TSYS – Lockheed

Adding a new dimension to its existing suite of offerings, TSYS signed a multi-year agreement with Lockheed Martin IMS to provide various processing services to meet Lockheed’s electronic benefits transfer needs. TSYS, with its new Integrated Payments Platform, will assist LMIMS in providing transaction processing, settlement, and recipient call center services to LMIMS clients. This agreement with LMIMS solidifies TSYS’ entry into the EBT market.

The U.S. federal government has mandated that by October 2002, all federal funds be disbursed electronically, replacing paper coupons with plastic cards. Currently 41 states, the District of Columbia, and Puerto Rico have operational food stamp EBT systems, which represent the bulk of the EBT transactions. In 2001, 17.6 million people qualified for food stamp EBT benefits. An estimated 800,000 more recipients are expected in 2002.

The TSYS Integrated Payments Platform enables states to meet new federal requirements for electronic benefits programs such as food stamps, Temporary Assistance for Needy Families (TANF), and Supplemental Security Income (SSI), by providing quality and sustained system performance. The TSYS Integrated Payments Platform is a highly scalable processing platform with a redundant authorization system that allows for real-time benefit adjustments 24 hours a day, seven days a week. Unlike its competitors, TSYS has the ability to house multiple programs on one card, giving states flexibility in their program implementation.

In addition to the EBT programs, the Integrated Payments Platform supports the online and offline debit and stored value markets, giving clients access to all national and regional networks, ATM driving and switching services for online debit processing.

About TSYS:

TSYS brings integrity and innovation to the world of electronic payments. TSYS serves as the integral link between buyers and sellers in the rapidly evolving universe of electronic payments. With almost 200 million accounts on file, TSYS makes it possible for millions of consumers to use their credit, debit, stored value, commercial, chip and retail cards anytime, anywhere through any medium or portal. TSYS and its family of companies offer a full range of acquiring and issuing services from accepting electronic payments for goods and services, to credit applications, bankruptcy and collections. Based in Columbus, Ga., TSYS processes for 21 countries, in 11 currencies, in three languages and maintains operations in Canada, Mexico, Japan, and the United Kingdom. TSYS is an 80.8 percent-owned subsidiary of Synovus Financial Corp. (NYSE: SNV) (http://www.synovus.com ), No. 8 on FORTUNE magazine’s list of “The 100 Best Companies To Work For” in 2001. For more information, contact news@tsys.com .

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Bankruptcy Reform

As bankruptcy reform bills are being conferenced in Congress, the majority of Americans believe, that given the uncertain economy and rising unemployment, this is not the time to make personal bankruptcy laws more restrictive. However the majority also feel that bankrupt consumers should be forced to repay a portion of their debts if they have income that exceeds reasonable living expenses. More than 65% of the respondents to a CardWeb.com homepage poll says this is not the time to reform bankruptcy laws. Slightly less than 60% believe bankrupt consumers should be forced to pony up for some of their debts if they have a good income. More than 55% says a limit on the home equity exemption is necessary. When it comes to making damages to abortion clinics non-dischargeable under new bankruptcy laws, the country is split right down the middle. Finally, three out of four consumers believe banks will not pass on the savings realized from bankruptcy reform to consumers by means of lower rates or fees. According to the most recent data, the number of bankruptcies filed in the first three months of this year increased by 17.5% over the first three months of 2000. The number of filings during the quarter were the highest since the spring of 1998. The spike in filings may be driven in part to the pending bankruptcy reform.

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eCashPad & VeriSign

VeriSign, Inc., the leading provider of Internet trust services, announced that eConnect, developer of eCashPad payment technologies, has signed an agreement with VeriSign to provide gateway services for its credit transactions and PIN entered debit transactions.

eConnect’s eCashPad terminal, similar to a supermarket swipe card terminal, will enable customers to make Internet purchases using credit cards or PIN entered ATM cards. The information in these transactions is encrypted and sent directly to the eConnect Bank Eyes Only System through VeriSign’s payment services gateway. No personal card data is stored at the merchant’s Web site.

