CANADA

Global Payments Inc. announced that it has closed a transaction with
Canadian Imperial Bank
of Commerce, originally announced on November 9, 2000. Global has
acquired certain net assets of the merchant acquiring business of CIBC and has
formed a ten-year marketing alliance with CIBC to offer VISA credit and debit
card payment products and services to merchants in Canada. The acquisition
and the related marketing alliance significantly broaden Global’s scope and
presence in North America and provide customers served by CIBC’s merchant
acquiring business with an array of additional payment solutions. The
combined operations of Global and CIBC’s Canadian business include processing
2.4 billion transactions annually from approximately 915,000 merchant
locations in North America. Annual revenue from CIBC’s Canadian business was
$92.0 million for the year ended October 31, 2000.

Under the terms of the purchase agreement, Global has issued 9,764,623
shares of common stock to CIBC, providing CIBC with a 26.25% ownership
position in Global Payments.

“The commencement of this partnership is an exciting milestone for Global
Payments,” said President and CEO Paul R. Garcia. “We enthusiastically
anticipate the opportunities this relationship affords all of our
constituencies,” he said.

David Marshall, Vice Chairman of CIBC, said, “We are very pleased to be
working with Global Payments, and we are convinced that our alliance will
yield numerous benefits for our North American customer base.”

Global Payments Inc. is a leading provider of electronic transaction
processing services to merchants, Independent Sales Organizations (ISOs),
financial institutions, government agencies and multi-national corporations.
Global Payments offers a comprehensive line of payment solutions, including
credit and debit cards, business-to-business purchasing cards, gift cards,
check guarantee, check verification and recovery, terminal management and
funds transfer services.

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ISRAEL

OTI announced the launch of its Saturn Reader – the first fully integrated
smart
card reader to accept both ISO 7816 contact cards and ISO 14443 Type A, B, and
D contactless cards, including the Mifare platform — at the CeBIT Trade Fair
in Hanover, Germany. The Saturn was developed in response to customers
wishing to support multiple applications and upgrade from existing smart card
implementations to the secure, multi-application contactless-based solution
offered by OTI.

For example, in a mass-transit implementation, a transit authority with
single-application contactless ASIC smart cards may wish to offer a
contactless smart card with multiple applications such as a loyalty program
and a payment platform supported by financial institutions. Rather than incur
the costs of replacing the entire system at once, the transit authority can
exchange its current smart card readers for the Saturn, which can accept both
types of cards. Existing cards will be seamlessly accepted by the new reader
while the transit authority begins a gradual card replacement program to move
customers to the multi-function contactless smart card.

The user-friendly Saturn reader, based on OTI’s revolutionary EYECON
technology platform, is a multi-function contact and contactless smart card
reader designed to interface with either a PC or point-of-sale (POS) terminal.
The Saturn’s software resides on a flash memory card to allow rapid,
trouble-free upgrades after installation. A combination of technology and
software protocols maintains a high level of security during the transaction
process.

“Our Saturn line of readers offers a single user-friendly interface to
multiple smart card operations, meeting the existing and future needs of our
customers,” said Oded Bashan, President and CEO of OTI. “As the first reader
in the industry to provide multiple ISO-standard contact and contactless
functionalities, we are providing the ultimate user solution to our customers,
enabling them to move from existing systems to a preferred, more advanced
technology.”

The Saturn’s multipurpose, compact design maximizes valuable counter space
during the conversion process. Customers with contactless smart cards merely
place the card into the recessed resting pad, while contact cards are inserted
into the horizontal card slot. Development tools are available to integrate
the Saturn into a variety of environments. The Saturn can also be combined
with contactless solutions from OTI to offer the ultimate in smart card
functionality. The Saturn Reader will be demonstrated at OTI’s booth at CeBIT
2001, March 22-28 in Hall 23, Booth 53B.

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.

