Drexler & NYSE

Drexler Technology Corporation is pleased to report that the Company’s profit performance over the past three fiscal years exceeds the profit performance requirements for listing on the New York Stock Exchange.

This is the first time that Drexler Technology has achieved the NYSE profit requirements for three consecutive years on both an individual-year basis and on a three-year aggregate basis.

The NYSE requires that the aggregate pre-tax profits for the most recent three years total $6,500,000. Drexler Technology has exceeded that level for the three years ended March 31, 2000 and the three years ended March 31, 2001. The NYSE also requires that in addition to achieving the $6,500,000 aggregate pre-tax profit amount, the most recent year’s pre-tax profit must be at least $2,500,000 and not less than $2,000,000 for each of the other two years.

Drexler Technology has exceeded each of those annual pre-tax profit levels for each of the past three fiscal years.

The NYSE listing requirements were selected as a profit standard reference for comparison purposes since there are no specific profit performance requirements for listing on the NasdaqNM (National Market System). The Company has made no determination as to whether to apply for listing on the NYSE.

Headquartered in Mountain View, Drexler Technology Corporation ([www.lasercard.com][1]) manufactures LaserCard(R) optical memory cards used for immigration, visas, pay-per-use systems, ID/access, cargo manifests, motor vehicles, healthcare, and other digital read/write wallet-card applications. Drexler’s wholly owned subsidiary, LaserCard Systems Corporation, makes optical card read/write drives, develops optical card system software, and markets card-related systems and peripherals. The Company also is active in patent licensing, holding more than 50 United States patents and about 70 foreign-counterpart patents in a dozen countries, related to optical data storage media and laser recording technology. The optical data storage-based patent licenses sold by the Company have generated license fee revenues totaling over $40 million.

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

Details

ECHO Bank Status

Electronic Clearing House Inc. announced its decision to withdraw its bank application with the Office of the Controller of the Currency and the Federal Deposit Insurance Corporation at this time and reserve the possibility of re-filing the application when market conditions change. ECHO had filed the application in December of 1999 to charter a national bank to provide merchants with electronic payment services. The decision to withdraw the application at this time was made for several reasons:

— Given today’s uncertain market conditions and the company’s current stock value, the company felt that finalizing the application, which would initiate bank funding deadlines, would be difficult to accomplish.

— Several other banking options have been presented to the company since filing the application that may provide similar benefits and deserve further evaluation.

— Although not structured as an “Internet bank” in the sense of using the Internet to attract and grow the bank’s deposit base, the Internet was intended to be the primary method of communication between the company’s merchants and the bank. The company feels this distinction between its use of the Internet and not being an “Internet-based bank” needs to be clearly defined in its application when and if re-filed.

— Internet-based banks have received generally poor reviews in recent press and the company felt, without a significant differentiation of its application, the OCC could confuse the company’s approach with Internet bank applications.

— An Illinois bank, unrelated to the company, was closed by bank regulators in December 2000 due primarily to losses sustained from merchant fraud activity. The company believes this may have been a factor to the delays being seen with the OCC. The company intends to study the facts surrounding the closure of the bank to be sure it has identified in its application just how the company’s historical approach to merchant processing minimizes such possible activity with its proposed bank.

“We decided to withdraw our application so we could look at all the factors that were attributable to the delay with the OCC approval,” stated Joel M. Barry, CEO of ECHO. “We also see real value in two areas, evaluating other options that have been proposed to us since filing our application in 1999 and waiting until better market conditions exist. Withdrawing the application at this time gives us the opportunity to achieve these two goals.” Electronic Clearing House Inc. provides debit and credit card processing, check guarantee, check verification, check conversion, check re-presentment, check collection, and inventory tracking to over 58,000 retail merchants and U-Haul dealers across the nation.

Details

SmartMIPS

Philips Semiconductors has licensed the SmartMIPS architecture and the MIPS32 4KSc smart card core from MIPS Technologies, Inc., a leading provider of industry-standard processor architectures and cores for digital consumer and network applications.

The SmartMIPS architecture and MIPS32 4KSc smart card core will further accelerate consumers’ adoption of multi-application smart cards. Combined with Philips Semiconductors’ expertise, the new SmartMIPS low-power, high-performance embedded 32-bit processor will enable sophisticated applications and higher levels of security to be embedded in the next generation of smart cards, particularly as required by UMTS applications. With the SmartMIPS architecture and MIPS32 4KSc smart card core, Philips Semiconductors will extend its existing technology portfolio in smart cards. “This agreement with MIPS Technologies will increase our ability to develop leading-edge smart card technology for emerging applications, which require sophisticated products with greater processing power,” said Karsten Ottenberg, vice president, Identification Businesses, at Philips Semiconductors. “With our expertise in security and low-power design, Philips Semiconductors will offer complete chip solutions for high-performance applications on open operating systems platforms.”

