VISA & Le Meridien

Visa International and Le Meridien have announced a multi-year strategic marketing partnership, providing the new partners with joint promotional opportunities while offering Visa cardholders added rewards and privileges when selecting Le Meridien properties around the world.

Based on this partnership, currently effective through June 2004, Visa and the 127 Le Meridien properties worldwide, plan to develop proprietary products, concepts, offers, co-op marketing plans and other initiatives, providing Visa cardholders who stay at Le Meridien with a range of benefits and incentives.

“Visa and Le Meridien represent a powerful travel partnership. By aligning with this leading international luxury hotel group, Visa plans to deliver exceptional benefits and service to its cardholders worldwide,” said Tom Shepard, Visa International’s executive vice president of Global Marketing Partnerships and Sponsorships. “This strategic alliance is an example of Visa’s continued commitment to provide added value and benefits to our members and cardholders.”

Edvj Massazza-Gal, senior vice president, Visa International EU Region adds, “With such a wide choice of hotels offered by this European based group, the partnership demonstrates the benefits which can be passed on by Visa to cardholders globally. We also look forward to working with our Members in the EU Region to provide specific and tailor-made programs that give an enhanced service to our cardholders wishing to stay at Le Meridien.”

“Le Meridien is proud to join forces with Visa International to offer a solid portfolio of luxury hotels around the world, with premium service and overall value that will appeal to Visa’s global network of discerning cardholders,” remarked Norman Bekker, Manager Partnerships, Le Meridien. “Le Meridien is expanding rapidly around the world with an ambitious program which last year saw 19 hotels opening, with a further 19 scheduled to open in 2001 and 2002; or, put another way – 1.5 hotels opening each month somewhere in the world!”

Le Meridien has a current global portfolio of 127 hotels (more than 33,000 rooms) in 55 countries. Through the alliance that Le Meridien have with Nikko hotels, extended this year to include all Nikko hotels, Le Meridien has a total marketing network of 149 hotels in 63 countries and territories. A (pound)1 billion-plus turnover company, Le Meridien’s portfolio is a mix of owned hotels and managed properties. The 127 hotels are currently divided between cities (92) and resorts (35). Le Meridien is also the largest single member of The Leading Hotels of the World – with 20 properties belonging to the prestigious marketing consortium.

About Visa

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. Visa can be found at

About Le Meridien

Le Meridien hotels combine a European style and individual character with a genuine respect of the local culture. They offer a high level of personal service, exciting cuisine and an extensive range of business, conference, banqueting, health and leisure facilities. Visit the Le Meridien website at


Hypercom Brazil

Hypercom has been awarded a contract worth more than US$7 million from Visanet Brasil. Under the terms of the agreement, Hypercom will install smart card readers and software on tens of thousands of Visanet-branded ‘Hypercom T7’ terminals throughout the country. VISA expects to have 200,000 smart card capable terminals in Brazil. Hypercom has also rolled out several large smart card programs in Europe and Asia, as well as in Latin America. Hypercom last year remotely upgraded its installed base of card payment terminals in the UK with the latest EMV-certified software applications. This remote upgrade was done from the company’s ‘Term-Master Suite’ terminal management system.



For its third quarter ended July 31, 2001, Royal
Bank of Canada announced cash net income of $518 million
($664 million or $.94 per share excluding special items, namely a
restructuring charge for U.S. retail operations, following the acquisition of
Centura Banks, and a write down of deferred income tax assets). Net income was
$436 million ($582 million or $.82 per share excluding these special items,
detailed on page 9). In addition, this quarter’s results reflected an
unusually high expense for Stock Appreciation Rights (discussed on page 10)
resulting from a 19% rise in the bank’s common share price during the quarter,
and an increase in the provision for credit losses (mentioned on page 11).

Commenting on the results, Gordon Nixon, President & Chief Executive
Officer, said, “Despite continuing weak capital markets, we performed well
again, demonstrating the value of our diversified business mix.”

Third quarter operating highlights:

– Gordon Nixon became President & Chief Executive Officer effective
August 1, 2001, succeeding as CEO John E. Cleghorn, who retired July
31. Also at this time, Mr. Guy Saint-Pierre, Chairman
of the Corporate Governance Committee of the Board of Directors of
Royal Bank and lead Director, became non-executive Chairman of Royal

– In June, following U.S. and Canadian regulatory approvals, Royal Bank
closed its acquisition of Centura Banks, Inc., (renamed RBC Centura)
headquartered in Rocky Mount, North Carolina. This acquisition
represented a major step in the bank’s U.S. expansion efforts.