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south KOREA

Poised to tap Korea’s
burgeoning consumer credit market
as part of its global expansion, Fair, Isaac and Company, Inc. said
it will provide a range of products and
services to one of Korea’s leading credit card issuers.

Seoul-based Samsung Card Co. Ltd., a unit of the Samsung Group, will
deploy
a number of Fair, Isaac decision technology
solutions to help establish long-term, personalized relationships with its
eight million credit card customers. The technology will
also help Samsung rapidly expand its customer base in this growing market.
Korea currently has about 20 million credit card holders, and this number
is expected to grow rapidly as a result of
government incentives, changes in consumer spending habits of Koreans and the
absence of a check payment system. Along with
Fair, Isaac, Samsung is betting heavily that credit card applications and
usage
will expand as non-cash payment methods become
more commonplace.

Tom Grudnowski, Fair, Isaac’s CEO, said recently, “We are extremely
pleased
that Samsung has elected to use Fair, Isaac’s
technology to create really meaningful relationships with its customers in
Korea. We are very aware of the special needs of
emerging consumer credit markets and the importance of developing loyalty and
stepped-up activity with consumers who have
little familiarity with credit card use.”

Hyungseok Lee, Strategic Information Team Leader at Samsung, added, “For
Samsung, our success in Korea will depend
largely on our ability to create appropriate services and convenience for our
customers. We chose to work with Fair, Isaac
because of the company’s global reputation in helping credit grantors better
understand and service their customers. Fair, Isaac
enables us to effectively measure many factors about our consumers right at
the
beginning of our relationship. That means we are
better able to tailor product offers to specific needs — an ability that is
core to our long-term success.”

As part of the agreement, Samsung will utilize Fair, Isaac’s
StrategyWare(R) decision engine for account origination and
predictive models to create precise, customer-appropriate offers when accounts
are opened. StrategyWare provides risk
managers with an ability to design, test and execute complex decision
strategies without relying on programming support.

This new agreement extends an already successful and long-term
relationship
between Samsung and Fair, Isaac, which
includes the use of the TRIAD(TM) adaptive control system for customer and
account management, behavior scoring models
and other Fair, Isaac products.

About Fair, Isaac

Fair, Isaac and Company is a global provider of customer analytics and
decision technology. Widely recognized for its
pioneering work in credit scoring, Fair, Isaac revolutionized the way lending
decisions are made. Today the company helps

clients in multiple industries increase the value of customer relationships.
Fair, Isaac has made the Forbes list of the top 200 U.S.
small companies eight times in the last nine years.

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south KOREA

Samsung Card Co. announced it will issue a corporate card which can be
electronically certified to enable Internet transactions. The company said
it has signed a partnership deal with the Korea Information Certificate
Authority, a state-invested electronic certificate
institution, and Coregate, an electronic commerce security provider, for
the new corporate card.

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AUSTRALIA

Sydney-based Cards etc,
developer of Arterium — the transaction infrastructure management system for
multi-application smart cards — has finalised a funding round which has
provided a $16 million cash injection.

Citicorp Equity Capital successfully acted as lead manager for the
raising. The funding round involved an additional investment from existing
shareholders Citigroup and First Data Corp..

Michael Walters, CEO of Cards etc, said the success of the raising was a
ringing endorsement of the Cards etc business proposition and that it would
support the company’s global expansion plans.

“Over the past 12 months, we have more than doubled in size and our
current business plan envisages similar growth over the next 12-24 months,” he
said. “We plan to open a number of new offices to help us more effectively
service our global clients. We will also continue to invest heavily in our
Sydney-based research and development centre.
“Given some of the difficulties experienced in the broader technology
sector, it is pleasing to be making this announcement. We continue to work to
a sound business plan, we are continuing all our expansion programs, we are
hiring new staff and we are growing our business internationally.”
Paul McClean, Managing Director of Citicorp’s local private equity
business, said the new investment was based on Cards etc’s success in
implementing a growth-focussed business plan and on the strong prospects for
the smart card sector.

