MBNA 2Q/01

The nation’ second largest bank credit card issuer reported this morning it added 2.2 million accounts or 2.6 million new cardholders during the second quarter, a 12% decline from new account activity generated during the first three months of 2001. Last year, MBNA signed up 3.4 million new customers, representing 2.6 million new accounts during the second quarter. Meanwhile delinquency and charge-offs were sharply higher than last year. Delinquency (30+ days) on total managed loans stood at 4.57% at mid-year compared to 4.44% for 2Q/00. Managed loan losses for the first six months of 2001 were 4.59% compared to 4.01% for the first half of 2000. However MBNA’s net interest margin soared to 8.33% for the second quarter compared to 7.12% one year ago. Total managed loans at June 30, were $90.4 billion, a $2.5 billion increase over first quarter 2001 and a $14.1 billion increase over second quarter 2000. During the quarter MBNA signed up 106 new affinity programs compared to 113 programs for 2Q/00. The company also renewed 270 group contracts during the second quarter. Charge volume for 2Q/01 was $35.3 billion compared to $31.1 billion for second quarter 2000. For complete details on MBNA’s second quarter performance and past performance visit CardData ([www.carddata.com][1]).

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

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Concord Synapse

U. S. Wireless Data, Inc., a leader in wireless transaction processing today announced an agreement in which Concord EFS, Inc., a leading payment processor, will market USWD’s Synapse wireless payment services for point of sale and ATM processing.

Concord, which processes transactions for more than 300,000 merchant locations and drives over 48,000 ATMs nationwide, will offer Synapse-enabled wireless transaction services through its direct and ISO sales channels. In addition, Concord will use U.S. Wireless Data’s proprietary technology to convert current dial-up devices, including traditional credit card terminals and ATM’s, to the speed and cost-savings of wireless technology.

“Our goal at Concord is to meet the current and anticipated needs of our retailers and resellers while looking to emerging technologies,” said Steve Lynch, Chief Information Officer at Concord. “With Synapse, we will be able to enhance our turn-key payment solution with a wireless alternative that is fast, reliable, and state-of-the-art.”

“Concord is a great business partner and one of the driving forces in delivering emerging solutions to the transaction processing industry. We are proud of Concord’s endorsement of our technology for both point of sale and ATM processing,” said Dean M. Leavitt, Chairman and CEO of U.S. Wireless Data.

ABOUT U.S. WIRELESS DATA

U.S. Wireless Data, Inc. ([www.uswirelessdata.com][1]), founded in 1991, markets Synapse(SM), its proprietary technology for wireless point of sale (POS) and ATM transactions. By providing a seamless interface among all parties including terminal manufacturers, wireless carriers, and payment processors, Synapse enables payment card and ATM transactions to be processed extremely fast, without the cost and inconvenience of a telephone line. Synapse’s Internet-based tools offer on-line, real-time transaction monitoring, remote diagnostics and automated terminal activation. NXT, the company’s wholly owned subsidiary, provides landline transaction and data transport solutions to the transaction industry, and processes more than 500 million transactions each year. U.S. Wireless Data is headquartered in New York City.

ABOUT CONCORD EFS

Concord EFS, Inc. is a leading, vertically-integrated electronic transaction processor, providing transaction authorization, data capture, settlement and funds transfer services to financial institutions, supermarkets, petroleum retailers, convenience stores, and other independent retailers. Concord’s primary activities include Network Services, providing ATM driving, online and signature debit card processing, and network access to the financial services industry under the STAR(SM), MAC(R), and Cash Station(R) brands; and Payment Services, providing credit, debit, check authorization, and electronic benefits transfer (EBT) processing services to selected retail segments. Concord news releases, links to SEC filings, and other information are available on its corporate web site at [www.concordefs.com][2].