– Subsequent to quarter end, the bank announced that it had signed a
definitive agreement to acquire Tucker Anthony Sutro, a Boston-based
broker dealer, for US$625 million in cash. The transaction is expected
to close in the fall of 2001 pending regulatory and Tucker Anthony
Sutro shareholder approvals.

The bank’s interim consolidated financial statements are expressed in
Canadian dollars, and are prepared in accordance with U.S. and Canadian
generally accepted accounting principles (GAAP). U.S. GAAP interim
consolidated financial statements are provided on pages 19-26. Canadian GAAP
interim consolidated financial statements, including a reconciliation of
significant differences from U.S. GAAP financial statements, are provided on
pages 29-37. The discussion & analysis which follows is based on the financial
statements prepared in accordance with U.S. GAAP and would not read
differently in any material respect if based on the consolidated financial
statements prepared in accordance with Canadian GAAP, except as noted in the
supplemental discussions on pages 7, 9 and 11.


I want to thank John Cleghorn, who retired as CEO on July 31, for leaving
us a company in strong shape. It is well diversified by business, has leading
market positions in Canada in most of its business platforms, has a strong
management team, a shareholder-focused culture, and is successfully
implementing a disciplined growth strategy in the United States. As the new
CEO, I am committed to maintaining our focus on the four strategic priorities
which we have reported on for some time, and which I’ll discuss below.

Strong fundamentals

One of the reasons for our superior valuation is the strong financial
performance that we have delivered to our shareholders over the past several
years. We want to maintain financial performance in the top quartile of North
American financial companies. Our core cash net income growth of 13% this
quarter keeps us well positioned in that regard.
As shown on page 5, our valuation remained in the top quartile of the TSE
Banks & Trusts Index, while earnings per share growth of 11% and ROE of 18.8%
for the first nine months, on a cash basis excluding special items, were
within the target ranges. Revenue growth was well in excess of our 10%
objective. As well, our capital ratios strengthened further in the quarter. As
for loan quality, the nonaccrual loans ratio of 1.2% was virtually unchanged
from last quarter, while the specific provision for credit losses ratio of
.42% for the year to date was slightly above the target range for 2001,
reflecting higher provisions for the U.S. telecommunication portfolio.

International expansion

Included in this quarter were two months of results for RBC Centura,
which was acquired on June 5th. RBC Liberty Insurance and RBC Prism both
continued to perform well, and RBC Dain Rauscher, although continuing to
suffer the effects of weak client trading volumes, showed some operational
improvement from last quarter. Overall, international cash net income
accounted for 35% of total cash net income, up from 29% in the first nine
months of 2000 (excluding special items).

We announced the proposed acquisition of Tucker Anthony Sutro on August 1
and expect to close this transaction in the autumn. It will be combined with
RBC Dain Rauscher, and together they will form the ninth largest retail
brokerage firm with a national presence in the U.S. and provide substantial
cost savings opportunities. The combined companies will be rebranded RBC Dain
Rauscher, just as Centura has been renamed RBC Centura. In order to create an
integrated and cohesive brand globally, the umbrella “RBC” has been added to
our other U.S. company names — Prism and Liberty Insurance. In Canada, as
well, all business platforms will adopt the letters “RBC” (RBC Royal Bank, RBC
Insurance, RBC Investments, RBC Capital Markets and RBC Global Services).
I want to emphasize that our U.S. expansion will continue to be
disciplined and methodical, adhering to strict financial parameters. Each of
our business platforms is responsible for meeting its targets on a North
American basis and will be paying close attention to the financial returns of
its U.S. operations.

Growth of high-return, high P/E multiple businesses

Our primary focus remains on growing Wealth Management (which we believe
has good growth prospects on a long-term basis) and Personal & Commercial
Banking. However, each business segment has selected areas for priority
growth. While this quarter was a challenging one for Wealth Management, with
brokerage clients further reducing their trading activity, Personal &
Commercial Banking recorded 26% growth in cash net income excluding special
items. Corporate & Investment Banking, also, did well with the fixed income
operations having an exceptional quarter. This further demonstrates the
benefits of a diversified business platform.

We will continue to look for opportunities for restructuring or shedding
non-strategic businesses, as we did earlier this month with the sale of our
institutional money management business, RT Capital.

eBusiness leadership

On the eBusiness front, our Canadian online client base passed the 1.7
million mark, up from 1.1 million a year ago and 1.5 million last quarter.
About 17% of our Canadian clients now deal with us online.

I look forward to reporting on our progress next quarter.


