Bush & Reform


Dear Mr. Chairman:

The Administration understands that conferees will soon begin to discuss ways to reconcile the House and Senate versions of H.R. 333, the Bankruptcy Reform Act. As an agreement on this bill develops, your consideration of the Administration’s views would be appreciated.

The Administration supports the overall goal of the bankruptcy reform legislation. The common sense reforms in these bills will curb many of the abuses of the current bankruptcy laws. However, the Administration strongly opposes the Senate-passed language regarding the homestead exemption and strongly urges the conferees to return to the bipartisan compromise language that was adopted by the last Congress.

Also, as you know, the Administration opposes Section 1310 of the House bill (which was deleted from the Senate version of the bill) because it has the potential to undercut the rule of law as it applies across international borders, with serious consequences for U.S. interests. The Administration looks forward to working with the conferees to resolve these and any other outstanding issues and secure passage of bankruptcy reform legislation.

Thank you for your consideration.


Mitchell E. Daniels, Jr. Director


Boulder Taxes

Official Payments Corporation announced that the Boulder County Treasurer signed a service agreement that will enable citizens of Boulder County to pay their property taxes over the Internet or via the telephone with the use of their credit cards.

Boulder County, which is the sixth largest county out of 63 counties in Colorado, populates over 290,000 people and collects $320MM annually in property taxes. Boulder County residents will be able to pay property taxes via the Internet at www.officialpayments.com, or via the telephone by calling toll-free 1-800-2PAY-TAX. American Express, Discover Card, MasterCard and Visa are the cards accepted by the program. Bills will be mailed out the third week of January 2002. “We want to simplify this process as much as we can for our taxpaying citizens. We believe that Official Payments Corp. provides a service that will meet our needs; creating an innovative, efficient service as well as an additional option for our taxpayers. We want to continue to expand our services for our taxpayers due to the continuing increase of population in Boulder County,” said Sandy Hume, Treasurer of Boulder County Treasurer’s Office.

“We are encouraged with our new business traction in Colorado. We started in the City of Aurora and are aggressively pursuing business with other Colorado municipalities,” stated Tom Evans, CEO and Chairman of Official Payments Corporation.

Official Payments has similar agreements with over 900 government entities across the country. The company has contacts with the Internal Revenue Service and eighteen state governments and the District of Columbia to collect taxes, fees, and fines by credit card over the Internet and telephone. Official Payments Corp. charges taxpayers a convenience fee for processing these credit card transactions. The fee schedule can be found on the Internet at www.officialpayments.com. For example, a taxpayer who owed a current tax of $2,500.00 in property taxes and charged their taxes, would find a total of $2,568.00 on their credit card statement: $2,500.00 for the tax bill and $68.00 for the convenience fee. Taxpayers using credit cards with bonus rewards programs can, depending on their card’s program, earn rewards, points, and cash-back on airline frequent flyer miles for paying their taxes.

About Official Payments Corp.

Official Payments Corporation (Nasdaq: OPAY) is the leading provider of electronic payment options to government entities. The company’s principal business is enabling consumers to pay their government taxes, fees, fines, and utility bills by credit card, via Internet and telephone. The company is unequaled in market penetration and national footprint. Official Payments has agreements to collect and process credit card payments with the Internal Revenue Service, 18 state governments, the District of Columbia, and over 900 county and municipal governments in 48 states across the United States. In 2000, Official Payments collected and processed over $925 million in federal, state and local government payments.

Official Payments was founded in the San Francisco Bay area in 1996. Thomas R. Evans, the former President & CEO of the Internet company GeoCities, became Chairman & CEO of Official Payments in the summer of 1999. Mr. Evans brought Official Payments public in November of 1999, raising $80 million in its IPO on the NASDAQ national market. The company’s success in new client acquisition, increasing business with its existing clients and in building consumer awareness can be attributed to the combination of an enormous market opportunity with a highly skilled and experienced management and staff, aggressive sales and marketing, and a core competency in developing and implementing leading-edge technical systems.