[1]: http://www.uswirelessdata.com
[2]: http://www.concordefs.com

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DataNavigator in DPS

eFunds Corporation , a leading provider of electronic payment, risk management, and related professional services, announced an agreement to license its DataNavigator software to Visa U.S.A.’s Debit Processing Service. As part of the agreement, Visa DPS will also add its fifth copy of eFunds’ award-winning CONNEX Advantage software to enable DPS to accommodate its expected growth in debit processing transaction volume.

“DataNavigator and CONNEX represent a powerful combination that puts Visa DPS at the forefront of debit processing technology,” said Jerry Lester, president of eFunds’ Financial Institutions and Networks division. “Visa DPS has positioned itself to be a significant provider of reliable processing services featuring eFunds’ 99.99 percent availability, great scalability, state-of-the-art settlement plus increased customer support and service.”

DataNavigator is user-friendly software that helps financial services companies, retailers, processors and networks manage their increasing volume of electronic funds transfer transactions coming from automated teller machines (ATMs), point-of-sale devices and Internet transactions. DataNavigator enables real-time EFT data management and customer support. It helps cut costs and increase network member satisfaction by speeding up settlement and reporting, streamlining transaction research and automating exceptions management. DataNavigator also features continuous settlement, which replaces batch processing for settlement of debit transactions at end of day.

CONNEX features continuous processing, available as an optional service that enables eFunds’ EFT network customers to distribute transaction workloads across multiple sites or “nodes.” Continuous processing provides non- interrupted service while one node is taken down, usually for scheduled maintenance. eFunds is the only processor providing a continuous EFT availability option, which can save its customers the cost of implementing more expensive back-up systems.

“eFunds’ software helps Visa DPS be an integral part of Visa’s integrated debit strategy and enables Visa to fully support its member financial institutions’ back-office needs for debit processing,” said Kevin Schultz, executive vice president, Visa U.S.A. “Given the growth of the debit card category, Visa DPS enhances Visa’s total commitment to debit as a platform for the future of the payment industry.”

DataNavigator has five components:

— Transaction Research – DataNavigator provides a single online access point to all transaction details on any EFT platform. It allows the user to see all information about any transaction within minutes after it has taken place.

— Continuous Settlement – DataNavigator replaces batch processing for settlement. By providing continuous settlement, DataNavigator eliminates the end-of-day crunch and provides almost immediate final settlement at the end of day. More accurate and timely information translates into better customer service.

— Report Writer – DataNavigator streamlines report production by providing fast access to transaction information and allowing the user to create reports based on specific criteria. The online and near real-time access to transaction data is available 24 hours a day, so reports can be generated whenever they’re needed — not just during overnight hours.

— Exceptions Management – DataNavigator makes exceptions management virtually routine. With online and near real-time access to data, transaction queries can be made minutes after processing. This supports better customer service with faster dispute resolution.

— Device Management – DataNavigator can help make every ATM more profitable through features such as device inquiry, cash manager, cash forecaster, courier manager, auto balance, deposit verification and profit manager.

eFunds has been a provider of software to Visa for five years and is a two-time winner of the Visa Service Quality Performance Award. eFunds’ CONNEX software is used around the world to process billions of transactions each year and has received the International Tandem Users Group award five of the last six years.

About eFunds

eFunds delivers innovative, reliable and cost-effective technology solutions to meet its customers’ payment and risk management, e-commerce and business process improvement needs. eFunds provides its services to financial institutions, financial services companies, electronic funds networks, retailers, government agencies, e-commerce providers and other companies around the world. For more information, visit .

About Visa DPS

As an integral part of Visa’s debit strategy, Visa DPS enables Member financial institutions to access superior, customized processing services; including: state of the art check card processing services, ATM terminal driving, gateways to regional and national networks, comprehensive fraud detection and call center services, as well as single-point connectivity for Visa deposit access products and new Visa initiatives, including Visa Buxx, Visa POS Check, and Visa ePay. The industry’s premier debit processor, Visa DPS provides processing support for one-fourth of all Visa check cards and for four of the top five Visa check card issuers. Additional information can be found at .

About Visa U.S.A.

