ADS Pepco EBPP

Alliance Data Systems Corp. has completed the migration and conversion of Pepco Energy Services’ customer account data to its database, allowing Alliance Data to begin the rollout of billing and payment processing services. Under the five-year agreement signed this spring, Alliance Data is providing PES a complete suite of advanced services designed to facilitate acquisition, billing, electronic data interchange, billing-information management, and customer retention.

Pepco Energy Services, Inc. is an unregulated subsidiary of a large, investor-owned utility based in Washington, D.C., and has customer accounts throughout Maryland, Pennsylvania, District of Columbia, New Jersey and Virginia. Alliance Data will provide platform hosting and transaction processing services for more than 40,000 PES retail customer accounts throughout these mid-Atlantic states.

Utilizing a customized billing and customer care platform developed for the deregulated energy industry, Alliance Data will improve accuracy and increase efficiencies in customer billing by its ability to support multiple complex tariff structures that differ by state. Additional services provided will include the deployment of “smart statement” technology, which allows PES to conduct one-to-one customer communication via its billing statements.

“As deregulation continues to penetrate the utility marketplace, we recognize the significant value that Alliance Data can provide PES,” said Ed Mayberry, president and chief executive officer, Pepco Energy Services. “We’re very optimistic about the rollout of these services which will further support our dedication to customer satisfaction while also providing optimum opportunities for increasing our competitive edge for retail client acquisitions.”

“We are excited about being a part of Pepco Energy Services’ long-term strategy for building customer relationships and expanding transaction processing capabilities,” said Mike Beltz, Alliance Data Systems president, Transaction Services. “We are confident that our business solution tailored to the deregulated marketplace will enable Pepco Energy Services to increase its customer base and grow its business.”

Pepco Energy Services

Pepco Energy Services, Inc., a wholly owned, separately-managed subsidiary of Potomac Electric Power Company (NYSE: POM), provides residential, commercial, institutional and government customers a complete suite of integrated energy management solutions including electricity and natural gas; energy surveys; energy information systems; fuel management services; heating, ventilation and air conditioning systems; lighting; project financing; and energy operations and maintenance services.

Over the past 24 months, Pepco Energy Services was awarded nearly $800 million in energy and energy-related services contracts, and has provided energy or energy-related services to customers from Connecticut to Florida. Visit for more information.

Alliance Data Systems

Based in Dallas, Alliance Data Systems is a leading provider of transaction services, credit services and marketing services, including one of the largest loyalty programs in North America. The company manages 72 million consumer accounts and processes 2.5 billion transactions annually. 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, .

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CardPlus Buys MAXcash

Greenland Corporation announced that Colorado-based CardPlus International, Inc., the nation’s only certified minority electronic payments processor, has purchased its first six Greenland interactive check cashing MAXcash Automated Banking Machine kiosks. These terminals are to be processed from CardPlus’ newly established Denver electronic transaction and data processing center. Of the first six terminals, five will be operated in Colorado area convenience and petroleum stores.

“CardPlus already provides check cashing, and other related point-of-sale services for their corporate customers, including a number of hospitals and large oil companies,” stated T.A. “Kip” Hyde, Jr., President and CEO of Greenland. “Given their history of success, we believe that CardPlus has the capacity to become the largest minority non-bank owner-operator of self- service banking machines in the country, potentially encompassing thousands of locations nationwide.”

This transaction is the first purchase under Greenland’s ongoing strategy to aggressively pursue sales of the MAXcash ABM to customers that have their own processing capabilities. Added Hyde, “We are very pleased to help facilitate the independent self-service check cashing and ATM processing programs of CardPlus.”

George Brantley, Director of CardPlus International said, “We look forward to the continued support of Mr. Hyde and the team at Greenland, as we expand our processing center capabilities.”

