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


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]).

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


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.



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.



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

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

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.


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.


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

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

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.



MBNA has snagged former FBI director Louis Freeh as senior vice chairman for Administration, that includes being a member of MBNA’s ‘Executive Group’. As MBNA’s top security executive, Freeh will be responsible personnel hiring, legal affairs, and facility security. Freeh’s personnel functions include recruiting, hiring, education, compensation and benefits for the company’s worldwide workforce of 26,000 people. Mr. Freeh will oversee all of the company’s legal affairs. He will also be responsible for the company’s facilities, which include more than 6 million square feet of office space at 36 locations throughout the world, and the bank’s security and transportation functions. Mr. Freeh graduated Phi Beta Kappa from Rutgers College and received a J.D. degree from Rutgers Law School and an L.L.M. degree in criminal law from the New York University Law School.


STM 2Q/01

STMicroelectronics reported results for the second quarter and first half ended June 30, 2001.
Net revenues for the second quarter were $1,587.2 million, in line with the Company’s guidance range of
$1.55 billion to $1.6 billion contained in its news release dated June 14, 2001. In last year’s second
quarter the Company reported net revenues of $1,877.3 million.

The Company experienced a significant amount of end-of-period order push-outs and cancellations,
reflecting accelerated weakness in certain of its end markets, particularly telecom and computer
peripherals. As a result, the Company has incurred a second quarter excess inventory pre-tax charge
of $70.7 million. Excluding the effect of this special charge, gross margin for the second quarter of 2001
was 38.0%, as previously anticipated. Including the effect of the charge, gross margin for the period was

At the end of the second quarter, ST took further actions to better align existing resources with
changing market conditions. Consequently, the Company recorded a second quarter impairment and
restructuring pre-tax charge of $311.3 million, primarily comprised of asset impairment charges relating
to certain of its 6″ wafer fabs and to goodwill. This includes the previously-announced charge relating
to the closure of its Ottawa manufacturing facilities, which amounted to $40.3 million.
Pro Forma Second Quarter Results Excluding Restructuring and Excess Inventory Charges
Second quarter net revenues of $1,587.2 million declined 15.5% and 17.4% from last year’s second
quarter and the first quarter of 2001, respectively. Revenues from differentiated products equaled
$1,024.0 million and represented 64.5% of net revenues.

ST maintained its product portfolio, application and geographic balance in the second quarter. With
differentiated products accounting for 64.5% of net revenues, the remaining contributors were Logic &
Memories, which represented 19.1% of second quarter 2001 revenues; Discretes, which accounted for
10.9%; and Standard & Commodities equaling 5.4%. In terms of applications, telecom represented
32.7% of second quarter 2001 net revenues; computer accounted for 20.9%; consumer was 19.3%;
automotive was 11.4%; and industrial, which includes Smart Cards, represented 15.8%. In the 2001
second quarter, the applications showing the best relative performance on a comparative
year-over-year basis were: automotive, up 2.5%; industrial, up 5.2%; and telecom, which declined by a
modest 3.2%. As anticipated, consumer revenues were significantly below second quarter 2000 levels,
declining 40.4% and computer was down by 20.0%.

Automotive was also the best relative performing application on a sequential basis, posting a 4.7%
decrease over first quarter 2001 levels. Conversely, computer, telecom and industrial reported
sequential declines of 21.0%, 20.0% and 13.8%, respectively. The 18.0% sequential decline in the
consumer sector primarily reflected lower sales of non-volatile memories and standard products to this
market. Revenues from the digital consumer market, however, were basically flat on a sequential basis.
Geographically, Europe accounted for 35.9% of second quarter 2001 revenues; Asia/Pacific for 33.4%;
North America was 18.3%; Japan was 7.0%; and Emerging Markets equaled 5.4%. The greatest
year-over-year declines took place in North America, down 35.3% and Asia/Pacific, down 14.8%. The
greatest sequential decline was in Europe, down 23.2%. Asia/Pacific, North America and Emerging
Markets declined 15.5%, 15.2% and 14.9%, respectively, from first quarter 2001 levels, while Japan
grew 3.2% in the same period.

