.tr

About EST:

A sister company of ITD, EST was founded in 1999, and specializes in Internet
based solutions and products. The company provides a shared e-commerce
infrastructure, preferred by leading financial institutions of Turkey.
Security
Management Systems and Web-based application development are its other main
presence areas. VeriFone and Baltimore Technologies are the main business
partners of EST in Virtual Payment Systems and Internet Security Solutions.
For
more information visit
http://www.est.com.tr

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San Francisco Retreat

The two most innovative credit card issuers of the last few years have unraveled within days of each other. With their stock prices down 90%, both Providian and NextCard have put themselves on the sale block. Yesterday afternoon, Providian announced it has engaged Salomon Smith Barney and Goldman, Sachs to assist the company to explore strategic alternatives. Yesterday morning, NextCard announced it has retained Goldman, Sachs to explore the sale of the company to a better capitalized financial institution. NextCard’s stock dropped from $5.35 to $0.87 per share yesterday, a staggering 84% one-day decline. In January, NextCard was trading at nearly $13 per share as the issuer was predicting profitability by the end of this year. Providian, one of the most productive marketing machines in the industry, closed at $3.89 yesterday compared to a high of $64.06 in January. NextCard was the undisputed pioneer of Internet credit card marketing and was founded in 1997 by former Providian executives. Providian, dogged by consumer lawsuits over its credit card practices, has been re-inventing itself over the past two years, emerging as the biggest cheerleader of smart credit cards in the USA. With $33.5 billion in credit card receivables from the two issuers on the sale block it is inevitable that another major wave of consolidation is underway.

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KALIGNITE CE

ERG Announces Acquisition of Proton World
The ERG Group announced the full acquisition of Belgian-based Proton
World International (Proton World), the leading, global, high-security
payment
and identity smart card technology company.

In consideration, ERG will issue the former shareholders of Proton World –
American Express, Banksys, Interpay Nederland and Visa International – with
approximately 75.5 million shares (representing 8.4 per cent of ERG’s
capital).

In addition, ERG has agreed to pay cash consideration of approximately A$58.8
million. The shares will be subject to escrow agreements. The agreements with
American Express and Visa International also provide for an entitlement to 8
million ERG options that are exercisable if certain performance criteria,
which
will enhance the value of Proton World, are achieved.

The sale agreements call for long-term (5-7 year) service level agreements to
be executed by American Express, Banksys and Interpay Nederland. The
contracts
are expected to generate revenue in excess of A$200 million.
Proton World was formed in 1998 as a joint venture between ERG, Banksys (a
joint venture between the Belgian banks), American Express, Interpay
Nederland
(a joint venture of the Dutch banks), and Visa International. There are now
more than 35 million Proton-based smart cards in circulation worldwide and
more
than 500 banks have deployed the technology.

ERG’s Chief Executive, Mr Peter Fogarty, said the full acquisition of Proton
World would enhance ERG’s strengths in the smart card arena.
“ERG’s existing MASS technology is the world’s leading transport smart card
technology. The combination with Proton Prisma technology means that ERG will
now have the ability to deliver full multi-application smart card solutions,
including high-level security for the financial services and identity
markets.

“In addition, the ERG Group is very pleased to have American Express,
Banksys,
Interpay and Visa as investors in ERG and the benefit of long-term recurring
revenue contracts with American Express, Banksys and Interpay.”
The parties to the transaction made the following comments:
Proton World, Chief Executive Officer, Dr Armand Linkens: “Proton World has
made a name for itself with its security architecture and smart card
solutions
in the financial industry. Our know-how is very complementary with the
achievements of ERG in Mass Transit. The commonality of vision and cultures
of
the two companies assure me of an even greater worldwide success of the ERG
Group and its subsidiary Proton World in the key markets of transit, finance,
mobile telephony and identity.”

American Express, President, Northern Europe, Mr John de Trafford: “American
Express has been actively involved in the development of the Proton platform
and has recently committed to use their upcoming Proton Prisma product for
future issuances of smart cards worldwide.”

