NOVA 2Q/00 Shortfall

NOVA Corporation announced a revised revenue projection of $406 million for the second quarter ended June 30, 2000, which falls short of analyst consensus expectations as reported by First Call/Thomson Financial.

“The difference in revenues relative to analyst projections is attributable to several factors,” said Edward Grzedzinski, NOVA Chairman and CEO. “First, the year over year performance in two large acquired portfolios has been disappointing,” Grzedzinski said. “Second, our base portfolio has not experienced typical seasonal volume growth, which may suggest lower levels of consumer spending, and finally, the average processing volume of merchant accounts added so far this year has been significantly less than our original forecast.” Grzedzinski added, “Despite the fact that we are disappointed in revenue performance for the quarter, it still represents a record quarter for the Company.”

NOVA Corporation also announced today that the Company has not completed its planned re-capitalization of its majority-owned subsidiary, Econex, LLC. Although the Company is continuing to pursue re-capitalization of Econex, generally accepted accounting principles require NOVA to record 100% of the losses experienced by Econex during 2000. The Company estimates that after-tax losses for Econex, including amounts attributable to the first quarter of 2000, will be in the range of $10 to $14 million for the full year. Grzedzinski said, “NOVA anticipated recording only the percentage of losses reflective of its ownership interest in Econex. The fact that Econex currently has a negative equity position requires us to reflect 100% of the losses for the year, which will persist until and unless Econex is re-capitalized. We anticipate that the combination of the revenue shortfall and the required Econex accounting treatment will put pressure on the Company’s financial performance for the quarter and, potentially, for the remainder of 2000.”

He concluded by saying, “When we finalize and formally announce NOVA’s results on August 9, 2000, we will be in a position to provide additional insight for the quarter and for the full year. We are confident that our strong market position, coupled with NOVA’s technology, sales and distribution strengths, will continue to enhance our position of leadership in both the domestic and international payment processing markets.”

About NOVA Corporation

NOVA Corporation (NYSE:NIS), headquartered in Atlanta, Ga., manages and transports payment and other business information on behalf of retailers, community banks and regional financial institutions. NOVA specializes in providing integrated credit and debit card payment processing services, related software application products and value-added services to more than 500,000 merchants in the U.S. NOVA merchant customers typically include small- to medium-sized merchants requiring a full spectrum of processing services. For more information on the company, visit [www.novacorp.net][1].

[1]: http://www.novacorp.net/

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Saks Cards Online

Saks Incorporated announced that it has selected edocs’ BillDirect Internet billing and customer management solution to enable its eleven million Saks Incorporated credit card holders to view and pay their credit card bills online. The solution, which will be available later this year for its Saks Fifth Avenue customers, will provide cardholders with a host of online customer service offerings in addition to the ability to view and pay their statements online. In early 2001, Saks Incorporated will offer this service to the customers of its traditional department stores (Proffitt’s, McRae’s, Younkers, Parisian, Herberger’s, Carson Pirie Scott, Bergner’s and Boston Store).

Saks Incorporated credit card holders will be able to receive previews of sale events, notification of double and triple point events, exclusive promotions and giveaways, and many other special perks. Cardholders will also be able to view and manage their SaksFirst First Reward program online.

“Superior service, benefits and rewards are the hallmarks of the value proposition that we offer Saks Incorporated’s credit card holders,” said Jim Coggin, President and Chief Administrative Officer of Saks Incorporated. “After a comprehensive review of solution providers, we determined that edocs’ BillDirect Internet billing and customer care software met the rigorous standards that we set for customer service.”

“edocs’ BillDirect will enable Saks to bring our offline customer service standards to our growing customer base that prefers the convenience of online interactions,” added Michael Rodgers, senior vice president of Credit for Saks Incorporated.

“Setting a high standard for service and rewards for a valued card holder base is a key differentiator in competitive high-end retail,” said Paul Hughes, Director of Billing and Payment Application Strategies at the Yankee Group. “Saks’ selection of edocs’ BillDirect to web-enable the valuable customer data contained in its customers’ bills and statements echoes the strong votes of confidence edocs has secured from some of the world’s largest credit card issuers, including American Express and GE Card Services.”