Under the terms of the agreement, Web merchants wishing to be paid through an eCashPad “card present” credit transaction or PIN entered debit transaction, will first sign on with VeriSign which will then provide payment gateway services for eConnect’s “card present” originated transactions.

“VeriSign provides secure payment gateway services for the broadest range of Internet payment solutions,” said Chris Wynne, vice president of VeriSign’s payment services business. “We’re excited to work with eConnect to enhance its eCashPad services and enable more people to use the Internet with confidence.”

“This agreement gives eConnect the industry’s strongest gateway partner to ensure the security of our customers’ transactions as eConnect signs on Bank Eyes Only merchants,” said Thomas S. Hughes, chairman and CEO of eConnect. A Bank Eyes Only transaction is when no personal financial card data is stored at the merchant’s Web site.

eConnect’s eCashPad is a secured payment-processing device which connects to most computers and is designed to allow easy and secure credit card present transactions on the Internet. At $59.95, the eCashPad device represents a fundamental shift in Internet commerce whereby home devices will enable card present credit card payments and ATM card with PIN entry cash payments.

VeriSign delivers a real-time, highly scalable and reliable Internet payment platform that enables companies to authorize, process, and manage multiple payment types (including credit cards, debit cards, purchase or procurement cards, Internet checks and automated clearing house transactions), multi-currency options, and different payment models online. To safeguard the transmission of data, VeriSign uses the latest secure SSL encryption technology to ensure data safety.

About eConnect

Based in San Pedro, Calif., eConnect Inc. is focused on delivering next-generation e-payment solutions. The company develops proprietary hardware, software and transaction processing services.

About VeriSign

VeriSign, Inc. is the leading provider of trusted infrastructure services to Web sites, enterprises, electronic commerce service providers and individuals. The company’s domain name, digital certificate and payment services provide the critical Web identity, authentication and transaction infrastructure that online businesses require to conduct secure e-commerce and communications. VeriSign’s services are available through its Web sites (http://www.verisign.com) or through its direct sales force and reseller partners around the world.

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Datacard ID Works

Datacard Group announced the availability of Version 3.0 for the Datacard ID Works identification software family, including the addition of ID Works(R) Enterprise Edition software, ID Works(R) Enterprise Designer software, and ID Works(R) Enterprise Production software.

Enhancements to Version 3.0 for ID Works Basic, Standard, and Enterprise identification software include semi-transparent “ghost” photo images, transparent color option for graphics, variable card sizes, multi-line static text fields, and Video for Windows(R) capture device support. Version 3.0 also offers full compatibility with the Windows(R) Me operating system in addition to Windows(R) 98, Windows NT(R), and Windows(R) 2000 Professional. ID Works Standard and Enterprise packages extend support for Microsoft(R) SQL Server(TM) 2000 databases.

“We are very pleased to offer more software offerings and features, particularly since the enhancements were based on listening to our customers and channel partners,” said Patrice Erickson, product manager for Datacard Group. “Datacard is committed to providing a wide range of options in our software product lines, and expanded functionality will make our users’ identification programs more leading edge and stronger than ever.”

The ID Works identification software family features modular, flexible packages and development tools for card based identity programs. Turnkey packages offer users the ability to easily create designs for cards and reports, enter data and capture images, encode magnetic stripes and smart cards, and print customized cards and reports.

Datacard Group provides financial institutions, corporations, consumer marketers, governments, schools, healthcare providers, service bureaus and other enterprises with the software, systems and professional services they need to build successful card programs. The company’s solutions portfolio includes the world’s best-selling smart card software, card issuance systems, smart card life cycle management system and a complete line of digital identity systems. Consultative services include a smart card chip security laboratory that works with the world’s leading smart card issuers. DataCard Corporation, doing business as Datacard Group, is privately held and based in Minnetonka, Minn. Datacard Group serves customers in more than 200 countries. ([www.datacard.com][1])

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

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ROYAL SECURITIZATIONS

Golden Credit Card Trust closed its second
public credit card securitization.