InteliData 2Q/01

EBPP provider InteliData reported 2Q/01 revenues from continuing operations of $4,355,000 compared to $1,199,000 for the same period last year. Net loss for the quarter including all non-cash charges was $8,295,000. The Company says it is on track for profitability in the second half of 2002. InteliData says it has a watershed event on the horizon in the launch this fall of ‘InteliWorks’, the firm’s next generation technology platform based on ‘J2EE’ architecture. The initial applications will include ‘Bill Presentment Aggregation’, ‘Bill Payment’ and ‘Payment Network Connectivity’. InteliData’s plans include a national media tour kicking off in New York, and joint marketing events with Spectrum EBP including an intensive marketing campaign aimed at existing/potential Spectrum member banks. For complete details on InteliData’s latest quarterly results visit CardData ([www.carddata.com][1]).

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


TransFirst Acquisition

CO-based TransFirst has acquired a portfolio of merchant contracts from Money Tree Services. The transaction is expected to add about $350 million in annual processing volume for TransFirst. NV-based Money Tree Services operates several companies including Business Center USA, a bankcard services organization that began operations in 1986. The company offers services to traditional merchants as well as Internet-based businesses. Formed in 1995, TransFirst has grown to become the second largest privately-held, non-bank merchant processing company in the country. The Money Tree acquisition will bring TransFirst’s projected bankcard sales volume for the fiscal year ending June 30 to nearly $3.5 billion. The merchant portfolio will be processed by Vital Processing.



Watford, 24 July 2001. Bus ticket inspectors in Hertfordshire, UK, are to be equipped with the state-of-the-art in mobile SmartCard readers from Thyron Technologies to streamline the implementation of concessionary pass schemes. The new system will help Hertfordshire County Council monitor and analyse usage of the schemes, as well as discourage abuse.

Using Thyron’s highly successful hand-held PayCell terminals, which can read cards without physical contact, ticket inspectors can quickly and easily validate a cardholder. Once read, the information on the card is compared with the council’s database of registered users to establish the legitimacy of the user and to establish which level of concession is appropriate. This data is recorded to enable the Council to reimburse bus companies more accurately for concessions.

Developed by Prepayment Cards Ltd (PCL, formerly ERG Card Services) the Hertfordshire County Council scheme was launched in a single region in 1997 and over 20,000 free or half-fare contactless smartcard permits are now in use, with qualifying users paying an annual fee to use the card. Recently, the council has decided to implement mobile, handheld card readers to enhance the efficiency of the system. Thyron’s PayCell was selected by PCL for this new phase of the scheme due to the terminals’ proven track record in the transport industry, where they are often used for ticket issuing and validation.

“With around 34 million journeys made on Hertfordshire’s buses each year, the service is obviously vital for many in the community,” explained Principal Transport Officer, Keith White, “and the council works closely with the bus companies to maintain a high quiality of service for those most in need. PCL recommended the use of the PayCell terminals, and we are confident that it will add significantly to the system’s effectiveness.”

The most advanced product of its type, PayCell utilises the latest wireless communications technology, such as Dual band GSM and GPRS, and can support 4 separate card technologies, including the contactless cards used in the concessionary scheme. This makes use of Mifare™ technology, requiring only that the card is held close to the terminal in order to read and write the data. No physical contact is required.

About Thyron Technologies Ltd.

Thyron Technologies is the market leading supplier of Mobile Payment Solutions listing major banks among its customers. The company’s advanced range of products includes the PayCell, which is the only mobile, portable or fixed payment terminal offering independence of landline communications, and Financer, a family of intelligent, programmable, portable hand-held card processing terminals for portable EFTPoS, electronic commerce and electronic banking.

The products have a full development environment, and Thyron offers comprehensive training courses. The company operates closely through technology partners around the globe through its MAP (Mobile Alliance Partner) Programme.

For more information, contact Bill Thompson at Thyron. Tel: 01923 236050.