Banksys, Chief Executive Officer, Mr Chris Lebeer: “We fully support ERG in
moving Proton World forwards to new markets and customers. As an early
mover in
applying new technologies we will remain an important customer for ERG’s
financial products. We are happy to conclude this deal.”
Interpay Nederland, Director, Mr Antoon Kuijpers: “Our commercial
relationship
with Proton World and new shareholding in ERG ideally complements the joint
venture established with ERG in the Netherlands earlier this year. As a
company, we have positioned ourselves to ensure we participate in our country
and indeed the world’s adoption of smart cards.”
Visa International EU, Chief Operating Officer, Mr Philippe Menier: “Many
Visa
Members are already significant users of Proton technology and we are
delighted
that they are. Visa is proud of the part that it played in the creation of
Proton World and is happy to support ERG in this next phase of the company’s
development. As we continue with our programs designed to change Europe’s
Visa
cards to use the chip, we are confident that our Members will expand their
use
of the Proton technology. We look forward to continuing to work with Proton
as
a member of the Visa Smart partner program.”

ERG Group

ERG Group is a world leader in the development and supply of integrated fare
management and software systems for the transit industry and technologically
advanced smart card systems and services. In 2000/2001, ERG’s revenue
totalled
A$299.9 million. The Group has established market leadership for its
integrated
multi-application smart card management technology. ERG is an
Australian-based
company listed on the Australian Stock Exchange and is ranked in the
Standard &
Poor’s-Australian Stock Exchange Top 100 index.
For more information visit:
http://www.erggroup.com

American Express

Founded in 1850, American Express Company is a global travel, financial and
network services provider. It is a global Proton licensee, and a leader in
smart card development and issuance. In 1999, the company launched Blue from
American Express in the first wide-scale rollout of smart cards in the US.
The
company has since launched Blue in several international markets.
For more information visit:
http://www.americanexpress.com

Banksys
Banksys was founded in 1989 with the merger of two debit card networks
(Bancontact and Mister Cash). In 1995, Banksys launched Proton, the
inter-sector electronic purse smart card, which became the world’s first
e-purse to be rolled out on a national scale in 1996. In 1998, Banksys spun
off
its international smart card activities to form Proton World in association
with four other shareholders and became the Proton licensee for Belgium.
For more information visit:
http://www.banksys.be

Interpay Nederland

Interpay Nederland is a major service provider in payment processing and
related services. It processes large transaction quantities and thus
represents
an important link in the flow of payments in the Netherlands. Each day it
processes more than 6 million payments that are made through giro collection,
direct debit authorization, funds transfers, Eurocard/MasterCard and Visa
credit cards, PIN cards, Chipknips and SET. In 1996, it became the first
international Proton licensee and launched the Chipknip e-purse card.
For more information visit:
http://www.interpay.nl

Visa International

Visa is the world’s largest payment system, with more transaction volume than
all other major payment cards combined. Visa has 21,000 member financial
institutions, more than 80 smart card programs in 35 countries and on the
Internet, and over 1 billion cardholders worldwide, which generate an annual
transaction value of more than US$1.97 trillion. Visa-branded cards are
accepted at over 22 million locations worldwide.
For more information visit:
http://www.visa.com

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VISA & Quova Alliance

Quova, a leading provider of Internet intelligence services to online businesses, announced a global strategic alliance with Visa International. The agreement is designed to address the growing need for Internet infrastructure intelligence services and geolocation solutions for e-commerce and risk management applications.

As a supporter of Quova, Visa will look for opportunities to use Quova’s GeoPoint service to benefit Visa and its member banks, partners and merchants. The relationship calls for the companies to work closely together to identify e-commerce, marketing and risk management applications throughout Visa where Quova’s geolocation technology will be applied.

“Visa is constantly looking to identify new technologies that may benefit the payments and financial services industries,” said Sarah Perry, senior vice president, Strategic Alliances and Investments at Visa International. “Quova’s GeoPoint service is an excellent example of innovative technology that is of value not just to Visa but to our members and merchants worldwide.”

Quova’s GeoPoint service enables Web sites to identify in real-time the geographic location of its visitors — with resolution levels from country down to city. GeoPoint is completely privacy-compliant, as it does not use cookies, profiles, registration data, or click-stream data to identify or track individuals. The service was designed from the ground up specifically to meet the needs of the busiest Web sites and the most demanding applications.

“We’re very happy to be working with Visa,” said Marie Alexander, Quova president and CEO. “Visa is a long-standing market leader and innovator in the financial services arena, and we’re proud to be taking part in the company’s current corporate initiatives.”