Golden Credit Card Trust offered to investors two tranches each of senior
and subordinated securities, backed by Royal Bank of Canada credit card
receivables, for three and five year terms. Details of the notes are

– $332,500,000 5.383% Credit Card Receivables-Backed Senior Notes,
Series 2001-1 with an expected payment date of July 15, 2004

– $17,500,000 6.373% Credit Card Receivables-Backed Subordinated Notes,
Series 2001-1 with an expected payment date of July 15, 2004

– $617,500,000 5.700% Credit Card Receivables-Backed Senior Notes,
Series 2001-2 with an expected final payment date of August 15, 2006

– $32,500,000 6.839% Credit Card Receivables-Backed Subordinated Notes,
Series 2001-2 with an expected final payment date of August 15, 2006

The dealer syndicate, led by RBC Dominion Securities Inc., included CIBC
World Markets Inc., Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns
Inc., Merrill Lynch Canada Inc., National Bank Financial Inc. and HSBC
Securities (Canada) Inc.

The senior notes rated AAA by Dominion Bond Rating Service Limited and
Standard & Poor’s Rating Service account for 95% of the total offering. The
subordinated notes totalling 5% of the offerings, were rated BBB (high) by
Dominion Bond Rating Service Limited and BBB by Standard & Poor’s Rating
Service.

Proceeds of the offerings have been used to purchase two undivided co-
ownership interests in a pool of consumer Visa (registered trade-mark of Visa
International Service Association; Royal Bank of Canada licensee) credit card
receivables originated by Royal Bank of Canada.

Royal Bank of Canada (RY) is a diversified financial services company. It
provides personal and commercial banking, wealth management services,
insurance, corporate and investment banking, and transaction processing on a
global basis. The company employs 54,000 people who serve 10 million personal,
business and public sector customers in North America and in some 30 countries
around the world.

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Tidel Creditors

Tidel Technologies reported last week that Montrose Investments has exercised its put right with respect to the $15 million principal amount of its Debentures. While Tidel does not presently have the funds available to cover the prepayment, it is working on financing arrangements to obtain the necessary funds. Tidel also announced that an agreement had been reached with Liberty Acorn Trust, the holder of the remaining $3 million principal amount of Tidel’s Convertible Debentures, to extend their put date till July 10. TX-based Tidel Technologies announced last month it could also incur a significant charge to earnings for the second quarter if the value of the collateral pledged to Tidel by bankrupt Credit Card Center is insufficient. CCC has total assets of approximately $34 million, total liabilities of approximately $87 million, and owes Tidel about $27 million. (CF Library 5/11/01; 6/14/01)

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InCharge Dumps Genus

InCharge Institute of America, Inc., the nation’s leading non-profit provider of credit counseling and financial education services, announced that it is divesting itself of Genus Credit Management. American Financial Solutions, a Seattle-based non-profit affiliated with the Seattle Community College Foundation, has assumed the Genus portfolio. This is the next step for InCharge Institute in its role as a consumer credit counseling industry leader.

This action marks the completion of a transition begun by InCharge(R) Institute in January 2000. At that time, InCharge(R) Institute decided to focus even more resources on its mission of championing financial responsibility and enabling personal financial wellness.

“The divestiture of the Genus portfolio is another important milestone for us as InCharge(R) Institute continues its leadership role within the credit counseling industry,” said David C. Jones, Ph.D., President and Chief Executive Officer of InCharge(R) Institute. “This transaction allows us to focus even more clearly on our core mission of providing personalized debt solutions and credit education to consumers in financial distress. It also allows us the opportunity to fully prepare to assist in implementing the new counseling and education requirements that are called for in the pending bankruptcy legislation.” Bankruptcy reform legislation, currently before Congress, mandates credit counseling for all bankruptcy petitioners and also creates a debtor education pilot program. These counseling and education services will be provided through Bankruptcy Credit Counseling & CertificationSM (BCCC), a member of the InCharge(R) Institute family of non-profit financial wellness companies.