At the core of Saks’ online statement solution is edocs’ BillDirect, a comprehensive Internet statement and customer management software solution that transforms transactional account history into personalized, interactive communications enabling customer care and marketing via the Internet.

“We are pleased to add Saks Incorporated to the growing list of companies that choose edocs’ infrastructure for Internet billing and customer management,” said Jim Moran, Executive Vice President and Cofounder of edocs, Inc. “We believe that Saks’ selection of edocs underscores the compelling customer management functionality that is delivered through our Internet billing platform.”

About edocs

edocs, Inc. develops, markets and supports a leading solution for Internet billing and customer management. edocs’ flagship product, BillDirect, maximizes customer relationships by enabling web-based billing, customer self-service and targeted marketing. edocs’ products are used by some of the world’s largest providers of consumer credit, telecommunications, utility, and billing services, including American Express, GE Card Services, Telstra, Southern California Edison, Boston Edison, and Moore. For more information about edocs, visit [www.edocs.com][1].

About Saks Incorporated

Saks Incorporated currently operates over 350 stores in 39 states under the names of Saks Fifth Avenue, Proffitt’s, McRae’s, Younkers, Parisian, Herberger’s, Carson Pirie Scott, Bergner’s, Boston Store, and Off 5th. The Company also operates a direct response business, Saks Direct, which includes the Folio and Bullock & Jones catalogs as well as saksfifthavenue.com. The Company’s annual revenues exceed $6.4 billion. For more information about Saks Incorporated, visit [www.saksincorporated.com][2].

Saks Incorporated recently announced the planned spin-off of its Saks Fifth Avenue business. Subsequent to the spin-off, the Company will still provide credit services to Saks Fifth Avenue.

[1]: http://www.edocs.com/
[2]: http://www.saksincorporated.com/

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Cap One Free Web Access

Capital One Financial Corporation launched OneRamp Free Internet Access for consumers nationwide. The service, which will include a customized start-up page and an email account, will be offered in conjunction with Spinway, Inc., a leading provider of co-branded, free dial-up Internet access and online advertising technology solutions, who will provide the ISP infrastructure and customer support. Capital One will begin offering this service to its U.S. customers immediately. OneRamp customers will be able to personalize their content and services and, unlike other free access providers, OneRamp will not require customers to periodically click on an ad in order to stay connected to the Internet.

“Capital One believes that online customer franchise relationships like our alliance with Spinway will enable us to introduce ourselves to more consumers,” said Nigel Morris, Capital One’s President and Chief Operating Officer. “We believe that Internet access should offer privacy, performance and quality with no monthly charges and no hidden fees. Our customers expect quality products, services and value from Capital One and One Ramp meets this challenge.”

“Spinway is partnering with brand leaders in several vertical markets we believe our relationship with Capital One will provide a tremendous entry into the financial services vertical,” said Danny Robinson, founder. “Both Capital One and Spinway are experiencing explosive growth and share a common goal of providing an unparalleled user experience while enabling people to access the Internet under a brand that they identify with on a daily basis. We also feel that our advertisers will agree that the Capital One users are an attractive addition to our Spinway ad network.”

OneRamp Free Internet Access is the first step to giving consumers easy access to services online. Consumers can register for the service by going to [http://www.OneRamp.com][1]. Spinway will provide free customer support 24 hours a day, everyday. In addition, Spinway ensures the quality of the consumers’ online experience by protecting user privacy and downloading advertisements only when the consumer’s Internet connection is inactive.

Headquartered in Falls Church, Virginia, Capital One Financial Corporation ([http://www.CapitalOne.com][2]) is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products. Capital One’s subsidiaries collectively had 27.1 million accounts and $21.9 billion in managed loans outstanding as of June 30, 2000. Capital One is one of the major financial service providers on the Internet, with online account decisioning, real-time account numbering, online retail deposits and a growing number of customers serviced online. Capital One is a FORTUNE 500 company that trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 500 index.

