Gemplus Short-Fall

Smart card manufacturer, Gemplus International, warned Wednesday that first quarter results will fall short of its projections due to softer SIM card demand, particularly in Europe and North America. The French firm says the economic slowdown in the wireless industry is clearly affecting demand. Based upon preliminary analysis of its 1Q/01 results, the company anticipates revenue to be approximately 290 million EURO. This represents 25% growth from first quarter levels in 2000, instead of the 31-32% growth projected earlier. Gemplus also indicated that as a result of the volume shortfall it expects an unfavorable shift in product mix and unfavorable manufacturing variances in its European based factories. The company has scheduled a conference call with investors this afternoon. On NASDAQ, Gemplus’ stock slipped yesterday from $8.75 to $8.25 per share. The stock had traded as high as $18.75 following its IPO in December. The stock also trades on the Paris bourse. (CF Library 12/12/00)

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Preveiler Goes Atomic

Atomic Software, a trusted e-payment technology and services company, announced that Jack Perveiler has joined the firm as Vice President of Sales.

Jack will be responsible for developing and leading the Atomic sales force for the Company’s Internet e-payment, wireless m-payment, and traditional payment software products. Jack will focus on adding new processors, acquiring banks, Independent Sales Organizations (ISOs), Internet Service Providers (ISPs), Application Service Providers (ASPs), and application developers to the Company’s reseller channel.

Jack brings a strong background of over twenty years of successful selling and sales management in the highly specialized, electronic payment industry. His most recent post, prior to joining Atomic Software, was Vice President of Sales and National Sales Manager for US Wireless Data. Previously Jack was highly successful as the Director of Western Region Sales for Hypercom Corporation. “Jack’s enthusiasm and energy for the new wireless and Internet payment technologies that our Company offers is absolutely contagious,” commented Thomas McCole, President of Atomic Software. “We are all excited about Jack joining us at a time of when our momentum in these new payment arenas are accelerating rapidly.”

Atomic Software is a venture-funded developer and marketer of wireless, Internet e-payment gateway services and software products for mobile and traditional merchants, Internet ISPs and web-based merchants. Its products serve the traditional dialup retail, government, fast food, restaurant, practice management, and mail/phone order system markets. Atomic’s payment gateway services and software products perform credit card authorizations, debit card authorizations, check verification and guarantee services, purchase card authorizations, stored value transactions and electronic settlement (deposit) for merchants. The Company’s products are certified with most major transaction processors and thousands of banks. For further information please contact: Robert Brooks, Director of Wireless Products, 813/995-0268, or visit our web-sites: [www.ecomportwireless.com][1], [www.iauthorizer.com][2], and [www.atomic-software.com][3].

[1]: http://www.ecomportwireless.com/
[2]: http://www.iauthorizer.com/
[3]: http://www.atomic-software.com/

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#1 Internet Card

A new study reveals that among individual issuers, the Discover Card is the most popular card used online by U.S. consumers. At the brand or network level, the VISA card dominates Internet card transactions. Discover replaced Citibank as the #1 ranked online card in the annual spring survey of 3,000 consumers. First USA, ranked second last year, has fallen to #6. According to the Brittain Associates study, over four million U.S. consumers claim that their Discover Card is the one that they reach for most often when buying online.

ONLINE CARD USAGE BY BRAND
1. VISA 50%
2. MasterCard 31%
3. Discover 12%
4. American Express 8%

ONLINE CARD USAGE BY ISSUER
1. Discover
2. Citibank
3. Capital One
4. American Express
5. NextCard
6. First USA
7. Providian
8. MBNA
9. Wells Fargo
10. Chase
Source: Brittain Associates

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Korean Market

[][1] Bank of Korea reported that cash advances provided by domestic credit card companies grew 400% last year and overall household lending surpassed 264 trillion won (US$200.1 billion), up 24%. At year-end 2000, household lending totaled 264.1 trillion won, up 24% from 213 trillion won at the end of 1999. Household lending by banks, savings organizations, insurance and credit card companies reached 238.2 trillion won ($180.4 billion), up 24.8% from the end of last year. Credit card sales directly linked to consumption by households rose 16.9% to 25.8 trillion won ($19.5 billion). Household lending through cash service by credit card companies last year rose by 16.3 trillion won, 4.2 times of the growth in 1999 at 3.89 trillion won. For more international payment card information visit RAM Research Group ([www.ramresearch.com][2]).