About Quova

Founded in January 2000, Quova, Inc. provides Internet infrastructure intelligence services to online businesses. Quova’s first service, GeoPoint, provides the geographic location of Web site visitors in real-time, enabling businesses to manage digital rights, target content, detect fraud, conduct site analysis and foster regulatory compliance. With over 45 industry-leading customers such as Amazon.com and CNET Networks, Quova is the geolocation market leader. A privately owned company with investments from VeriSign, SOFTBANK Venture Capital, IDG Ventures, Nexus Group, and Fidelity Ventures, Quova’s main headquarters are located in Redwood City, California, with European headquarters located in Amsterdam. The company can be reached at 303 Twin Dolphin Drive, Suite 410, Redwood City, California, 94065, by phone at 650-508-0700, by fax at 650-508-0147, by email at info@quova.com, and on the Web at [http://www.quova.com][1].

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 benefit 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.

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

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R-UIM CARDS

Gemplus International S.A., the
leading provider of smart card solutions for mobile telephony, announces it is
the first company to successfully pass the first series of tests using the
R-UIM (Removable – User Identity Module) card, GemXplore World, in China
Unicom’s CDMA network. When China Unicom launches its nationwide CDMA
card-based network early next year, it will be the world’s first mass
deployment of a smart card in a CDMA network.

To ensure a high level of compatibility, the tests were carried out last month
using handsets from 19 manufacturers approved by the Chinese authorities to
produce CDMA handsets in China. These tests were the first to be carried
out in
a live CDMA network, and Gemplus was the first to successfully pass the first
round of field tests conducted together with China Unicom.
The tests prove the compatibility of the card in both a CDMA network and in
different CDMA handsets. This is an important step for Gemplus as China Unicom
has made the inclusion of the card a mandatory part of their CDMA deployment,
despite the fact that it is optional in the CDMA standards. Gemplus has set up
teams in China as well as in other parts of the world to provide dedicated
support for R-UIM implementation.

GemXplore World will bring many advantages to both end-users and operators.
The
CDMA Card Application Toolkit (similar to SIM Toolkit for GSM) will provide
end-users with a greater level and range of services, while the roaming
capabilities allow users to retain access to their data while traveling
between
technologies. Operators, on the other hand, will benefit from a reduced
cost of
implementation and increased revenue through international roaming.

The card was first demonstrated in a press conference with China Unicom and
ZTE
in October 2000, to show the ease of plastic roaming between GSM and CDMA
handsets. Since then, many improvements have been made, such as the
addition of
the CDMA Card Application Toolkit, which is now ready for wide-scale
implementation.

“The success of the tests proves that the cards and the market are ready for
this deployment. Gemplus is convinced that the best path to 3G lies in the
implementation of these cards and is ready to support operators and handset
manufacturers in their implementation,” said Ong Teck-Meng, General Manager of
Gemplus China.

“China Unicom has already committed to including R-UIMs in its CDMA networks
and is very pleased by the results of the test and the commitment of Gemplus
and the handset manufacturers in ensuring the success of this project,” said
Wang Yingpei, Chairman and General Manager of Unicom Horizon.

Some of the handset manufacturers that have been licensed to produce CDMA
handsets in China include ZTE, Motorola, Tianjin Telephone Equipment Factory,
Kejian, Capitel, Hisense, Haier, Nanjing PTIC, Langchao Group, Konka, CEC,
Ningbo Bird, TCL, NanFang Gaoke, Eastcom and Datang Telecom.

About Gemplus

GEMPLUS: the world’s number one provider of solutions empowered by Smart Cards
(Gartner Dataquest 2001, Frost & – Sullivan 2001).
Gemplus helps its clients offer an exceptional range of portable, personalized
solutions that bring security and convenience to people’s lives. These include
mobile Internet access, inter-operable banking facilities, e-commerce and a
wealth of other applications.
Gemplus is the only completely dedicated, truly global player in the Smart
Card
industry, with the largest R&D team, unrivalled experience, and an outstanding
track record of technological innovation.
Gemplus trades its shares on Euronext Paris S.A. First Market and on the
Nasdaq
Stock Market as GEMP in the form of ADSs. Its revenue in 2000 was 1.205
Billion
Euros. It employs 7200 people in 37 countries throughout the world.
Gemplus: Your Passport to the Digital Age
http://www.gemplus.com

Details

Catuity 4Q Forecast

Catuity, Inc. announced that it expects to achieve profitability for at least one month in the fourth quarter 2001, positive cash flow for the fourth quarter and continues to project operating profitability for the full fiscal year 2002. Catuity projects fourth quarter 2001 gross revenues to be approximately $1.1 million. The gross revenue projection represents an increase of 132% over third quarter gross revenues of $475,000, which was an increase of 190% over second quarter gross revenues of $164,000.

