VendTek Systems Inc. announces that it has entered into a co-operation agreement with Visa
International, Latin America and Caribbean Region to promote VendTek’s smart
card LVD terminal and Visa Cash among Visa Member banks in the region.

Visa Cash is a chip-based electronic purse card that offers consumers
a fast and convenient way of making low value purchases, such as a cup of
coffee, newspapers, pay phones and public transportation.
The Company also announces that Visa International has purchased five of
VendTek’s smart card LVD terminals to reload value onto Visa Cash

“Visa International has been a supporter and promoter of the LVD concept
from inception,” says VendTek President Paul Brock. “Visa recognizes the value
of our self-serve smart card load from cash and vend infrastructure as an
important element in building on the success of their Visa Cash product.
To-date we have sold the LVD system to Visa International and the Banco de
Costa Rica for a transit application in San Jose, Costa Rica, where it has
proved very successful. The purchase of LVD stations by Visa International
for live use and demonstration will significantly raise the exposure and
profile of the LVD product.”

About the smart card LVD

Smart cards are secure “electronic purses” that enable consumers to
purchase goods quickly and conveniently in an off-line transaction. VendTek’s
LVD is a flexible, self-serve platform that allows for reloading a smart
card from cash, credit card or associated account and the purchasing of a
card; it is the only self-serve reload from cash platform approved by Visa
International, Latin America and Caribbean Region, for the TIBC v1.0 smart
card operating system.

About VendTek

VendTek uses its expertise in payment and self-serve technologies, smart
cards and networking to develop systems for transaction automation. VendTek’s
secure proprietary systems reduce shrinkage, improve access for consumers,
increase the number of selling outlets and selling hours, and enhance overall
security making the systems superior to traditional distribution and
alternative channels.

About Visa International

Visa is the world’s leading payments brand and the largest payments
system worldwide. Visa-branded cards, over one billion, generate more than
US$1.8 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.
Visit Visa, Latin America and Caribbean Region at


Card Stocks

While Providian’s stock fell another 5% yesterday, the spillover to other monoline stocks settled down. MBNA also released preliminary data yesterday to counter claims the credit card business is wavering in the face of a sluggish economy. MBNA and Capital One moved down slightly, while Household and Metris picked up a few cents. NextCard dropped another 2.5%. Providian closed at $28.90, now trading at 43% of its 52-week high. MBNA says it has added 1.5 million new accounts during July and August and has increased loans by $2.2 billion since June 30. MBNA also noted that managed loan losses in July and August were comparable to second quarter levels and are stable. On Monday, Providian lowered its earnings estimates for the year, citing a recent slowdown in customer purchase activity, softer loan demand relative to expectations, and ongoing credit tightening by the Company. However Providian expects to report an improvement in the 10.29% chargeoff rate for the third quarter.The news dropped Providian’s stock by more than 22% on Monday. (CF Library 9/4/01)



Trintech Group Plc, a global provider of secure payment infrastructure solutions for real world, Internet and wireless environments, announced St.George Bank Limited as the first company in Australia to employ their innovative payment dispute resolution software, PayWare Resolve. This solution was implemented through a partnership with eFunds International Limited (NASDAQ: EFDS) who are a leading provider of electronic payment solutions and professional services to financial institutions, financial services companies and retailers. eFunds is the sole regional reseller in Asia Pacific for Trintech’s PayWare Resolve line of products, which integrates with the eFunds DataNavigator solution.

The St.George Bank implementation will significantly streamline the bank’s management of disputed payment transactions, known as chargebacks, allowing the bank to reduce costs, increase productivity and improve customer service levels. The PayWare Resolve suite of products includes solutions for automated payment dispute resolution, as well as fraud and risk management for issuers, financial transaction processors, acquirers and merchants.

St.George has licensed PayWare Resolve IS – a chargeback management system for issuers and processors – and PayWare Resolve AS to handle chargeback management for acquirers, processors and merchants. At St.George, these solutions will combine with eFunds DataNavigator, allowing staff to more efficiently handle disputes and exceptions.

