PERSONAS 73

NCR Corporation has reached an agreement with Credit Agricole Centre Est
to provide 200 NCR Personas 73 automated teller machines for deployment at
its branches in the Lyon area.

The regional bank, which is part of the Credit Agricole Group, sees the
introduction of a cash deposit facility at its ATMs as an important element
of its drive to improve customer services. The Personas 73 is NCR’s first
dedicated bunch-cash-accepting ATM, providing an around-the-clock automated
cash deposit facility that — with an optimal transaction time of under 60
seconds — is fast, secure and simple to use. The solution it offers
provides validation of currency, allowing the bank to offer credit for cash
deposit or bill payment at the NCR Self-Service TouchPoint™ and providing
the customer with immediate proof of deposit.

The introduction of the new machines will shift time-consuming transactions
away from the counter. The bank is therefore able to reduce customer lines
and free up staff to deal with customer queries and to concentrate on
revenue generating opportunities. Ultimately, consumers are benefiting from
a better service.

In addition to accepting deposits the Personas 73 can provide on-line
balance inquiry, mini-statements and receipt printing.
Eliane Guillot, infrastructure general manager at Credit Agricole Centre
Est, said, “We are very pleased by the Personas 73’s capabilities and by
its easy-to-use customer interface. We were also impressed by NCR’s high
levels of professionalism in providing the application and related services.”
Patrick Goasguen, NCR France country manager, welcomed the announcement. He
stressed, “Credit Agricole Centre Est understands the importance of the
self-service channel as a strategic weapon that can provide competitive
advantage while bringing added value to customers.”

About NCR Corporation
NCR Corporation (NYSE NCR) is a leader in providing Relationship
Technology™ solutions to customers worldwide in the retail, financial,
communications, travel and transportation, and insurance markets. NCR’s
Relationship Technology solutions include privacy-enabled Teradata®
warehouses and customer relationship management (CRM) applications, store
automation and automated teller machines (ATMs). The company’s business
solutions are built on the foundation of its long-established industry
knowledge and consulting expertise, value-adding software, global customer
support services, a complete line of consumable and media products, and
leading edge hardware technology. NCR employs 33,200 in more than 100
countries, and is a component stock of the Standard & Poor’s 500 Index.
More information about NCR and its solutions may be found at www.ncr.com .

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MerchantOnline Funding

MerchantOnline, a digital payment products and services provider, announced that it has received a $2 million financing commitment from a group of current MerchantOnline investors. These investors have agreed to purchase units of restricted convertible preferred stock and warrants. The first closing occurred today. This commitment supersedes all prior financing agreements or commitments.

“We look forward to proceeding with our revised business plan with renewed enthusiasm as we complete our restructuring. Our new management appreciates this vote of confidence during this time of significant market uncertainty,” said Jim Degracia, MerchantOnline CEO.

About MerchantOnline.com

Founded in December 1997, MerchantOnline provides a secure transaction network that enables businesses and consumers to use one payment system for both their real world and virtual world needs utilizing credit card, ATM/debit cards, stored value cards, electronic cash and other payment technologies. Except for historical matters, the matters in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements reflect assumptions and involve risks and uncertainties which might affect the Company’s business and prospects and cause actual results to differ materially from these forward-looking statements. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including those risk and uncertainties detailed in the Company’s Annual Report on Form 10-KSB for the year ended October 31, 2000 filed with the SEC.

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ICE STORM

Hypercom Corporation reported large scale deployment of its high-performance, touch screen ICE card payment terminals throughout Asia. More than 20 leading financial institutions, including the largest banks in China, the Philippines, Malaysia and Indonesia, have selected and deployed the browser-based terminals. ICE terminals now account for nearly 50% of all Hypercom’s shipments in Asia versus 3% less than a one year ago, indicating the broad acceptance of the value represented by the terminal’s value-added functionality and ability to combat credit card “skimming.”

Credit card skimming is an alarmingly escalating form of fraud that is victimizing consumers, causing havoc with merchants, and costing the industry hundreds of millions of dollars every year. Hypercom’s smart card-enabled ICE card payment terminals will play a key roll in stopping credit card skimming because they are tamper-resistant and customer-activated.