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

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0% Offers

Chase has joined the growing list of 0% intro APR credit card offers. In a targeted e-mail solicitation, Chase is offering a five month 0% interest rate on purchases and balance transfers for its ‘Platinum MasterCard’. According to CardWatch ([www.cardwatch.com][1]), the Chase e-mail offer was dispatched this week through Enterprise Marketing Solutions. The offer expires April 21st. The card carries a go-to, risk-based APR ranging from 13.49% to 26.99%. Last month FleetBoston began offering a fixed 0% interest rate on new purchases and balance transfers until December 1. Capital One is offering a 0% APR on new purchases until August for its ‘VISA Platinum Business’ card, while Citibank’s ‘Universal Platinum MasterCard’ is offering a 0% rate on balance transfers until January 1. (CF Library 2/28/01; 3/29/01)

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

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Keyware Authorization

MA-based Keyware has acquired Belgium-based Data Management and Processing, a provider of smart card authorization services for merchants and card issuers. Under terms of the deal, Keyware will pay approximately $1.1 million in cash and an additional $800,000 in Keyware stock to be paid out over the next two years. The acquisition will enable Keyware to strengthen its existing biometric and smart card business, allowing the company to offer secure biometric authentication in addition to providing authorization for each customer card transaction. During 2000, DMP had revenues of approximately $1.1 million. DMP is under contract with a number of major card issuers to handle authorization services for more than 1.5 million cards and accounts. DMP servers authorize transactions from some 50,000 EFT terminals located at retail stores, restaurants and other locations throughout the Benelux region.

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SCM Cards for Streamaster

SCM Microsystems, Inc., a leading provider of solutions that open the Digital World, has announced that Motorola, a global leader in providing integrated communications and embedded electronic solutions, has selected SCM as its smart card interface supplier of choice, for Motorola’s Streamaster 5000 advanced set-top box. Streamaster is a multimedia broadband information, entertainment and communications center that derives its content from xDSL service providers.

![][1] SCM will provide Motorola with its Smart Transporter Chip(TM), a universal smart card reader interface, based on SCM’s widely adopted SmartOS(TM).

“SCM has an excellent reputation for its smart card-based solutions and the Smart Transporter Chip is a great solution for our set-top boxes,” said Jackie Beauchamp, general manager, Multimedia Systems Division at Motorola. “SCM demonstrated the ability to control both design and manufacture of its chips. Also, it was important that SCM could supply us with the large quantities of product needed, as we predict high demand for Streamaster 5000.”

Streamaster 5000 supports a rich variety of basic and enhanced services. These include premium digital TV, Web browsing, e-mail, online 3-D games, personal video recording and video/music-on-demand. By incorporating SCM’s Smart Transporter Chip, Motorola’s newest set-top box will also support smart card-based payment transactions for items such as pay-per-view movies, music downloads and T-commerce purchases.

“Being chosen as a supplier of choice for one of the world’s leading names in broadband communications is the highest endorsement — not just for the quality of our products, but for our ability to manufacture and produce units in very high volume,” said Jason Schouw, vice president of U.S. sales for SCM’s PC Security division. “Our smart card chips are extremely versatile and can be used in a variety of platforms and applications. Combined with our manufacturing capability, OEMs have a powerful argument to buy from SCM.”

SCM’s Smart Transporter Chip enables easy integration of support for all smart cards, including ISO 7816 compliant smart cards. The Smart Transporter Chip’s architecture is based on open standards and is upgradeable to support new smart card protocols and functions.

About SCM Microsystems

SCM Microsystems is a leading supplier of solutions that open the Digital World by enabling people to conveniently access digital content and services. SCM’s advanced silicon solutions, hardware and software enable secure exchange of electronic information for digital applications from e-commerce to broadband content delivery by providing controlled access points to platforms such as PCs, digital cameras and digital television set-top boxes. Known as a premier supplier to OEM companies around the world, SCM also serves the retail market through its Dazzle, Microtech and FAST product brands. Global headquarters are in Fremont, Calif., with European headquarters in Pfaffenhofen, Germany. For additional information, visit the SCM Microsystems Website at [http://www.scmmicro.com][2].