Upgrade 2Q/01

Upgrade International Corporation has filed its quarterly report for the nine months ended June 30, 2001, a summary of which is attached below.

The Company through its UltraCard subsidiary has continued an aggressive development program having completed the specifications for the UltraCard and its Read/Write device during the period and developing their initial pilot project previously announced. The Company remains very active on these development initiatives, in addition to securing funding for the market launch of its products.

Net losses aggregated $22.2 million in the first nine months of the current fiscal year ending June 30, 2001 compared with an $11.8 million net loss for the corresponding period of the prior fiscal year. This increase in net loss reflects the growing level of investment into the Companies core technology and advances in the production processes. Research and development expenditures more than doubled in the current fiscal year compared to the prior year, comprising a large part of the increased expenditures as the Company completes a production ready product. The net loss also reflects an increased cost of capital as the Company has incurred a greater proportion of generating funding through convertible securities than has been the case in prior periods. Interest expense in the amount of $2.7 million was incurred of which the majority represents non-cash warrants and shares issued as compensation to the investor. The Company previously announced that it had terminated the merger agreement with The Pathways Group. Funds advanced to Pathways total $3.4 million as of June 30, 2001. The Company has secured the amounts due from Pathways by way of a general security over the Pathways assets. The collectability of the amounts due from Pathways are potentially unrecoverable and accordingly the Company has provided an allowance of the amount due in the quarter ended June 30, 2001. The Company plans to actively pursue collection of the monies advanced to Pathways. The Company has been able to reduce its general and administrative costs by $2.85 million compared to the corresponding 3-month period in the prior fiscal year. This reduction is comprised of lower legal costs, and reduced compensation components related to key employee warrant issuances. Other than the allowance for potential uncollectible advances and interest expense previously discussed, general and administrative costs for the nine months remained approximately the same as the previous period last year, at approximately $200,000. UltraCard Inc. has again increased its research and development expenditures by $0.8 million over the corresponding prior period in a concentrated effort to complete a commercialized version of its high memory capacity UltraCard and Read/ Write device. These increasing expenditures reflect the Company’s primary focus on efforts which will complete its research and development initiatives, while at the same time, establishing production processes and specifications to facilitate the Company to engage others to produce the UltraCard and its read write device. The other significant operating subsidiary cQue (formerly Centurion) contributed approximately 6% of the total loss reflecting the focus of the consolidated groups efforts to complete the UltraCard technology. For the near future research and development expenditures are expected to increase to meet the Company’s numerous potential market opportunities. All of the Company’s research and development costs have been expensed as incurred.

Sales and marketing expenditures have increased by approximately $161,000 as compared to the nine-month period ended June 30, 2000, as the Company nears completion of UltraCard’s products. Sales and marketing expenditures are associated with the Company’s attendance at trade shows and industry awareness programs as the Company builds market awareness to establish and develop new markets and prepare for effective product launches for products which are nearing the first phase of completion.


The Company is managing tight cash flows while still providing funding for an aggressive research and development program at UltraCard along with developing acquisitions in the software development area of business. Cash flows from financing activities of $11.4 million in the current period represents a 34 % increase in the capital raised in the corresponding period of the preceding year. In light of the more restrictive financial conditions at the current time this fact speaks well for the Companies ability to manage and continue to grow through economic downturns. The Company has experienced a significant increase in its current liabilities, increasing from 6.5 million in September 2000 to $11.5 million as at June 30, 2001. The Company has relied upon trade creditors while it aggressively pursues equity and debt capital from sources internationally. At the date of this report negotiations for debt and equity into the Company in amounts in excess of $50 Million dollars are underway.

Upgrade International Corp. through its ownership interest in UltraCard Inc., Efornet Corp., and cQue Corporation is engaged in the development and commercialization of a patented ultra high capacity portable data storage technology. UltraCard’s patented method for using existing hard disk storage technology provides both highly durable media in a credit card format and an inexpensive read/write device that together will become the next generation in personal portable data storage for a broad range of existing and new markets. Management believes that the UltraCard technology will potentially provide numerous industrial users with a combination of high levels of security and a vastly greater amount of personal transportable data storage at the lowest cost in the industry. In addition the acquisition and development of existing SmartCard solution providers represents a strategic market strategy designed to accelerate the integration of the vastly superior technology inherent in the UltraCard into existing and newly developing markets.