Visa is the world’s leading payment brand and largest payment system, enabling banks to provide their consumer and merchant customers with the best way to pay and be paid. More than 14,000 U.S. financial institutions rely on Visa’s processing system, VisaNet, to facilitate over $810 billion in annual transaction volume-including more than half of all Internet payments-with virtual 100 percent reliability. U.S. consumers carry more than 353 million Visa-branded smart, credit, commercial, stored value and check cards, accepted at approximately 22 million locations worldwide. Visa has long led the industry in developing payment security standards, and has been named the most trusted payment brand online. Visa’s people, partnerships, brand and payment technology are helping create universal commerce — the ability to safely conduct transactions anytime, anywhere and by any device. Please visit for additional information.

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PayPal Lawsuit

Bidville.com and NoBidding, Inc. announced today that they have filed a lawsuit against PayPal, Inc. The suit alleges that after breaching a contract with NoBidding, PayPal sent libelous emails to their customers claiming the NoBidding websites were fraudulent.

The complaint was filed June 1 in the Eastern District Court of Pennsylvania by Bidville.com attorney George Kounoupis. Case #01-CV-2702 alleges the following:

(Count 1) Breach of Contract
(Count 2) Breach of Implied Contract
(Count 3) Breach of Implied Duty of Good Faith and Fair Dealing
(Count 4) Promissory Estoppel
(Count 5) Fraud and Misrepresentation
(Count 6) Negligent Misrepresentation
(Count 7) Defamation
(Count 8) Commercial and Trade Disparagement

PayPal is the world’s largest web-based payment network that allows individuals to send and receive money online and claims to handle billions of dollars in monetary transactions per year. They are reported to process one-fourth of all transactions occurring on eBay.

NoBidding, Inc. opened AuXpal.com on December 6, 2000. AuXpal was an online auction that seamlessly integrated PayPal’s payment system into its architecture. Upon the successful close of an auction, funds were automatically transferred from the winning bidder to the seller via their online PayPal accounts. This process eliminated time consuming communications typically experienced by online auction users when negotiating payment methods.

Ed Orlando, president of NoBidding, Inc., claims that PayPal notified him five days before AuXpal’s opening that they could no longer support the project. On opening day, PayPal completely blocked AuXpal’s access to PayPal accounts. “We spent six months developing AuXpal technology and were in constant contact with PayPal representatives. They knew exactly how our system worked and explicitly approved it each step of the way,” Orlando said. “Pulling out at the last minute had devastating consequences, especially for the eight million PayPal members that would have benefited from this unique service.”

The AuXpal website continues to operate as Bidville.com () and is the second largest online auction next to rival, eBay. “Bidville quickly became a major contender in the online auction space,” Orlando adds. “It is hard to imagine where we would be now if PayPal delivered on its promises.” Although Bidville does not use an integrated payment system as designed, patents are pending.

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June Banners

Providian and Capital One ranked among the 25 most active on-line advertisers to the at-work Internet audience. While not among the top at-work advertisers, Internet-centric credit card issuer, NextCard, and ‘Shell MasterCard’ issuer, Chase, ranked among the top 25 advertisers targeting at-home surfers. Nielsen//NetRatings also noted this morning that Web usage at-work jumped 23% in the past year with more than 42 million Web surfers logging on to the Internet from their personal computers at the office last month. Last month, Internet users at-work logged in 43 times, rising 10% from 39 sessions a year ago. In June 2000, the average work user visited 28 sites while a year later they frequented 35 sites, marking a 25% increase. Time spent online grew to 22 hours and 38 minutes during June 2001. Providian delivered 432 million ad impressions during June while Capital One logged nearly 277 million ad impressions to the at-work Web audience. Among the at-home audience Providian scored 662 million ad impressions, Chase captured 359 million, Capital One delivered 335 million, and NextCard logged 246 million ad impressions. Among the top 10 banner ads viewed during June was a Chase ad for the ‘Shell Platinum MasterCard’ and Capital One’s ‘0% Platinum VISA’.