Email: bill.thompson@thyron.com


eN-LAN Deal

IVI Checkmate Corp. announced that Global Payments Inc. of Atlanta, GA will certify and market IVI Checkmate’s eN-LAN 4000? Hospitality and Lodging Solution. Global Payments will sell the local area network solution to hotels, motels, resorts and property management operations that require a complete payment authorization and management system. Global Payments is a leading provider of electronic payment processing solutions to merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations in North America.

The IVI Checkmate eN-LAN 4000 Lodging System provides a comprehensive yet simple-to-use solution that reduces operational errors and increases accountability. The system is designed to improve the check-in and check-out process by reducing customer wait time. It can be placed at the check-out area and in the retail shop, providing centralized control of all transaction functions. Summary and detail reports reduce management batch closing time and highlight potential trouble areas.

“We are pleased to be able to add a new product offering through an old partner, IVI Checkmate. The IVI Checkmate eN-LAN 4000 system provides an opportunity for Global Payments to sell a comprehensive payment solution that complements our credit card and check service offerings for the hospitality and lodging markets. We have a number of locations where the eN-LAN 4000 Lodging System can be implemented without modifying the existing local area network wiring. This, and the eN-LAN 4000’s outstanding application feature set, will enable our sales channels to compete favorably for replacement and new business,” said Chief Information Officer for Global Payments, Barry W. Lawson.

Michael Hackney, vice president and general manager of IVI Checkmate’s Financial Systems organization stated, “We are honored to have Global Payments, a leader in the payment processing world, certify and market our hospitality and lodging solution. They will be able to leverage the advanced features that our stand-beside local area network payment system provides, increasing their market presence.”

The eN-LAN 4000 local area network solution uses the eN-Counter 4000? modular POS terminal as the LAN gateway and as a workstation on the LAN. Using the eN-Counter 4000 as the gateway eliminates the need for an expensive LAN PC hub. A second eN-Counter 4000 terminal serves as the back-up gateway, maximizing uptime and reducing the users’ cost of ownership. The eN-Counter 4000, serving as either a gateway or a LAN workstation, uses the same user interface and application features, greatly reducing training time and equipment expense.

About Global Payments

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

About Ingenico

Ingenico is a leading provider of smart card based secured transaction products and systems. It has subsidiaries and partnerships all over the world and customers in over 50 countries and territories where its installed base exceeds 3 million point-of-sale terminals. See [www.ingenico.com][1] for more information.

About IVI Checkmate

IVI Checkmate is a major electronic transaction solutions provider in North America. The company designs, develops and markets innovative payment and value-added solutions that optimize transaction management at the point-of-service in the retail, financial, travel and entertainment, health care and transportation industries. IVI Checkmate’s software, hardware and professional services minimize transaction costs, reduce operational complexity, and improve profitability for its customers in the U.S., Canada and Latin America. See [www.ivicheckmate.com][2] for more information.information

[1]: http://www.ingenico.com
[2]: http://www.ivicheckmate.com



PRINCETON JUNCTION, NJ July 27, 2001 Industry expert Catherine Johnston*, president and CEO of the Advanced Card Technology Association of Canada (ACT CANADA), will deliver the keynote address at the International Card Manufacturers Association’s (ICMA) 11th Annual EXPO 2001. This year’s premier card manufacturing event will be held November 11 14, 2001, at the Athenaeum Inter-Continental Hotel, Athens, Greece.

Johnston will be presenting “Smart Cards: Ecstasy and Elephant Traps,” and will discuss the current global status of smart cards, and other advanced card technologies and the favorable conditions for their deployment.

As the President and CEO of ACT CANADA, Johnston monitors the marketplace and industry, consults, conducts corporate briefings, and develops and teaches seminars. In addition, she is the vice-chairman of the Canadian Payments Association Stakeholders Council and a member of the Independent Advisors Group of the International Biometrics Industry Association. She was a founding member of the Global Smart Card Summit and served on the federal government’s National Advisory Board for Technology and Tourism.