Incorporated in January 1999 Spinway, Inc. ([http://www.spinway.com][3]) is enabling Internet advertising to live up to its potential as the most powerful medium in the advertising industry. Spinway is rapidly establishing its advertising network by partnering with offline brand-leaders to co-brand their free ISP services. In six months, Spinway has obtained over 3.5 million consumers while maintaining one of the lowest churn rates in the industry. Spinway offers advertisers a new approach to online advertising that uniquely targets consumers by demographics, psychographics, geographics, time-of-day and keywords. Spinway’s proprietary advertising technology tracks advertising impressions and enables full motion video ads to run while consumers are connecting to the service without any performance impact. Spinway does not sell its subscribers’ personal information to advertisers. A sampling of partners includes: BlueLight.com, Kmart’s online presence (NSYE: KM); OurHouse.com, the Internet’s premier destination for home solutions, partnered with Ace Hardware; NBCi (Nasdaq: NBCI), a branded global integrated media company; and Spiegel Catalog, Inc., the leading home-based retailer in women’s apparel and home furnishings.

[1]: http://www.oneramp.com/
[2]: http://www.capitalone.com/
[3]: http://www.spinway.com/

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Discover Awareness

Discover is seeking to dispel the perception that its card is not accepted everywhere. Yesterday Discover Financial Services announced the launch of its ‘Acceptance Awareness’ campaign. The advertising campaign was created by Goodby, Silverstein & Partners in San Francisco and has begun appearing on billboards and in a variety of print media including Newsweek, People, Sports Illustrated and Time this week. The creative depicts the ‘Discover Card’ logo imprinted on objects that are representative of certain merchants. For example, one of the advertisements shows the ‘Discover Card’ logo embedded in a plank of wood and the tagline reads, “The Discover Card is accepted at 1000 new locations every day including Home Depot.” The Discover Card is now accepted at 3.6 million locations in the US. To view the new Discover Card ad campaign visit CardWatch (www.cardwatch.com) this week.

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First Union – Bankrate

Although it is looking to sell off its credit card portfolio, First Union confirmed yesterday it is getting into the online insurance business. First Union purchased Professional Direct Agency, Inc. which operates Pivot.com. First Union paid $4.35 million in cash for the Web site to ilife.com a/k/a bankrate.com. Pivot provides insurance carrier fulfillment services, conservation services and website private labeling to insurance companies, financial institutions, affinity groups, traditional agencies and other business partners. Bankrate.com has been unloading assets in a path-to-survivability effort. In addition to selling off Pivot.com, bankrate.com has sold off CPNet to Colleges.com, and has a sale pending for its Spanish language site, Consejero.com. Bankrate.com/ilife.com also has discontinued its broadcast division and some of its print publications. In addition to drastically cutting marketing and PR expenses the Internet firm has reduced its workforce by 10% and has reduced vendor payments by 20%.

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OPC Tops 500

Official Payments Corporation reported a 235% increase in revenues between 2Q/99 and 2Q/00. For the first half of 2000, the company processed over 175,000 transitions and collected $563 million in balance-due, estimated and extension tax payments on behalf of the IRS. As of June 30 the company had 555 government clients, compared to 369 one year ago. The number of payment services provided on behalf of those clients totaled 759 on June 30, 2000, compared to 455 on June 30, 1999. OPC now does business with eight state government entities, and works with municipal and county authorities in 38 states. OPC, f/k/a U.S. Audiotext, enables consumers to pay government fees and taxes via telephone or the Internet, using their MasterCard, Discover or American Express payment cards. For complete current and historical data on Official Payments Corporation visit CardData ([www.carddata.com][1]).

