SCA Names Chairman

The Smart Card Alliance announced the election of its 2002 Executive Board of Directors. The seven member Executive Board was elected by the Alliance’s Board of Directors at their Annual Meeting in Tysons Corner, Virginia. The Executive Board will lead and direct Alliance activities for the year ahead.

Paul Beverly from SchlumbergerSema was elected Chairman of the Alliance. Mr. Beverly, Vice President for Smart Cards at SchlumbergerSema in North America, has led a global career in marketing, sales, and general management during his 16-year tenure at Schlumberger.

“I’m looking forward to continuing to build on the strong progress that the Alliance has made. During its first year of existence, the Alliance has completed many important projects, including establishing a baseline of smart card usage in the US and Canada that can be used to measure future market growth,” said Mr. Beverly. “I look forward to working with our Board and our membership to expand on our efforts and articulate the strong business case for smart card programs in the year ahead.”

The new Executive Board also includes:

* Vice-Chairman, Bill Randle, Executive Vice President of Huntington Bank

* Technology Vice-Chair, Michael Weekes, Principal for Business Development for IBM’s Global Smart Card Center of Competency

* Treasurer, Bob Wilberger, Director of Smart Card Initiatives, at Northrop Grumman Information Technology

* Assistant Treasurer, Sandy Morris, Vice President of Member Development at MasterCard

* Secretary, Kevin Gillick, Head of Corporate Marketing at DataCard

* Assistant Secretary, Gilles Lisimaque, Senior Vice President at Gemplus

The Board’s priorities for 2002 include: addressing growing public security and privacy concerns, continued cross-industry discussions on technology standards, and other activities designed to promote the adoption of smart cards in the United States.

Last week the Alliance named five new members to its current 25 member Board:

* David Bonalle, Vice President and General Manager of Advanced Payments Programs, at American Express

* Thierry Burgess, Executive Vice President of Sales and Marketing, at Oberthur Card Systems

* Alison Colquhoun, Vice President of Smart Card Business Development, at First Data Resources

* Jennifer Spade, Managing Director for e-Solutions IP/Hosting Sales, at WorldCom

* Guy Tallent, President and CEO of Identrus

Kirk Brafford Vice President and Principal Consultant at Xansa was elected as the Auditing Observing Director on the Board.

“Each of these individuals is a leader in their field and brings a wealth of experience to our organization. Their contributions will be key to Alliance efforts as smart cards continue to gain momentum in the United States,” said Alliance President and CEO, Donna Farmer.

The announcement was made at the Smart Card Alliance’s Annual Meeting, in McLean, VA. The Meeting brings together hundreds of smart card industry leaders for three days of education and conference programs focused on the crucial opportunities and obstacles facing businesses, government and individuals in this new era of digital trust.

About the Smart Card Alliance

The Smart Card Alliance is a not-for profit, multi-industry association of over 185 member firms working to accelerate the widespread acceptance of multiple application smart card technology. Through specific projects such as education programs, market research, advocacy, industry relations, and open forums the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance also is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. More information about the Alliance is available at [http://www.smartcardalliance.org][1].

[1]: http://www.smartcardalliance.org/

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SBM BASE24

ACI Worldwide, a
leading international provider of enterprise e-payment solutions, announces the
licensing of its BASE24 e-payment processing software to State Bank of
Mauritius Limited, winner of the 2001 Bank of the Year Award for
Mauritius and one of the world’s top 1000 banks. SBM will use BASE24 to
authorize, route and switch both ATM and POS transactions and to meet
processing requirements for EMV (Europay, MasterCard and Visa) smart card
transactions.

SBM’s decision to select BASE24 was prompted by a number of key requirements,
including the need for a scalable solution to meet aggressive transaction
growth objectives, the bank’s need to support multiple delivery channels and
devices, and SBM’s need to meet mandated dates for EMV acquiring and issuing.
BASE24 will replace the bank’s existing processing system, which does not
support EMV.

“We have a reputation as a leader in harnessing the capabilities of information
technologies to improve our service to customers and contribute to the bottom
line,” said Sailesh Sewpaul, team leader of Online Services for SBM. “Our
decision to invest in ACI technology is no exception. ACI is the recognized
leader in consumer payments software, and their BASE24 system meets our current
requirements–while providing the flexibility to enhance our service offerings
in the future.”