St.George CEO and Managing Director Ed O’Neal said prior to implementing PayWare Resolve that the bank relied on a manual, paper based system to manage chargeback processing.

“As part of our endeavor to reduce the time and costs associated with chargeback management, St.George has been investigating several software options that would fully automate this process for us. We believe Trintech’s PayWare solutions interfaced with our existing DataNavigator solution from eFunds will enable us to achieve significant cost efficiencies within the issuing and acquiring side of the business,” Mr. O’Neal said.

eFunds’ Chairman and CEO Gus Blanchard said the combination of DataNavigator and PayWare Resolve delivers a powerful chargeback management solution. “The PayWare Resolve solutions have the payment organizations regulations built into the system enabling St.George to benefit from reduced staff training time, consistent handling of disputes as well as increased productivity,” he said.

“We are pleased that our existing skills, solutions and business relationships are allowing St.George Bank to achieve its productivity and cost saving goals,” Mr. Blanchard said.

Trintech CEO John McGuire explained that “PayWare Resolve cuts the time and cost of processing exceptions and disputes, while providing sophisticated management information that helps reduce those that do occur,” he said.

“We are delighted to be working in partnership with eFunds in Asia-Pacific and to have St.George as our first Australian site for PayWare Resolve. We believe that they will realize the same benefits of increased productivity and improved customer service that existing customers of our software are already enjoying,” Mr. McGuire continued.

PayWare Resolve Product Overview
Trintech’s Chargeback Systems (The PayWare Resolve product suite) for acquirers, issuers, processors and merchants automates the exception management process from end-to-end, increasing processing efficiency and creating more opportunities for greater customer care.

PayWare Resolve combines a powerful decision-support environment with compliant dispute regulations to enable optimum management of the entire chargeback process using an easily understood graphical user interface, for swift and informed decision-making.

The essential difference between PayWare Resolve and other exception management systems is its built-in knowledge of national and international chargeback regulations. The chargeback regulations for VISA and MasterCard/Europay have been encoded into the application so that the system can recommend the appropriate action and chargeback reason codes for each case, replacing the need to navigate a series of intricate paper trails and complex and changing regulations. Combined with the solutions ease of use, this dramatically reduces the average training time for new staff to be fully operational.

About Trintech

Founded in 1987, Trintech is a leading provider of secure electronic payment infrastructure solutions for card-based transactions for physical world commerce, eCommerce and mobile commerce. The company offers a complete range of payment software products for credit, debit, commercial and procurement card applications, as well as being a world leader in the deployment of payment solutions for Internet commerce that are fully SSL and SET compliant. Trintech’s range of scalable open systems architecture solutions for UNIX® and Windows NT platforms covers consumer, merchant and financial institution requirements for physical payments and the emerging world of electronic commerce.

Trintech can be contacted in the U.S. at 2755 Campus Drive, San Mateo, CA 94403 (Tel: 650-227-7000) and in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel: 353-1-207-4000).

Trintech can be reached on the Web at

About St.George

St.George Bank Limited, Australia’s fifth largest bank, has a unique place in the Australian financial services market. At the Bank’s core is a close relationship with its customers and this remains the cornerstone of future strategies, an important tradition that distinguishes St.George from other large Australian banks.

Founded in 1937 as a housing-based financial institution, St.George built a reputation as Australia’s foremost building society, before achieving full banking status in July 1992.

St.George expanded its services to commercial customers in 1994 when it acquired the Commercial Banking Division of Barclays. This move made St.George a full service bank.

About eFunds International

Based in the UK, eFunds International Limited is the European operation of eFunds Corporation.
eFunds delivers innovative, reliable and cost-effective technology solutions to meet its customers’ payment and risk management, e-commerce and business process improvement needs. eFunds provides its services to financial institutions, financial services companies, electronic funds networks, retailers, government agencies, e-commerce providers, and other companies around the world. The company’s software solutions include: eFunds Internet Financial Management (IFM) product range, providing Internet banking solutions tailored for the retail, small business and corporate segments of a bank’s customer base; CONNEX*, which offers ATM and POS electronic funds transfer driving, switching, authorisation and settlement services to banks and financial networks; DataNavigator*, a back-office solution for the post-processing of retail electronic transactions; and Architect, a strategic middleware hub for enterprise application integration.

