Metris 1Q/01

Sub-prime specialist Metris Companies (Direct Merchants Bank) reported Wednesday that its managed credit card loan portfolio increased by $210.3 million during the first quarter, resulting in a portfolio of approximately $9.5 billion at quarter’s end. One year ago, Metris card portfolio stood at $7.4 billion. The issuer added more than 260,000 new credit card accounts during the first quarter, resulting in a total of approximately 4.5 million accounts as of Mar 31. During the fourth quarter, Metris signed up 300,000 cardholders. First quarter credit card charge volume increased 30% to $2.0 billion. However the managed net charge-off rate was 10.6% for the first quarter, compared to 9.7% percent for 4Q/00 and 9.8% for the first quarter of 2000. The managed delinquency rate was 8.4% at Mar 31, compared to 8.3% at Dec 31 and 7.7% for 1Q/00. In the first quarter, Metris also added 830,000 new enhancement relationships, resulting in active enhancement services members of 5.9 million. Metris markets enhancement services to several major U.S. credit card issuers. Metris shares rose yesterday from $22.54 on Tuesday’s close to $26.31 at yesterday’s close. For additional info on Metris 1Q/00 performance and other historical data visit CardData ([][1]).



Providian 1Q/01

Sub-prime leader Providian Financial reported this morning first quarter earnings of $230.5 million, compared to earnings of $174.3 million for 1Q/00, a 32% increase. Total managed loans increased by $1.3 billion to $28.4 billion and customer accounts grew to 17.1 million, a 31% increase over the end of the first quarter of 2000. The managed net credit loss rate in the first quarter was 9.34% versus 8.48% in the fourth quarter of 2000 and 7.18% one year ago. The 30+ day managed delinquency rate was 7.64% at quarter end, compared to 7.52% at year-end 2000 and 5.72% for 1Q/00. Providian says it expects moderating delinquency trends to lead to an improved credit loss rate in the second half of the year after it peaks in the second quarter of 2001. Providian is the nation’s sixth largest issuer of bank credit cards, and the fifth largest VISA and MasterCard issuer according to CardData. For additional info on Providian’s 1Q/01 performance and other historical data visit CardData ([][1]).




People’s Bank,
a $14 billion financial services company, announced net income for the
quarter ended March 31, 2001 of $13.3 million or $0.22 per share, in line with
preliminary results released by the bank two weeks ago.

People’s Board of Directors increased the quarterly dividend on its common
stock by $0.02 per share to $0.34 per share. The dividend is payable May 15,
2001, to stockholders of record on May 1, 2001.

“We are pleased to reward our shareholders with our 14th consecutive
semi-annual dividend increase since 1993,” said John A. Klein, president and
chief executive officer. “Based on the closing stock price on April 18, 2001,
the dividend yield on our common stock now exceeds 6 percent. We believe this
yield and the reduced payout ratio stemming from People’s Mutual Holdings
waiving dividends on most of its shares provides substantial long-term value
to our shareholders.”

Today’s dividend announcement reflects management’s confidence in the
future. “While we had some disappointments in the first quarter, we also had
good news. And the second quarter is off to a great start with the sale of the
U.K. credit card and consumer loan business we announced on April 6,” said
Klein. “We continue to believe our franchise is positioned well for the
remainder of 2001 and beyond.”

“The $70 million pre-tax gain on the U.K. transaction was a very
significant win for the bank and our shareholders,” Klein noted. “This
transaction, which will be recognized in the second quarter of 2001, further
strengthens the bank, enhances our flexibility and enables us to focus more
resources on the Connecticut franchise and our national operations.”

People’s reported continued strength in many of its core businesses in the
first quarter. Stop & Shop offices sustained their strong growth trend with
deposits up 17 percent over the first quarter of 2000, and the residential
mortgage business increased originations by $120 million and generated a
20-percent increase in gains on mortgage sales. Additionally, People’s
insurance subsidiary increased revenues 22 percent since last year’s first

Klein also noted that the commercial loan portfolio was up 15 percent over
the first quarter of 2000, and commercial real estate finance increased its
portfolio by 14 percent over the same period. Included in the commercial loan
growth is a 65-percent increase in balances for People’s Capital and Leasing

Managed operating revenues for the bank increased $10 million or
5 percent, from the first quarter of 2000, noted Klein. He added the bank’s
managed net interest margin was 4.37 percent, an increase of 12 basis points.