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

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Aspire Adds 300,000

Atlanta-based CompuCredit, issuer of the sub-prime ‘Aspire VISA’ card, reported a record growth of 325,000 new cardholders during the second quarter to bring the total number of accounts to 1.6 million. Second quarter earnings hit $24.9 million compared with $2.2 million for 2Q/99. At the end of the second quarter CompuCredit held total managed card loans of $1.2 billion. For the second quarter, the managed net interest margin was 23.3% as compared to 21.0% in the second quarter of 1999. The pro forma net charge-off rate was 9.2% in the second quarter of 2000. At June 30, the 60+ day managed delinquency rate was 7.3%. ‘Aspire VISA’ cards are issued for CompuCredit by Columbus Bank and Trust Company. For complete current and historical data on CompuCredit visit CardData ([www.carddata.com][1])

COMPUCREDIT/ASPIRE TRACK RECORD

2Q/00 1Q/00 4Q/99 3Q/99 2Q/99
Receivables: $1.17b $1.03b $899m $667m $526m
Accounts: 1.65m 1.42m 1.18m 927k 633k

Source: CardData (www.carddata.com)

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

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MyPoints Car Club

MyPoints.com, a leading provider of integrated eMarketing solutions, and J.D. Power Clubs announced the launch of a new membership service, carclub by MyPoints.

This new clicks-and-mortar program, powered by carclub.com, enables MyPoints members to earn points offline for just about everything automotive — from car purchases and insurance to financing and repairs. The program is expected to generate substantial recurring revenues tied to enrollment, membership fees and transactions through carclub.com, the first J.D. Power Club.

“By partnering with leading consumer service providers like J.D. Power Clubs, MyPoints.com continues to build out the range of unique and powerful programs we offer to our members,” said Steve Markowitz, chairman and CEO of MyPoints.com. “Carclub by MyPoints gives our members more ways to earn points for everyday activities. This enhances the value of the MyPoints Program for them while enabling us to increase our share of their offline transaction volume.”

“J.D. Power Clubs and MyPoints.com share a common goal — to provide consumers with the right tools to make the most of their money, online and off,” said Michael London, chairman and CEO of J.D. Power Clubs. “Given consumers’ many day-to-day automotive needs, the opportunity to earn points for using carclub.com’s many products and services should make for a compelling combination as we introduce the new program to MyPoints’ more than eight million members.”

MyPoints members earn up to 1,500 points for enrolling in the co-branded club, as well as two points per dollar spent on products and services with carclub-affiliated vendors. Members can earn an extra point per dollar spent by using their MyPoints(R) MasterCard(R) for carclub purchases.

Points earned through carclub by MyPoints are in addition to the numerous other earning opportunities offered by the MyPoints Program including: reading and responding to targeted email and Web-based offers, filling out surveys, shopping and taking other actions advantageous to MyPoints.com’s business clients.

Carclub by MyPoints also offers members these additional benefits:

— Membership and Gas MasterCard(R) Card. Members receive a stored value card with which they can purchase gasoline at a 10% discount this year. This card can be used at any of the over 110,000 gas stations that accept MasterCard. An average member can save up to $240 annually.

— Deductible Reimbursement. If a member’s car is damaged and the cost of repairs exceeds the insurance deductible, carclub by MyPoints will reimburse the auto insurance deductible amount paid by the member up to $500.

— Save on Auto Insurance. Top-rated national insurance companies offer special rates to carclub by MyPoints members. These rates can save members up to $250 per year, or as much as 15% off their current premium.

— “Help, I’m Lost,” Driving Directions. Members may call carclub by MyPoints from any phone, 24 hours a day, seven days a week for step-by-step directions.

— Mechanic Hotline. Members have round-the-clock access to automotive experts for assistance with automotive maintenance and repair issues.

— Personal Shopper Service. Carclub by MyPoints’ Personal Shopper service is the hassle-free way to buy a new car. Personal Shoppers will coordinate and arrange everything — from price negotiations with dealers, vehicle configuration, financing to vehicle delivery. Additional fees apply.

About MyPoints.com

MyPoints.com is a leading provider of integrated eMarketing solutions. The MyPoints(R) suite of products enables the Company’s clients to acquire new customers and optimize existing relationships over the Internet.