Tables to follow:

Upgrade International Corporation and Subsidiaries
(A development stage enterprise)


Nine months ended June 30,
2000 2001
——– ——–

Costs and expenses
Research and development $ 2,253,486 $ 5,030,133
Purchased in-process research
and development 425,800 –
Sales and marketing 1,115,910 1,276,559
General and administrative 8,666,055 8,519,784
—————- ———–
12,731,251 14,826,476
Other expenses (income)
Equity in losses of UltraCard – –
Interest expense 588,858 3,733,448
Provision for uncollectible
advances – 3,399,780
Other, net 209,299 193,290
—————- ———–
798,157 7,326,518

Minority interest in losses
of subsidiaries (1,758,371) –
—————- ———–
—————- ———–

NET LOSS $ 11,771,037 $ 22,152,994
================ ===========

Loss per common
share-basic and diluted $ 0.64 $ 1.01
================ ===========

Upgrade International Corporation and Subsidiaries
(A development stage enterprise)


Three months ended Cumulative
June 30, results of
————————- operations since
2000 2001 (Feb. 5, 1997)
——— ——— ————

Costs and expenses
Research and
development $654,359 $1,490,718 $13,180,805
Purchased in-process
research and
development – – 5,971,603
Sales and marketing 187,375 140,908 4,891,522
General and
administrative 4,276,125 1,430,092 19,667,791
———— ———– ————-
5,117,859 3,061,718 43,711,721

Other expenses (income)
Equity in losses of
UltraCard – – 1,264,316
Interest expense 68,214 2,706,606 4,697,442
Provision for
uncollectible advances – 3,339,780 3,399,780
Other, net 295,790 106,504 435,438
———— ———— ————
364,004 6,212,890 9,796,976

Minority interest in
losses of subsidiaries (71,038) – (2,115,135)
——– ————-

NET LOSS $ 5,410,825 $ 9,274,608 $ 51,393,562
=============== ============== ==============
Loss per common —-
share-basic and
diluted $ 0.28 $ 0.39 $ 4.11
=============== ================ ==============

Upgrade International Corporation and Subsidiaries
(A development stage enterprise)



September 30, June 30,
2000 2001
————– ————–
CURRENT ASSETS (unaudited)
Cash and cash equivalents $ 398,989 $ 107,919
Restricted deposit 805,687 300,000
Subscription receivable 32,725 –
Due from related party – 130,000
Equipment held for resale – 3,054,125
Prepaid expenses, deposits
and other 121,491 358,245
—————- —————

Total current assets 1,358,892 3,950,289

AT COST, less accumulated
depreciation and amortization 1,791,257 2,093,076


INC less allowance for uncollect-
ible advances of $3,399,780 1,900,825


Intangible and deferred assets,
net of accumulated amortization 370,206 622,606
Deposits & notes 328,051 332,845
—————- —————

Total assets $ 9,050,856 $ 7,948,816
================ ===============


Accounts payable $ 1,993,796 $ 4,496,134
Accrued liabilities 733,241 2,151,140
Bridge loans 799,177 434,259
Notes payable 431,453
Equipment purchase
contract payable 2,307,025 1,850,000
Royalty fee payable
to Card Tech, Inc., net 487,500 975,000
Payable to related parties 175,240 1,170,560
—————- —————

Total current liabilities 6,495,979 11,508,546

unamortized discount – 890,322

net of unamortized discount 809,043 1,662,973



Common stock – $.001 par value,
50,000,000 shares authorized 20,341 23,725
Stock subscriptions 323,640 711,012
Additional paid in capital 36,925,837 50,829,216
Receivable from stockholders
of subsidiary (266,621) (266,621)
Accumulated development
stage deficit (35,257,363) (57,410,357)
————— —————

Total liabilities and
stockholders’ equity (deficit) $ 9,050,856 $ 7,948,816
================ ===============

For more details, please refer to the Company’s 10-QSB available on the Company’s Web Site at [][1]

On Behalf of the Board of Directors,

Daniel Bland President



ADS Card Bonds

Alliance Data Systems Corp. announced that it has completed a $900 million offering of asset-backed notes issued through the World Financial Network Credit Card Master Note Trust, as part of the securitization program for Alliance Data’s World Financial Network National Bank. Alliance Data has raised over $1 billion in the public and private markets since June, including its June 8 Initial Public Offering, which yielded net proceeds of $161.9 million.

The notes will be secured by a beneficial interest in a pool of receivables that arise under WFNNB’s private label revolving credit card accounts. The notes have an expected maturity date of August 16, 2004.

Alliance Data’s Chief Financial Officer, Ed Heffernan, said the successful IPO and note offering further solidify the company’s strong financial position, which is one of the company’s four key attributes. Alliance Data is committed to providing its stakeholders with growth, visibility, predictability and liquidity, said Heffernan.