Johnston is a leading expert in the field of privacy and card technologies. She is co-author, with the Office of the Information and Privacy Commissioner/Ontario, of the world’s first Privacy Impact Assessment Procedure for Smart, Optical and Other Advanced Card Applications as well as Multi-application Smart Cards, How to do a Privacy Assessment. Currently, she is co-authoring a book on the future of smart cards.

The theme of this year’s ICMA 11th Annual EXPO, “2001: A Card Odyssey,” celebrates the new era of card manufacturing and personalization for the 21st century. The event will provide the latest industry education on broad spectrum card manufacturing and personalization topics as they relate to production, technology applications, and current industry trends. Additionally, the conference will showcase both management and technical topics attended by card manufacturing plant owners, production personnel and executives worldwide.

Highlighted events include a trade show, the annual ICMA Golf Tournament and the Final Night Awards Dinner, featuring the presentation of the Elan Awards for Card Manufacturing Excellence and Outstanding Member Service. Also, results of the Third Annual ICMA Card Manufacturing Global Market Survey which lists the total number of cards manufactured and their principle markets will be released for the first time.

The ICMA Annual EXPO continues to grow in scope and attendance every year as the leading forum for card manufacturing trends and issues. This year the association expects over 450 attendees representing more than 40 countries worldwide.

For ICMA 11th Annual EXPO 2001 exhibiting, registration or sponsorship information, or for information on becoming a member of ICMA, contact Lynn McCullough. Phone: 609-799-4900, email: Imccullough@icma.com or visit the ICMA Web site at http//www.icma.com.

About ICMA

Based in Princeton Junction, NJ, ICMA is a non-profit association of card manufacturers and related industry participants. With more than 220 members globally, ICMA acts as a clearinghouse for industry issues including the production, technology, application, security and environmental issues of plastic cards.



As smart cards take hold in the USA, the first credit card terminals compliant with the ‘EMV 3.1.1’ credit and debit chip card specification are entering the market. Yesterday, Hypercom announced it has partnered with VISA, Vital Processing and National Processing Company to introduce EMV certified card payment terminals in North America. The EMVCo level 1 (hardware) and level 2 (software) specifications ensure the ability of POS terminals and software to correctly process chip card transactions. The Hypercom ‘ICE’ touch-screen, consumer activated EMVCo-certified terminals will be made available to VISA U.S.A. member banks and NPC’s nationwide merchant network within the next several weeks. The rollout follows EMV smart card rollouts now underway in the UK and Brazil.


OTI 2Q/01

OTI 2Q/01, the global provider of contactless smart card technology and product solutions, announced financial results for the quarter ended 30 June 2001. With significant increases in both revenue and gross profit and reduction of 22% in operating expenses in the last three consecutive quarters, strengthening company expectations to become profitable for the fourth quarter of this year.

Financial Highlights: 1H 2001:

· Revenues for 1H2001 up 86% to US $9.33 million (1H2000: US $5.02 million).

· Gross profit ahead 98% to $4.97 million (1H2000: $2.51 million).

· Operating loss increased by 1% to $4.4 million (1H2000: $3.7 million).

· Net loss for 1H2001 up 10% to $4.68 million (1H2000: $4.25 million).

· Loss per share was even at $0.29 (1H2000: $0.29).

· Cash, cash equivalents, and short-term investments at the end of 1H2001 totaled $14.40 million, with total assets of $40.62 million (1H2000: $17.48 million and $40.65 million, respectively).

Financial Highlights: 2Q 2001:

A significant decrease in operating loss which resulted in a decrease of 61% to $1.2 million in the second quarter in 2001 from $3.2 million in the first quarter in 2001, and a decrease in operating expenses of 22% for the last three consecutive quarters to a level of $ 4.3 million for the second quarter of 2001 from a level of $5.5 million in the fourth quarter of 2000. These results presents the company’s clear trend towards becoming profitable.

The decrease in operating loss is a result of the company’s efforts and investments made in infrastructure and research & development, which enabled us to reach this level of expenses. These are planned expenses and are in line with OTI’s expansion strategy. Strategic partnerships and new projects developed during the second quarter continue the company’s move toward profitability, including the Michael Jackson Fan Club card with P-Card System, the expansion of the Rip Griffin Travel Centers with SmartStop to nationwide, and further development with BP throughout Africa. These results are in line with the company’s expectations to break even and reach profitability in 4Q2001.