About Greenland Corporation

Greenland Corporation is a holding company whose wholly owned subsidiary, Check Central, performs check cashing transaction processing. Check Central is also the developer and manufacturer of the MAXcash(TM) Automated Banking Machine(TM) (ABM(TM)) that provides self service check cashing, ATM functionality, phone card and money order dispensing, as well as the capability for other future products and services. The Company’s common stock trades on the OTC Bulletin Board under the symbol “GLCP.” Visit Greenland Corporation on the Internet at .

About CardPlus International, Inc.

As the only National Minority Council certified electronic payments processor, CardPlus is a comprehensive services provider offering “one-stop shopping” for credit and debit card processing and collection, check verification, check guarantee, recovery services, settlement and other point- of-sale services. CardPlus is a single provider of electronic payment processing services, equipment and customer support. The CardPlus product offering spans from simple electronic “swipe” POS terminals, ATM functionality, phone payment, self-service banking processing and high-speed computer-to-computer transmission, to advanced wireless systems. CardPlus focuses its efforts and expertise towards providing data processing, collections and delivery, electronic fund processing and collections, information transmission, payment services and value-added network services.

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Citibank 2Q/01

Citigroup reported this morning that income for its North American card portfolio rose 17%, driven by 12% growth in receivables and a 95 bps increase in the net interest margin, more than offsetting a 119 bps deterioration in the net charge-off ratio to 5.51%. However charge volume was essentially flat for the second quarter, at $55.6 billion. Core pre-tax income for Citi’s cards hit $725 million compared to $621 million for 2Q/00. Receivables increased from $92.3 billion to $103.9 billion over the same period. However both charge-offs and delinquency rose significantly. Delinquency (90+ days) increased 37%, from 1.26% for 2Q/00 to 1.72% for 2Q/01 while charge-offs increased from 4.32% to 5.51%. For complete details on Citigroup’s 2Q/01 credit card performance as well as historical statistics visit CardData ([www.carddata.com][1]).

CITIGROUP TRACK RECORD (North America Cards)
2Q/01 1Q/01 4Q/00 3Q/00 2Q/00
EOP RECV: $103.9b 100.5 103.2 97.7 92.3
Q VOL: $55.6b 51.2 56.8 55.2 55.3
ACCTS: 94.1m 93.2 90.8 89.4 83.9
CHG-OFFS 5.51% 4.84% 4.22% 3.95% 4.32%
DEL (90+dy) 1.72% 1.84% 1.46% 1.34% 1.26%
Source: CardData (www.carddata.com)

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

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Catuity OPE

Catuity, Inc. released a new version of its product, the Catuity Open Program Engine that will enhance its loyalty software solutions to mass merchandisers, supermarkets and quick service restaurants. The OPE is a store-based loyalty engine that enables large retailers with multi-lane checkout operations to easily, efficiently and inexpensively integrate loyalty into the payment stream. The OPE is specifically designed to integrate into existing POS environments as well as with new point of sale terminals featuring smart card readers, larger screens and signature capability. Michael V. Howe, President of Catuity, made the announcement. “This development strengthens Catuity’s position as the recognized U.S. leader in next generation loyalty software solutions. The new Catuity release operates on both magnetic stripe cards and smart cards. With the OPE, mass merchandisers, supermarkets and quick service restaurants can benefit from Catuity’s payment integrated loyalty programs by building a history of a customer’s buying habits and then rewarding and recognizing that individual customer directly at the time of transaction.” Howe added “recognizing best customer purchase behavior and rewarding individual customers accordingly has become easier than ever for merchants with our front-end software system. Our system allows multi-lane merchants, who have millions of customers, to install our system and to begin accumulating information and delivering loyalty rewards to new and regular customers at the time of payment.”

The enhancement of the multi-lane market segment opens up tremendous potential for Catuity, as evidenced by the recent announcement from the International Mass Retail Association, which indicated that mass retailers are drawing sales from other chain stores at a rate of three out of four dollars spent in mass retail stores during the first quarter of 2001. “With the introduction of OPE, we can aggressively target these markets together with transaction processors and others who already service these merchants,” said Howe.