“We feel our recent successes in the capital markets serve as validation of our business model and growth strategy,” Heffernan said. “With this offering, which was done through a public note offering and private placements, we have taken advantage of favorable rates and obtained $900 million of funding at what will be, effectively, a fixed rate for the next three years. We are also pleased with the tight spread, which we believe is a sign of the comfort and familiarity that investors now have with Alliance Data.”

Underwriters for the note offering were J.P. Morgan Securities Inc., Banc One Capital Markets, Inc., Barclays Capital Inc., Credit Suisse First Boston Corporation and First Union Securities, Inc.

Alliance Data Systems

Based in Dallas, Alliance Data Systems is a leading provider of transaction services, credit services and marketing services, assisting retail, petroleum, utility and financial services companies in managing the critical interactions between them and their customers. Additionally, Alliance Data operates and markets the largest coalition loyalty program in Canada. All together, each year, the company manages over 2.5 billion transactions and 72 million consumer accounts for some of North America’s most recognizable companies. Alliance Data Systems employs approximately 6,000 associates at more than 20 locations in the United States, Canada and New Zealand. For more information about the company, visit its web site, .


WorldPay Miva

WorldPay, Inc., the global leader in multi-currency transaction processing and eCommerce, and Miva Corporation, the leading provider of eCommerce platforms for small to medium-sized businesses, announced a technology partnership designed to extend the horizons of U.S. e-tailers into global markets.

The partnership, announced at the Web Hosting Expo 2001 in Washington, D.C., combines the comprehensive eCommerce development capabilities of Miva Merchant 4.0 with WorldPay’s secure multi-currency transaction processing service.

Miva Merchant 4.0 is a versatile storefront solution that includes many powerful new features including: affiliate program management, inventory tracking, advanced administrative features, store statistics and more.

These new features complement those found in previous versions of the software including account and catalog management, merchandising, order fulfillment and integrated payment processing services. Miva Merchant 4.0 comes complete with a set of wizards that help simplify the process of building an online store. Merchants can set up their storefront and begin selling in just a few minutes.

A new integration module jointly developed with WorldPay allows Miva Merchant users to offer consumers WorldPay’s secure, multi-currency transaction capability, making it possible to purchase goods and services via the Web from over 90 countries, and in 120 currencies.

“eCommerce has long been hyped as a global opportunity, but U.S. sites typically lock out overseas buyers by limiting transactions to the U.S. dollar,” said David Talley, Vice President of U.S. Operations for WorldPay.

“With Miva and its strong customer base here, WorldPay is expanding our U.S. presence and at the same time helping online businesses reach their full potential by providing access to the largest market possible.”

“Miva Merchant 4.0 empowers online business owners with everything they need to launch customized e-commerce storefronts quickly, easily and efficiently,” said Robert Hanczor, Miva’s Vice President of Marketing. “With WorldPay, we’re ensuring our users can do business with their customers no matter where they are or what currency they prefer to use.”

About Miva Corporation

Founded in 1996, Miva Corporation provides the leading e-commerce platform for channels that target small-to mid-size businesses. These distribution partners are at the forefront of servicing the exploding number of small to mid-size businesses using the Internet to expand their market reach.

Channels can easily and quickly integrate the Miva platform of scripting, end-user applications and API with their existing services to deliver complete e-commerce solutions to SMBs. No other e-commerce platform company offers the ease of browser-based point and click, deep-down customizability and the reach to deliver integrated marketing services. For more information on Miva’s products, contact Miva Corporation, 5060 Santa Fe Street, San Diego, California 92109. Phone: (858) 490- 2570, fax: (858) 731-4200 or visit Miva’s Web site at .

About WorldPay, Inc.

WorldPay is a global leader in multi-currency, secure online card payments and international eCommerce solutions. WorldPay enables one of the most fundamental components of eCommerce: the ability for customers to securely purchase goods and services through the Internet, and for businesses to receive and process payments securely.

WorldPay has created eCommerce solutions that enable online credit card payments in over 120 currencies, and has partners and customers in more than 90 countries worldwide.

WorldPay provides a one-stop service to enable businesses to trade successfully online, set up online stores and accept payments without need for separate bank approval. Its cost-effective online solutions include:

— Credit and debit card processing through WorldDirect

— Credit card fraud protection for both eTailers and customers with the WorldPay Guarantee

— Online eCommerce storebuilding with Click and Build

— Integration tools for tailor made, individual eCommerce solutions

— eCommerce storefront design consultancy and support

WorldPay’s headquarters are located in Cambridge, UK, its Americas office is located in the Metropolitan Washington, D.C. area in Sterling, VA, and its Asian regional base is in Singapore.