Additionally, the bank’s managed efficiency ratio declined to 53 percent,
the lowest it’s been in six quarters. “The improved efficiency ratio reflects
a $5 million reduction in expenses from the fourth quarter of 2000,” he said.

William T. Kosturko, executive vice president and interim chief financial
officer, said earnings for the quarter reflect net losses on securities, lower
earnings in the Credit Card Services division, and a charge-off related to a
single commercial loan which had been previously classified as non-performing.

The $3.3 million net loss on securities for the first quarter reflected
$6 million in write-downs on a select group of technology stocks, which are
all in the S&P 500 index. Regarding the bank’s investment in common stocks,
Kosturko said, “This portfolio has had a history of providing exceptional
returns. Over the last five years it has generated in excess of $125 million
in realized net securities gains. We believe the losses we’ve recognized in
the first quarter are reflective of recent market performance.”

Earnings for Credit Card Services declined approximately $4 million
compared to the year-ago quarter to a net loss of approximately $3 million.
These results primarily reflect higher managed charge-offs partially offset by
an increase in managed net interest income. The higher losses are a result of
the bank’s risk-based repricing strategy implemented in 2000, the impact of
changing economic conditions on the consumer lending industry and higher
bankruptcy-related losses.

Kosturko said an additional $5 million charge-off was related to a single
loan in the $2.6 billion Commercial Banking portfolio. “This charge-off does
not reflect the overall performance of the Commercial Banking division, which
had its best year ever in 2000 and which, in the first quarter of 2001,
realized double digit-growth in both commercial real estate and commercial
loans. The asset quality of our commercial banking portfolio continues to be
strong,” he added.



TUV Product Service has received approval from Europay to run all ‘EMV Co
Level 2’ test cases at its UK laboratory in Fareham, Hampshire. TUV is a
third-party test and certification body specializing in high technology
products. Compliance with the ‘EMV Level 2’ standards is designed to ensure
that card interface devices and related software have the functionality and
interoperability to perform effectively with EMV-compliant payment systems.
TUV expects to get formal accreditation from Europay shortly.



Cambodia Mekong Bank Plc introduced the country’s first credit cards this
week. The bank became a member of VISA International in June 1997. Mekong
expects to sign up 500 cardholders by year’s end. The card will be marketed
to businesspeople who travel abroad as well as employees of the bank. Fewer
than 100 establishments accept VISA cards in Cambodia currently. Hotels and
restaurants dominate the acceptance locations. The bank said it postponed
plans to issue cards last year due to Y2K concerns.


Schlumberger 1Q/01

Schlumberger Limited reported first quarter operating revenue of $2.91 billion, a 36% increase over the same period last year. Net income for the first quarter was $261 million ($0.45 per share-diluted) before a $25 million ($0.04 per share-diluted) charge for in-process research & development related to the Bull CP8 acquisition, compared with $136 million ($0.24 per share – diluted) last year. Earnings per share, excluding acquisition related costs (in-process R&D, amortization of goodwill and amortization of identifiable intangibles) was $0.51 per share (diluted) compared with $0.27 per share (diluted) for the same period last year. Oilfield Services revenue increased 49% versus the first quarter of 2000 as the worldwide M-I rig count grew 30%. Compared with the fourth quarter of 2000, revenue increased 13%. Resource Management Services revenue was 5% lower than in the first quarter last year. Test & Transactions revenue increased 14% versus the same period last year.

Chairman and Chief Executive Officer Euan Baird commented:

“The continued surge in North American activity coupled with the start of growth elsewhere, is clearly reflected in the results of Oilfield Services this quarter. Our efficient GeoMarket(a) organization has allowed us to maximize our performance in terms of year-on-year revenue growth and operating margin improvements. These bullish trends appear set to continue unless a global economic slowdown reduces growth in oil demand. The acquisition of Sema was completed on April 6, 2001, less than two months after the transaction was first announced, and the integration process is already underway. Schlumberger Sema is an Information Technology products and service company for the 21st century, which combines in-depth knowledge of certain industries with world-class IT and networking skills. This unique mix of expertise will allow our customers to e-transform their businesses and realize substantial savings as they turn data into real-time decisions.”