In addition to helping SBM meet EMV requirements, the bank will use BASE24 to
integrate its ATM and POS processing operation. The bank processes an average
of 650,000 ATM and 100,000 POS transactions monthly. SBM will consolidate all
of its offshore e-payment processing activities in India, Madagascar and
Rodriguez Island to its central hub in Mauritius.
BASE24 supports multiple delivery channels, from the traditional–ATM and
POS–to the emerging–Internet and mobile. It also supports all card types,
including credit, debit and smart cards and interfaces with global credit and
debit networks.

“Our goal is to assist our customers as they provide new and innovative
services to consumers,” said Jeremy Wilmot, managing director of ACI
Worldwide’s sub-Saharan operation headquartered in South Africa. “With BASE24,
SBM can address a wide range of processing needs for its e-payment operation,
including multi-currency, smart cards and e-commerce, all on a platform that is
the world leader in offering a reliable and scalable transaction
infrastructure.”

BASE24 is used by more than 340 ACI customers around the world to manage
devices, route and switch transactions, and provide authorization support for
high-volume payments processing. The software operates on Compaq NonStop
Himalaya systems to provide 24/7 support for ATM and POS networks, manned
teller systems, telephone banking, mobile commerce, and Internet banking and
commerce.

About State Bank of Mauritius

State Bank of Mauritius (SBM) was founded in 1973 and is the largest company in
Mauritius as measured by market capitalization, commanding just under 27
percent of market share in domestic commercial banking business. In the
domestic market, SBM has a leading position in information technology and the
lowest cost-to-income ratio in the industry. SBM’s delivery network includes 52
branches and counters, 80 ATMs, and 787 point-of-sale merchant terminals
serving over 380,000 individuals and business customers. Apart from commercial
banking, SBM through its subsidiaries and associates also offers financial
leasing, investment banking, fiduciary, stock broking and asset management
services.

The Bank opened its first overseas branch in Mumbai (India) in 1994 and has
since then opened two additional branches, one in Chennai and one in Hyderabad.
In 1998, the bank started operations in Madagascar through its subsidiary bank,
Banque SBM Madagascar. The overseas operations focus mainly on corporate
banking, trade finance, correspondent banking and treasury services to business
customers.

The Banker recently named SBM its 2001 Bank of the Year for Mauritius. The
award reflects outstanding quality and innovation in the financial world, and
the 106 individual country winners represent the cream of the global banking
community.

About ACI Worldwide

Every second of every day, consumers are initiating electronic payment
transactions–getting cash at ATMs, using debit and credit cards to make
purchases in stores and on the Internet, banking by phone and PC, paying bills
online. Twenty billion times a year, ACI software is used to process these
transactions, powering the world’s online payment systems. ACI was founded in
1975 and pioneered the development of applications and networking software for
online transaction processing. Today more than 530 customers in 79 countries
use ACI supplied software. Visit ACI Worldwide on the Internet at
www.aciworldwide.com.

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FraudBAN Launched

Thomson Financial Publishing, a unit of Thomson Corp., and the Western Payments Alliance, one of the nation’s largest regional payments organizations, launched FraudBAN, the first online, anti-fraud network for financial institutions. Addressing a problem that costs financial institutions more than $650 million a year, FraudBAN ([http://www.fraudban.com][1]) is a nationwide information clearinghouse that facilitates real-time data sharing among banks, thrifts and credit unions to thwart check-kiting and other kinds of white collar crime. Perpetrators of fraud frequently use similar phony identification and account information at multiple institutions. Until FraudBAN there has been no commercially available, anti-fraud service for financial institutions.

“FraudBAN’s ability to detect and prevent fraud represents one of the most significant breakthroughs in the war on check and financial fraud in the past decade,” said Glenn Gottfried, Managing Director, Thomson Financial Publishing. “FraudBAN leverages the Internet to create a nationwide clearinghouse accessible to every financial institution any time of the day or night. FraudBAN puts criminals on notice that it will be harder to commit fraud because there is now a powerful new tool to combat fraud through coordinated and immediate action among financial institutions.”

