Charge-off Sale

National Loan Exchange Corp. announces an $888.5 million sale of charged-off Visa/MasterCard accounts on behalf of Citicorp Credit Service, Inc. The Sealed Bid deadline is March 22. The portfolio includes $268.5 million of Universal Card Services accounts, $585 million of Citibank Card Services accounts and a three month forward flow of secondary placement accounts.

NLEX is also accepting bids for February portfolios, including $189 million of charged-off credit card accounts for Key Bank, $16 million of charged-off consumer loans for Key Bank, $27 million of charged-off cellular receivable accounts, and $52 million of charged-off credit card accounts for a Major Financial Institution.

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Tickettrak System

Coinless Systems received its patent for ‘TickeTrak’ which is the only coinless gaming system that instantly verifies barcoded tickets and vouchers at the slot machine as well as the cashier. The patent enables gaming machines with a cashless means of exchange to issue and accept tickets with barcoded information. The patented device can be installed within the housing of a gaming machine or attached to an existing gaming machine. Once attached, the devices are linked to a ticket accounting system, which relays information from the machines to a central computer and any number of cashier locations.

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Gemsafe Enterprise

Gemplus announced availability of ‘GemSAFE Enterprise’ on Microsoft Windows 2000. ‘GemSAFE Enterprise’ is a corporate security solution using smart cards to enhance the security and ease the management of functions like digital signatures and file encryption. ‘GemSAFE Enterprise Workstation’, the client side of the ‘GemSAFE Enterprise’ solution, was the first security solution to receive Microsoft. ‘Certification for Windows 2000.’

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MN Taxes paid by Credit Card

Official Payments Corporation announced today the company has launched its service with the State of Minnesota to allow the state’s residents to pay their 1999 balance-due, estimated payments, and penalty (delinquent) income tax payments by credit card over the Internet or via telephone. Official Payments Corp. offers similar services to an existing list of clients including the United States Internal Revenue Service, the District of Columbia, and the states of California, Connecticut, Illinois, New Jersey and Oklahoma.

“We brought the system up live this morning to deliver on our commitment and promise of offering the people of Minnesota a proven, secure, reliable and convenient way to pay taxes by credit card,” said Thomas R. Evans, Chairman & CEO of Official Payments Corp.

Minnesota taxpayers can now make their balance-due, estimated and penalty payments by dialing 1-888-2PAY-TAX or by visiting www.8882paytax.com on the Internet. Information on the new payment options was included in tax instructions that were mailed to consumers by the Minnesota Department of Revenue last month.

“Improvements to Minnesota’s tax system are a key component of Governor Jesse Ventura’s `Big Plan’ for making government more user-friendly,” stated Minnesota Revenue Commissioner Matt Smith. “Our partnership with Official Payments Corp. is a great example of the ‘Service, Not Systems’ initiative in the ‘Big Plan.’ In making our tax system more modern, we’re making government simpler for our citizens by taking advantage of state-of-the-art technology, which offers taxpayers another payment option. We are proud to be leading the way as one of the first states in the nation to offer this kind of service.”

Official Payments Corp. charges consumers a convenience fee for processing these credit card transactions. The fee schedule can be found at www.officialpayments.com. For example, a taxpayer who owed the government $900.00 and charged their taxes would find a total of $927.00 on their credit card statement: $900.00 for the tax bill and $27.00 for the convenience fee. American Express, Discover Card and MasterCard are the credit cards accepted by the program. Taxpayers using credit cards with bonus rewards programs can, depending on their card’s program, earn rewards, points, and cash-back or airline frequent flyer miles for paying their taxes.

Last year, 462,000 taxpayers in Minnesota made balance-due tax payments with an average payment of $1,003.00 to the state treasury representing $464,000,000.00 in total balance-due tax collected. 95,000 taxpayers in Minnesota made quarterly estimated tax payments with an average payment of $1,400.00 to the state treasury representing $133,000,000.00 in total estimated payments collected. Finally, Minnesota, as of January 2000, is collecting $164,000,000.00 in past-due personal tax payments and other state agency past-due debts.

There are 111,000 individuals in the state that owe, on average, $1,477.00 on delinquent tax and non-tax items. Taxpayers can now make all of these payments by dialing 1-888-2PAY-TAX SM or by visiting www.8882paytax.com on the Internet.

About Official Payments Corp.

Official Payments Corp. is a leading provider of electronic payment options to government entities. The Company enables consumers to pay government fees and taxes via the Internet or telephone, using their credit cards. The Company has partnered with the United States Internal Revenue Service, several state governments, including California, Connecticut, Illinois, New Jersey, Minnesota, Oklahoma, the District of Columbia and over 460 municipal and county entities, in which it collects property taxes, real estate taxes, traffic fines and other government fees by credit card over the Internet and the telephone. The Company is publicly listed on Nasdaq under the symbol OPAY.

Official Payments Corp. is committed to making payments to the government go fast, smart and safe.