Consolidated Statement of Income (Unaudited)

(Stated in thousands except per share amounts)

For Periods Ended March 31 2001 2000(1)
Operating $ 2,909,434 $ 2,137,442
Interest and other income(2) 90,029 76,110
2,999,463 2,213,552

Cost of goods sold and services 2,194,739 1,667,017
Research & engineering(3) 170,596 131,042
Marketing 87,417 74,820
General 120,595 96,775
Interest 76,201 63,096
2,649,548 2,032,750

Income before taxes and minority interest 349,915 180,802
Taxes on income 107,940 42,390
Net Income before minority interest 241,975 138,412
Minority interest (6,087) (2,254)
Net Income $ 235,888 $ 136,158

Basic Earnings Per Share $ 0.41 $ 0.24
Diluted Earnings Per Share $ 0.41 $ 0.24

Average shares outstanding 573,060 566,886
Average shares outstanding
assuming dilution 581,412 576,541

Depreciation and amortization
included in expenses(4) $ 419,026 $ 312,343

(1) Restated, in part, for comparative purposes.
(2) Includes interest income of $66 million in 2001 and $73 million in
(3) 2001 includes a charge of $25 million ($0.04 per share-diluted)
for in-process research & development related to the Bull CP8
(4) Including multiclient seismic data costs.

Condensed Balance Sheet (Unaudited)

(Stated in thousands)

Assets Mar. 31, 2001 Dec. 31, 2000

Current Assets
Cash and short-term investments $ 2,526,782 $ 3,040,150
Other current assets 5,162,811 4,453,061
7,689,593 7,493,211

Long-term investments, held to maturity 945,840 1,547,132
Investment in Sema plc 1,007,997 –
Fixed assets 4,423,171 4,394,514
Multiclient seismic data 966,074 975,775
Excess of investment over
net assets of companies purchased 1,694,315 1,575,710
Other assets 1,495,976 1,186,389
$ 18,222,966 $ 17,172,731

Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable and
accrued liabilities $ 3,196,394 $ 2,910,725
Estimated liability for
taxes on income 458,586 379,916
Bank loans and current portion
of long-term debt 944,421 592,221
Dividend payable 108,125 108,043

4,707,526 3,990,905
Long-term debt 3,775,156 3,573,047
Postretirement benefits 484,092 476,380
Minority interest 622,411 605,313
Other liabilities 234,516 231,870
9,823,701 8,877,515

Stockholders’ Equity 8,399,265 8,295,216

$ 18,222,966 $ 17,172,731

Business Review
(Stated in millions)


First Quarter 2001 2000 % chg
Operating Revenue $2,279 $1,528 49%
Pretax Operating Income(1) $ 402 $ 172 134%


First Quarter 2001 2000 % chg
Operating Revenue $306 $324 (5)%
Pretax Operating Income(1 $(10) $12 – %

Test &

First Quarter 2001 2000 % chg
Operating Revenue $350 $307 14%
Pretax Operating Income(1) $ 1 $ 2 (17)%

(1) Pretax operating income represents income before taxes and
minority interest, excluding interest expense and interest
income. Pretax operating income for 2000 has been restated for
comparative purposes.

Oilfield Services

Oilfield Services operating revenue in the first quarter increased 49% year-over-year, with all four reporting Areas experiencing double-digit growth. Revenue increased 13% versus the prior quarter led by North America. Year-over-year and sequential growth was driven by WesternGeco (formed late in the prior quarter), increased activity, improved pricing levels, and productivity gains from the use of advanced technologies. Worldwide, revenue showed strong double-digit year-over-year growth in all product segments, and grew sequentially in all product segments except Well Completions & Productivity, which remained flat. The worldwide M-I rig count increased 30% year-over-year and 8% sequentially. Pretax operating income in the first quarter grew 134% compared to the same period last year and 21% sequentially.

North America

In North America, first quarter revenue of $924 million increased 81% compared with the same quarter last year and 28% sequentially. The M-I rig count of 1,801 increased 37% year-over-year and 13% sequentially. Pretax operating income of $226 million was 267% higher than the first quarter last year and increased 57% sequentially. Year-over-year revenue growth was led by strong double-digit growth in all product segments except Integrated Project Management which remained flat. Sequential revenue growth was led by WesternGeco, with strong contributions from Wireline, Drilling & Measurements and Well Services. Sequentially and year-over-year, all GeoMarkets recorded strong revenue and pretax operating income growth well in excess of the increases in rig count. This growth was driven by pricing improvements, the introduction of new technologies and services, and increased non-rig related activity.