Major developments during 2Q2001:

· The Michael Jackson Fan Card was launched, the first card in a series of cards based on OTI, P-Card and Mega-Access’s smart card solution for identification, payment and loyalty, with a first shipment of 250,000 cards.

· EasyPark Ltd. signed an agreement with Ahuzot Hahof, which manages the parking solution on behalf of the City of Tel Aviv, the largest metropolis in Israel, to expand the EasyPark program in Tel Aviv to include parking payment for parking lots and to implement a complementary system utilizing a SmartID Sticker to manage vehicle registration and parking permits.

· OTI Africa has entered into a distribution agreement with BureauFax Technologies (BFT), a leading payment systems integrator in Nigeria and a key player in launching smart cards in that country.

· OTI Africa has received orders from BP Zambia and BP Tanzania to install 26 FuelMaster stations servicing commercial customers to their networks. Thousands of additional vehicles are expected to be installed as a result. Additionally, both companies will install systems on-site for a number of prominent fleet customers, enabling them to use FuelMaster for refueling both at home and on the road.

· OTI announced the expansion of the truck stop industry’s first multi-application smart card in all Rip Griffin Travel Centers across the southern United States, as a result of the success of the Terrell, Texas showcase implementation, in operation since August 2000.

“We are continuing to grow and meet projections,” said Oded Bashan, President and CEO of OTI. “Our operating expenses have decreased to $4.3 million, with a clear direction to become profitable for the fourth quarter of this year. We have launched additional products that strengthen our position as the technology leader in our marketplace.”

For a detailed financial review of 2Q2001 the Quarterly Report is available at the company’s website, www.oti.co.il.

About OTI

Established in 1990, OTI (On Track Innovations) designs and develops contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for mass transit, parking, gas management systems, loyalty schemes, ID and secure campuses. OTI has regional offices in the US, Europe, Asia Pacific, and Africa to market and support its products. The company was awarded the prestigious ESCAT Award for smart card innovation in both 1998 and 2000. Visit OTI on the Internet at www.oti.co.il.



IVI Checkmate Corp. and Ingenico S.A. announce that the
stockholders of IVI Checkmate Corp. have approved the agreement
and plan of merger between the companies that provides for IVI
Checkmate Corp. to be acquired by Ingenico. As a result,
effective as of the close of business today, the merger between
the two companies will be completed and IVI Checkmate Corp. will
become a privately-held, wholly-owned subsidiary of Ingenico.
The Company will promptly begin mailing to its stockholders
written materials, which will provide instructions to permit the
stockholders to receive US$3.30 in cash, without interest, for
each of their shares of common stock of IVI Checkmate Corp. and
exchangeable shares of IVI Checkmate Ltd.

About Ingenico

Ingenico is a leading provider of smart card based secured
transaction products and systems. It has subsidiaries and
partnerships all over the world and customers in over 50
countries and territories where its installed base exceeds 3
million point-of-sale terminals. See www.ingenico.com for more

About IVI Checkmate

IVI Checkmate is a major electronic transaction solutions
provider in North America. The company designs, develops and
markets innovative payment and value-added solutions that
optimize transaction management at the point-of-service in the
retail, financial, travel and entertainment, health care and
transportation industries. IVI Checkmate’s software, hardware
and professional services minimize transaction costs, reduce
operational complexity, and improve profitability for its
customers in the U.S., Canada and Latin America. See
www.ivicheckmate.com for more information.



Interlott Technologies, Inc.announced that it has signed a contract with the Luxembourg
National Lottery for the purchase of 100 eight and 12-game Instant Ticket
Vending Machines (ITVMs). The order is scheduled to be delivered in the third

David F. Nichols, President and CEO said, “With this initial order, the
Luxembourg National Lottery joins our expanding family of international
customers who have recognized the unique capabilities of our ITVMs. We are
continuing to gain momentum in the Western European market where our equipment
has already been deployed by the Netherlands National Lottery and the Belgium
National Lottery.”