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Money Transfers

Western Union Financial Services, Inc., a
subsidiary of First Data Corp., announced agreements that
will strengthen and significantly increase its network of worldwide agent
locations. The strategic addition of the Agricultural Bank of China and
Ukraine Post expands Western Union’s presence throughout Asia and Eastern
Europe and illustrates its commitment to partnering with the most trusted
local businesses and government entities.

The multi-year contract with Agricultural Bank of China calls for rollout
of Western Union Money Transfer(R) services at approximately 20 locations in
the Zhejiang province by the end of July. Additional expansion into the
Fujian and Guangdong provinces is anticipated by the end of the year. Over
the next three years, the company expects to add 10,000 Agricultural Bank
locations.

The agreement with Ukraine Post, a sub-agent of Western Union’s Ukranian
agent Aval Bank, calls for the addition of approximately 500 agent locations
over the next 18 months, giving the company more than 2,500 total locations
within the Ukraine. The company expects 10 of these locations to begin
receiving money transfer transactions by the end of July.

“Western Union keeps a constant watch on trends in global migration,” says
Charles T. Fote, president and chief operating office, First Data Corp. “Our
goal is to expand our network in a way that keeps pace with these trends,
allowing us to be where our customers need us. Once we’ve identified an
emerging or expanding market, we’re committed to making sure we have the right
agent partners in place.”

Combined with the recent addition of China Post, the agreement with the
Agricultural Bank of China gives Western Union access to the two largest
distribution channels in China. The Agricultural Bank of China is one of that
nation’s top four banks and is the number one bank in terms of number of
locations.

The addition of the Ukraine Post continues Western Union’s strategic
expansion in Eastern Europe, allowing the company to penetrate both rural and
urban markets. “International postal agencies have long offered a variety of
important services in their communities,” said Bill Thomas, president, Western
Union International. “In recent years many have also become trusted providers
of financial services. By partnering with these agencies Western Union is
able to extend its presence throughout the world, offering its services to a
much larger segment of the population. The addition of the Ukraine Post means
that it is now more convenient than ever for Ukranians living abroad to send
money home to loved ones.”

About Western Union and First Data

Western Union Financial Services, Inc., a subsidiary of First Data Corp.,
is a worldwide leader in consumer money transfer services. The company
provides rapid money transfer service through a global agent network.
Consumers can quickly, safely and reliably transfer money at more than 100,000
agent locations in more than 185 countries and territories using the Western
Union money transfer network. Famous for its pioneering telegraph service,
the original Western Union dates back to 1851 and introduced electronic money
transfer service in 1871. Western Union is celebrating its 150th anniversary
in 2001. For more information please visit the company’s web site at
http//www.westernunion.com

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

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May Performance

U.S. consumer credit quality continues to deteriorate. During May, the annualized percentage of credit card loans written off as uncollectible rose for the fourth consecutive month, and the proportion of credit card accounts in which a monthly payment was more than 30 days past due also rose for the sixth consecutive month. According to Moody’s ‘Credit Card Index’ for credit card-backed bonds, the chargeoff rate in May 2001 rose to 6.62% from 6.02% in May of last year, and was up 33 basis points from last month’s rate. Personal bankruptcy filings, which rose to near-record highs in the first quarter, were again partly responsible, as most credit card issuers now write off bankrupt accounts within 60 days of receiving notice. Moody’s reports that the delinquency rate rose to 4.96% in May 2001 from 4.32% in May 2000. Yield has remained relatively stable despite the falling interest rate environment. So far in 2001, the monthly yield has averaged 19.68%. In May 2001, the yield was 19.56%, up from 19.49% in May 2000.