Latin America

In Latin America, first quarter revenue of $365 million increased 46% year-over-year and 7% sequentially. The M-I rig count at 317 increased 36% year-over-year and 1% sequentially. Pretax operating income in the first quarter was $43 million, an increase of more than four-fold over last year and an increase of 41% sequentially. Year-over-year revenue growth was strong across all product segments. Sequential revenue growth was led by Wireline and by Drilling Services, which is primarily comprised of six Lake Maracaibo based Multi-Purpose Service Vessels (MPSV). Resulting pull-through of other Schlumberger services by the MPSV activity also contributed to the growth in the quarter. Strong year-over-year revenue and pretax operating income growth was seen in all GeoMarkets. Sequentially, the strongest revenue growth was in the Venezuela/Trinidad /Tobago and Latin America South GeoMarkets, with pricing improvements in most product segments contributing to the increase in results.

Europe/CIS/West Africa

First quarter revenue of $464 million in the Europe/CIS/West Africa Area increased 37% compared with the same quarter last year and 1% sequentially. The M-I rig count at 273, excluding the CIS, was up 25% over the same period last year and 2% sequentially. Pretax operating income of $57 million increased 140% year-over-year and decreased 26% sequentially.

Strong year-over-year revenue and pretax operating income growth was recorded in all product segments except Drilling Services, which remained flat. Sequentially, while revenue increased modestly, several factors led to a decline in pretax operating income during the quarter. These factors included adverse weather conditions in the North Sea and Russia, which affected most product groups, a reduction in well testing operations and lower seismic results in several GeoMarkets.

Other Eastern Hemisphere

First quarter revenue of $468 million in the Other Eastern Hemisphere Area increased 23% year-over-year and 7% sequentially. The M-I rig count at 437 increased 9% year-over-year and was flat sequentially. Pretax operating income of $92 million increased 43% compared with last year and 17% sequentially. Compared to the same period last year, revenue and pretax operating income growth was led by Well Completions & Productivity, WesternGeco and Drilling & Measurements. Year-over-year growth saw a strong improvement in the Australasia GeoMarket and most GeoMarkets in the Middle East. Sequentially, while most GeoMarkets in the Middle East showed good growth, as did the Australasia and the Brunei/Malaysia/Philippines GeoMarkets, those gains were partially offset by a sequential decline in the China and the Japan/Korea/Taiwan/Sakhalin GeoMarkets.

Other Activities:

— The PowerDrive(a)900 steerable rotary drilling system set two new-world records. In the Gulf of Mexico, more than 8,000 feet was drilled in one run and on a separate run the system functioned for a continuous period of 262 hours below the rotary table. Since commercialization at the end of 2000, the PowerDrive900 has completed 50 successful runs. It is the only rotary steerable system that provides full 3D directional control at all inclinations from vertical to horizontal while rotary drilling in 12- 1/4 inch hole. This new tool complements the existing PowerDrive*675 system for 8-1/2 inch hole and extends the range to include hole sizes up to 17-inches.

— The Commander(a) telemetry control and monitoring system, in conjunction with the SenTREE(a)7 subsea completion and test tree, successfully performed its first operation from a dynamically positioned vessel in the Gulf of Mexico. This technology, the only proven deep water subsea completion telemetry control and monitoring system in the industry, allows the development of fields in deep water that use cost-effective horizontal subsea xmas trees, and enables a dynamically positioned rig to safely disconnect within 15 seconds from a well in an emergency situation.

— signed an agreement with Veritas DGC Inc. and WesternGeco to develop e-commerce standards and new technology to publish, market and license multi-client seismic data online. Sellers will be able to create and manage a private Seismic Storefront(TM) where they can reach a global pool of buyers, exchange highly technical information with their clients and conduct secure business transactions online. Together, Veritas DGC and WesternGeco own and market multi-client seismic libraries totaling 3 million linear km of 2D data and 540,000 sq. km of 3D data.

Resource Management Services

Resource Management Services (RMS) operating revenue decreased 5% compared with the same quarter last year and increased 6% sequentially. The majority of the year-over-year revenue decline was due to the divestiture of the Gas Service businesses in Europe during 2000. First quarter orders decreased 8% over the same period last year and increased 13% sequentially. The pretax operating loss in the first quarter was attributable to the amortization of acquisition related costs. In North America, first quarter revenue increased 57% year-over-year and 21% sequentially, driven by increased communication module sales and automated meter reading fees. Higher CENTRON* meter shipments, particularly to the PECO Energy Company automated meter reading project, accounted for an improvement in electricity metering revenue. Orders during the quarter increased 30% year-over-year and 38% sequentially due mainly to higher electricity metering and automated meter-reading activities. In Europe, first quarter revenue showed a 14% improvement sequentially, when adjusted for the divestiture of the Gas Service businesses, driven by order increases in Germany and France. Orders in the first quarter decreased 12% year-over-year and increased 14% sequentially led by strong demand for gas meters.