Pasquale Pistorio, President and Chief Executive Officer commented, “Second quarter revenue
performance reflected the very difficult business conditions that have negatively affected several of our
end markets. Within this industry downturn, however, and based upon currently available data, we
believe that ST has continued to perform relatively better than the market and to gain market share.”
Gross profit for the second quarter was $603.3 million compared to $875.7 million in the similar
year-ago period. Gross margin of 38.0% was achieved despite the steep decline in order shipments
and production slowdown in the last part of the quarter. In the 2000 second quarter the Company
reported a gross margin of 46.6%.

Mr. Pistorio said, “As we noted at the time of our June 14, 2001 guidance, the under-utilization of
several of our 6″ wafer fabs, and abrupt pricing changes affecting certain of our product families, took a
toll on second quarter gross margin.”

Selling, general and administrative expenses were $180.2 million for the 2001 second quarter, including
an additional bad debt provision of approximately $14 million. Selling, general and administrative
expenses were nearly flat on an absolute basis, but increased as a percentage of revenues compared
to the year ago quarter.

Research and development expenses totaled $255.7 million, or 16.1% of net revenues. This compares
with $245.1 million, or 13.1% in the comparable year ago period.

Other income of $22.7 million included a $12.5 million investment gain.

Pro forma operating income was $190.1 million, or 12% of net revenues compared to $415.8 million, or
22.1% of net revenues in the similar year-ago period. Pro forma net income for the 2001 second quarter
was $154.5 million. Pro forma fully diluted earnings per share were $0.17 compared to $0.37 reported in
the second quarter of 2000.

Pro Forma First Half 2001 Results

Net revenues for the first half were $3,508.3 million, a decrease of 2.0% from the first half 2000. Gross
profit was $1,459.1 million, or 41.6% of revenues. Operating profit was $602.5 million, or 17.2% of
revenues. Pro forma net income was $495.3 million, or $0.54 per diluted share.
Research and development expenditures were $527.8 million, compared to $480.2 million in the 2000
first half. As a percentage of sales, R&D expenses rose from 13.4% to 15.0%. Selling, general and
administrative expenses were $356.9 million, or 10.2% of net revenues.

Second Quarter and First Half 2001 Results on an As-Reported Basis

Net revenues for the second quarter of 2001 were $1,587.2 million. Gross profit was $532.6 million, or
33.6% of net revenues. The operating loss for the period was $191.9 million. The net loss for the quarter
was $164.5 million, or $0.18 per diluted share.

Net revenues for the first half of 2001 totaled $3,508.3 million. Gross profit for the first half was $1,388.4
million, or 39.6% of revenues. Operating income was $220.4 million, or 6.3% of net revenues. Net income
was $176.3 million, or $0.20 per diluted share.

Balance Sheet Highlights

At June 30, 2001, cash, cash equivalents and marketable securities totaled $2,194.9 million; long-term
debt was $2,573.8 million (89% of which consists of convertible debt). Shareholders’ equity was
$6,156.9 million. Capital expenditures were $497.5 million in the second quarter and $1,227.1 million in
the first half of 2001. This compares with capital expenditures of $808.5 million and $1,430.6 million in
last year’s second quarter and first half, respectively.

Summary & Outlook

Commenting on second quarter results, Mr. Pistorio noted, “The difficult market environment that
persisted during the period was characterized by abrupt changes in end-market demand that
translated into significantly impaired order visibility with shipment postponements and cancellations. In
response to the deteriorating industry conditions, ST took actions designed to further enhance the
Company’s competitive position, both over the short/intermediate term, as well as the longer term and
that are in keeping with the Company’s strategic direction.”

ST has implemented a hiring freeze and has taken corporate-wide measures to reduce SG&A
expenditures. In fact, headcount has been reduced by about 1,500 people since the beginning of the
year as a result of attrition. Additionally, the Company has initiated short-term, temporary shutdowns at
certain of its 6″ wafer fabs.