For more information, visit


Chicago Smart Cards

The Chicago Transit Authority has awarded a $1.5 million contract to Cubic Transportation Systems to boost the number of smart cards available for distribution to Chicago riders from 3,500 to 300,000 starting early next year. Cubic is the supplier of the CTA’s integrated ticketing and automated payment system that has been operational since 1997. Initially a magnetic ticket-only system, CTA last summer began offering full-fare customers a smart card that also link CTA’s bus and rail operations and neighboring suburban bus operator Pace. The smart cards used in Chicago incorporate Cubic’s ‘GO CARD’ chip technology. ‘GO CARD’ also is the foundation for the ‘SmarTrip’ system running in Washington, D.C., the nation’s largest smart card program.



Global merchants and merchant
acquirers who require multi-currency front-end and back-end payment processing
now will be able to price goods and services in different currencies while
also guaranteeing the exchange rate at the time of purchase. Leading merchant
processor First Data Merchant Services and payment provider OMNIPAY, a global
payments processor based in Dublin, Ireland, announced the signing of an
agreement under which the two companies have developed a multi-currency
end-to-end transaction and settlement infrastructure. In addition, First Data
Merchant Services and FEXCO, a foreign exchange business also based in
Ireland, have signed a letter of intent to offer FEXCO’s cash management and
treasury services in support of this program.

First Data Merchant Services is offering the service to its many clients
and sales channel partners. The processor anticipates completing the first
merchant implementation in October. “This product meets the needs of
acquirers and merchants who want to authorize, settle, and receive funding for
transactions in any of the major world currencies,” said Pamela H. Patsley,
president of First Data Merchant Services and senior executive vice president,
First Data Corp.

OMNIPAY’s transaction-processing infrastructure handles multi-currency
back-end functions. FEXCO’s multi-currency platform will support front-end
dynamic currency conversion services, which e-commerce and brick and mortar
merchants alike can utilize. FEXCO will manage the treasury operations, which
include the guarantee of the currency exchange rate.

First Data Merchant Services will integrate OMNIPAY’s processing system
with its U.S.-based merchant processing platforms. The transaction remains in
the cardholder’s choice of currency throughout the transaction lifecycle,
including settlement with the issuing bank. The merchant also is guaranteed
payment in the amount of his preferred currency, even though it may differ
from the legal tender selected at the time of purchase.

The global payment effort benefits acquirers, merchants and cardholders:

Acquirer advantages: A merchant acquirer can satisfy its customers’
multicurrency requirements in relation to central acquiring, dynamic currency
conversion and e-commerce. This competitive product offering generates a new
revenue stream and more efficient transaction processing.

Merchant advantages: The merchant broadens payment options for consumers,
and can be guaranteed an exchange rate at the time of sale. This facilitates
settlement and reconciliation for the merchant’s accounting administration.
Cardholder advantages: The cardholder selects a preferred currency and
knows what the transaction amount will be in that currency. This avoids
confusion over exchange rate fluctuations when the exchange takes place later.

Said Brian Connolly, chief executive officer for OMNIPAY, “We are
delighted to have secured this landmark agreement with First Data Merchant
Services, which represents a huge vote of confidence in OMNIPAY. We have
clearly demonstrated the market for OMNIPAY’s service-based processing model
and are now in an even stronger position to leverage our specialized payment
services globally.”

“FEXCO and First Data enjoy a strong relationship through our work with
Western Union. FEXCO and OMNIPAY look forward to working more closely with
First Data Merchant Services,” said Dermot O’Shea, director of payment
services at FEXCO.

FEXCO owns a 60% interest in OMNIPAY. FEXCO is a long time provider of
Western Union’s money transfer services in the United Kingdom, Ireland and
Spain. In December 2000, FDC announced an investment of 25% in FEXCO.