In Asia, revenue for the first quarter declined 4% year-over-year and 28% sequentially due to lower exports of electromechanical electricity products and lower gas meter deliveries in China. Orders decreased 63% year-over-year and 45% sequentially due mainly to lower demand for electricity meters in Taiwan, Sri Lanka and Malaysia.

In South America, first quarter revenue declined 10% year-over-year and 12% sequentially due primarily to lower demand for electricity products in Colombia, Uruguay and Peru. Orders in the quarter were down by 36% compared to the same period last year reflecting the lower demand for electricity products and the general slowdown in Brazil.

Test & Transactions

Test & Transactions operating revenue in the first quarter increased 14% compared with the same quarter last year and fell 13% sequentially. The sequential decline in activity was mostly due to the continuing down cycle in the semiconductor industry. Orders were down 10% compared with the same quarter last year and up 9% sequentially.

In March, Test & Transactions acquired Bull CP8, a market leader in microprocessor-based smart cards and associated systems applications for the banking, mobile communications and network security industries. This acquisition makes Schlumberger the clear leader in smart cards and adds unique R&D and smart card technology capabilities in the banking segment where Bull CP8 holds a strong, globally recognized position. Cards revenue grew 20% year-over-year and declined 4% sequentially. The main drivers of year-over-year growth were strong demand and increased volume of high-end Java(TM)-based products for mobile communications and banking applications. The anticipated seasonal volume decline in GSM cards was partially offset by strong average sales price improvement due to the favorable mix of high-end and new products. Orders declined 21% year-over-year and 23% sequentially, reflecting the current inventory of GSM cards held by mobile telecom operators. Sequentially, orders for prepaid cards were up 12% and banking card orders were up 55%. In North America, the increasing adoption of the GSM standard, which provides mobile phone users with seamless roaming across GSM networks worldwide, has generated significant opportunities for both product and service applications. Schlumberger signed a memorandum of understanding with AT&T Wireless (NYSE: AWE) in March to provide SIM (subscriber identity module) smart cards and related OTA (over-the-air) technology to support AT&T Wireless’ new GSM network platform. Network Solutions revenue grew 43% year-over-year driven by growth in Network Services and Wireless Applications Services. Strong sequential growth in the Network Services and Wireless Applications Services markets was mostly offset by a decline in Public Telecom activity. Orders grew 31% year-over-year and grew 69% sequentially on continuing higher activity for both Network Services and the recently acquired Data Marine Services. eTransactions Solutions revenue grew 47% year-over-year and increased 15% sequentially, driven primarily by increased worldwide deliveries of MagIC* e-payment point of sale terminals. In addition, European customers began accepting previously postponed deliveries of new euro-compatible Pay & Display* on-street parking meters. Orders rose 48% over the first quarter of 2000 and grew 25% sequentially. The growth came primarily from improved activity in the off-street parking, e-Payment Terminals & Systems, and parking services businesses.

Semiconductor Solutions revenue was down 31% year-over-year and down 49% versus last quarter as conditions in the semiconductor industry deteriorated. Semiconductor manufacturers have implemented widespread cost control measures and delayed capital spending and deliveries. Orders decreased 41% year-over-year while the sequential increase of 13% was driven by seasonal customer services contract bookings. During the quarter Schlumberger shipped the first IDS(R) PICA revolutionary probing equipment for semiconductor design validation and characterization. In addition, the new Schlumberger test platform was selected by a leading microprocessor manufacturing company to test their latest generation of high volume processors.

Change in Liquidity

Liquidity represents cash plus short-term and long-term investments less debt. A summary of the major components of the change in liquidity follows:

(Stated in millions)
Three Months 2001 2000(1)

Funds provided by:
Net income $ 236 $ 136
Depreciation and amortization(2) 419 312
Employee stock option plan 15 84
Funds used for:
Capital expenditures(2) (527) (279)
Business acquired/divested (296) (28)
Purchase of Sema plc stock (1,011) –
Dividends paid (107) (106)
Working capital and other (398) (200)

Change in liquidity (1,669) (81)
Liquidity, beginning of period 422 1,231

Liquidity, end of period $ (1,247) $ 1,150



OTI announced that it will provide the first contactless
smart card supporting public-key infrastructure encryption, used for
digital certificates in such secure environments as Internet transactions and
in government agencies, under a reseller agreement with Algorithmic Research,
a subsidiary of Cylink Corporation. OTI, a global provider of
contactless smart card technology and product solutions, thus becomes the
first company to offer a complete security solution utilizing contactless
technology in both the physical and virtual worlds.