“Cards etc continues to meet its objectives as it aggressively expands
internationally,” he said. “The company is well positioned in a growth
market, and Citigroup is continuing to work with management to support growth
plans and to accelerate a number of business opportunities.”

Global e-commerce and payment services company First Data, which uses the
Arterium technology for management of multi-application smart cards, echoed
the opportunities available and confidence in the future success of Cards
etc., according to First Data President and COO Charlie Fote. First Data was
one of the first processors in the world to have an end-to-end solution with
ability to personalise, process and deliver multi-applications smart cards.
Mr. Walters said the smart card market had experienced substantial growth
over the past 12 months and that quality opportunities had emerged in key
markets throughout the world.

“Arterium has gained broad market acceptance,” he said. “We are winning
new business regularly and we have a strong, well developed sales pipeline
which includes opportunities in Western Europe, East Asia, Australia and Latin
America. Importantly the United States market continues to expand providing a
solid foundation for growth.”

About Cards etc

Cards etc specialises in the development of transaction infrastructure
management software focussing on lifecycle, relationship, information and
connectivity management. Customers include large financial,

telecommunications, Internet, Government, transit and travel organizations
deploying and managing multi-application smart card, e-commerce and related
technologies. For more information, visit http//www.cardsetc.com .

About Citicorp Capital Asia
Citicorp Equity Capital represents the Australasian Private Equity arm of
Citigroup’s Asia Pacific Private Equity investment business. Citigroup is one
or the world’s largest financial services group’s and the world’s most global
bank.

The establishment of long-term relationships and building value is a key
goal together with the provision of a wealth of institutional experience to
investee companies. The Private Equity group acts as a true business partner
offering companies access to Citigroup’s unparalleled global network which
continues to be a winning combination.

About First Data Corp.

Atlanta-based First Data Corp. (NYSE FDC) is a global leader in

electronic commerce and payment services. Serving more than two million
merchant locations, more than 1,400 card issuers and millions of consumers,
First Data makes it easier, faster and more secure for people and businesses
to buy goods and services, using virtually any form of payment credit,
debit, stored-value card or check at the point-of-sale, over the Internet or
by money transfer.

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PHILIPPINES

Diversified Financial Network Inc is planning to issue credit cards through
Union Bank of the Philippines. The company will require applicants to open
an on-line account with DFNN once they are approved by the bank for the
credit card. DFNN will reward cardholders until June 30 with DFNN shares on
the basis of one share for every 1,000 pesos spent on their cards, subject
to a maximum of 100 shares.

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PHILIPPINES

The Philippine Long Distance Telephone Company e-commerce unit announced
this week it will spend an initial 500 million pesos to set up 23,000 POS
terminals for the ‘PLDT VISA Cash’ card. The terminals are due to be
completely installed over a three-year period. The new cash card is a smart
card, stored-value card that will soon be used in all the existing railway
systems in the country.

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CHINA

Gemplus of France is building Asian smart card production center in Tianjin
at a cost of 100 million yuan. Gemplus Tianjin New Technology Co. signed a
contract on a land-use right involving 4.86 hectares with Tianjin New
Technology Industrial Park. The new factory is expected to be operational
by 2002 with an annual output value of 1 billion yuan.

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U.S. Debit Card Project

Lynk Systems, Inc., a single-source provider of electronic payment processing services, announced it has been selected as the technology provider for the U.S. Debit Card (USDC) through the Department of the Treasury. The USDC, a magnetic stripe bankcard, is designed to replace checks, vouchers, imprest funds and cash for government agency use.

“The vision of the USDC is extending a federal agency’s accounts payable system to enable true cash management and cash access, so that the agency or recipient does not have to carry cash,” says Brett Smith, electronic money program manager, Department of the Treasury. “Hence, the decision to use the Internet as the infrastructure for (1) automating the payable process; (2) offering a tool to an agency’s cash management needs; (3) providing a new interaction channel; and (4) adding value to an agency’s supply chain or customers. Lynk promises to fulfill the vision of the USDC with its service model, Internet infrastructure and acumen and experience in processing transactions.”