— MyPoints(R), the Company’s flagship service, enables marketers to identify, acquire and retain customers through highly targeted email and Web-based promotional offers delivered to an audience of more than eight million members. Advertisers leverage MyPoints.com’s loyalty infrastructure to offer consumers a tangible incentive to respond.

— MyPoints(R) Shopping!, the Company’s e-commerce channel, enables major Web merchants to provide consumers with a continuing incentive to shop at their sites. MyPoints.com is the Internet’s No. 1 most popular incentive site, and No. 3 most popular retail site (June 2000, Media Metrix).

— MyPoints(R) Offline, the Company’s clicks-and-mortar program, enables clients to utilize the reach and opt-in marketing tools of MyPoints to drive sales offline as well as on the Internet.

— The MyPoints(R) Network enables businesses to implement quickly and cost-effectively a co-branded version of the MyPoints rewards program to drive transactions and build long-term loyalty among users at their own sites.

MyPoints.com has sales offices in cities nationwide. For detailed product information please call 800-890-9351, 212-699-8050, ext. 7702 from outside North America, or visit MyPoints.com at .

About J.D. Power Clubs, Inc. and carclub.com, a J.D. Power Club

J.D. Power Clubs, Inc. educates consumers to help them make better decisions and facilitates transactions through a network of participating retailers committed to delivering quality service and savings. Carclub.com, the first J.D. Power Club, helps vehicle owners shop for new and used vehicles, facilitates the selection of financing and insurance options and provides sources and savings for vehicle maintenance. Carclub’s services are accessible online and by telephone at 800-CARCLUB. Selected highlights from J.D. Power and Associates’ customer satisfaction syndicated research will be available later this summer from J.D. Power Clubs, through its soon-to-be launched J.D. Power Information Center.

Carclub.com, a J.D. Power Club, may be found at [http://www.carclub.com][1] and .

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

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Hologram Card

Tokyo-based computer security system developer K.T.Tec Corp. and American Bank Note Holographics announced this morning the development the ‘Hologram Card’ system. The new card security system uses a special-wavelength laser combined with a dual or triple encryption method for reading and authenticating cards. The new authentication system can be used for any type of cards, from pre-paid to ATM to credit. Both firms have agreed to jointly create, in September, Holo International Technologies, Ltd. to be headquartered in Tokyo. K.T.Tec is now finalizing development of a ‘PASS Card’ prepaid card system for use in pachinko parlors throughout Japan. Cards, readers, and attendant systems are expected to be available in early 2001. K.T. Tec says with the new ‘Hologram Card’ counterfeiting and tampering are impossible since the hologram image data cannot be discerned visually. Since data is read and decoded by an algorithm downloaded from the operations server and updated daily, the system cannot be analyzed or reverse-engineered by third parties, even if the point-of-service equipment is stolen.

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Dovetail Taps Lewis

Dovetail Systems Inc., the provider of advanced payments processing applications and intelligent messaging solutions to the global financial services community, is continuing to attract senior industry figures by announcing the appointment of Janet F Lewis to Senior Vice President and Director of Sales.

Janet Lewis has joined Dovetail Systems after a 15-year career with S.W.I.F.T, the leading provider of secure global communications to over 6,900 financial institutions worldwide. As Senior Manager, she was responsible for S.W.I.F.T’s relationship with the Top 30 financial institutions in North America and Canada and established a reputation for creating, structuring and building global teams to provide relationship management to the world’s largest banking and securities institutions.

The appointment of Janet Lewis to Director of Sales is one of a number of high-level strategic hires for Dovetail. It follows the appointment of Kevin M Scully, ex-President of NEON and well-known professional in the financial services software arena, to Chief Executive Officer. Barry Tooker, formerly of IBM and an experienced senior technical consultant to global banks and software firms, joins Dovetail as Senior Vice President Product Management.

These three recent additions to the Dovetail team join Richard P Little, Chairman of the Board. Little, former Chairman and Chief Executive Officer of Braid Systems Ltd and current member of the board of directors at Mercator Software (which purchased Braid in 1999), has extensive experience in international financial systems markets and the management of entrepreneurial software companies.