“By offering the first contactless PKI solution, OTI has strengthened the
link between the virtual and physical world, offering all levels of security
to meet customer requirements,” said Oded Bashan, President and CEO of OTI.
“Providing Algorithmic Research’s PKI technology on OTI’s field-tested
contactless smart cards further enhances our strategy to provide complete,
reliable, secure solutions.”

Most digital certificates are stored on a computer hard drive, vulnerable
to attack by unauthorized users. Incorporating Algorithmic Research’s PKI
technology onto OTI’s EYECON product platform of contactless smart cards
provides a secure, portable solution, as the user’s private key will reside on
the smart card. Users can then encrypt and sign data from any location —
crucial in shared-computer environments.

Encryption technology provided by Algorithmic Research adheres to PKCS#11
and CAPI standards, enabling users to secure standard Microsoft applications
such as Outlook and Explorer, as well as work with standard PKCS-11
certificate vendors including VeriSign and Entrust. OTI’s patented
contactless system uses 3DES and RSA encryption to communicate between card
and reader, thus maintaining security levels throughout the encryption and
transmission process.

“We are excited about working with OTI. Contactless smart card technology
opens up a whole new set of applications for AR’s PKI technology. PKI is the
one technology that offers a truly distributed security solution for the
physical, as well as the virtual worlds,” said Nir Naaman, CISSP, V.P. Product
Strategy of Algorithm Research.

PKI combines software and encryption technology to protect the security of
communication and transactions across public networks, private intranet and
extranet sites, and the Internet. Digital certificates issued to individual
users in a PKI system are used to encrypt information to protect it from
interception during transmission and to verify the sender’s identity to the

Since the Electronic Signatures in Global & National Commerce Act went
into effect in the United States in October 2000, digital signatures are now
accepted as legally binding and have been implemented by the US Government.

About Algorithm Research

Algorithmic Research Ltd., a wholly-owned subsidiary of Cylink Corporation
(Nasdaq: CYLK), is a leading global supplier of cryptographic data security
solutions for financial, commercial, industrial and government applications.
AR specializes in implementing advanced PKI security solutions in large
distributed computing environments and open networks like the Internet,
allowing transparent integration of smart cards, readers and cryptographic
processors that ensure high-level security for the most demanding and highly
sensitive mission critical applications. AR products feature a Java applet
client, security enhancements and support for SSL and WAP, implementation of
highly secure digital signatures, user ID/password, RADIUS authentication, and
more. For further information about the company, products and latest
announcements, please visit the AR website at

About OTI

Established in 1990, OTI (On Track Innovations) designs and develops
contactless microprocessor-based smart card technology to address the needs of
a wide variety of markets. Applications developed by OTI include product
solutions for mass transit, parking, gas management systems, loyalty schemes,
ID and secure campuses. OTI has regional offices in the US, Europe, Asia
Pacific, and Africa to market and support its products. The company was
awarded the prestigious ESCAT Award for smart card innovation in both 1998 and
2000. Visit OTI on the Internet at



ACI Worldwide, a leading international provider of enterprise e-payment
solutions, announced the licensing of its PRISM(R) merchant risk management
software to National Australia Bank to detect potentially fraudulent
transactions coming from merchants via the Internet, EFT/POS or cash.
The system is the second application of PRISM by the National in nine months.
In June 2000, PRISM was introduced to detect credit card fraud for the
National’s cardholders.

According to Peter Kempster, the National’s general manager of Payments
Australia, the PRISM merchant software protects both the National and its
merchants by allowing the National to proactively monitor transactions and
respond faster to unusual activity. “One of our early successes was to prevent
a retailer from dispatching a $74,000 computer order to three overseas
customers quoting counterfeit credit card numbers. Thanks to PRISM, our prompt
action resulted in most of the goods not being shipped.”

The strength of PRISM Merchant is its ability to recognize a targeted fraud
attack on a merchant. Activity that matches known fraudulent patterns is
automatically queued for review. The PRISM system streamlines the
monitoring of
approximately two million transactions per day, enabling the National’s staff
to effectively detect fraudulent attempts and prevent fraud.

Nigel Kitson, managing director of ACI Worldwide (Pacific), said, “We are
to have helped the National in its fight against fraud. This extended use of
PRISM is a testament to the effectiveness of the fraud tool in the hands of
skilled investigators.”