“We are delighted that Philips Semiconductors is the first semiconductor manufacturing company to license the SmartMIPS architecture and MIPS32 4KSc smart card core,” said Derek Meyer, vice president of World Wide Field Operations at MIPS Technologies. “After introducing the SmartMIPS products just two months ago, we are extremely pleased to see the rapid industry adoption of this technology. We believe that expected high demand from consumers for more powerful, secure and `smarter’ mobile platforms will benefit all customers of our smart card solutions.”

In the future, smart cards will be the delivery vehicle for personalized applications and services via mobile communications. User applications in banking, personal information management, secure network access and transport — often combined on a single multi-application card — will require more secure, powerful and sophisticated card products. Product designers will demand high flexibility in terms of technology and design methodology. Philips Semiconductors is able to combine its advanced expertise in the area of security, non-volatile storage and contactless technology with leading CPU architectures to create advanced products for smart cards needs.

This agreement extends the long-standing relationship between Philips Semiconductors and MIPS Technologies. Philips Semiconductors’ existing licenses include the MIPS32 and MIPS64(TM) architectures and the MIPS64(TM) 20Kc(TM) 64-bit processor core. The new licenses will enable Philips Semiconductors to further extend smart card-specific functions such as cryptographic processing and interpretive language acceleration.

About Philips Semiconductors

Philips Semiconductors, which had annual revenues of approximately US$6.3 billion in 2000, designs and manufactures semiconductors and silicon systems platforms. Philips Semiconductors is spearheading the emerging field of systems on silicon solutions with the innovative Nexperia(TM) platform and VLSI Velocity(TM) tool set. The company’s Sea-of-IP(TM) design methodology allows plug and play intellectual property blocks for easily customizable products. The company is a leader in communications, consumer, PC peripherals and automotive semiconductors, which are key applications for convergence in end-user products. Philips Semiconductors is headquartered in Eindhoven, The Netherlands, and has operations throughout the world. For more information: [www.semiconductors.philips.com][1].

About MIPS Technologies, Inc.

MIPS Technologies, Inc. is a leading provider of industry-standard processor architectures and cores for digital consumer and network applications. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC developers and system OEMs. MIPS Technologies and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products. The company is based in Mountain View, Calif., and can be reached at 650/567-5000 or [www.mips.com][2].

[1]: http://www.semiconductors.philips.com/
[2]: http://www.mips.com/

Details

CyberCash Auction

CyberCash this morning announced the results of the court sanctioned auction of CyberCash’s operating assets as part of CyberCash’s reorganization under Chapter 11. At the auction, the company received two competing, high bids just over $20 million. CyberCash says it is considering the bids this morning. The identity of the two bidders is not being announced pending resolution of the auction. Excluded from the transaction are CyberCash’s financial assets, including CyberCash’s interest in CyberCash K.K., its Japanese payment processing joint venture with SoftBank, as well as CyberCash’s investments in Commission Junction, Xcom and Outbounder. CyberCash intends to sell these financial assets through subsequent auctions in the next 60 days.

Details

UNITED KINGDOM

HNC Financial Solutions, a division of HNC Software
Inc., announced the availability of Falcon Quick
Track, a specialized version of the Falcon bank card fraud detection
system developed specifically for international card issuers. Falcon Quick
Track offers the world-renowned fraud detection abilities of Falcon at a
significantly reduced implementation time, allowing mid-sized international
customers to benefit from reduced fraud losses much more quickly.
The system is available immediately to help battle payment card fraud, which
continues to escalate at alarming rates throughout the world. This is
especially the case in Europe, where card fraud grew across the European
Union by a staggering 50 percent last year, according to the European
Commission, with illegal transactions reaching an estimated $553 million
(US). Visa International reports that card fraud is growing in the European
Union faster than in any other part of the world.