“Hypercom’s ICE technology is setting the standard for the electronic payment industry throughout this important region,” said Jeremy Su, president, Hypercom Asia. “We are bringing to market advanced, highly-secure card payment terminals and value-added wireless, Internet-based and smart card advanced applications that allow merchants to maintain and increase their competitive edge in the rapidly changing marketplace and combat credit card skimming, which is a major problem in Asia.”

The leading financial institutions now using Hypercom’s ICE terminals include The Industrial and Commercial Bank of China (China’s largest bank), The Agricultural Bank of China, Equitable Bank (the Philippines’ largest bank), Maybank (Malaysia’s largest bank), Bank Central Asia (Indonesia’s largest bank), Citibank Hong Kong; Standard Chartered Bank (The Philippines); Bangkok Bank, Thai Farmers Bank, Thai Military Bank, American Express Thailand, Bank International Indonesia.

Hypercom’s ePOS-infocommerce(TM) (epic) ICE devices are high performance, touch screen-based, Internet-enabled card payment terminals and web appliances that incorporate a firewall-protected multi-application operating system, EMV chip card capability, secure PIN pad, built-in HTML/HTTP web browser and integrated receipt printer. In addition to the embedded applications, Hypercom’s epic ICE terminals support a range of value-added applications and services including electronic signature and receipt capture, e-mail, on-screen advertising, interactive electronic coupons, and cash management reporting through a standard browser — as well as secure credit, debit and smart card functions.

Hypercom Corporation (NYSEHYC) is a leading global provider of electronic payment solutions that add value at the point-of-sale for consumers, merchants and acquirers. Hypercom’s products include secure card payment terminals and web appliances, networking equipment and software applications for e-commerce, m-commerce, smart cards and traditional payment applications.

Headquartered in Phoenix, Arizona, Hypercom maintains an installed base of 4 million card payment terminals which operate in over 100 countries and conduct more than 2.85 billion transactions annually. Hypercom’s Internet address is www.hypercom.com.

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Chargeoff Spike

Credit card charge-offs for card-backed bonds of U.S. banks rose by 60 bps in April to 6.7%. This level is the highest loss rate reported among these securities since February 1997. According to Standard & Poor’s ‘Credit Card Quality Index’, the monthly loss rates is also higher than the 6.2% peak reached in June 1992, in the wake of the last recession. S&P says aside from the soft economy, the rise in charge-offs is due to a short-term increase in bankruptcy filings fueled by reaction to the pending bankruptcy reform legislation. S&P notes that for prime credit card portfolios, approximately 35%-50% of charge-offs are a result of bankruptcy-related losses while the figure is about 20%-30% for sub-prime issuers.S&P says it is likely that some credit card trusts have yet to fully realize the effect of the increase in bankruptcy-related losses. It is expected that the spikes in bankruptcy filings will continue to affect losses in May and June. Meanwhile, delinquencies for April remained stable at 5.0% for the second consecutive month. However, 75% of the trusts reported improvement or no change in the number of accounts reported in the 60-plus day and 90-plus day delinquency buckets. These numbers may also support the theory that the recent jump in losses is due mainly to bankruptcy filings since charged-off bankrupt accounts are less likely to be counted in the later stage delinquency categories.

CREDIT CARD QUALITY INDEXES
Performance month Apr 99 Apr 00 Feb 01 Mar 01 Apr 01
Yield (%) 18.8 18.9 20.0 21.1 19.9
Charge offs (%) 5.9 5.6 6.0 6.1 6.7
Delinquencies (%) 4.5 4.3 5.1 5.0 5.0
Payment rate (%) 16.2 15.4 15.0 16.6 15.6
SOURCE Standard & Poor’s

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Intl Payments

Pitney Bowes this week launched a new foreign currency payment service for small to mid-sized businesses in the US. To manage payments in over 60 foreign currencies, customers simply complete a registration form to set up the account, and then call or fax the Pitney Bowes Bank to initiate foreign currency payments. Pitney says it also offers extremely competitive exchange rates, currently up to 5% lower than bank rates. Pitney Bowes serves over 2 million businesses through dealer and direct operations.