The USDC can be issued “on-the-spot” to a payee in a federal agency’s office, or it can be issued out of a central office and mailed to the payee. The card can be loaded with a fixed amount of value and discarded once the value is spent, or federal agencies can make multiple payments to the payee and issue the card as a reloadable payment. The payee can then use the USDC at ATMs to make cash withdrawals, or at point-of-sale (POS) terminals to make retail purchases. The value loaded onto the cards is PIN protected and backed by a commercial bank.

“Our experience with debit cards for the last fifteen years gives us the ability to not only execute the treasury’s vision for the debit card, but also to assist treasury agencies in meeting their e-commerce strategies,” says Candy Whitley, USDC Project Manager.

For additional information about the USDC, contact Candy Whitley at 817.249.0402; Jerry Uffner at 678.587.1583; or visit [http://www.usdebitcard.gov][1].

About Lynk

Atlanta based Lynk is a proven leader in electronic funds distribution solutions for payroll, expense reimbursement, as well as incentive and promotional programs. In addition, Lynk is nationally recognized for its electronic payment, cash dispensing and e-commerce services. Lynk processes transactions initiated by credit and debit cards, checks and other access cards from merchant point-of-sale terminals, ATMs and web sites. Lynk’s proprietary technology and comprehensive network connectivity offer customers of all sizes unsurpassed processing performance.

Founded in 1991, Lynk has earned recognition as one of the fastest-growing companies in the industry by Deloitte & Touche’s Fast 500 program and Inc. magazine’s Fast 500 list. For more information, please visit the company’s web site at [http://www.lynksystems.com][2].

[1]: http://www.usdebitcard.gov/
[2]: http://www.lynksystems.com/

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PaySys Sold

First Data is in the process of buying Atlanta-based PaySys International for approximately $60 million in cash. Intelligent Systems Corporation confirmed that along with other major shareholders, it entered into a definitive agreement this past Saturday to sell all of the outstanding stock of PaySys to FDC. Intelligent says it will receive between $17 million and $19 million in cash for its share and will retain its ownership share of two PaySys development stage companies. Under terms of the deal, PaySys will spin off, immediately prior to the sale transaction, two early stage companies that will continue to design, develop and market the proprietary ‘dBB’ operating platform and application software that is under development by PaySys. Saturday’s agreement calls for the transaction to close as soon as possible but no later than April 30. PaySys was founded in 1981, has more than 500 employees, and offices in England, Ireland, Singapore, China, Costa Rica and Australia. Company products include ‘VisionPLUS’, ‘CardPac’, ‘VISION21’, and its ‘Commercial Payment System’. PaySys systems process more than 180 million accounts in over 35 countries and on 6 continents.

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2001 Outlook

While most consumers appear cautious about their discretionary spending this year, credit card use will remain strong. The ‘2001 American Express Retail Index’, released yesterday, found that 44% of consumers will use their credit cards about the same today compared to two years ago, and 22% report using plastic more than they did two years ago. The research also found that the number of consumers who will use credit cards to pay at least one monthly bill doubled in 2001 to 14%, compared to 7% last year. Among consumers who pay bills with plastic, nearly eight in ten will charge the same amount or more compared to last year. The household bills most commonly paid with a charge or credit card include Internet and online services (19%), magazine or newspaper subscriptions (10%), doctor or hospital visits (10%), local and long distance telephone services (6%), and membership dues (5%). The AmEx survey also found that consumers cite various reasons for using plastic to pay bills. Thirty-seven percent said using plastic to pay bills gives them more time to pay; 28% said they prefer writing fewer checks; 26% said it enables them to consolidate their expense and better manage their finances; 21% said they like to accrue as many points or miles for their rewards programs and 10% said they prefer the convenience of paying by phone or online.

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