Said CEO Gerard F. Milano of the Western Payments Alliance: “Payments fraud is not the work of small-time crooks, but rather the province of sophisticated criminals who use the proceeds to finance everything from violent crime to terrorism. At a time of heightened security following the events of Sept. 11, FraudBAN strengthens the country’s financial system by enabling institutions to work cooperatively with law enforcement officials to proactively stop fraud.”

Immediate Success For FraudBAN

WesPay and Thomson Financial jointly developed the FraudBAN platform in the WesPay service area over the past two years. With limited participation and utilizing a prototype system, FraudBAN has achieved significant early success. In its initial rollout, FraudBAN identified a large check-cashing ring perpetrated at two financial institutions. The ring used legitimate consumer checks — lost, stolen or discarded check stock — and criminals impersonated bank customers. Check amounts were usually relatively small and under the review thresholds for many institutions. Four suspects were jailed in connection with the case, and the ring has ceased its activity. In addition, more than 4,300 counterfeit checks totaling $21.6 million were attempted against those institutions during that period. The pilot resulted in crime reports being filed with 29 police departments, three sheriff’s departments, and two with federal law enforcement officials. FraudBAN greatly reduces the time and effort necessary for law-enforcement and financial institutions to bring a case to prosecution.

Fraud committed in WesPay’s service area is part of a growing, nationwide problem. According to American Banker, overall fraud at financial institutions rose 32 percent from 1997 to 1999. The American Bankers Association, in its Check Fraud Survey Report in 2000, stated that more than $2.2 billion worth of check fraud was attempted against financial institutions in 1999; actual fraud losses were $679 million.

How FraudBAN Works

To participate in FraudBAN, financial institutions submit payments fraud activity into a secure online central repository. Check, wire transfer, ACH and credit card fraud activity are eligible for reporting. Direct links to payments fraud databases in larger institutions are anticipated. When fraud data is transmitted, FraudBAN searches for matches of names, addresses, account numbers and IDs used in other payments frauds.

Once a confirmed match occurs in the database, FraudBAN automatically sends an electronic alert to participating financial institutions, which then take defensive action. Joint notices to law enforcement on behalf of multiple victim institutions are also prepared. FraudBAN’s ability to aggregate information quickly allows member financial institutions to work together to build a strong case for joint prosecution with law enforcement. Only those institutions providing data to FraudBAN have the opportunity to share information provided by other financial institutions.

Previously a regional service only, FraudBAN is being rolled out by Thomson Financial Publishing to any financial institution across the country. WesPay encourages all members to participate and will automatically enroll members with less than $100 million in deposits in the service. WesPay has more than 1,000 member financial institutions.

Given FraudBAN’s success thus far and increased industry attention to fraud losses, Thomson Financial Publishing expects that more than 1,000 financial institutions will join the network in the next 12 months.

“FraudBAN is a next-generation solution that uses the Internet, as well as the cooperative spirit of financial institutions to crack down on thieves,” Gottfried said. “The greater the participation from financial institutions, the greater the value to every single bank, thrift and credit union in the country. Working together, we can significantly reduce fraud through FraudBAN.”

About WesPay

The Western Payments Alliance is one of the nation’s largest regional payment associations, with more than 1,100 members in the western U.S. and Pacific region. The Western Payments Alliance serves as a cooperative, non-profit organization enabling member financial institutions to efficiently process paper-based and electronic financial transactions. Each day, WesPay collects and clears more than five million checks totaling $7 billion in value. As a NACHA member, the Western Payments Alliance also acts as the rulemaking authority governing member transactions flowing through the Automated Clearing House (ACH). For more information, call 415/433-1230, or visit [http://www.wespay.org][2].