“These types of requirements are going to place a large demand on the credit counseling industry,” said Jones. “InCharge(R) Institute is committed to providing consumers and bankruptcy professionals with the financial tools and counseling they need to successfully meet these new requirements if they become law.”

InCharge Sees Little Impact on Genus Clients

According to InCharge(R) Institute, the transaction will have little, if any, impact on Genus clients. Debt Management Program payments will continue to be processed by Amerix, which has been providing back office support for the portfolio for many years and is the only vendor with the capability to handle the large and complex Genus portfolio. To further ensure a smooth transition, InCharge(R) Institute will continue to provide client services until AFS is operating at full capacity. “We agreed to this transaction only after being assured that Genus clients would continue to receive the same high quality service to which they are accustomed,” Jones said. “We are confident that American Financial Solutions shares our values, our commitment to Genus clients and to our education mission.” The InCharge(R) Institute of America and its family of financial wellness providers was established to provide consumers with broader, more customized financial education and counseling. The InCharge Institute family includes Profina(SM) Debt Solutions, Concord(SM) Credit, Bankruptcy Credit Counseling & Certification(SM) (BCCC), and Accredited Bankruptcy Services(SM) (ABS). InCharge(R)Institute of America, Inc. is a non-profit 501(c)(3) corporation with headquarters in Orlando, Florida. Consumers can access InCharge Institute financial wellness services and information by calling 1-800-565-8953 or online at [www.InCharge.org][1].

[1]: http://www.InCharge.org/

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FastCard

Shared Technologies Cellular, Inc. announced that it will provide the activation, redemption and customer services for the new prepaid cellular program that rolled out on June 18th to more than 4,100 CVS/pharmacy stores nationwide. U.S. South Communications, Inc., a subsidiary of InComm, an Atlanta-Based Telecommunications Provider and STC marketing partner, will provide the FastCard point of sale activation system for the cellular airtime cards. The new prepaid cellular program will be supported by special advertisements in CVS/pharmacy circulars that reach more than 35 million households each week. The first ad is scheduled to run on July 1, 2001.

Prepaid cellular services deliver the advantages of traditional cellular communications without the hassles. There are no contract requirements, no credit check, no security deposit and no sales assistance required. The customer simply purchases the prepaid cellular phone that includes 10 free minutes, calls the toll-free number, and follows the simple instructions to activate the phone. Customers then purchase ongoing usage at CVS/pharmacy stores nationwide (available in four convenient dollar amounts), to keep talking.

“Prepaid wireless provides communications without limits, and gives consumers a reliable alternative to traditional cellular,” said Anthony D. Autorino, chairman and chief executive officer of STC. “Innovative retailers such as CVS/pharmacy, see the potential for prepaid services that require little or no assistance from store personnel, yet bring customers coming back to their stores to purchase ongoing airtime. By eliminating the hassles of traditional cellular, prepaid wireless can be sold in virtually any retail environment.”

U.S. South/InComm is a leader in the telecommunications industry dedicated to providing tailored, full-service telecom solutions to the industry and to the customer. U.S. South/InComm’s superior switching and platform capabilities provide dependable and flexible networking to the industry’s leaders and affordable, easy calling solutions to the consumer. U.S. South/InComm products and services include full-service switching solutions, the FastCard POS and Veriphone POS activation systems, dedicated networks, IP telephony gateway services, and proprietary IVR platform for prepaid, promotional and private label.

STC is a nationwide Integrated Communications Provider that provides cellular coverage to more than 98% of the U.S. population. STC also markets other prepaid communication services include digital wireless, paging, long distance, Internet access and appliances, and local telephone access. Other STC business lines include cellular phone rental services and national activation services. STC sells direct to retail and in conjunction with various marketing partners.