The fourth quarter gross revenue projection excludes a non-refundable license fee payment expected in the fourth quarter 2001. This license fee will be recorded as deferred revenue on the Balance Sheet until the license fee can be recognized, which is planned for second quarter 2002.

On-going operating costs are expected to be consistent and in line with previous quarterly results. These operating results are projected to be approximately $1.5 million in the fourth quarter.

All projections and figures referred to in this release are subject to non-cash adjustments for U.S. GAAP treatment of stock warrants issued by the company in the fourth quarter and stock compensation as previously reported (“non-cash adjustments”). Overall, Catuity expects to report a quarterly operating loss of $1.1 million before non-cash adjustments in the third quarter 2001 and expects to significantly improve its bottom line excluding non-cash adjustments in the fourth quarter as a result of its increased revenue growth. Catuity expects to generate positive cash flows from operating activities for the fourth quarter 2001. Cash at the end of the third quarter 2001 is in excess of $4 million.

Catuity revenue is generated from product development services, training, technical consulting, license fees and maintenance fees. The license fees Catuity charges are based on: per card issued, per card issued activated to a loyalty program, per transaction, per POS terminal or Internet POS deployed, or a flat fee for access to certain intellectual property rights. The basis of the fees, the fee rates and the number of cards, terminals and/or transactions to which these fee rates apply for any customer are confidential at the request of these customers.

As of October 31, 2001, Catuity has signed agreements with customers from which it expects to receive more than $4 million from operations in the period from October 1, 2001 to December 30, 2002. A number of these existing agreements have significant potential for additional revenue in 2002 and beyond in the form of additional license and maintenance fees as well as from additional system development and technical consulting fees requested by our clients. Catuity is currently finalizing its strategic business plans and budget for 2002 and beyond. Management continues to anticipate a modest operating profit for the full fiscal year 2002. Development work, integration and customer customization will continue to precede additional on-going license fee revenue.

As a result, revenue is expected to grow quarterly in 2002. Further details of Catuity’s plans and forward projections will be released when these plans are finalized.

Michael Howe, President and CEO of Catuity, commented, “We set a plan in place more than a year ago and we believe we are delivering on this plan. We have demonstrated our products and our service are superior to other offerings in our market. We have won the most strategically important loyalty contracts awarded to date in the smart card loyalty software business. As the world rolls out new card systems, Catuity will become an increasingly important player. With the growth of smart cards and the development of new loyalty software systems to assist merchants, many new opportunities are emerging in the U.S. market. We are confident our market leadership position, our relationships with Visa and other leading payment industry stakeholders will lead to more business with retail merchants, card associations, card issuers and transaction processors in the U.S. and around the world.”

Catuity, Inc. ([www.catuity.com][1]) is a leading provider of loyalty software systems. The Catuity software includes an integrated suite of applications that provide loyalty, ticketing, access control and membership. The Catuity Loyalty System is ubiquitous in that it can operate on any device, any card program and with any payment process, including stored value, smart cards and wireless applications. Catuity unites the brick-and-mortar retailer with the Internet to enable cross-sell capabilities with consistent brand imaging across all channels.

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

Details

ACCESS 2000

ZeitControl provides the admittance control system Access 2000 which allows the
effective protection of doors against unauthorized access.

Access is only granted when authorized persons use a previously registered
magnetic card or creditcards. If desired, the cards can be checked against a
secret number (PIN).

Access 2000 is delivered in a small stable cast housing with a keypad, two LEDs
and a built-in card reader. The power can be supplied by a standard door bell
transformer; an electric door opener can be directly connected.

Access 2000 can be mounted and configured quickly and easily. It can store up to
500 magnetic cards. As keys, magnetic cards with LoCo magnetic bands and DIN/ISO
compatible data on track 2, e.g. credit cards are used.