Catuity accelerated development of this application in response to requests from its customer base. “Although we always planned to incorporate efficient multi-lane capabilities to our software, we found that the customer base requesting these tools was significantly interested in our product and services and as a result, we moved forward our development and introduction of these applications,” Howe said. Catuity, Inc. (www.catuity.com) is a leading provider of loyalty software systems. The Catuity software includes an integrated suite of applications that provide loyalty, ticketing, access control, and membership. The Catuity Loyalty System is ubiquitous in that it can operate on any device, any card program, and with any payment process, including stored value, smart cards and wireless applications. Catuity unites the brick-and-mortar retailer with the Internet to enable cross-sell capabilities with consistent brand imaging across all channels. The Catuity loyalty system is currently the only loyalty software approved by Visa USA for use by its member banks that issue smart cards with loyalty applications.

In conjunction with the provisions of the “Safe Harbor” section of the Private Securities Litigation Reform Act of 1995, this release may contain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations. All such forward-looking statements are necessarily only estimates of future results and there can be no assurance that actual results will not materially differ from expectations. Further information on potential factors that could affect Catuity, Inc. is included in the Company’s Form 10-K, which is filed with the U.S. Securities & Exchange Commission.

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TermNet & Vital

Vital Processing Services, a leader in technology-based commerce enabling services, announced that TermNet, one of the largest independent merchant servicing companies in the United States, has entered into a new, long-term, full service processing agreement with Vital.

TermNet has processed the majority of its point-of-sale (POS) transactions with Vital through the years, and the new agreement solidifies their partnership by naming Vital as TermNet’s exclusive Clearing and Settlement processor. TermNet will be converting more than 10,000 merchants to Vital’s Clearing and Settlement and Merchant Accounting System and will continue to grow its POS transactions processed by Vital. The contract extends through 2007.

“This full service partnership is a reflection of Vital’s quality of service, full suite of commerce enabling products and services and dedicated resources to help TermNet succeed in the merchant services marketplace. We are proud to be TermNet’s processing partner,” said Jonathan Palmer, president and CEO of Vital Processing Services.

“TermNet’s partnership with Vital is testament to our commitment to provide both our Financial Services and Transactions Services clients the most competitive products and services, and to deliver them in a manner that exceed their expectations,” said David Stanford, president and CEO of TermNet Merchant Services.

About Vital Processing Services ([http:/www.vitalps.com][1])

Arizona-based Vital Processing Services® (Vital®) is a leader in technology-based commerce enabling services. Vital s clients include acquirers and merchant service providers that offer electronic payment processing services to merchants. Vital provides leading point-of-sale (POS) products and services, electronic authorization and data capture; VirtualNetä Internet-commerce services; clearing, settlement and exception processing; accounting, billing and reporting; risk management; and customer service. Vital is a merchant processing joint venture of Visa® U.S.A. and TSYS (NYSE: “TSS”).

About TermNet

TermNet is a vertically integrated payments processor providing payment solutions for virtually all payment types for financial institutions, payroll companies and merchants nationwide. TermNet’s primary business includes Financial Services, which provides a full suite of products and services to financial service organizations including a turnkey credit and debit card issuing program and merchant acquiring; and Transaction Services which provides payment solutions for industry sectors including general retailers, government agencies, business to business and utilities.

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

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BofA 2Q/01

Bank of America reported that its credit card income rose 8% for the second quarter driven by an increase in charge volume, especially debit cards, and by lower funding costs. However an increase in personal bankruptcy filings during the first half of 2001 contributed to a $96 million increase in consumer charge-offs from a year earlier. BofA posted a record $601 million in card income compared to $556 million for 2Q/00.For complete details on BoA’s 2Q/01 credit card performance as well as historical statistics visit CardData ([www.carddata.com][1]).