About Thomson Financial Publishing:

Thomson Financial Publishing (TFP), a division of Thomson Financial’s Banking, Insurance & E-Commerce Group, is a leading provider of regulatory compliance solutions to financial institutions worldwide. TFP products ensure compliance with various regulatory agencies, including the U.S. Treasury’s Office of Foreign Assets Control (OFAC), the Bank Secrecy Act and aid in the detection of money laundering and fraud. TFP also maintains the most authoritative and comprehensive databases of financial institutions. These databases are used to realize higher straight-through-processing rates for payments and to facilitate the repair of rejected transactions. Additionally, TFP facilitates global inter-bank communication and marketing, providing the widest array of print publication and marketing services. As official routing number registrar for the American Bankers Association, TFP issues, retires and maintains a record of all U.S. routing number assignments. For more information, visit Thomson Financial Publishing on the Internet at [http://www.tfp.com][3] or call 847/676-9600. Thomson Financial’s Banking, Insurance & E-Commerce Group is a division of Thomson Financial, a US$2 billion provider of e-information and integrated work solutions to the worldwide financial community. Through the widest range of products and services in the industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more productive and achieve superior results. Thomson Financial is part of The Thomson Corporation (TSE:TOC), a leading, global e-information and solutions company with annual revenues of approximately US$6 billion. The Corporation’s common shares are listed on the Toronto and London stock exchanges. For more information on Thomson Financial, visit [http://www.thomsonfinancial.com][4].

[1]: http://www.fraudban.com/
[2]: http://www.wespay.org/
[3]: http://www.tfp.com/
[4]: http://www.thomsonfinancial.com/

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Norwegian Cruise Lines VISA

MBNA announced that Norwegian Cruise Line has endorsed MBNA’s credit card products and services for NCL’s customers.

Issued through MBNA America Bank, N.A., the Norwegian Cruise Line VISA will be available in late fall. Customers will enjoy no annual fee, the highest credit lines in the industry, rebates of 3% on all purchases and 4% on all purchases of NCL products, and the opportunity to redeem rebates for stateroom upgrades or “good-as-cash” cruise certificate credits with all the brands in the Star Cruises Group — NCL, Orient Lines and Star.

“We selected MBNA because of their solid reputation and outstanding track record with credit card partnerships,” said Colin Veitch, president and CEO of NCL. “We feel MBNA is the best structured credit card company to effectively handle NCL’s rewards program, which will better serve our customers. The rewards program on this card is the most comprehensive of any in the cruise industry, enabling cardholders to sail free on any of our three brands to more than 300 destinations spanning all seven continents.”

“MBNA is pleased to be partnering with NCL to offer credit card services to NCL’s customers,” said John R. Cochran, MBNA’s Chief Marketing Officer. “We look forward to providing Norwegian’s customers with products and services that exceed their expectations.”

About Norwegian Cruise Line

Miami-based Norwegian Cruise Line is an international cruise company and industry innovator that currently operates a fleet of nine ships sailing to more than 200 ports around the world. NCL took delivery of its newest ship, Norwegian Sun, in August 2001. NCL is currently building two additional ships: Norwegian Star, a 2,200-passenger ship that will be NCL’s largest (delivery in October 2001), and Norwegian Dawn, a 2,200-passenger sister ship to Norwegian Star (delivery in December 2002).

About MBNA

MBNA Corporation, a bank holding company and parent of MBNA America Bank, N.A., a national bank, has $92.6 billion in managed loans. MBNA, the largest independent credit card lender in the world, also provides retail deposit, consumer loan and insurance products.

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Hooters Cards

Paymentech and Hooters of America have teamed to offer a gift card program during the upcoming holiday season. Hooters customers will be able to choose from 10 collectable cards featuring the ‘Hooters Girls’. Hooters electronic gift cards can be used at any location for all restaurant charges and will include a pre-paid amount of credit. The gift cards will be processed through the Micros interface, so Hooters can process through the same terminal used for traditional credit and debit cards. Atlanta-based Hooters of America is an operator and franchiser of over 280 Hooters locations in 41 states and twelve countries.

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VISA & E*TRADE

E*Trade Bank has signed exclusive agreements with VISA U.S.A. and VISA DPS. Under terms of the deal, E*Trade will be able to issue a single card that can be used by all its customers for access to E*Trade Bank and E*Trade Securities. E*Trade says it is developing next-generation functionality in partnership with VISA DPS to create the industry’s first card that will provide customers with consolidated ATM access. Customers using selected E*Trade ATMs will have the ability to make withdrawals, request balance inquiries and transfer funds from and between E*Trade Bank and E*Trade Securities accounts. E*Trade anticipates upgrading approximately half of its ATM network with this advanced functionality in the next twelve to eighteen months.