About Motorola

Motorola, Inc. is a global leader in providing integrated communications and embedded electronic solutions. Sales in 2000 were $37.6 billion. For more information, please visit the Motorola Web site at [http://www.motorola.com][3] or [http://www.motorola.com/streamaster/][4]

[1]: /graphic/motorola/motorola.jpg
[2]: http://www.scmmicro.com/
[3]: http://www.motorola.com/
[4]: http://www.motorola.com/streamaster

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MC Asia-Pacific

[][1] MasterCard reported that the Asia Pacific region (excluding China) recorded particularly strong results for 2000, as gross dollar volume rose 53.9% for the full year, and 51.2% for the fourth quarter. In 1999, the Asia Pacific region (excluding China) had reported a 16.5% year-to-year increase, as the region began to recover from an economic crisis. Contributing to the 2000 volume growth was particularly strong performance in the following market clusters: Korea (up 114.6%), Greater China (excluding China) (up 39.1%), South East/South Asia (up 27.1%), Australia/New Zealand (up 22%), and Japan (up 18.3%). Asia Pacific (excluding China) also reported strong growth in cards issued (up 17.9%), and transactions (up 34.6%). The number of locations where cardholders can use their MasterCard cards rose 18.9% in the Asia Pacific region. For VISA and MasterCard international data visit RAM Research Group ([www.ramresearch.com][2])

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

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PC Pay Agent Test

MerchantOnline, a provider of secure transaction networks and devices for credit cards and debit cards, announced Wednesday that it has successfully verified that the newest version of PC Pay Agent Software works on the 250 most widely used Internet websites. The verification process was done without the knowledge or assistance of any of the listed sites in order to prove that no involvement by the merchant was required to use MerchantOnline’s one-time use card number.

The PC Pay Agent supports the use of the patented PC Pay(R) device for making secure card present Internet transactions with credit, debit, and smart cards on both existing and new sites with no modification required to the merchant’s web site. PC Pay Agent is activated on the consumer’s computer when the user installs a PC Pay device. PC Pay Agent populates the merchant’s payment screen with a one-time use card number that routes the encrypted card data to the appropriate processing center. MerchantOnline’s system then decodes the data and sends an approval code to the merchant. The number is then discarded and may not be used again. The PC Pay Agent’s design allows it to work with virtually all merchant websites on any payment processing platform including VISA, MasterCard, AMEX, Diner’s Club, and STAR.

The following list includes some of the sites that have actually been verified by MerchantOnline: 1800Flowers, Amazon (Nasdaq:AMZN), Ann Taylor, Gap, Barnes and Noble, Bloomingdale’s, Borders, Brook Stone, Circuit City, CVS/Pharmacy, Disney Store, Egghead, Home Depot, IBM ThinkPad (NYSE:IBM), J.C. Penney, J Crew, Kmart, Lands End, Macy’s, Martha Stewart, Microsoft Press (Nasdaq:MFST), Nordstrom, Office Depot (NYSE:ODP), Playboy, Polo (Ralph Lauren), QVC, Radio Shack, Starbucks, Target, The Sports Authority, Tiffany, Ticket Master, Toys R Us, United States Postal Service Online Store, Victoria’s Secret, Walgreen’s, Wal-Mart.

“We are very pleased with the functionality and flexibility shown by our latest secure eCommerce infrastructure system development,” said Tarek Kirschen, MerchantOnline CEO. “We believe our PC Pay Agent certification tests proves our eCommerce transaction solution offers the most secure online transaction model with no impact to eMerchants as well as the security comfort consumers require.” The PC Pay agent solution requires no expensive modifications to merchant web-servers and interfaces to virtually all electronic shopping carts used in eCommerce transactions today. This is a major differentiator in our secure eCommerce solution.”

About MerchantOnline.com

Founded in December 1997, MerchantOnline provides a secure transaction network that enables business and consumers to use one payment system for both their real world and virtual world needs utilizing credit card, ATM/debit cards and other payment programs.

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VAST ATTMs

Paciolan and Value Automated Systems Ticketing Inc., signed an agreement to place VAST’s attendant-free ticketing kiosks at Paciolan’s customer sites, which include some of the highest attended sports and entertainment venues in the country.

The machines, which will be located in high-traffic areas at these live entertainment venues, will give ticket buyers another purchase point and help alleviate long lines at box offices.

Paciolan’s e.Venue software will serve as the digital link between the VAST automated ticket and teller machines (ATTM) and Paciolan’s back office ticketing platform. This digital link allows real-time, 24/7 access to best available tickets at the ATTMs, so patrons are assured the same ticket availability whether they purchase their tickets at the box office or through the ATTMs.

Patrons will also be able to withdraw cash from the ATTMs. In a few months, functionality allowing reserved tickets to be picked up at the machines rather than at a will call window will be added, further enhancing attendees’ entertainment experience at the event.

“VAST will play an important role in all of our market segments, particularly in professional sports and attractions,” said Jane Kleinberger, Paciolan’s chief executive officer. “With this partnership, we demonstrate our commitment to an open market strategy that emphasizes best-of-breed technology. This is another step in Paciolan’s plan to bring greater value to our customers through strategic alliances.”