Access 2000 can thus be employed where sectors are only to be accessible to
certain persons or groups of persons.

More information can be found on the web at www.zeitcontrol.de

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BofA Olympic Cards

Bank of America introduced this morning two stored-value card products for the Olympic Games. The ‘VISA Olympic Money’ and ‘Gift Card’ provide prepaid spending as well as reloadable features. For Olympic family members, BofA is offering ‘VISA Olympic Money’, a commercial card program that gives athletes, sponsors and suppliers and their guests and staff more control and security over their 2002 Games expenses.

Details

VF TERMINAL DEAL

VeriFone, Inc., the
worldwide leader in electronic-payment solutions, announced that Global
Payments Inc., a leading provider of electronic processing
services, has signed a multi-year agreement with VeriFone to offer VeriFone’s
Omni 3300 terminals, SoftPay credit and debit software, and SC 550
PINpads in Canada. To support these devices, Global Payments has also
purchased
VeriFone’s VeriCentre Appliance Management Suite to perform fast downloads and
manage its terminal population.

“The VeriFone Omni 3300 terminal package will provide significantly enhanced
feature functionality and choice to our Canadian customer base,” said Barry W.
Lawson, CIO, Global Payments Inc. “The solution offers a solid foundation from
which to deliver even more value-added features and services that Canadian
merchants can use to help grow their businesses.”

“Canada is an extremely important market for VeriFone – one that clearly
recognizes the value of a true multi-application, point-of-sale solution,”
said
Douglas Bergeron, CEO, VeriFone. “Global Payments holds enormous influence in
Canada. We are delighted to be helping them meet their customers’needs by
providing merchants with a point-of-sale solution that allows them to maximize
multiple business opportunities. Global Payments’ decision also gives VeriFone
a strong base to expand the adoption of Verix across Canada.”
The Omni 3300 is equipped with a 32-bit processor and a 14.4kbps modem to
deliver exceptional performance. Global Payments has selected VeriFone’s SC
550
PINpad, which meets Canada’s strict Interac Direct Payment (debit) standards
for PIN-entry, to accompany the Omni 3300. The Omni 3300’s intuitive ATM-style
interface minimizes clerk training.

The Verix multi-application architecture supported on the Omni 3300 will allow
Global Payments and its customers to run a variety of value-added
applications,
such as loyalty, on the same terminals used for payment. Delivering these
applications to the merchant’s countertop is fast and easy with the VeriCentre
Download Management Module. New software can be quickly downloaded and the
merchant can be taking advantage of new features or entire applications in
just
minutes.

About Global Payments
(www.globalpaymentsinc.com)

Global Payments Inc. is a leading provider of electronic transaction
processing
services to merchants, Independent Sales Organizations (ISOs), financial
institutions, government agencies and multi-national corporations located
throughout the United States, Canada and the United Kingdom. Global Payments
offers a comprehensive line of payment solutions, including credit and debit
cards, business-to-business purchasing cards, gift cards, check guarantee,
check verification and recovery, terminal management and funds transfer
services.

About VeriFone, Inc.

VeriFone, Inc., (http://www.verifone.com) is the
leading global provider of
secure electronic-payment solutions for financial institutions, merchants and
consumers. VeriFone has shipped more than nine million electronic-payment
systems, which are used in more than 100 countries. VeriFone, Inc. is held by
Gores Technology Group, an international acquisition and management company.

About Gores Technology Group

With headquarters in Los Angeles, Gores Technology Group (GTG) is a privately
held international acquisition and management firm that pursues an aggressive
strategy of acquiring promising high-technology organizations and managing
them
for growth and profitability. GTG has a proven track record of acquiring and
successfully managing companies – including many divisions acquired from large
publicly traded companies – through its commitment to customers, employees and
continued development of intellectual property. GTG has acquired and managed
approximately 35 interrelated but autonomous technology-oriented companies
with
locations throughout the world. Those companies provide a broad range of
technology-based products and services to a substantial customer base
representing millions of active users worldwide. Visit the company’s Web site
at
http://www.gores.com.