Looking ahead, Mr. Pistorio continued, “Industry analysts are currently estimating a decrease in
semiconductor revenues for the markets we serve of between 10% and 15% for the first half of 2001
compared to the first half of 2000. ST’s year-over-year first half 2001 revenue decline of 2% illustrates
our continued ability to outpace the market by a meaningful margin.”

“On the other hand, we recognize the unique characteristics of the current industry downturn and the
unprecedented poor visibility of the near term demand that is part of this cycle. Therefore, it is difficult to
provide guidance with respect to subsequent quarters.

“Based upon today’s available information, we believe that the industry will bottom-out in the third
quarter of 2001, and we expect that ST’s revenues for that period will decline sequentially by
approximately 10% to 15% from 2001 second quarter levels. Gross margin for the third quarter of 2001
is likely to be in the range of 32% to 36%, reflecting continued price pressure and lower plant utilization
rates,” Mr. Pistorio said.

Mr. Pistorio noted, “In the fourth quarter of 2001, we expect our revenues and gross margin to improve
on a sequential basis. This projection assumes inventory workdowns in several of our key end markets,
but continued pricing pressures affecting certain product families due to industry overcapacity.
Additionally, we could see improved operating profitability resulting from cost reduction programs
implemented earlier in the year.”

“ST’s management is continuing to assess and evaluate our resources, headcount, operating
expenses and physical assets within the context of the projected timing of an industry recovery. With
future market conditions difficult to project, ST’s strategy is to take those actions necessary to ensure
its competitive position, in terms of products, strategic and key customer relationships and worldwide
manufacturing efficiency,” Mr. Pistorio said.

“At the same time,” Mr. Pistorio added, “the Company is moving forward with its System-on-Chip
solutions which give significant leadership advantages to ST as the convergence of technologies and
applications continues to evolve. The strength of our balance sheet provides ST with important
flexibility. Additionally, the Company has the leading-edge manufacturing infrastructure in place to
respond effectively to developing market requirements.”

Products, Technology & Design Wins

During the quarter, ST sustained its high flow of innovative new products and also entered into a
number of new agreements designed to reinforce its leadership in key areas such as broadband
access and multimedia.

In the digital consumer arena, ST and Alenia Spazio signed an agreement to co-operate in the field of
interactive broadband satellite networks for multimedia applications. ST has become a partner in
Alenia’s EuroSkyWay project, which aims to provide a new generation of satellites for Internet and
interactive TV services.

New products introduced for the digital consumer field included a single-chip demodulator for digital
terrestrial TV, and the world’s most advanced HDTV (High-Definition TV) decoder chip featuring
multiple stream MPEG video decoding.

In the communications field, ST introduced a number of significant products implementing VoIP (Voice
over Internet Protocol), which are a result of ST’s cooperation with Netergy Networks. For cable-based
VoIP, ST began delivering a multi-channel VoIP processor designed to work in conjunction with ST’s
DOCSIS single-chip cable modem. The Company also launched a chipset for enterprise IP phones,
small gateways and other emergent products using VoIP technology.

For the xDSL market, ST introduced an ADSL modem chipset aimed at both laptop and desktop
computers that is the first on the market to employ a controller-less design with USB or PCI interface.
The Company also unveiled a new ADSL central office chipset that integrates eight ADSL channels. ST
also demonstrated a working prototype of its Zipper-DMT VDSL modem technology that will combine
the very high bandwidth of VDSL with ADSL spectrum compatibility.

Other major announcements in the communications field included a new silicon-germanium BiCMOS
process tailored for cost-sensitive wireless applications. The new process provides all the
performance advantages of silicon-germanium at a cost that is marginally higher than that of a
standard BiCMOS process. The Company was also awarded an important design win by a major
customer for a US-TDMA RF transmitter in BiCMOS6M (0.35-micron) technology and a stereo audio
front-end. ST signed an agreement with specialist IP developer IDEX to jointly develop an innovative
biometric module combining fingerprint recognition and on-screen navigation features for mobile
Internet applications. ST also formed an agreement with Onix Microsystems Inc. to co-develop and
manufacture chipsets containing mirrors realized on ST’s micro-electro-mechanical systems (MEMS)
technology for use in Onix’s all-optical switching solutions.