OMNIPAY — — an international payments
processing company also headquartered in Dublin, Ireland, is a joint venture
between OMNIPAY founders Mr. Brian Connolly and Mr.Hubert O’ Donoghue, and the
international financial services group, FEXCO. OMNIPAY provides international
payment processing services and Internet transaction services for banks,
financial institutions and Internet service providers. FEXCO
( is one of Ireland’s largest financial services
companies, employing over 800 personnel at its corporate headquarters in
Killorglin, Co Kerry, Ireland and office in London, Edinburgh, Madrid, Malta
and Dubai. FEXCO provides a comprehensive range of business-to-business and
consumer financial services, including multi-currency credit card processing,
dynamic currency conversion, tax reclaim, international payments, tourism
services, prize bond management and stock brokering. In addition to its
Bureau de Change business, the company is the exclusive provider of Western
Union Money Transfer(R) services in Ireland, the UK, Spain, Malta and

About First Data Merchant Services

First Data Merchant Services enables merchants to accept any type of
electronic payment — credit, debit, electronic check, EBT, smart card —
anytime, anywhere. A subsidiary of First Data Corp., Merchant Services
annually processes and settles almost 9 billion transactions for more than
$450 billion in sales volume from 2.6 million merchant locations. Through
partnerships and relationships with leading financial institutions and
independent sales organizations, First Data Merchant Services delivers
industry leading electronic payment and e-commerce services and solutions.
First Data Corp. (NYSE: FDC), with global headquarters in Denver, powers the
world economy, serving over 1,400 card issuers and millions of consumers
worldwide. First Data makes it easier, faster and more secure for people and
businesses to buy with virtually any form of payment at the point-of-sale,
over the Internet or by money transfer. For more information, please visit


Sabre Merchant Pay

Sabre Holdings Corporation announced the national release of Sabre Merchant Pay, an integrated, end-to-end merchant payment processing product and service offering for Sabre Connected travel agencies. Sabre is the first global distribution system to offer a payment processing solution to travel industry merchants that is integrated with its host reservation system.

Developed through an exclusive partnership with QSI Payments, a world leader in providing global payment solutions, Sabre Merchant Pay utilizes QSI Payments’ unique technology to enable financial institutions and their respective customers to securely authenticate, authorize and process payments through the Sabre GDS.

Through the subscription-based service, U.S.-based Sabre Connected travel agents will be able to:

— Reduce their operating costs by 15 – 20 percent

— Maximize the efficiency of their business with online reporting and reconciliation

— Minimize the risk of fraudulent transactions

— Streamline the payment process

“Based on our analysis, we have calculated that Sabre Merchant Pay will reduce our annual Visa and MasterCard acceptance costs by nearly 20 percent,” said George Wozniak, president, Hobbit Travel. “Additionally, it will enable us to re-assign personnel to more revenue producing functions and further improve our bottom-line.”

“During the beta test we found that Sabre Merchant Pay helped us to become more efficient by streamlining the processing of our merchant payments and improving our cash flow,” said John Henry, CTO of Robustelli World Travel. “We view this product as a viable alternative to current programs offered by other organizations in the market.”

“Sabre Merchant Pay is another innovative solution designed to help our Sabre Connected travel agencies and airlines effectively manage their business and better service their customers,” said Tom Klein, president Emerging Business and Airline Reservations for Sabre. “With more than $75 billion in travel sales that flow through the Sabre system, we are able to harness the power of that information and combine it with QSI’s expertise. We believe this combination offers a real advantage over other products in the market today.”

About Sabre

Sabre is the leading provider of technology, distribution and marketing services for the travel industry. Headquartered in Dallas/Fort Worth, Texas, the company has approximately 6,000 employees in 45 countries. Sabre maintains an ownership interest of approximately 70 percent in (Nasdaq: TVLY), the world’s leading online B2C travel site; and it owns GetThere, the world’s leading provider of Web-based B2B travel reservation systems. Sabre is traded on the New York Stock Exchange (NYSE: TSG). More information on Sabre is available on the World Wide Web at .