“Due to the rapid increase in payment card fraud activity throughout Europe,
it’s critical for all card issuers in the region to protect themselves and
their customers with the most advanced fraud detection solutions available
to them,” said Allan Trosclair, President of the Coalition for the
Prevention of Economic Crime. “Fraud detection solutions are greatly needed
in the region at this time, and should be embraced by the international
community as a way to fight this growing economic crime.”
“We are offering mid-sized European card issuers, who often conduct card
processing independently, an accelerated access to the significant fraud
loss reductions made possible by Falcon,” said Ruud Nijs, HNC Software’s
Managing Director for Europe, the Middle East and Africa. “Falcon Quick
Track reduces much of the integration effort undertaken during a typical
system implementation, and with a minimal investment of often scarce IT
resources. In fact, with Falcon Quick Track, HNC offers an experienced team
of implementation specialists who can help clients get up-and-running with
the system faster than ever, and at a substantial cost savings.”
Falcon is a neural network-based predictive software system that examines
transaction, cardholder, and merchant data to detect a wide range of payment
card fraud. Falcon Quick Track packages Falcon for fast integration into
standard fraud operations and employs a fraud detection model developed
specifically to detect international card fraud activity. Falcon currently

protects more than 350 million payment card accounts worldwide and employs
the world’s largest consortium of payment card transactions to accurately
predict the likelihood of fraud.

“Offering this specialized fraud detection solution specifically to the
European market further illustrates HNC’s ongoing expansion into Europe, the
Middle East, and Africa,” added Nijs.

HNC Financial Solutions is a leader in the development of intelligent
customer value management software solutions for the financial services and
e-commerce industries. Its powerful suite of real-time decision platforms
and predictive business solutions allows firms to automate new account
decisioning, optimize marketing efforts, detect fraud, predict
profitability, and manage the customer lifecycle. HNC Financial Solutions
supports this suite of solutions with a full range of consulting services.
HNC Software is a leading provider of Intelligent Response, decision
management, and customer analytics software that enables companies in the
financial, telecommunications, e-commerce, and insurance industries to
acquire, manage, and retain customers.

Details

Debit 2000

VISA continues to dominate the off-line or signature-based debit card market with a overwhelming 79% market share. According to figures gathered by CardData, VISA racked up more than $239 billion in U.S. debit card volume last year compared to $62.6 billion for MasterCard. More than 100 million ‘VISA Check Cards’ are now in circulation along with 35.2 million ‘MasterMoney’ cards. Overall the off-line U.S. debit card market is slowing down as the annual growth rate for 2000 declined to 30% compared to 36% for 1999, and 54% for 1998.

U.S. OFF-LINE DEBIT CARD MARKET
Purchase Volume
BRAND 1997 1998 1999 2000
VISA: $93.7b $134.7b $183.8b $239.3b
MasterCard: $16.8b $ 35.1b $ 48.2b $ 62.6b

Cards-in-Force
BRAND 1997 1998 1999 2000
VISA: 58.0m 73.8m 84.5m 100.7m
MasterCard: 22.1m 26.8m 31.3m 35.2m
b-billions m-millions
Source: CardData (www.carddata.com)

Details

CROATIA

Hypercom Corporation has
delivered 6000 T7PS and S8 Point of Sale terminals to Privredna Banka
Zagreb in
Croatia with a further 1000 to be shipped in May. This deal makes Hypercom
the
leading provider of POS payment terminals, and PBZ the largest POS acquirer in
the country.

With its strategic partner, The New Intesa Group, one of the top ten European
banking Groups, out of Italy, PBZ’s business strategy is to become a
client-driven organisation using modern banking techniques and introducing new
products into a newly dynamic market.
In 1998 PBZ installed a card processing host system and together with Hypercom
built a fast modern transaction authorisation network, in order to facilitate
profitable merchant acquisition. Since then, the bank has become the largest
acquirer in the country. It now has a complete Hypercom infrastructure in
place, POS – PIN pads Term Master IENs – IEN View, so that PBZ, unlike other
banks in Croatia, can now accept all card types (Europay/MasterCard, VISA,
American Express, Diners) on their POS terminals and perform extremely fast
authorisations.

“Recently we have seen dynamic changes in the economic and social structure of
Croatia as it adjusts to the standards of other European countries. PBZ is
committed to matching this growth and our partnership with Hypercom allows us
to provide the best service that our customers demand,” said Flora Lendvai,
head of the card department at PBZ.
Hypercom’s T7PS terminal, upgrades authorisation-only equipment, allowing
merchants to move to electronic data capture and accept debit cards for the
first time. T7PS can read all types of credit, debit, check and charge cards.
The T7PS can also accept new smart cards, is EMV certified, and an external
PIN
pad can be attached to support cardholder entry of PIN numbers. Dedicated
function keys allow one-step operation of everyday processes, simplifying
operations and making it an extremely popular choice with merchants.
“We are pleased to have been chosen by PBZ as their strategic POS partner and
look forward to working with them in the future as they roll out smart card
programs, provide more cash register integration and communication options to
merchants,” said Robert McLaughlin, Managing Director of Hypercom EMEA. “In
addition, plans are being discussed to migrate the bank to Hypercom’s ICE

platform with the many value-added services that it offers.”