Details

San Francisco Earthquake

The stunning fall of NextCard yesterday, in the wake of Providian’s collapse, spilled over to other issuers. Metris/Direct Merchants lost nearly 10% Wednesday, while Capital One, MBNA and CompuCredit lost about 5%. The slide in Metris stock prompted its CEO to speak out to distance the company from the problems plaguing NextCard and Providian. Metris Chairman and CEO Ronald Zebeck said Metris Companies has equity to managed assets of 9.6%, and Direct Merchants Bank currently has a capital ratio of 13.8%. Zebeck reiterated that Metris, unlike NextCard, does not securitize loans out of the Bank, and is not subject to additional capital requirements for residuals associated with Asset Backed Securities. Zebeck also noted that Metris has a reserve coverage of 8% percent of its managed loan portfolio.

Details

FUELMASTER CLIENTS

OTI announced that its wholly owned subsidiary, OTI Africa,
together with BP Africa, has signed commitments with four prominent
commercial
fleet companies to join the FuelMaster network in South Africa that is
expected
to significantly increase the on going revenues and transaction the system
generates. FuelMaster is BP’s chosen brand name for OTI’s Gasoline Management
System in the African market.

The four fleet companies joining the FuelMaster network, spanning a range of
industries from public transportation to packaged goods, have each enrolled
over 600 company vehicles, for a total of approximately 2,750 vehicles
added to
the system. In particular, a pilot involving 1,000 vehicles of a major
utility
in South Africa, if successful, has the potential to expand to an additional
18,000 vehicles. Additional pilots are underway with a prominent rental car
agency and a large furniture and appliances retailer, which not only expand
the
set of fleet companies participating in the FuelMaster network, but also
greatly increase the number of vehicles fueling exclusively at BP stations.
As
a result of the FuelMaster system, BP has increased its market share in these
African markets. OTI receives transaction fees based on fuel volumes through
the FuelMaster system, in addition to on-going service fees.
‘We are extremely pleased to welcome these new fleet companies to the
FuelMaster network,’ said Charlotte Hambly-Nuss, Managing Director of OTI
Africa. ‘We have proven the business case to customers which were not
previously contracted to BP for their fuel supply, thereby demonstrating how
OTI’s superior technology drives key core business to BP.’
OTI has been appointed by BP to provide encoding, installation, driver
training, maintenance, repair, quality control, customer care, technical
support, and development services for the FuelMaster program.

‘Our relationship with BP South Africa exemplifies our objective of
participating in multiple revenue streams of projects, including support fees
and transaction fees,’ said Ohad Bashan, responsible for Global Marketing at
OTI.

How FuelMaster Works Each FuelMaster vehicle is fitted with an antenna
mounted
around the fuel tank inlet, connected to a smart card installed in the
vehicle.

The smart card provides unique identification for each vehicle, and is also
capable of recording information such as odometer readings. A matching
antenna
installed on the pump nozzle, is connected to the site computer. When the
pump
nozzle enters the fuel inlet, the smart card communicates with the site
computer. Once the computer is satisfied that a legitimate driver is
attempting
to fuel an authorized vehicle with the proper fuel grade, the pump will begin
dispensing fuel. During refuelling, operating data from the smart card is
transmitted to the computer for reporting purposes. Removing the nozzle will
immediately stop the flow of fuel. Comprehensive fuel management reports are
generated and provided to fleet operators on a regular basis.

A network of over 600 FuelMaster sites in 11 African countries from South
Africa to Kenya provide convenient fueling for over 20,000 fleet drivers
while
assisting fleet managers in providing a new level of accuracy in fuel records
and route tracking for fleet traffic. Petroleum solutions offered by OTI are
installed around the world including sites in Turkey, Europe, South America,
the United States, and more.

About OTI
Established in 1990, OTI (On Track Innovations) designs and
develops
contactless microprocessor-based smart card technology to address the needs
of
a wide variety of markets. Applications developed by OTI include products for
mass transit, parking, gas management systems, loyalty schemes,
identification
and secure campuses. OTI has regional offices in the US, Europe, Asia
Pacific,
and Africa to market and support its products. The company was awarded the
prestigious ESCAT Award for smart card inno­vation in both 1998 and 2000.
Visit
OTI on the Internet at
http://www.oti.co.il.
OTI Africa, a subsidiary of OTI Limited, is responsible for the distribution,
installation and maintenance of OTI’s products and technology in the African
market. Users of the OTI technology have access to an experienced and
professional management team who lead and guide dedicated functions in sales,
marketing, installation, technical, development and support services.

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