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FIREPAY EXPANSION

SureFire Commerce Inc. announced it has signed a definitive agreement with Network Commerce Inc. to
become their exclusive provider of Internet merchant accounts and transaction
processing services. Network Commerce will extend SureFire’s transaction
processing solution, FirePay, to over 250,000 businesses that have used the
company’s many e-commerce properties, including FreeMerchant.com, eHost.com,
InternetMall.com and MyCoolInternet.com. SureFire expects to process millions
of dollars in transactions in the first year of this multi-year deal, as
FreeMerchant.com is the second largest online merchant base in the world.

“SureFire Commerce’s private label solution will help us move our
business forward rapidly and efficiently by enhancing our offering and
increasing our competitive differentiation,” said Dwayne Walker, Chairman and
CEO, Network Commerce Inc. “FirePay fulfills the needs of our merchants and
consumers by making it easier, more secure and virtually risk free to process
online transactions.”

SureFire’s secure, real-time transaction processing engine will provide
Network Commerce’s businesses and consumer clients with powerful transaction
processing capability and the ability to accept VISA, MasterCard and the
FirePay Personal Account solution. With this joint initiative, Network
Commerce merchants and consumers currently using their commerce services site
(FreeMerchant.com), hosting site (eHost.com), Web site builder
(MyCoolInternet.com) and virtual mall (InternetMall.com) will use the same
protocols and procedures to process VISA and MasterCard transactions online,
without all the disadvantages associated with obtaining traditional credit
card processing capabilities.

According to the terms of the agreement, SureFire also becomes the
internal billing service for all transactions between Network Commerce and its
merchant clients, including over thousands of businesses using eHost.com. This
agreement fits perfectly with SureFire’s recurrent revenue model, since the
company will earn a fee on every transaction.

“We are very excited about the potential created by partnering with
Network Commerce,” said Rory Olson, President and CEO, SureFire Commerce Inc.
“We project that this initiative, which is in line with our core transaction
processing strategy, will increase our yearly transactional volume by at least
10-20 per cent. It is also an exciting venue for our FirePay Personal Account,
which allows consumers to pay for products and services on the Web without
having to divulge sensitive credit card information. Furthermore, this
exclusive partnership allows SureFire to establish an immediate and
significant footprint in the United States.”

About Network Commerce

Established in 1994, Network Commerce Inc. (www.networkcommerce.com) is
the technology infrastructure and services company. Network Commerce provides
a comprehensive technology and business services platform that includes domain
registration, hosting, commerce, and online marketing services. Network
Commerce is headquartered in Seattle, WA.

About SureFire Commerce

SureFire Commerce Inc. is a global business-to-business provider of
proprietary e-commerce solutions in the area of secure credit card transaction
processing and merchant enabling. SureFire Commerce is an international
provider of secure online transaction processing services to goods and
services merchants in the areas of retail sales, sports, entertainment and
licensed online gaming, among others. Total transactions processed exceeded
$1.2 billion in fiscal 2001. SureFire Commerce’s merchant enabling solutions
provide telecommunications companies, Internet service providers, high traffic
portals and financial institutions the ability to generate recurrent revenue
streams for themselves and their small- and medium-sized business customers.
SureFire Commerce is headquartered in Montreal (Quebec) with offices in Hull
(Quebec), Boston (Massachusetts) and London (England).

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Debit Promotions

FL-based BankAtlantic, has launched the ‘Bank Atlantic Check Card PowerPurchase Sweepstakes’. In addition to the points cardholders earn through the core ‘Check Card Rewards’ program, which was launched in July 2000, cardholders will now automatically be entered into the BankAtlantic sweepstakes for a chance to win a PT Cruiser . The BankAtlantic sweepstakes promotion is being communicated via radio, outdoor and newspaper advertising throughout the Broward County area. ‘Check Card’ users earn points and receive an automatic entry into the sweepstakes for each non-PIN purchase transaction made during the 90-day promotional period. Additionally, customers get five automatic entries each time they make a non-PIN purchase at partner reward merchants. The grand prize winners will be drawn on September 15.

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FINREAD TERMINAL

SCM Microsystems will demonstrate in Brussels, Belgium, a prototype
terminal based on FINREAD specifications, capable of running any smart card
application.