In the computer peripherals field, notable announcements included a new generation of display engine
ICs aimed at the rapidly growing markets based on flat panel displays. ST also began sampling a new
CMOS read/write channel chip for hard disk drives that reduces power consumption increases overall
data transfer speeds and allows drive manufacturers to cut manufacturing costs. In the printer field, ST
started volume production of a digital printer engine in 0.18-micron technology, producing some three
million units in the quarter.

In the field of PC graphics, several manufacturers announced PC add-in boards based on ST’s KYRO
II(TM) 3D graphics accelerator, which is based on Imagination Technologies PowerVR(TM)
technology. Additionally, ST and Imagination also announced an extension of their partnership to
develop next-generation PC graphics technology.

In the automotive sector, ST began to sample a high-power system-on-chip device designed for
‘mechatronic’ applications where the electronics section is physically integrated with mechanical
elements. The first design win for this device is for a turbocharger application to be mounted on cars
manufactured by DaimlerChrysler. ST also won a large volume order for a navigation system for
aftermarket and OEM applications and received the first production orders for the XM Satellite Radio
receiver ICs.

In the industrial field ST, began volume shipments in Japan of smartcard microcontrollers for the first
EMV (Europay, Mastercard, Visa) credit cards.

During the quarter, ST continued the rollout of its innovative application-specific Flash products.
Samples of a 64Mbit device built in 0.15-micron technology and optimized for cellular phones were
delivered to a leading mobile phone manufacturer, while leading automotive manufacturers received first
samples of a 16Mbit device dedicated to engine control applications and new 8Mbit devices for
Firmware Hub PC BIOS were sampled to all major PC players.

Also during the quarter, in the rapidly growing area of e-Business via the Internet, ST further
strengthened its infrastructure by fully automating its RosettaNet-compliant Dynamic Replenishment
Process and completing the set up of a personalized portal that provides ST’s customers with
enhanced supply-chain visibility.

About STMicroelectronics

STMicroelectronics is the world’s third largest independent semiconductor company. The Company
shares are traded on the New York Stock Exchange, on Euronext Paris and on Borsa Italiana, Milan.
The Company designs, develops, manufactures and markets a broad range of semiconductor
integrated circuits (ICs) and discrete devices used in a wide variety of microelectronic applications,
including telecommunications systems, computer systems, consumer products, automotive products
and industrial automation and control systems. In 2000, the Company’s net revenues were $7,813.2
million and net earnings were $1,452.1 million. Further information on ST can be found at www.st.com.

STMicroelectronics N.V.


(See Pro Forma adjustments listed in the table below)

(in millions of U.S. dollars, except per share data ($))


Cyota CEO

Cyota, a leading payment and security company based in New York, announced a restructuring of its management team and board of directors.

The announcement comes on the heels of Cyota’s acquisition of Auripay, another e-payment security provider based in Cambridge, MA. Cyota President and co-founder Naftali Bennett has been named Chief Executive Officer of the joint company, and Gary Heatherington, former CEO of Cyota has stepped down from his operational role. Additionally, Auripay advisor Dr. Ashok Kalelkar is expected to join Cyota’s Board of Directors. Dr. Kalelkar is Managing Director and General Partner of Seed Capital, which is a SOFTBANK affiliate. James L. Bailey will continue to serve as Cyota Chairman. “Gary was crucial to building Cyota’s product suite, signing large North American deals, financing and growing Cyota,” remarked Bailey. “He brought energy and vision to Cyota, and his dynamism and personality will continue to be a part of the Cyota culture.” Bailey welcomed Dr. Kalelkar and added that “Cyota is fortunate to have an individual with his business experience and managerial vision join our board. Dr. Kalelkar has been an outstanding industry leader with unparalleled expertise, and I look forward to the valuable contributions that he will provide to our company as a member of the board of directors.”

“I’ve enjoyed working with the talented and dedicated people at Cyota. I feel confident that Cyota is poised to continue its growth and establishment as one of the world’s leaders in payment and security technology,” commented Gary Heatherington.