BANK OF AMERICA TRACK RECORD
2Q/01 1Q/01 4Q/00 3Q/00 2Q/00
EOP RECV: $24.8b 23.2 22.8 21.1 20.4
INCOME $601m 573.0 595.0 594.0 556.0
CHG-OFFS 4.94% 4.37% 4.31% 4.15% 4.84%
Source: CardData (www.carddata.com)

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

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Portfolio Sale

A secured card portfolio is up for sale. Thousand Oaks, CA-based R.K. Hammer Investment Bankers said Friday they are handling the sale of the portfolio which hold 40,000 secured credit card accounts and $22 million in receivables. Hammer says the portfolio has 30 month seasoning and high earnings. The earnings stats show 20% risk adjusted revenue, 3.5% after tax ROA, and 59% after tax ROE. Hammer also handled the sale of the Key Federal Savings’ secured card portfolio to AFBA Industrial bank last year.

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WebMiles

WebMiles announced it is making its rewards program available to banks and credit card issuers. The program allows consumers to earn and redeem miles that are good for travel on any flight and any airline without the restrictions commonly found in traditional frequent flyer programs such as blackout dates and limited seating. The company says far the ‘WebMiles’program has proven to drive consumer credit card spending to over six times what is annually spent on an average credit card. For institutions that already provide another generic miles or points program, WebMiles has created a way to roll the outstanding liability to WebMiles at a reduced cost. WebMiles has established a network of more than 7,500 restaurant partners and approximately 100 retail partners with thousands of locations. Members can redeem 25,000 miles for a free flight anywhere in the continental U.S. or Canada. Members can also redeem fewer miles for discounts, for example, 8,000 can be redeemed for a $100 discount on any flight; 15,000 can be redeemed for a $200 discount; and 20,000 can be redeemed for a $300 discount.

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IEIC LASERCARD

Drexler Technology Corporation has received purchase orders for 95 LaserCard encoder drives for the
Government of Italy, that are expected to be used for issuing LaserCard-based national ID/social
services cards at dozens of Italian locations. All 95 of the LaserCard read/write encoder drives have
been shipped, including 45 this month and 27 last month.

Under the Italian Electronic Identity Card (IEIC) national ID program, the central and municipal public
administrations in Italy can select the types of services they will offer with the IEIC card. The Italian
government indicates that the national services offered may include healthcare, voting, and social
security, while municipal local services may include transportation and education. Used only at card
issuing stations, the read/write encoder drives personalize each card by recording the cardholders
name, photo, and other issuance data onto the blank LaserCard in computer-readable and
eye-readable form.

The Drexler cards contain a 1 megabyte, 16mm-wide optical memory stripe and provide a designated
space for a computer microchip to be inserted. Shipments of these “microchip ready” optical memory
cards began earlier this year for the initial phase of the IEIC program.

The Italian government will arrange to have microchips inserted into the optical memory cards, thereby
creating a combination smart card and optical memory card. The optical stripe will be used to provide
the high security electronic identity data, to record transaction process history and provide a data
backup, to store large amounts of data, and to provide a visual embedded “ID hologram.” The microchip
will be used to provide electronic identification, authentication, and communication security for network
transactions. The combination card also can be used to provide digital signatures and a variety of
e-services.

The Italian ID/social services card is an example of a “digital governance” application, which
represents Drexler’s principal LaserCard market today. “Digital governance” means the utilization of
digital information technology to facilitate or expedite the process of governing by a nation, state, region,
municipality, agency, institution, or commercial enterprise. The LaserCard’s high-security features
inhibit counterfeiting and data tampering and provide controlled access to the rights or benefits granted
by the card issuer, such as the Italian government.

The most successful LaserCard applications to date have utilized the card as proof that the cardholder
has a formal permission, privilege, or right from the card issuer. Governmental and commercial
examples include the right to reside and work in another country; cross a border for commercial
purposes; carry on a business or profession; receive medical care, welfare benefits, or import
privileges; utilize a motor vehicle; construct buildings; utilize expensive medical equipment on a
pay-per-use basis; obtain automobile maintenance services; or obtain certain purchasing or tax
benefits.