About QSI Payments

QSI Payments is a global provider of e-payments infrastructure software and secure payments solutions. QSI Payments’ unique software enables financial institutions, enterprises, and their respective customers to transact e-payments in a secure and authenticated manner. The company developed the first smart card debit system in 1996 and has implemented electronic payment solutions across the globe in the United States, Asia, Australia and the United Kingdom. QSI Payments has received international recognition for its Universal Payment architecture(TM) and has developed strategic partnerships with technology leaders such as Compaq and SAP. QSI Payments sets itself apart from the competition by addressing the industry’s needs for increased security, authentication, scalability and bank branding through its unique e-payments architecture that offers unlimited flexibility and absolute control. Visit QSI Payments on the Web at .


April Retail Sales

Sales tax-free holidays and tax rebates buoyed back-to-school shopping this year resulting in a 3.0 percent increase in same-store retail sales for August — the strongest growth since April of this year, according to data compiled by TeleCheck Services, Inc., the world’s leading check acceptance company. The Southeast region led the nation, followed by the Southwest, the Midwest, the Mid-Atlantic, the Northeast and the West. The TeleCheck Retail 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. Compiled on a calendar basis, TeleCheck’s index is based on a broad cross-section of retailers nationwide. Checks account for about one-third of retail spending and remain second only to cash as the most popular method of payment. TeleCheck is a subsidiary of Denver-based First Data Corp. (NYSE: FDC).

“Many states, including Texas and Florida which both saw significant sales increases, recognized sales tax-free holidays during the month of August which encouraged shoppers to spend,” said Dr. William Ford, TeleCheck’s Senior Economic Adviser. “Also, at least half of the 90 million Americans receiving tax rebates have them now. August’s moderate 3.0 jump in same-store retail sales, coupled with the Federal Reserve’s interest rate cuts, should encourage retailers as we approach the holiday shopping season.”

Sales in the Southeast region rose 3.6 percent. Sales grew 4.0 percent in Florida, 3.5 percent in Louisiana, 3.4 percent in Georgia, 3.3 percent in The Carolinas and 3.1 percent in Tennessee. Sales increased 4.2 percent in Miami/ Ft. Lauderdale, 4.0 percent in Tampa, 3.8 percent in Atlanta, 3.7 percent in Orlando, 3.4 percent in New Orleans, 3.3 percent in Memphis and 2.9 percent in Nashville.

Sales in the Southwest grew 3.4 percent. Sales increased 3.8 percent in Texas, 3.6 percent in Oklahoma and 3.0 percent in Missouri. Sales rose 4.2 percent in Dallas/Ft. Worth, 4.0 percent in both San Antonio and Oklahoma City, 3.6 percent in Houston and 3.5 percent in Austin. Sales increased 3.4 percent in Tulsa, 3.3 percent in Kansas City and 2.9 percent in St. Louis.

In the Midwest region, sales climbed 3.2 percent. Wisconsin’s sales climbed 4.2 percent, Minnesota’s sales rose 4.0 percent, Michigan’s sales climbed 3.5 percent, sales in Ohio were up 3.3 percent and Illinois saw sales increase 2.9 percent. Milwaukee’s sales were up 4.1 percent, Detroit’s sales grew 3.9 percent and sales in Minneapolis jumped 3.6 percent. Sales were up 3.0 percent in Cleveland and in Chicago, sales rose 2.5 percent.

In the Mid-Atlantic, sales grew 3.0 percent. Pennsylvania saw sales climb 3.6 percent, Virginia’s sales were up 3.5 percent, New Jersey’s sales rose 2.9 percent and Maryland saw sales grow 2.3 percent. Sales were up 3.9 percent in Philadelphia, 3.4 percent in Pittsburgh, 2.9 percent in the District of Columbia and 2.6 percent in Baltimore.

The Northeast region saw sales increase 2.7 percent. Sales rose 3.2 percent in Massachusetts and 2.6 percent in New York State. Boston saw sales rise 3.0 percent and New York City’s sales were up 2.4 percent.