Dr. Kalelkar has over 30 years of management experience in the technology industry, and is a leader in the Internet community. Prior to joining Seed Capital, Ashok was executive vice president of operations at Arthur D. Little, Inc. (ADL) the international technology and consulting firm, where he served on their board of directors and was part of the management leadership team. Dr. Kalelkar earned his B.S. degree in engineering and mathematics from George Washington University, an S.B. and S.M. in mechanical engineering from the Massachusetts Institute of Technology and went on to earn his Ph.D. in engineering from Brown University.

“Cyota offers the right business model, the right management team, and the right technology to serve the banking industry in a rapidly changing environment,” says Dr. Kalelkar. “I’m very excited to be working with them.”

Cyota recently announced the launch of Cyota SecureSuite(TM), an integrated online payment security platform designed to seamlessly integrate a wide range of authentication and credit card security products into a single user experience. Additionally, Cyota was selected by Visa U.S.A. as a vendor supporting the Visa Payer Authentication Service – based on the 3D Secure Interoperability standard – and announced the launch of Cyota 3DSecure(TM) a few weeks ago.

About Cyota

Cyota is an innovative technology company that is dedicated to helping financial institutions strengthen their customer relationships through reliable, flexible, easy to use online security, payment and transaction products. Founded in 1999 by leading card and security industry experts, Cyota is headquartered in New York with offices worldwide. Cyota is led by a respected management team with extensive experience in the security, Internet and banking industry and is supported by an international Advisory Board comprised of world-renowned financial and security experts. For more information, please visit our website at [www.cyota.com][1].

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


ACI & Sonera

ACI Worldwide, a leading international provider of enterprise e-payment solutions, announces a partnership agreement with Sonera SmartTrust, Ltd., a leading developer of infrastructure solutions designed to enable secure mobile e-services. Under the agreement, the two will jointly market and promote their software to telecom and financial institutions.

SmartTrust’s solutions enable secure m-commerce services. The solutions provide service and device management tools and allow consumers to store their digital identity on a mobile phone to generate binding digital signatures from their handsets–public key infrastructure (PKI) technology. As a result, the solutions help mobile operators and financial institutions respond to recent legislation in the U.S. and European Union that makes digital signatures as legally binding as written signatures. SmartTrust solutions allow consumers to authenticate purchases and transactions utilizing digital signature technology, while ACI solutions acquire those transactions and route them for authorization to complete purchases. Using the combined solutions, network operators and financial institutions can open new payment channels that give consumers the ability to initiate purchases and transactions on open networks such as the Internet and mobile networks without compromising security. With SmartTrust and ACI solutions in place, a network operator or financial institution can offer m-commerce services to mobile phone users. A consumer using such a service can initiate a payment or purchase via their mobile phone. SmartTrust software on the SIM card in the mobile phone will generate a financial transaction signed by the consumer’s private key and send the transaction to the network operator or financial institution. SmartTrust software at the receiving end will then validate the signature and pass the transaction to ACI software for authorization and payment. Once authorized, ACI software will generate a message that is sent back through the same security process to confirm completion of the purchase. The entire process is fast, secure and transparent to the consumer. “We are always on the lookout for products and partnerships that allow us to couple our strengths with those of other proven providers to offer more complete solutions,” said Jim Tomaney, marketing director of ACI Worldwide’s Europe/Middle East/Africa operation. “In this case, we are able to partner with a provider of solutions that we believe are critical to the future success of mobile e-services. SmartTrust’s expertise in deploying solutions for secure mobile e-services, coupled with ACI’s e-payments experience, supports our goal to help our customers adopt new economy technologies that expand their business opportunities.”

“The Global Partnership signed with ACI delivers strong expertise in the e-payments market, further promoting our efforts to build secure payment networks for transactions conducted in a mobile environment,” said Matti Heikkila, director of Finance Industry segment for Sonera SmartTrust Ltd. “Co-operation with specialized solution and channel partners to develop, offer and implement secure wireless solutions is one of the cornerstones of SmartTrust’s strategy. With every partnership we take a further step towards fulfilling the growing demand for mobile e-services and secure wireless transactions.”