Interlott, which is the nation’s leading manufacturer of Instant Ticket
Vending Machines (ITVMs) and other high-security vending products, has
supplied equipment to 29 domestic and several international lottery
jurisdictions. The Company designs, manufactures, sells, leases, and services
dispensing machines for the lottery, telecommunications, and financial
services industries. Primary products include instant ticket vending machines
(ITVMs) and pull-tab/break open card vending machines (PTVMs) for the lottery
industry, phone card dispensing machines (PCDMs) for the telecommunications
industry, and SmartCard dispensing machines (SCDMs) for the financial services



Electronic commerce and payments leader First Data Corp. announced its
card processing subsidiary,
First Data Resources, has signed a multi-year contract renewal with
Scotiabank Inverlat.

Scotiabank Inverlat is a leading banking institution in Mexico with
headquarters in Mexico City. The bank will partner with First Data to
receive bankcard processing and other card portfolio management services.
“As a 30-year leader of the card industry, First Data provides us
access to a unique array of products and services that help Scotiabank
Inverlat execute its plans to grow and diversify our portfolio,” said
Carlos San Martin, director of central operations for Scotiabank Inverlat.
“We are pleased with First Data’s commitment to providing the advanced
tools and technology we need to serve our cardholders and gain a
competitive advantage in the marketplace.”

Scotiabank Inverlat has been a First Data client since 1994. In
addition to Scotiabank Inverlat, First Data processes for three leading
financial institutions in Latin America.

“Scotiabank Inverlat is a leader in the Mexican card marketplace and
we are very pleased to continue providing the state-of-the-art
functionality and expertise needed to successfully manage and grow its card
business,” said Eula Adams, senior executive vice president and head of
worldwide card operations for First Data. “In addition, this agreement
underscores our international growth strategy and our commitment to provide
leading-edge payment services to Latin America and other international

First Data processes for nearly 300 million accounts on file around
the world. For more than 30 years, First Data has developed products and
services which enable card issuers to enhance their portfolio growth,
increase market share, reduce risk and improve profitability.

About Scotiabank Inverlat

Grupo Financiero Scotiabank Inverlat S.A. de C.V. is one of the principal
financial groups in Mexico, with more than 400 branches and almost 1,000
ATMs throughout Mexico. First quarter net income after tax for the Group
was $31 million (P$183 million). Scotiabank has a 55% ownership stake in
Inverlat. The Group employs approximately 7,200 people across its three
main affiliates, Scotiabank Inverlat S.A., Scotia Inverlat Casa de Bolsa
S.A. de C.V. and Scotia Inverlat Casa de Cambio S.A. de C.V. Together,
these companies offer an integrated suite of financial products and
services for the entire spectrum of customers – from individuals and small
businesses up to the most sophisticated multinational corporations. See
Scotiabank Inverlat at www.scotiabankinverlat.com

Scotiabank is one of North America’s premier financial institutions, with
about $275 billion in assets and approximately 52,000 employees worldwide,
including affiliates. It is also Canada’s most international bank with more
than 2,000 branches and offices in over 50 countries.

About First Data

First Data Corp. (NYSE: FDC), with global headquarters in Denver, powers
the global economy. As the leader in electronic commerce and payment
services, First Data serves approximately 2.6 million merchant locations,
1,400 card issuers and millions of consumers, making it easier, faster and
more secure for people and businesses to buy goods and services using
virtually any form of payment. With 27,000 employees worldwide, the
company provides credit, debit, smart card and stored-value card issuing
and merchant transaction processing services; Internet commerce solutions;
Western Union® money transfers and money orders; and check processing and
verification services throughout the United States, United Kingdom,
Australia, Canada, Mexico, Spain and Germany. Its money transfer agent
network includes approximately 109,000 locations in more than 186 countries
and territories. For more information, please visit the company’s Web site
at www.firstdata.com