Sales in the West grew 2.5 percent, with Hawaii’s sales up 5.4 percent, Arizona’s sales up 2.7 percent, California’s sales up 2.5 percent, Oregon’s sales up 2.3 percent, Colorado’s sales up 2.2 percent and Washington’s sales up 2.0 percent. In Los Angeles, sales jumped 2.7 percent, Phoenix saw sales rise 2.5 percent and sales in both Denver and the Bay Area were up 2.4 percent. Sales grew 2.1 percent in San Diego, 1.9 percent in Portland and 1.6 percent in Seattle.

In 2000, TeleCheck authorized more than $163 billion in checks, representing 3.2 billion transactions. For more information about TeleCheck, visit the Internet site at .

First Data Corp., with global headquarters in Denver, powers the global economy. Serving nearly 2.6 million merchant locations, more than 1,400 card issuers and millions of consumers, First Data makes it easier, faster and more secure for people and businesses to buy goods and services, using virtually any form of payment: credit, debit, stored-value card or check at the point- of-sale, over the Internet or by money transfer. For more information, please visit the company’s Web site at .

Dr. William Ford holds the Weatherford Chair of Finance at Middle Tennessee State University. Earlier in his career he was president of the Federal Reserve Bank of Atlanta and served on former Fed Chairman Paul Volcker’s Federal Open Market Committee.

Retail Sales
(Period: 8/1/01- 8/31/01)
September 5, 2001


Florida 4.0% Arizona 2.7% Illinois 2.9%
Miami/ Phoenix 2.5% Chicago 2.5%
Ft. Lauderdale 4.2%
Orlando 3.7% California 2.5% Michigan 3.5%
Tampa 4.0% Bay Area 2.4% Detroit 3.9%
Louisiana 3.5% Los Angeles 2.7% Minnesota 4.0%
New Orleans 3.4% San Diego 2.1% Minneapolis/
St. Paul 3.6%
Georgia 3.4% Oregon 2.3% Wisconsin 4.2%
Atlanta 3.8% Portland 1.9% Milwaukee 4.1%
Tennessee 3.1% Washington 2.0% Ohio 3.3%
Memphis 3.3% Seattle 1.6% Cleveland 3.0%
Nashville 2.9% Colorado 2.2%
The Carolinas 3.3% Denver 2.4% MID-ATLANTIC 3.0%
Hawaii 5.4% District of
Columbia 2.9%
SOUTHWEST 3.4% Pennsylvania 3.6%
Texas 3.8% NORTHEAST 2.7% Philadelphia 3.9%
Austin 3.5% Massachusetts 3.2% Pittsburgh 3.4%
Dallas/ Boston 3.0% New Jersey 2.9%
Ft. Worth 4.2%
Houston 3.6% New York 2.6% Virginia 3.5%
San Antonio 4.0% New York City 2.4% Maryland 2.3%
Missouri 3.0% Baltimore 2.6%
Kansas City 3.3%
St. Louis 2.9%
Oklahoma 3.6%
Oklahoma City 4.0%
Tulsa 3.4%


Taxi Cards

PA-based USA Technologies will install 15,000 ‘e-Port’ credit card terminals in taxis and limousines operating in New York City over the next three years. The $20 million deal signed Wednesday with the United Taxi Alliance is the largest contract for USTT’s ‘e-Port’, first unveiled less than two years ago. The ‘e-Port’ card reading device will be fitted in the front of the cab or limousine. Passengers pass their credit cards to the driver who then swipes the card through the device to activate the transaction before the trip begins. At the end of the trip the driver passes the passenger a complete receipt that itemizes the distance traveled and cost, and can also include the tip. An interactive screen can be fitted in the back of the cab for convenient viewing. The first of several thousand e-Ports could begin appearing in New York cabs and limousines in January 2002. Last month, the New York State Federation of Taxi Drivers approved a credit card program for livery cabs. About 29,000 livery cabs provide service in areas of New York where yellow taxis don’t operate for economic, safety, and sometimes racist reasons. Partners in the livery cab program, which utilizes wireless credit card terminals, include Cynergy Data, Lipman USA and U.S. Wireless Data. There are approximately 6,300 taxi companies transporting 1.4 billion passengers annually in the U.S. (CF Library 8/8/01)