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September Sales

Same-store retail sales climbed 90 basis point for September based on check writing data. According to First Data’s TeleCheck Services, the Southeast region led the nation, followed by the Southwest, the Midwest, the West, the Mid-Atlantic and the Northeast. The index is based on a year-over-year, same-store comparison of the dollar volume of checks written by consumers at more than 27,000 of TeleCheck’s 272,000 subscribing locations. Checks account for about one-third of retail spending and remain second only to cash as the most popular method of payment.

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Ruling Impact

Tuesday’s ruling by Judge Barbara Jones of the U.S. District Court for the Southern District of New York that VISA’s and MasterCard’s exclusionary rules are anti-competitive may have little effect on the industry in both the short-term and the long-term. Both VISA and MasterCard indicated yesterday that an appeal may be forthcoming which could delay any lifting of VISA’s bylaw ‘210(e)’ and MasterCard’s ‘Competitive Programs Policy’ for two or three years. Furthermore the consolidation underway in the credit card industry may accelerate further in the face of declining profitability produced by the recession and the impending “war economy”. This will limit the number of significant players that may consider issuing an American Express or Discover card to some or all of their customers. With the recent collapse of the travel industry it is even less likely banks will seek to develop travel-related card products that could include AmEx cards. The most likely scenario is that AmEx or Discover will be acquired by a bank seeking the total branding power of a closed network in addition to offering VISA or MasterCard products.

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Ruling Response

Discover said yesterday it looks forward to the “additional consumer choice that will result from the elimination of all VISA and MasterCard anti-competitive rules and practices, which have been selectively applied only to Discover and American Express but not to each other or to Citibank’s ‘Diners Club'”. Melvin Schwarz, who was lead trial counsel in the antitrust case before re-joining the Dechert law firm, says the ruling is a “significant and groundbreaking decision because the court condemns the use of market power by owners of nominally not-for-profit joint venture associations to tilt the competitive playing field against their competitors, regardless of whether those competitors are corporate, for-profit ventures or those competitors have some other means of sales distribution to consumers.” Schwarz also noted that the Court’s rejection of the Government’s effort to end dual governance was now of far less competitive concern because, as Judge Jones noted, dual governance has been virtually ended as result of steps taken by the associations since the Government’s suit was filed.

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UATP Signs 3 Airlines

Universal Air Travel Plan, Inc. announced the addition of three airlines as acceptors (“Ticketors”) of the UATP corporate payment system. European Air Express, Royal Tongan Airlines and Solomon Airlines have joined the UATP acceptance network, which boasts membership of over 180 other airlines worldwide.

Michael Patzer, UATP Vice President of Marketing and Industry Affairs, said, “UATP works with airlines of all sizes and geographic locations, in an effort to relay our direct, cost-saving and relationship-building corporate payment solution to airlines worldwide.”

Universal Air Travel Plan Inc., formerly known as Air Travel Card(R), is the world’s first business travel payment system. Founded in 1936, UATP was an innovator in the charge card industry, developing such standards as the magnetic strip and lodged accounts. With annual global billings over USD 8 billion, UATP is owned and operated by each card-issuing airline and accepted by virtually every airline in the world. UATP offers the most complete data and lowest administrative cost of any charge product and is the industry’s own solution to combat rising credit card costs. Multi-national corporations, including over 70 percent of the Top 100 Global, utilize UATP to better manage travel expenses. Airlines currently issuing UATP accounts include Aer Lingus, Air New Zealand, Alitalia, American Airlines (NYSE: AMR), Austrian Airlines, British Airways (NYSE: BAB), Continental (NYSE: CAL), Delta Air Lines (NYSE: DAL), Japan Airlines (Nasdaq: JAPNY), KLM Royal Dutch Airlines (NYSE: KLM), Lufthansa German Airlines, QANTAS, Scandinavian Airlines System, TWA Airlines, LLC, United Airlines (NYSE: UAL) and US Airways (NYSE: U). For more information, visit [uatp.com][1].