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Global Axcess Acquisitions

Global Axcess Corp. announced it has completed the acquisition of the Nationwide Money Services subsidiary of Cardservice International, a global provider of financial transaction services. Under terms of the transaction, Global Axcess also acquired EFT Integration (EFTI), a wholly owned subsidiary of NMS that specializes in ATM transaction processing and other services. Terms of the stock transaction were not disclosed.

Nationwide, based in Ponte Verda Beach, Florida, had approximately $9.2 million in annual revenues in 2000. The company is an independent provider of automatic teller machine (ATM) services in shopping centers and other locations and for small banks. It currently has more than 1,000 ATMs in operation, primarily in the Southeastern United States.

Michael Dodak, currently president and chief executive officer of Nationwide, joins Global Axcess in the newly created position of president – ATM services. He also becomes a member of the Global Axcess board of directors.

“In addition to expanding Global Axcess’ nationwide ATM network, the acquisition of Nationwide and EFTI adds significant technical experience and a full range of ATM network services and software product offerings to Global Axcess. This transaction is a critical milestone in our strategic plan to build and deliver a complete range of value-added financial services to consumers via interactive terminals,” said David Fann, chairman and chief executive officer of Global Axcess.

Nationwide is the developer and distributor of CashManager, WorkOrderManager and a suite of automated software products that enable ATM network providers to efficiently process financial transactions and maximize profitability. The company currently operates ATM networks for 18 banks in the Southeastern United States.

EFT Integration, a wholly owned subsidiary of Nationwide, provides switching and transaction process for ATMs and interactive kiosks. The company hosts a state-of-the-art Web-based transactional site for its customers. Various products under development include on-site delivery of full motion advertising, interactive advertising, and other financial services that are designed to increase the revenue derived from each ATM.

Dodak joined Nationwide in 1996 as controller and was promoted to chief executive officer in June 1997. Under Dodak’s guidance, Nationwide created a suite of automated software products and services that enable ATM network operators to achieve enhanced profitability. Prior to joining Nationwide, Dodak founded and served as chief financial officer to several companies. Earlier, he was a senior financial analyst for Litton Industries and served as regional controller for Damon Corporation, a large provider of clinical lab services Dodak has an MBA from the University of California Los Angeles.

Global Axcess, a recently formed company, plans to expand its network of ATMs nationwide and add related consumer financial services.

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NPC – ABN AMRO

National Processing Company and ABN AMRO North America have formed a new joint venture involving ABN AMRO Merchant Services. ABN AMRO formed AAMS when it combined the merchant credit card processing businesses of its Michigan-based affiliate Michigan National Bank and Chicago’s LaSalle Bank. AAMS processed for over 34,000 merchants, generating approximately 115 million transactions and $7.0 billion in credit card sales in 2000. Under the terms of today’s agreement, NPC will provide AAMS with all merchant-processing services including both authorization and settlement of all card-based transactions. In addition, NPC has acquired a 70 percent interest in AAMS for $48.5 million with ABN AMRO North America, through its subsidiaries, owning the remaining shares. In North America, ABN AMRO is headquartered in Chicago and has subsidiaries that include LaSalle Bank in Chicago, Michigan National Bank and Standard Federal Bank in Michigan and EAB in New York. In February, ABN AMRO Bank reached an agreement to sell EAB to Citibank.

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LML Revenues

LML Payment Systems Inc. filed its Annual Report on Form 10-K for the fiscal year ended March 31, 2001 with the Securities and Exchange Commission with respect to results for its fiscal year ended March 31, 2001. For more information regarding LML’s results for the fiscal year ended March 31, 2001, please see the Form 10-K as filed with the SEC.

LML is pleased to announce record fourth quarter revenues of approximately $2.9 million, an increase of approximately 10% or $267,342 from the fourth quarter last year and an increase of 12% from revenue of $2.6 million from the third quarter. LML had earlier reported first and second quarter revenues of $2.1 million and $2.5 million respectively.