About Hypercom (www.hypercom.com)
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
more
than 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

About Privredna Banka Zagreb

PBZ has been in operation since 1962, when it was formed as an investment bank
in the former Republic of Croatia. In 1989, PBZ was constituted as a joint
stock company. It is fully licensed for all domestic and international
banking
activities through its business divisions. PBZ has a network of 16 branches
and over 150 offices throughout Croatia (and representative offices in
Frankfurt and Zurich).

Details

ECHO ECC

Electronic Clearing House announced Wednesday that merchants can now use their personal computers to process electronic check conversion transactions through a new service provided by GO Software’s ‘PCCharge’ product. Referred to as ‘XPRESSCONVERSION’, merchants can expedite their cash flow and reduce their check acceptance risks by using ‘PCCharge Pro 5.0’, the same software they have used for processing credit card transactions through ECHO for the past two years. The merchant can access check images online in case of returns or for marketing purposes. All the merchant’s electronic check activity is also available at the same Web site.

Details

UNITED KINGDOM

Datacard Group announced that it has assembled an elite team of smart card
specialists that will provide card issuers with a wide range of security
evaluation services. The new group, called Datacard Consult p7, will be
based in London and serve major card issuers around the world.
The team, which is comprised of experienced mathematicians, cryptographers
and smart card chip experts, is already working closely with a number of
the world’s largest corporations to measure and improve the security of
high-profile smart card programs.

“Creating a trusted platform is a paramount concern for most smart card
programs, especially for financial and personal data applications”, said
Graham Higgins, Head of Datacard Consult p7. “We believe we have the most
accomplished team in the industry for measuring and improving the integrity
and security of a chip, an operating system or an entire smart card program.
“Essentially, we examine our customer’s chips and operating systems with
the skill associated with a more sophisticated attack,” Higgins said. “We
generally are able to find fraud, theft and forgery risks that our
customers were not expecting.”

Higgins said that although Datacard Consult p7 customers have talented
in-house technical staff, they don’t have the specialized skills required
to uncover security gaps that can be exploited by the more sophisticated
attacks.

“Security risks change constantly. Thieves are always attempting to
leapfrog the latest security measures,” Higgins said. “Fortunately, because
we have a gifted team that focuses exclusively on the smart card, we
understand this reality and strive to remain several steps ahead of the
latest attack strategies.”

Higgins, along with many of the security experts who comprise the team,
previously worked for a company called platform seven (p7), which Datacard
acquired in March 2000. p7 as the research and development arm of National
Westminster Bank and creator of the Mondex electronic purse scheme and
MULTOS operating system, had developed a worldwide reputation for
innovative, robust software products and unmatched consultative services.
“Acquiring p7 greatly expanded our smart card portfolio,” said Jerry
Johnson, Datacard president and CEO. “We’re now able to provide our
customers with the world’s most complete line of smart card issuance and
smart card management solutions — including an end-to-end architecture for
issuance of multi-application smart cards.

“The acquisition also provided us with the nucleus for Datacard Consult p7,
which will become a vital resource for our customers,” Johnson said. “Our
mission is to help our customers develop smart card programs that are
successful out of the gate and over the long run. Datacard Consult p7
services are a vital part of our overall solution.”

Datacard Consult p7 expects to provide services for a variety of
organizations in a number of markets, including financial, healthcare,
telecommunications, retail, transportation, insurance, government and
education. They also expect to continue providing application development
and chip / card evaluation services to all industry sectors.

“Smart cards, especially multi-application smart cards, will store a
variety of private and valuable data,” Higgins said. “It will be imperative
that card issuers protect this data and preserve trusted relationships with
their cardholders. We believe we’re uniquely qualified to help card issuers
accomplish that.”

Datacard Group is a world leader in innovative plastic card personalization
and identity management solutions. The company provides its customers with
integrated systems for a variety of financial, identification and
healthcare applications. A diverse solutions portfolio features a broad
range of card-related products and services, including the world’s
best-selling card personalization and printing systems. Datacard Group also
offers smart card life cycle management software, smart card
personalization systems, smart card personalization applications and a
variety of products and services designed to enhance card-issuing
operations. Datacard Corporation, doing business as Datacard Group, is
privately held and based in Minnetonka, Minn. The company serves customers
in more than 200 countries worldwide.