Hypercom Corporation announced that it has been awarded a contract worth more than US$7 million from Visanet Brasil.

Under the terms of the agreement, Hypercom will install smart card readers and software on tens of thousands of Visanet-branded Hypercom T7 terminals throughout the country.

“This agreement represents one important part of Visanet Brasil’s efforts to upgrade its card reader base to accept smart cards. Our goal is to smart card enable 100% of our terminal base. When we achieve that, we will have more than 200,000 smart card capable terminals. That is far ahead of virtually any other country in Latin America,” said Fernando Castejon, Vice President of Products, Visa do Brasil.

“The conversion to smart cards in Brasil is primarily driven by the clear need for improved security and additional functionality. Just as importantly, there has been an overall simplification of smart card applications — namely the focus on credit and debit, as well as the decreasing cost of smart cards, and the increasing availability of cost effective smart card terminals,” said Reinaldo Assis, Commercial Director, Hypercom do Brasil. “It is important to make smart card acceptance straightforward and simple. That’s what we are doing. And we are pleased to join with Visanet in this important effort.”

This latest agreement further underscores Hypercom’s global experience and expertise in smart cards. Hypercom has assisted the major acquirers in Brasil with their national conversion to a smart card-based credit/debit card acceptance environment.

The company has also rolled out several large smart card programs in Europe and Asia, as well as in Latin America. These include smart card-based credit, debit, stored value, loyalty, ticketing and e-coupon applications. More recently, shipments of smart card-capable ICE(TM) terminals have started to accelerate in the US, where savvy processors have begun preparing for the inevitable arrival of smart cards.

Additionally, Hypercom last year remotely upgraded its installed base of card payment terminals in the UK with the latest EMV-certified software applications. This remote upgrade was done from the company’s sophisticated and centrally located Term-Master Suite(R) terminal management system — further demonstrating the company’s ability to keep terminals apace with evolving smart card standards — without having to upgrade hardware.

About Visanet

Visanet was founded in November 1995, as a result of the association of Visa International and large Brazilian banks. Since its inception, its goals were well set: manage the network of Visa affiliated merchants in Brazil, and offer them all the support they need to conduct transactions fast and safely. Visanet enabled a fair division of functions and responsibilities to improve efficiency standards. Visa do Brasil performs administrative tasks related to the cards which carry its brand, whereas Visanet centralizes all operations relating to transactions with Visa cards. Check the figures: Visanet has 600 thousand affiliated merchants; 140 thousand electronic POS terminals; 400 million annual transactions; 95% of transactions are conducted electronically in 4000 Brazilian cities; revenues of R$25 billion in 2000 and 42 offices nationwide.

About Hypercom (

Hypercom do Brasil, a subsidiary of Hypercom Corporation, is the number one provider of electronic payment solutions in Latin America. Hypercom do Brasil maintains an installed base of more than 400,000 card payment terminals in Brasil, and more than 800,000 units in Latin America.

Hypercom Corporation (NYSE:HYC) is the leading global provider of electronic payment solutions that add value at the point-of-sale for consumers, merchants and acquirers, and yield increased profitability for its customers. Hypercom’s products include secure web-enabled transaction terminals that work seamlessly with its networking equipment and software applications for e-commerce, m-commerce, smart cards and traditional payment applications. The company’s widely-accepted ePOS-infocommerce(TM) (epic) framework of consumer-activated, EMV-certified, touch-screen ICE (Interactive Consumer Environment) terminals enable acquirers and merchants to decrease costs, increase revenues and improve customer retention.

Headquartered in Phoenix, Arizona, Hypercom is independently acknowledged as the leading provider of point-of-sale card payment terminals worldwide. Demand for Hypercom’s terminals surpassed one million units last year alone. Hypercom today maintains an installed base of more than 4 million terminals in over 100 countries which conduct over 10 billion transactions annually.


Multi Service & Clickshare

Multi Service Corp., the nation’s sixth-largest processor of private-label credit cards, has been named the lead transaction-processing partner of Clickshare Service Corp. Under an agreement announced today, Multi Service will offer its customers Clickshare’s platform for multi-site, privacy-protected digital-content purchasing.

Under the alliance, Clickshare will likewise offer Multi Service’s back end transaction-processing services to content providers and other partners of Clickshare, and Multi Service will run and maintain Clickshare’s back-end transaction infrastructure, including inbound customer-care management.