[1]: http://uatp.com

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Economic Confidence

Nearly three quarters of Americans are confident that a strong economy will return next year. About 75% say they are acting on President Bush’s request to return to normal and maintain their past spending patterns, and that they view this as part of their patriotic duty. The findings come from a post-Sept 11th survey conducted by BIGresearch. With regard to the holiday shopping season, 70% of the survey respondents plan to spend about the same as last year on their holiday purchases. However, the survey did find that respondents’ recent worries about the economy and their own financial situation appear to be impacting their store choices. Roughly one-third of respondents say they have spent less money in upscale specialty stores since September 11. About one in five are shopping less at the traditional types of department stores.

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BALTIMORE TECH CEO

Baltimore Technologies announced the appointment of Bijan Khezri as the
Company’s Chief
Executive Officer, effective immediately. Bijan replaces Paul Sanders who
served as interim CEO from July 2001.

Bijan Khezri has a thorough understanding of Baltimore Technologies and
the security industry, having joined the Board as a Non-Executive Director in
1998, and he assumed executive responsibilities for corporate strategic
development from November 1999 until May 2000 and left the Board in November
2000. Bijan rejoined the Board in July 2001 as a Non-Executive Director.

Bijan brings substantial business leadership and corporate finance
expertise through his Board level positions. Bijan acted as strategic advisor
and Board member of Jetter AG, a technology Company listed on the Frankfurt
Stock Exchange, helping to build the company into one of the world’s leading
Ethernet-based industrial automation companies, converging IT technologies
with robot automation. He was also a Director on the Board of a Silicon
Valley-based network security company, VPNet Technologies, where he
successfully devised and implemented corporate strategy. In early 2000, he
co-founded UK-based Despatchbox, a PKI-centered application vendor for secure
communications and data sharing.

Commenting on today’s CEO appointment, Peter Morgan, Chairman of Baltimore
Technologies said, “We are delighted to announce the appointment of Bijan as
Chief Executive Officer of Baltimore Technologies. His thorough knowledge of
our industry and company-specific challenges, his proven leadership and
corporate development skills, make him an exceptional choice as CEO. Bijan
enjoys the trust and support of our senior management and has the required
experience, energy, drive and foresight to lead this company.”

Bijan Khezri, Chief Executive Officer of Baltimore Technologies commented,
“Our employees, technology and installed customer base are first class. Our
challenge is to successfully combine all three. We need to focus on both our
customers’ needs and our core competencies. Usability and return on
investment to the end-user and corporate profitability will determine the path
of our authentication and authorization businesses going forward.”

Mr. Khezri continued, “Technology and services related partnerships will
be critical to allow applications to drive demand for our infrastructure
products, more effectively leverage professional services and move towards a
variable cost model.

“Our restructuring programme, announced on August 22, is under way. We
are fully committed to it. Its completion should provide the Company with the
necessary resources to take it into the next growth phase.”

The Company also announced today that Paul Sanders has resigned as Acting
Chief Executive Officer and Chief Financial Officer with immediate effect.
The Company has commenced a search for a new CFO and in the meantime, Bijan
will assume Board level responsibility for finance. Paul Sanders joined
Baltimore Technologies in December 2000 to financially manage the Company
through its aggressive merger and acquisition program. Subsequent
developments caused Baltimore Technologies to switch its strategic focus away
from acquisition activity. Paul has played a central role in developing this
restructuring program and now that the Company is focused on optimising the
business he feels that the time is right to move on.

“On behalf of the Board and the Company, I would like to wish Paul Sanders
every success in the future and thank him for his contribution to the
restructuring of Baltimore Technologies,” said Peter Morgan, Chairman of
Baltimore Technologies.

Following Baltimore’s voluntary delisting from the NASDAQ market and
subsequent move to the OTC Bulletin Board, the Company will only be announcing
full financial results for the half year and year end. Today, Baltimore
Technologies announced financial highlights for Q3 2001, based on unaudited
management accounts:

* Total revenues for the period of Stg 15 million pounds sterling. Demand
for Baltimore’s security technology was underpinned by deals with
customers worldwide including Bundesamt fur Informatik und
Telekommunikation (Swiss Government), Australian Tax Office, Tradelink,
Verizon Communications and Chase Manhattan Bank.

* The cash balance as at 30 September 2001 was Stg 32.4 million pounds.

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