Headquartered in Mountain View, Drexler Technology Corporation (www.lasercard.com) develops and
manufactures optical data storage products and systems, including LaserCard(R) optical memory cards
and chip-ready Smart/Optical(TM) cards. Its wholly owned subsidiary, LaserCard Systems
Corporation, makes optical card read/write drives, develops optical card system software, and markets
card-related data systems and peripherals.

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Chase EBPP

Chase confirmed yesterday it has opened an electronic bill presentment and payment center for its 21.7 million credit card accountholders. Customers can also extend the online service to pay anyone in the U.S., from any checking account, for a monthly charge of $4.95 for 12 bill payments. Technology and customer support for the ‘Chase Bill Management Center’ is provided by Metavante’s newly acquired company, CyberBills Inc. Offering ‘Total Bill Management Services’, Metavante will act as an application service provider, handling payment processing, electronic and paper bill presentment, and will host the bill management portion of the Chase website. Chase is also a founding member of Spectrum, a LabMorgan portfolio company formed to facilitate the exchange of electronic bills through a single connection.

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BASE 2000

Certegy Inc., formerly known
as Equifax Payment Services, completed the conversion of National Australia
Group banks’ card portfolios in the United Kingdom, Ireland and
Australia to its Base 2000 card processing platform. Base 2000 is the first
third party card processing system in the industry that provides a single
global platform for a multi-national card issuer. Certegy’s contract with NAG
includes processing and managing NAG’s global credit card portfolio of
4.5 million consumer and business cards in Australia, New Zealand, Ireland and
the U.K. It is an example of the growing trend among global financial
institutions to outsource processing as a means of concentrating more closely
on core businesses.

“Banks today operate across boundaries, doing business in many countries.
The days of banks in various countries running on disparate systems is a thing
of the past,” said Larry Towe, executive vice president and chief operating
officer. “True globalization requires that banks operate from the same
platform at all locations, no matter what language and currency is involved.
The Certegy system provides this unique capability to National Australia
Group.”

The UK and Ireland conversion was completed in April and included both
Visa and Europay branded cards from four NAG banks, utilizing three different
currencies. The Australian conversion occurred over the July 7th weekend and
included Visa and MasterCard cards. The final phase, the conversion of the
New Zealand NAG portfolio, is scheduled for completion in early August. When
completed, the Base 2000 system will integrate transactions in five different
currencies, including the Euro, from six banks and four countries enhancing
NAG’s capability to serve customers globally.

The conversion sets the stage for NAG banks to expand their market reach
with new financial products and services. “Certegy completed the conversion
of the portfolios of NAG’s five banks in the UK, Ireland and Australia exactly
on schedule,” said Mike Laing, head of global cards, National Australia Group.
“They installed the system, modified it and converted five different
portfolios and converged them into one system in a smooth and efficient
operation.”

Valued at more than $100 million over five years, the agreement includes
processing for the bank’s card operations in the UK, Ireland, Australia and
New Zealand. Certegy and NAG signed the contract in June 2000.

National Australia Group is an international financial services group
providing a comprehensive and integrated range of financial services across
four continents and 15 countries. Globally, as of March 31, 2001, NAG had
total assets of over $400 billion, more than $325 billon in assets under
administration, and more than 12 million customers. National Australia Group
operates a network of more than 1,200 outlets in Australia, and banks and
other interests throughout the world in the United States, United Kingdom,
Ireland and New Zealand. Globally, NAG employs more than 48,000 and has more
than 360,000 shareholders.

Certegy provides credit, debit and merchant card processing, e-banking,
check risk management and check cashing services to financial institutions and
merchants worldwide. Headquartered in Alpharetta, Georgia, Certegy maintains
a strong global presence with operations in the United States, Canada, the
U.K., Ireland, France, Chile, Brazil, Australia and New Zealand. As a proven
global payment services provider, Certegy enables transaction certainty,
brings customers and commerce together and provides business results through
leading technology. Certegy employs 5,700 associates in 9 countries and has
$779 million in revenue.

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