Other members of the management team include the President and Founder of Dovetail, Bruce A Hutcheon, and Kenneth W Condal, Chief Technology Officer, who is leading development of the Dovetail Payments Systems(tm) products. According to Kevin Scully, CEO of Dovetail, “The management team we have attracted to Dovetail has many decades of combined experience in developing, marketing and supporting payments processing applications for global financial institutions. In addition, the team has worked specifically with over 80 of these institutions and their support organizations. This places us in the position of offering our clients unparalleled levels of experience and industry know-how.”

Other key additions to the Dovetail management team, in both the United States and on an international level, will be announced shortly.

About Dovetail Systems Inc.

Dovetail provides advanced payments processing applications and intelligent messaging solutions to the global financial services community. Through the use of the latest Application Server techniques, Dovetail’s unique technology dramatically improves the speed, reliability and security of the electronic transfer of funds between banks and other institutions. Dovetail continues a proud, three-decade history of delivering mission-critical payments and messaging solutions based upon the Intelligent Transaction Processing(tm) technology developed by the founding partners. These solutions include large-scale message switches and gateways, as well as funds transfer, cash management, and foreign exchange trading and netting systems. For more information, please visit: [www.dovetailsys.com][1]

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

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Achex C2C

Achex, Inc., an innovator in online payment solutions, introduced a free consumer-to-consumer (C2C) online payment service that immediately enables secure payments from existing checking accounts. Online C2C payments are debited from, and credited to the existing checking accounts of Achex users, using the Automated Clearing House (ACH) network.

The service is the first no-cost, debit-based offering that provides users with a complete, real-time transaction history and 100 percent guarantee against fraud — while offering consumers the choice to pay one another online, just as they do offline. To access the service, consumers complete a short, one-time activation procedure that links their existing checking accounts to the Achex service. Transactions are authorized using a simple username and password.

“Achex offers consumers the convenience of easy online payments via email while guaranteeing the security and integrity of every transaction,” commented Terry Allen-Rouman, President and CEO of Achex, Inc. “This Achex service is free and provides a safe, efficient way to pay anyone without the need to open and fund a new account of any kind. We expect Achex will be extremely popular among a broad range of consumers, including teenagers and college students who may not yet have credit cards, as well as the millions of Americans who still prefer using checks to pay for goods and services.”

The Achex service is the simplest and most secure C2C payment solution available. Through its bank-level security, Achex provides consumers a complete guarantee against fraud. The service leverages consumers’ existing checking accounts to route payments over the ACH network, a national electronic payment exchange used by more than 12,000 major financial institutions and 700,000 corporations. Records of payments both sent and received are listed as electronic funds transfers on members’ monthly bank statements and are also available online at a personalized “My Achex” page on the Achex site ([www.achex.com][1]).

Achex is currently in beta trials with merchants to expand the service offering to consumer-to-business (C2B) payments. Achex is working with leading online merchants such as CornerHardware.com, Kozmo.com, Peapod.com, 1-800-Flowers, Planet Rx and ice.com.

About Achex, Inc.

Achex, Inc. ([www.achex.com][2]) is an Internet payments company that facilitates simple and secure Internet payments for buyers and sellers. Achex has developed a new payment service to leverage the unique opportunities created by electronic commerce. The Achex service, based on a patent-pending infrastructure and business process, leverages the Internet and existing payment networks to transfer funds online in a simple, convenient and highly secure manner. Founded in 1999, Achex is a privately-held company with funding from Draper Fisher Jurvetson, First Data Corp., RRE Ventures, IncuBay LLC, Greyhound Crossover Fund and other investors. Achex co-founders are experts in payment systems; their experience includes designing and implementing major payments products and transaction processing architectures for major commercial banks, investment banks and credit card companies. The company’s advisory board is composed of payments experts, security experts, online merchants, venture capitalists and angel investors.

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

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