Earnings before income taxes, interest expense, depreciation and amortization for the fourth quarter was a loss of ($1.3 million) or ($0.07) per share. Net loss for the fourth quarter was ($2.5 million) or ($0.15) per share which includes $1.2 million in non-cash amortization and depreciation expenses primarily associated with recent corporate acquisitions.

For the year ended March 31, 2001, LML earned record revenues of approximately $10.1 million, an increase of approximately 237% or $7.1 million from last year. Earnings before income taxes, interest expense, depreciation and amortization for the year was a loss of ($1.9 million) or ($0.11) per share. Net loss was ($5.2 million) or ($0.34) per share which includes $3.1 million in non-cash amortization and depreciation expenses primarily associated with recent corporate acquisitions.

Highlights:

— LML reports three consecutive quarters of revenue growth for the fiscal year 2001.

— LML reports record revenue of $2.9 million for the fourth quarter

— LML reports record revenue of $10.1 million for the year

The Corporation, through its subsidiary LML Payment Systems Corp., is a financial payment processor providing check processing solutions including Electronic Check Conversion (whereby paper checks are converted into electronic transactions), electronic check verification, electronic check re-presentment (whereby returned paper checks are re-presented for payment electronically), and primary and secondary check collection to supermarkets, grocery stores, multilane retailers, convenience stores and other national, regional and local retailers. We also specialize in providing selective routing, including real-time monitoring of check, debit, credit and EBT transactions for authorization and settlement through our flagship transaction processing product REPS (Retail Electronic Payment System). The Corporation’s intellectual property estate, owned by subsidiary LML Patent Corp, includes new U.S. Patent No. 6,164,528 regarding Internet checking transactions, in addition to U.S. Patent No. 5,484,988 which describes a “Checkwriting point of sale system,” which, through a centralized database and authorization system, is capable of providing and administering various electronic payment services for customers and businesses. Also included in our intellectual property estate is a recently received Notice of Allowance from the United States Patent and Trademark Office for a new patent based upon United States Patent Application Serial No. 09/562,303. The new patent describes corporate checks and electronic fund transfers (EFT) and relates to existing U.S. Patent No. 6,164,528 and U.S. Patent No. 5,484,988 (described above).

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CardWebTV

The first TV business news show devoted to the payment card industry was launched this morning. The half-hour length, digitally produced ‘CardWebTV’ program, can be viewed as an on-line or off-line multimedia stream or via a standard VHS tape. The June 2001 edition of the new, monthly payment card video magazine, covers more than 35 significant news stories, showcasing several new products unveiled at the CTST convention in Las Vegas during May. Among the new products with featured video demos in the first edition of ‘CardWebTV’: Thales ‘P3-Server’; Wearlogic ‘SmartWear e-Wallet’; Schlumberger ‘e-gate’; NavyCash smart card; Giesecke & Devrient ‘Foil Card’; American Banknote Holographics ‘Holocard’; Cubic ‘Nextfare’; SCM Microsystems ‘E-25’ reader; Comsense ‘ComDot Cards’ and Mist ‘Freedom’ terminals. The new multimedia business news show is produced by CardWeb.com, Inc in association with San Francisco-based BlueJag Corporation. The program is hosted by Robert McKinley, CEO of CardWeb.com. Future editions of CardWebTV ([www.cardweb.tv][1]) will feature on-location interviews with top executives as well as roundtable discussions with industry leaders. CardWeb.com will release a DVD version of the program by the end of the summer and is currently reviewing proposals for cable broadcasting distribution. Viewing ‘CardWebTV’ online requires broadband Internet access and either ‘Quicktime’, ‘Windows Media’, or ‘Real Player’ software. A program trailer, available to view at lower speed connections, will be available later this week.

[1]: http://www.cardweb.tv/

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