“Paciolan is a leader in the industry,” said Ed Mitchell, VAST’s chairman of the board. “It’s quite an honor to be aligned with a company with their reputation and stellar client base.”

National Aquarium in Baltimore will be Paciolan’s first customer to begin using VAST’s attendant-free ticketing machines. The Aquarium plans to have two machines in place at the main entrance in time for the busy summer season. Eventually, the Aquarium expects to have six ATTM machines.

Paciolan’s ticketing solutions include a back office ticketing platform and e.Venue software, which enables venues to sell their own tickets through various channels, including the Internet and now through ATTM machines. Paciolan gives live sports and entertainment venues the tools to manage their customer relationships without relying on traditional ticket distributors, brokers and other intermediaries.

About VAST

Value Automated Systems Ticketing Inc. (VAST) of San Diego, is the developer of the attendant-free Automated Ticket and Teller Machine. VAST is in partnership with Fujitsu, a top manufacturer of ATMs, to provide automated ticketing and cash machines that are custom-programmable for each venue’s needs. The machines are self-service, accept credit cards, accept cash and make change. VAST provides customers with hardware, software, financial services, technical support and maintenance. VAST markets its products to movie theaters, sports facilities, ski resorts, themed attractions, transportation, and multi-purpose venues.

About Paciolan

Paciolan is a privately held corporation based in Irvine that provides software products to facilitate automated ticketing. The company, founded in 1980, is the dominant technology provider for live entertainment ticketing. Paciolan currently has contracts with some 200 organizations that operate more than 500 professional sports, university athletics, performing arts, museums, and attraction venues throughout the United States, accounting for more than 85 million tickets a year.

Paciolan customers include: the St. Louis Rams, San Diego Padres, Arizona Diamondbacks, Colorado Rockies, Florida State University, University of Notre Dame, The Ohio State University, University of Nebraska, American Museum of Natural History, San Francisco Ballet, Boston Museum of Fine Arts, Dover Downs Entertainment Inc. and Graceland Mansion Tours. The company’s Web site address is [http://www.paciolan.com][1].

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

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Jazzy ATMs

More than 160 Firstar Bank ATMs in the Greater St. Louis area are now equipped to sell ticket vouchers for the Firstar St. Louis Jazz Festival. To kick-off this new service to the community, Firstar ATMs located at the Firstar Plaza in downtown St. Louis and at 10 North Hanley in Clayton will have jazz musicians belting out tunes for those visiting these ATMs. The musicians will be playing from 11:30 a.m. until 12:30 p.m. on Wednesday, April 4 at these two special locations.

The Firstar St. Louis Jazz Festival will be held this year at Shaw Park in Clayton on Friday, June 22, from 5 p.m. until 10 p.m. and on Saturday, June 23, from noon until 10 p.m. Ticket vouchers will be available through Firstar ATMs as single day passes good for either Friday or Saturday for $15, or a two-day pass for $25.

Cathy Myers, senior vice president of Firstar Bank, noted, “We are always looking for ways to make life more convenient for our customers, so making it easy for them to purchase tickets for the Jazz Festival at Firstar ATMs was a natural. Our ATMs currently offer cash, postage stamps, phone minutes and other services and products and now they can offer people a ticket to a great event. We are proud to be a part of the festival and at the same time give back to the community by sponsoring an event that is good for all of St. Louis.”

To purchase the vouchers all a cardholder has to do is insert his or her card, enter their Private Identification Number (PIN) and look for the “Jazz Festival” on-screen icon. The rest of the process is explained on the screen. Once the transaction is completed, the cardholder will receive a ticket voucher, which can be redeemed at the Jazz Festival in Shaw Park for a wristband good for admission into the event.

Cindy Prost, executive director of the Firstar St. Louis Jazz Festival, commented, “We are pleased to have Firstar as a partner for the Jazz Festival. Not only is Firstar a great sponsor of the festival, Firstar is making the process of buying a ticket for the event very easy. With Firstar’s commitment to the festival and public support, this will be a successful event even before the first musician plays a note.”

The ability to purchase Firstar St. Louis Jazz Festival ticket vouchers at Firstar ATMs is open to both Firstar customers and non-customers. Also, there is no ticket-handling fee connected with the purchase of the vouchers.

Firstar Bank is a subsidiary of U.S. Bancorp. With assets in excess of $160 billion, U.S. Bancorp is the 8th largest financial services holding company in the United States. The company operates 2,239 banking offices, 5,208 branded ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at usbank.com and Firstar Bank at firstar.com.

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