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 2,400 customers in 78 countries
use ACI supplied software. Visit ACI Worldwide on the Internet at



Hypercom Corporation announced the opening of its first sales, service and
support office in Canada.
Based in Toronto, Hypercom’s new office will build awareness and expedite the
delivery of high-performance, high-speed card payment terminals that deliver
value-added features to the merchant countertop.

“Canada is an exciting, robust and vibrant market. We are eager to
demonstrate how our products can help the country’s important financial
institutions and merchants save time and money, while simultaneously enhancing
the consumers’ shopping experience,” said Jairo E. Gonzalez, president,
Hypercom Transaction Systems Group. “We are delighted to be here, we are
to introduce our products, and we are proud to announce this first Hypercom
office in Canada.”

The introduction of Hypercom’s popular consumer interactive, touch
screen-based, EMV-compliant ICE card payment terminals in Canada is already
underway. . In the last three months alone, orders from Canada for the
company’s ICE terminals have topped 10,000 as compared to 1,200 the prior

The company has joined with Soft Tracks Enterprises to deploy Hypercom’s
wireless ICE 4000 terminal to merchants and service providers. Hypercom has
announced the availability of a certified payment application developed by TCS
(Canada) Limited.

Hypercom’s robust epic (ePOS-infocommerce) ICE touch screen card payment and
web-enabled terminals are powerful, multi-function touch screen-based payment
devices incorporating high-speed thermal printers, paper cutters, and
Hypercom’s 9600 bps (bits per second) FastPOS modem technology lets merchants
complete transactions in under six seconds.
Together with Hypercom’s Term-Master Suite software application and networking
products, the high-speed, easy-to-use ICE terminals allow processors to
merchants with an array of value-added, revenue-generating services. These
include electronic receipt capture (ERC), which virtually eliminates
chargebacks; sales receipts customized with merchant logos which increase
subsequent sales; and, on-screen advertising at the point-of-sale.
Coupled with these customer-directed features, Hypercom’s solutions enable
processors to provide terminal-to-terminal e-mail, which improves
communication, electronic bank statements, parcel tracking, and more.

Completely customized high-speed networks are made possible with Hypercom’s
award-winning and widely-used IEN (Integrated Enterprise Network) line of IADs
(Integrated Access Devices).

Additionally, Hypercom has introduced a number of groundbreaking products and
services in recent months. The company’s IEN View Security Manager, a new
module for Hypercom’s full-coverage custom network management solution, allows
network managers to set access permissions, and control from remote locations
any changes made by network management clients. Another new Hypercom
called, allows network designers to create customized network
blueprints tailored to their unique system requirements within minutes.

Hypercom has also introduced Visual HDT (VHDT), a C-based package that gives
software developers the ability to quickly and cost-effectively develop
value-added applications for Hypercom’s ICE card payment terminals using
Microsoft’s popular Visual Studio platform.

“We have the products, the software, and the networking to help processors and
merchants compete in today’s increasingly competitive times, and we will be
demonstrating all of these value-added, time-saving products and applications
in the weeks and months ahead,” Mr. Gonzalez said.
Hypercom Canada is located at 161 Bay Street, Toronto. Telephone:
416.572.2003. Facsimile: 416.572.2212.

Hypercom Corporation (NYSE: HYC) 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
than 4 million card payment terminals which operate in over 100 countries and
conduct more than 2.85 billion transactions annually.


Tidel Exclusive Deal

Tidel Technologies, Inc. announced that it has entered into an exclusive marketing agreement with ATM Center, Inc., an Independent Sales Organization for ATM equipment, whereby ATM Center will market and distribute only the Tidel product line to its customers. The deal marks the twenty-seventh such exclusive or preferred distribution deal completed by Tidel in recent months, and begins the second phase of an existing relationship with ATM Center that began last year. Tidel shipped an initial order to ATM Center in 2000 to replace an entire installation of units previously purchased from a competing manufacturer.

According to Bruce G. Kreeger, President of ATM Center, “Our experience with the Tidel equipment as to performance, reliability and service has been excellent, paving the way for the exclusive relationship contemplated under the new agreement. We have put capital resources and debt facilities in place for an aggregate commitment of $5 million toward our current ATM sales and placement programs for the remainder of this year and into 2002.”

Michael Hudson, Executive Vice President of Tidel, added, “ATM Center is a very nice addition to our portfolio of quality ISO’s. Their commitment of $5 million for their ATM placement program sets them apart from many of their competitors. By stocking Tidel product on a volume basis, ATM Center expects sales will increase due to their ability to provide faster delivery to customers. We believe this relationship will help strengthen Tidel’s position in the domestic off-premise market, particularly in the Atlantic seaboard states.”