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AU-SYSTEM EXPANDS

Swedish-based AU-System, a leading Mobile Internet consultancy, announced the opening of its North American subsidiary in San Diego.

“We are committed to AU-System’s growth in North America,” said Daniel Kivikas, president and CEO. “We are excited to make our home here in San Diego and to bring our expertise and knowledge to the U.S. market. AU-System has been at the forefront of the evolution of the Wireless Internet in Europe and we are looking forward to sharing our core competencies with technology companies, telecom operators and enterprises in North America.”

In addition to building the world’s first Internet bank with smart card security, AU-System has also created the world’s first commercially available WAP 1.1 browser and the world’s first secure wireless stock trading service. The company’s client list includes Ericsson, Telia, Singapore Telecom, Motorola, Hyundai, Compaq, Philips and Volvo.

AU System’s offerings encompass wireless application protocol (WAP), Bluetooth technology, embedded systems, telecommunications systems, portals, Customer Relationship Management (CRM), Operations Support Systems (OSS), security solutions and 3rd Generation (3G) wireless services. This includes technical and strategic evaluations, system design, software development, project management and turnkey solutions and support.

AU-System is publicly traded on the Swedish stock exchange and its major investors include Schroder Ventures, Ericsson and IBM. The company employs more than 1,000 staff in offices in Sweden, the United Kingdom, Italy, Thailand, Singapore and the U.S.

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Tidel-CCC

In the wake of a bankruptcy filing by PA-based Credit Card Center, TX-based Tidel Technologies said this morning it could incur a significant charge to earnings for the second quarter if the value of the collateral pledged to Tidel by CCC is insufficient. CCC has total assets of approximately $34 million and total liabilities of approximately $87 million. At yesterday’s hearing, the Court set June 15 as the date it will rule on CCC’s applications to retain legal counsel and use certain cash collateral to pay pre-petition wages for a limited number of employees. At the filing date, CCC owed Tidel the principal amount of approximately $27 million. The obligation is secured by a collateral pledge of accounts receivable, inventories and transaction income. Tidel has not received any payments from CCC on amounts due since January. Tidel has not shipped any products to CCC since December. Tidel reported in May a sharp decline in first quarter revenues and earnings due to the loss of CCC, as revenues declined from $18.6 million for 1Q/00 to $8.2 million for 1Q/01. (CF Library 5/11/01)

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Hypercom Asia

Hypercom reported Wednesday a large scale deployment of its touch screen ‘ICE’ card payment terminals throughout Asia. The new generation terminals now account for nearly 50% of all Hypercom’s shipments in Asia versus 3% less than a one year ago. Among institutions now using Hypercom’s ‘ICE’ terminals: The Industrial and Commercial Bank of China; The Agricultural Bank of China; Equitable Bank in the Philippines; Maybank; Bank Central Asia; Citibank Hong Kong; Standard Chartered Bank; Bangkok Bank; Thai Farmers Bank; Thai Military Bank; American Express Thailand; and Bank International Indonesia. Hypercom says the sales of the terminals in Asia is driven partly by the increase in credit card skimming. Hypercom’s new terminals are tamper-resistant and customer-activated.

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MAESTRO PUSH

MasterCard International said last week that it expects explosive growth for ‘Maestro’ cards in the Asia-Pacific region, especially Thailand. The Asia-Pacific market has three billion consumers spanning 23 countries with only 9% using credit cards. MasterCard Asia-Pacific has launched, so far, 20 debit card programs in Hong Kong, Taiwan, Malaysia, India, Singapore and Australia. MasterCard also launched a pre-paid ‘Smart Money’ card in the Philippines, and a smart card with South Korea’s Kookmin Bank, which combines credit, debit, stored value and transport functions. In 2000, MasterCard’s charge volume in the Asia-Pacific region, excluding China, increased 53.9% in US dollars from 1999. Growth in North Asia was 64%, China other than the mainland 39%, Southeast and South Asia 27% and Australia and New Zealand 22%. Cards in circulation grew 27%.

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