“Over two decades, Multi Service has rapidly expanded its core customer-care and transaction processing leadership in the trucking and aviation industries,” said Nell Fields, Clickshare’s CEO. “Now, as our primary processing partner, Multi Service will be offering card users a new form of privacy and mobility with the ability to purchase digital content anywhere on any device at any time.”

Since 1994, Multi Service, with over $1.5 billion in annual billings, has also developed specialized Internet database and user management technologies and operates a group of specialized websites.

“Our alliance with Clickshare results from our conviction that the sale of digital content – music, text, multi-media entertainment, games, software and services – represents a multi-billion dollar emerging business opportunity – the next big frontier for online processing,” said Mark O’Connell, Multi Service president. “Clickshare’s unique distributed-customer management technology is designed to scale to the opportunity, protecting consumer privacy and the sanctity of consumer relationships with their most-trusted providers such as banks, telcos, ISPs and associations.”

The Clickshare Service allows a consumer to have one account at a most-trusted “infomediary”, and purchase information from across the web without having to repeatedly enter credit-card information, register repeatedly or surrender personal information. The result is one account, one ID, one-bill simplicity.

About Multi Service

Multi Service Corp. was established in 1978 to provide specialized credit-card services to the trucking industry, expanding to the aviation industry in 1980. The Multi Service Card is the most widely used corporate aviation card in the world. Headquartered in Overland Park, Kan., a suburb of Kansas City, the company and also has offices in Australia and The Netherlands. Multi Service’s core business is high-volume transaction-processing programs and specialized web software. The private company also provides processing services for toll road and tunnel authorities in Europe, and consolidated billing and tracking services for the auto-parts industry.

Since 1994, Multi Service has developed specialized web software for a wide variety of web sites and online applications, including product sales and large active communities based on gaming and nostalgia. E-commerce has been extensively employed on these sites, including retail transactions and various methods of paying for online memberships, such as subscription services and pay-by-the-hour.

About Clickshare

The Clickshare Service is an Internet transaction infrastructure for privacy-protected purchasing of text, music, video, software, and other products and services.

Consumers have one account at a website of their choice, and purchase digital content from other websites without having to pass around a credit-card number, repeatedly register or give out personal information. Banks, ISPs, associations, retailers, wireless and other telecommunications carriers use it to enhance, extend and share customer relationships with publishers and entertainment providers.

Clickshare’s clients include A. H. Belo & Co., Knight Ridder/Tribune Business News, Comtex News Network Inc., China Online Inc.,, (Andrews McMeel/Universal Press), the Corpus Christi [Texas] Caller Times, Foster’s Daily Democrat [Dover, N.H.], the Concord [N.H.] Monitor, the Sioux City [Iowa] Journal, the Lawrence [Ks.] Journal-World, and others.

Clickshare is based in Williamstown, Mass. Its investors include Sawgrass Seacoast Investors LLC and private individuals, including founding executives of PeopleSoft Inc., and the former publisher of the Philadelphia Inquirer and Chicago Sun-Times. Its executives, board and advisors include veterans of the publishing and credit-card industries.



Credit card use for the first six months of this year increased 114% to 199.27 trillion won. The number of cards-in-force rose 43% to 68.4 million according to the
Financial Supervisory Service. The seven major card issuers reported a combined net profit of 1.01 trillion won for the first half of 2001, up 150% from the second half last year.
LG Capital Services Corp. recorded the largest net profit at 358 billion won, followed by Samsung Card with 305 billion won, Kookmin Credit Card with 230 billion won, and Korea Exchange Bank Credit Service with 100 billion won. Total revenues among the 19 banks operating credit card units recorded a combined revenue of 2.33 trillion won in the first six months according to the FSS.



Bioscrypt Inc., a leading provider of
biometric authentication solutions, announced it has teamed with
Indivos Corporation to provide merchants and their customers with integrated
solutions that eliminate the need to carry cash, cheques or credit cards by
conducting electronic payment transactions with the convenience and added
security of biometric authentication.

Indivos is provider of a payment service in which consumers voluntarily
enroll in order to access their chequing, credit and loyalty accounts without
having to use cumbersome, costly plastic cards, paper cheques, and other
tokens. Instead, consumers who enroll in Indivos’ free service will be able to
pay for goods simply by placing their finger on a sensor integrated with a
countertop credit card device. Bioscrypt’s algorithm will perform the
authentication of the user against a previously enrolled template.
“Bioscrypt is excited to be working with Indivos to bring shoppers and
retailers a secure and efficient method of executing transactions without
having to carry cash or remember cumbersome cards or tokens,” said Pierre
Donaldson, President and CEO of Bioscrypt Inc. “Consumers and merchants are
embracing this new payment method that not only adds security but also is more
convenient and less costly than paper-and-plastic methods.”
“Indivos is very pleased to be working with Bioscrypt to help give
consumers and retailers the advantages of a free Pay By Touch(TM) service,”
said Phil Gioia, CEO of Indivos. “In bringing Pay By Touch to the retail
marketplace, Bioscrypt’s algorithm is an integral technology for high
performance and customer satisfaction.”