FINREAD, a consortium of financials institutions, has developed a series of
requirements for intelligent smart card readers intended to support
electronic commerce, home banking and digital signature applications. In
March, SCM announced its commitment to develop FINREAD compliant terminals
that use an open Java-based application interface and a K-Java Virtual
Machine to enable total interoperability of multiple applications on any
type of smart card across different vendors. When the application is not
recognized, the terminal automatically downloads the secure applet from a
trusted server.

“FINREAD is establishing the specifications to provide European banks with
one universal terminal infrastructure over which all online transactions
can take place,” said Robert Schneider, Chief Executive Officer at SCM
Microsystems. “Open standards are crucial to the acceptance of smart cards
and now the necessary infrastructure is in place for smart card issuers to
run their cards and applications on any terminal. The end user benefits by
having one terminal that can be used with multiple smart cards to download
cash, shop online, check bills and healthcare records, or do whatever else
is needed.”

“SCM is playing an integral part in the success and proliferation of online
authentication and payment transactions as we can provide the necessary
infrastructure that enables ubiquitous and open-ended use of smart cards.
With over ten years of experience in developing secure smart card readers,
we are proud to be participating with FINREAD to develop compliant
terminals and are committed to deliver the new products as these types of
standards are rolled out worldwide,” added Schneider.

SCM expects to deliver prototype terminals for pilots in Q4 2001 and
FINREAD compliant terminals for widespread deployment in Q3 2002.

The one-day FINREAD event will feature keynote speeches from Mr. Erkki
Liikanen, European Commissioner for Enterprise and Information Society, and
Mrs. Christa Randzio-Plath, member of the European Parliament and Chairman
of the Committee on Economic and Monetary Affairs. The conference will also
have several short videos on the future of smart card readers, including a
segment highlighting SCM’s CEO Robert Scheidner.

Members of the FINREAD Consortium include Groupement des Cartes Bancaires
“CB” (France), Visa EU (United Kingdom), Europay International (Belgium),
Banksys (Belgium), Interpay Nederland (the Netherlands), SIZ (German
Savings Banks Financial Group, Germany) and Ingenico (France).

For further information on SCM’s FINREAD terminals or other security
products, please visit www.scmmicro.com.

About SCM Microsystems

SCM Microsystems is a leading supplier of solutions that open the Digital
World by enabling people to conveniently access digital content and
services. SCM’s advanced silicon, hardware and software solutions enable
secure exchange of electronic information for digital applications from
e-commerce to digital video editing to broadband content delivery by
providing controlled access points to platforms such as PCs, digital
cameras and digital television set-top boxes. Known as a premier supplier
to OEM companies around the world, SCM also serves the retail market
through its Dazzle, Microtech and FAST product brands. Global headquarters
are in Fremont, Calif., with European headquarters in Pfaffenhofen,
Germany. For additional information, visit the SCM Microsystems Website at
www.scmmicro.com.

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FDC 2Q/01

First Data Corp. reported this morning that operating margins across its Payment Services, Merchant Services and Card Issuing Services units, exceeded 20% for the second quarter. Card Issuing Services posted operating profits of $85 million, an increase of 5%, while revenue of $376 million was relatively flat. During 2Q/01 FDC completed the acquisition of PaySys International. Payment Services reported that revenue was up 18% to $668 million and profits up 22% to $192 million. Worldwide Western Union money transfer transactions increased 23% to 26.3 million. International money transfer transactions increased 45% year over year. Merchant Services had revenue of $525 million, a 20% boost compared to the same period last year. Merchant acquiring volumes and transactions both grew 10% for the quarter. The TeleCheck business handled more than 16.9 million ECA transactions. FDC’s eONE Global business, formed last fall, reported $20 million in revenue for the second quarter, primarily from its government payments business, now known as govONE Solutions. For complete details on FDC’s second quarter performance visit CardData ([www.carddata.com][1]).

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

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