Details

Euronet Board

Euronet Worldwide, a leading provider of secure electronic financial transaction solutions, announced that M. Jeannine Strandjord, Senior Vice President – Finance, Long Distance Division for Sprint Corporation, has agreed to serve on its Board of Directors Ms. Strandjord has served in her current position with Sprint Corporation since 1998, and has responsibility for billing, accounting, budgeting, financial policy, financial systems, operational analysis, receivables management and decision support.

“Ms. Strandjord brings a strong business and financial background to the Euronet board,” said Michael Brown, Chairman and CEO of Euronet Worldwide. “Her background in finance and telecommunications will be especially helpful as our company continues to expand our product offerings and our global geographic presence.” Prior to assuming her present duties at Sprint Corporation, Strandjord served as Senior Vice President and Treasurer for Sprint. In that position, she was responsible for treasury operations, capital markets, pension and savings trust management, risk management and loss prevention, and all real estate/facilities functions for Sprint and its subsidiaries. She held that position since 1990. Strandjord joined Sprint in January 1985, serving as Vice President of Finance and Distribution at AmeriSource, Inc., a Sprint subsidiary. From 1986 to 1990, she served as Vice President and Controller of Sprint. Prior to joining Sprint, Strandjord was Vice President of Finance for Macy’s Midwest and had held positions with Kansas City Power & Light Co. and Ernst and Whinney.

About Euronet Worldwide

Euronet Worldwide is an industry leader in providing secure electronic financial transaction solutions. The company offers financial payment middleware, financial network gateways, outsourcing and consulting services to financial institutions and mobile operators. These solutions enable their customers to access personal financial information and perform secure financial transactions — any time, any place. The company has processing centers located in the United States, Europe and Asia, and owns and operates the largest independent ATM network in Europe. Euronet was recently ranked number two on the Deloitte & Touche Technical Fast 500, a ranking of the fastest growing technology companies in North America. With corporate headquarters in Leawood, Kansas, USA, and European headquarters in Budapest, Hungary, Euronet serves more than 200 clients in 60 countries. Visit our web site at [www.euronetworldwide.com][1]

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

Details

AUSTRALIA

ActivCard S.A. and Authentic8 International, Inc.
announced that, due to current market conditions, the two companies have
agreed to terminate the Stock Purchase Agreement announced previously on
February 18, 2001.

“ActivCard will continue to explore existing and future strategic market
opportunities with Authentic8 as we seek technology licensing and development
alternatives,” said ActivCard Chairman and CEO Jean-Gerard Galvez.
Confirming that customers have found the companies’ solutions
complementary, Authentic8’s Chairman Roger Allen added, “Authentic8 is
continuing to experience strong customer demand for its Internet
Authentication Service and security products having recently won multi-million
dollar orders from two major telecommunications companies, supporting the next
phase of the company’s growth.”

As a result of this decision, ActivCard will take a one-time charge of
approximately US$4.0 million in the first quarter 2001. This charge
represents cumulative costs incurred to effect the proposed Stock Purchase
Agreement as well as break-up costs.

ActivCard management reaffirmed its comfort with analysts’ revenue
expectations for the first quarter 2001, which will be reported on
May 10, 2001.

About ActivCard

ActivCard, a leader in digital identity and electronic certification
technology, delivers core components required to enable next generation
e-Business communication and transactions. The ActivCard technology suite
offers the ease-of-use of an ATM transaction with a security level better than
face-to-face meeting. ActivCard solutions, in conjunction with the
applications support for public key based data confidentiality and integrity,
allow individuals and businesses to perform secure online transactions over
the Internet. Today, more than 2 million people use ActivCard products for
secure Internet banking, Web access and remote access to corporate networks.
ActivCard is headquartered in Fremont, California, with worldwide operations
in France, Germany, Japan, Sweden, Singapore and United Kingdom. For more
information, please visit the company’s website at http//www.activcard.com.

About Authentic8

Authentic8’s IAS authenticates the digital identity of employees,
customers and partners when they remotely access their organization’s computer
network.

Details

Commerce 1Q/01

More first quarter 2001 data are showing the collapse in credit card outstandings. MO-based Commerce Bancshares reported yesterday 1Q/01 receivables of $458 million compared to $522 million for 4Q/00, a 14% drop. Accounts also dropped from 586,040 to 540,715 as the percentage of active accounts dropped from 52% to 50% during the first quarter. More details on 1Q/01 portfolio data for top 350 U.S. issuers is available via CardData ([www.carddata.com][1]).

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

Details