About Smart Trust

SmartTrust is a leading developer of infrastructure solutions designed to enable secure mobile e-services. Through the development of solutions SmartTrust allows organizations within the mobile ecosystem to deliver mobile e-services that inspire confidence and convenience in the sharing and trading of online information, products and services.

By supporting multiple generations of networks and mobile devices, SmartTrust is able to offer the best end-user reach possible to 160 corporate customers and nearly 60 mobile operator customers. SmartTrust is a wholly owned subsidiary of Sonera Corporation (HEX:SRA, NASDAQ:SNRA), an international leader in mobile communications as well as mobile and Internet-based services and applications ([www.sonera.com][1]). For more information, please visit [www.smarttrust.com][2]

About ACI Worldwide

Every second of every day, consumers are initiating electronic payment transactions–getting cash at ATMs, using debit and credit cards to make purchases in stores and on the Internet, banking by phone and PC, paying bills online. Twenty billion times a year, ACI software is used to process these transactions, powering the world’s online payment systems. ACI was founded in 1975 and pioneered the development of applications and networking software for online transaction processing. Today more than 2,000 customers in 78 countries use ACI supplied software. Visit ACI Worldwide on the Internet at [www.aciworldwide.com][3].

[1]: http://www.sonera.com
[2]: http://www.smarttrust.com
[3]: http://www.aciworldwide.com


Dialpad Card

Dialpad Communications, Inc., the market leader in IP telephony, now makes it easy to enjoy the benefits of Voice over Internet Protocol (VoIP) technology with the recently announced Dialpad Prepaid Phone Card. By routing calls using IP telephony, Dialpad’s phone card allows customers to contact family and friends worldwide using any phone and pay long distance rates that are just a fraction of the per minute charges listed by traditional phone companies.

Dialpad recognizes that many Americans have an increased need to stay in touch with family and friends in countries of origin. Now, Dialpad is offering a low-cost alternative to an exorbitant long distance phone bill.

“Everyone has a strong interest in low cost-calling alternatives,” said Martina Ehlers, Senior Director and General Manager, Premium Products for Dialpad. “We are pleased that we can offer a solution to consumers with our prepaid phone card to help alleviate some of the expenses they incur contacting their family and friends outside of the United States.”

The Dialpad Prepaid Phone Card is available in increments of $10, $25 and $50, and costs just 6.7 cents per minute for calls within the U.S., with low cost international rates to telephones and mobile phones in over 200 countries. The card offers great value because there are no monthly fees, connection charges or minimum call lengths, just the same great low rates with every call. For example, when calling Mexico City, customers pay just 10 cents per minute, compared to listed rate charges of up to 39 cents per minute with other phone cards, and calls to Spain through Dialpad’s card are just 11 cents a minute compared to 80-92 cents with other cards. For a limited time, Dialpad is also giving up to a 20% bonus for first-time buyers.

Dialpad also offers Dialpad World, its international PC-to-phone calling service that enables customers to make calls from their PCs to standard telephones in over 200 countries and to mobile telephones in over 100 countries, for a fraction of the cost of traditional long distance calls. Consumers can purchase the Dialpad Prepaid Phone Card or Dialpad World by going to [www.dialpad.com][1].

About Dialpad Communications, Inc.

Dialpad Communications, Inc. is the leading global provider of Voice over Internet Protocol (VoIP) solutions for carriers, businesses and consumers. Leveraging its patent-pending Vega technology, Dialpad enables any IP addressable device to become a phone. Dialpad licenses its platform VoIP technology to a number of partners to bring high quality, reliable and low-cost VoIP dial tone directly to the phones that businesses and consumers use today. Current partners include leading technology companies such as Cisco Systems, Genuity and Level 3, and investors include Serome Technology, Inc., CMGI @ Ventures, Sterling Payot, Mokwon Assets Management Co., LTD and Citizen’s Capital. The company is based in Santa Clara, CA and can be reached at 408/588-4688 or at [www.dialpad.com][2].

[1]: http://www.dialpad.com
[2]: http://www.dialpad.com