Indivos service allows consumers to access their bank and debit accounts
electronically without having to use the plastic cards, paper cheques, and
passwords that can easily be lost, stolen or damaged. At the same time, the
service provides merchants with reduced risk and lower costs in handling cash
and cheques. Consumers who enroll in the voluntary system no longer have to
carry their cards and cheques, but can easily access their accounts online
using the ultra security of fingerprint authentication.

About Indivos Corporation

Indivos’ fully voluntary patented service enables a cashless, chequeless,
cardless payment environment in which consumers who have voluntarily enrolled
a finger scan to complete transactions securely, conveniently, and
efficiently. It also enables merchants to substantially reduce transaction-
processing costs, and significantly mitigate the risk of fraud. Indivos’
Internet address is Indivos has 16 issued patents enabling
the service.

About Bioscrypt Inc.

Bioscrypt Inc. (TSE:BYT) is a leading provider of fingerprint-based
biometric solutions to organizations requiring a high level of security for
network, wireless and physical access. Bioscrypt provides strong
authentication through the use of a robust pattern recognition algorithm that
is used to bind a user’s credentials to their biometric, such as a
fingerprint. Bioscrypt’s biometric solutions are designed to enhance end user
convenience and reduce password management costs. Bioscrypt brands its
technology as “bioscrypt on board”, which signifies that Bioscrypt Inc.’s high
standards of biometric quality and security reside within that product. For
more information on Bioscrypt, visit the Company’s Web site at


Identico Systems

Image Data, pioneer of the use of identity verification to stop point-of-service frauds by putting a “face on every transaction,” announced a name change to Identico Systems LLC. The new name more closely reflects the company’s expanded business strategy and unique expertise in successfully securing financial transactions in today’s complex point-of-service environment.

According to CEO Larry Gilbert, the move also positions the company to take advantage of the broader market opportunities it has identified for its True ID service. “True ID’s growing and diverse customer base speaks for itself ­ identity verification offers businesses better protection against payroll check, auto rental, and other point-of- service frauds,” said Gilbert. “Because our True ID Service verifies ‘the person, not the paper,’ customers have experienced a dramatic decrease in losses. True ID’s consumer-friendly process also alleviates growing consumer fears over the security of their personal and financial account information.”

The increasing acceptance of the True ID Service across market segments reflects the critical need for a new approach to providing secure payment solutions in face-to face-transactions. Businesses relying on traditional loss prevention systems are experiencing staggering losses, with worthless checks alone costing retailers and banks an estimated $15 billion annually. Gilbert noted, “The outdated approach of verifying easily counterfeited financial and identification documents is no longer effective against today’s technology-enabled identity criminal.”

True ID® — a Better Solution

True ID’s ability to securely identify a consumer as the “true” owner of a financial account presented during a transaction means less fraud for businesses, better information for loss prevention investigations and increased protection for consumers. Retailers, banks, auto rental firms, and distribution centers are already successfully using True ID to deter fraud by as much as 80%, and increase restitution efforts by 50%.

True ID® is simple to use and integrates easily into any point-of-service environment:

1) During a transaction, the consumer presents his or her photo ID to a clerk or teller. 2) The photo ID is scanned, encrypted, and transmitted to a secure Identico Systems database, where it is mapped to the consumer’s account data; and

3) The next time the consumer initiates a transaction at any business that uses True ID, the consumer’s image is securely sent back to the point of service for instant identity verification.

Because Identico Systems is committed to protecting consumer privacy, no information other than the image is sent to the point of service. The employee views the image, decides whether it matches the consumer’s face, and proceeds with the transaction.

“True ID has met with nearly 100% consumer acceptance everywhere it’s been used because people are increasingly aware of the threat of ID theft,” said Gilbert. “At the same time, businesses are realizing the need to be more proactive in protecting their honest customers from ID thieves, so they are welcoming a new technology that not only cuts their financial losses from fraud but also builds a loyal customer base.”

To learn more about Identico Systems, call 1-888-887-8343 (1-888-8TRUE-ID) or visit them online at [][1]