LML Payment Systems Inc. is pleased to announce its subsidiary LML Patent Corp. has
received notification from the United States Patent and Trademark Office that
patent application Serial No. 09/562,303 was approved, resulting in the
issuance of United States Patent No. 6,283,366. The new patent addresses
electronic check conversion regarding corporate checks and electronic fund
transfers (EFT) and relates to existing United States Patent
No. 6,164,528 regarding Internet checking transactions and United States
Patent No. 5,484,988 regarding electronic checking transactions.

“The addition of this new 366 patent to our growing suite of intellectual
property complements and strengthens existing claims regarding the electronic
check transaction processes described in both the 988 patent and the
528 patent,” said Corporation President and CEO, Patrick H. Gaines. “We have
continued to seek added protection for our inventions and improvements and
look forward to practicing, protecting and realizing economic gain from our

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


Foreign Transactions

Merchants and acquirers who require multi-currency front-end and back-end payment processing now will be able to price goods and services in different currencies while also guaranteeing the exchange rate at the time of purchase. First Data Merchant Services and Ireland-based OMNIPAY have signed an agreement under which the two companies have developed a multi-currency end-to-end transaction and settlement infrastructure. FDMS and FEXCO, a foreign exchange business also based in Ireland, have signed a letter of intent to offer FEXCO’s cash management and treasury services in support of this program. OMNIPAY’s transaction-processing infrastructure handles multi-currency back-end functions. FEXCO’s multi-currency platform will support front-end dynamic currency conversion services, which e-commerce and brick and mortar merchants alike can utilize. FEXCO will manage the treasury operations, which include the guarantee of the currency exchange rate.


HNC Board

HNC Software Inc. announced the appointment of Louis A. Simpson, president and CEO of capital operations at GEICO Corp., to its board of directors.

Prior to accepting his current position in 1993, Simpson served as vice chairman of the board, senior vice president and chief investment officer at the insurance company, which has been a wholly owned subsidiary of Berkshire Hathaway Inc. since January 1996.

Simpson has more than 30 years’ experience as an executive officer within the financial and insurance industries, previously serving as president and CEO at Western Asset Management and a partner at the investment firm of Stein Roe and Farnham. He also has served as an instructor of economics at Princeton University, where he received his master’s degree in economics. He serves as a director of AT&T, LM Institutional Fund Advisors 1 Inc., Pacific American Income Shares Inc. and SAIC.

“I am looking forward to my participation on HNC’s board of directors,” stated Lou Simpson. “I am impressed by HNC’s business model and believe its cutting-edge technology can offer great value to the financial and insurance industries.” “Lou has a phenomenal track record of success in financial and general management with a number of different businesses,” said John Mutch, chief executive officer of HNC. “HNC is very fortunate to have the opportunity to leverage his accumulated wisdom and judgement to build value for the company.”

GEICO is the largest direct marketer, sixth-largest private-passenger auto insurance company and 10th-largest property/casualty insurer in the United States. It is one of the fastest-growing auto insurers in the United States, with growth of 8.5 percent in 2000 and assets of $10.6 billion at year-end 2000.

HNC’s board now totals six members. In addition to Simpson, members of the HNC board are: Edward Chandler of Graystone Venture Partners LLC; Thomas Farb of Summit Partners; Alex Hart, an independent consultant to the financial services industry and former CEO of Advanta Corp. and MasterCard International; David Chen of GeoTrust; and John Mutch, HNC’s chief executive officer.

About HNC Software Inc.

HNC Software is a leading provider of Customer Insight solutions including decision management and customer analytics software that enable companies in the financial, telecommunications, e-commerce and insurance industries to acquire, manage and retain customers. For more information, visit [][1] or contact Susan Roth at 858/909-4353.