Mine Hill, New Jersey-based ATM Center, Inc. offers ATM equipment, service, supplies and replenishment to most states in the contiguous United States. ATM Center has regional offices in New England, California, Florida and Virginia, with more offices scheduled to open this year.

Tidel Technologies, Inc. is one of the nation’s leading manufacturers of automated teller machines and cash security equipment designed for specialty retail marketers. Tidel pioneered the dial-up ATM in 1992 and in 2000 ranked 55th in Forbes’ list of the 200 Best Small Companies in America. To date, Tidel has sold more than 30,000 retail ATMs and 115,000 retail cash controllers in the U.S. and 36 other countries. For more information about the company and its products may be found on the Internet at [][1].




Fincentric Corporation, a leading global provider
web-enabled financial services software, announced today an agreement with
PricewaterhouseCoopers’ Management Consulting Services practice in
Singapore to
jointly pursue new business opportunities with financial services clients in
East Asia, including Singapore and Hong Kong.

Under the agreement, Fincentric’s i-Wealthview Banking™ product becomes a core
retail banking offering at PricewaterhouseCoopers’ Financial Delivery
Center in
Singapore. PricewaterhouseCoopers has allocated a team to this center, where
implementation staff are trained and leading banking software systems can be
demonstrated, developed and integrated.

PricewaterhouseCoopers becomes the first member of Fincentric’s new Certified
Implementation program. This certification gives the end user the assurance
that PricewaterhouseCoopers is fully qualified to implement and service the
i-Wealthview™ software.

Mike Cardiff, chief executive officer and president of Fincentric commented,
“We are excited to work with PricewaterhouseCoopers to bring our extraordinary
enterprise wealth management software to the Asia Pacific market. The
combination of our teams can help financial institutions achieve their
strategic objectives, such as deploying state-of-the-art e-banking
and increasing profitability across all segments of the customer-base.”

Arvind Mathur, financial services partner at PricewaterhouseCoopers stated,
“Our relationship with Fincentric helps affirm our strategic advance into
wealth management, specifically in East Asia, and supports our goal of helping
financial institutions increase profitability, customer acquisition and

About PricewaterhouseCoopers

The Management Consulting Services practice of PricewaterhouseCoopers helps
clients maximise their business performance by integrating strategic change,
performance improvement and technology solutions. Through a worldwide network
of skills and resources, consultants manage complex projects with global
capabilities and local knowledge, from strategy through implementation.
PricewaterhouseCoopers ( is the world’s largest professional
services organisation. Drawing on the knowledge and skills of more than
people in 150 countries, PricewaterhouseCoopers helps its clients solve
business problems and measurably enhance their ability to build value, manage
risk and improve performance in
an Internet-enabled world. PricewaterhouseCoopers refers to the member
firms of
the worldwide PricewaterhouseCoopers organisation.

About Fincentric Corporation

Fincentric is a leading developer of software solutions for the global
financial services industry. Fincentric, formerly Prologic has over 350
customers worldwide, including 7 of the 25 largest banks in the world.
Fincentric technology enables financial institutions to quickly deploy
solutions for their converging financial service offerings, while also
supporting capabilities for increasing customer profitability, customer
acquisition, and retention. Fincentric’s i-Wealthview™ enterprise wealth
management solution features e-banking, e-brokerage, and e-insurance.


MasterCard Platform

MasterCard announced Wednesday deployment of a new payment-processing platform that offers maximum flexibility for member financial institutions to leverage technology to mass customize payment processing. MasterCard has initiated a three-step strategy for delivery of its new core processing platform. These steps include: 1. a massive, world-wide upgrade of ‘Banknet’, MasterCard’s global network, to the industry’s first virtual private network; 2. development of new customizable features and functionality through proprietary modular software, focused on the introduction of a new clearing system; and 3. distribution of network processing to ‘Regional Service Centers’, enabling customized local processing. MasterCard is also rolling out its new ‘Global Clearing Management System’, the replacement for its previous clearing system, ‘INET’, with members and processors. GCMS captures more information than ever during clearing, gives members more control over how the data is handled and links authorization and clearing messages. Thirty-three members already have committed to early migration to the new clearing platform. The new platform is also designed to accommodate any type of payment, including those initiated through emerging and evolving payment channels such as the Internet and wireless devices.