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Card Ad Scorecard

Ad spending for MasterCard’s credit card brand grew more than 24% last year while VISA’s spending on credit card ads dropped nearly 5%. Meanwhile ad spending by American Express for its credit card products was flat. The data are based on Competitive Media Reporting’s study of ad spending for the first three quarters of 1999 compared to the same period in 1998. In the financial category, each of the top five companies increased spending in the category, with American Express leading the way at $217 million, up 15%. VISA USA was second at $171.1 million, while #5 Charles Schwab showed the biggest increase, up 102.6% to $127 million. American Express credit card was the top spending brand followed by E-Trade Brokerage On-line with the biggest growth in the top five, up 424.5% to $89 million.

AD SPENDING BY FINANCIAL COMPANIES
Rank Parent Company Jan.-Sept. Jan.-Sept. % Change
1999 1998
1. American Express 216,955,400 188,696,100 15.0%
2. VISA USA 171,055,400 148,394,400 15.3%
3. Morgan Stan DW 169,776,200 96,030,400 76.8%
4. First Union 128,488,900 122,340,400 5.0%
5. Charles Schwab 127,027,300 62,706,700 102.6%

Rank Brand Jan.-Sept. Jan.-Sept. %Change
1999 1998
1. AmEx Credit Card 104,743,600 103,788,300 .9%
2. E-Trade Online 88,984,900 16,966,900 424.5%
3. VISA Credit Card 80,030,800 84,059,800 -4.8%
4. Charles Schwab 64,260,000 41,353,900 55.4%
5. Mastercard Credit Card 55,877,600 44,985,200 24.2%

Source: Competitive Media Reporting

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cavion.com Data Center Online

cavion.com announced it has opened a new corporate headquarters building that features a state-of-the-art data center. The new facility is located in the Denver metropolitan area. The new data center has approximately 10 times the capacity of cavion.com’s previous data center, which was located at the company’s former headquarters building. cavion.com officials report the new facility will play a key role supporting the company’s expected growth.

“We are very excited about our new data center,” said David J. Selina, president and CEO of cavion.com. “This new facility was specifically designed to provide the telecommunications and computer resources we’ll need to support our aggressive growth plan. It will play a key role as we position the company to move forward and lead this industry.”

The new data center went online Saturday, January 29, 2000. It incorporates many upgraded systems, including state-of-the-art physical and network security, a top-of-the-line heating and cooling system, an uninterruptible power supply, and a microwave telecommunications back-up link. The facility is designed to meet the connectivity needs of 1,000 clients and house up to 500 Internet banking servers.

The new corporate headquarters building, which includes the data center, offices and storage areas, is nearly 15,000 square feet.

“We have every intention of becoming a leading company in the credit union Internet services and business-to-business communications markets,” Selina said. “Our investment in this new data center and headquarters building will support the company as we move forward to meet our goals.”

Telecommunications services for the new data center are provided by Convergent Communications, which supplies all of cavion.com’s nationwide telecommunications needs.

cavion.com is also building two more state-of-the-art data centers at its sales offices in Livonia, Mich., and Memphis, Tenn. The two additional data centers are expected to open during the first half of this year and will provide service for regional credit union clients. They will also provide back-up services for the company’s Colorado-based data center.

About cavion.com

cavion.com offers products and services for secure business-to-business communications, and secure Internet financial products and services designed specifically for the needs of credit unions. The company’s Internet software products include online transactional banking, cellular access, online bill payment, and online loan decision products along with enabling software for kiosks.

cavion.com is also building and managing a secure private communications network called CUiNET(R) (Credit Union interactive Network) exclusively for the credit union industry. The network provides a secure, high-speed communications platform for the delivery of services and information to and from credit unions and related organizations, such as trade organizations, corporate credit unions and credit union vendors.

The company’s headquarters are located at 6446 South Kenton Street, Englewood, CO 80111. Its telephone number is 720-875-1900. Its Web page is [http://www.cavion.com][1].

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

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ECHO Awarded Top Processor

Electronic Clearing House Inc. announced that Novus Network Services, the service that promotes and supports the Discover Card credit card, has recognized ECHO with its annual Quality Service Award in honor of achieving the highest ranking in Processor Category C for 1999.

The award was based upon statistical data collected throughout the year by Novus relating to such criteria as reliable file transmissions, submission timeliness, number of processing rejects, number of balancing errors, etc. The award will be presented to ECHO at a special Awards Dinner on March 14, 2000.

“This award can be credited to the performance quality of ECHO’s Data Center Operations and Data Management departments. If either of these two departments had not maintained the highest commitment to merchant service, ECHO would not have out-performed some very capable and quality competitors to receive this distinction,” stated Joel M. Barry, CEO of ECHO. “We think Novus is unique among card organizations in the way they track, highlight and honor their processors and we greatly appreciate their commitment to acknowledging quality.”

ECHO previously won the top processor award in 1996.

About ECHO: Electronic Clearing House Inc. provides credit card processing, cash advance services, check guarantee, check verification, check conversion, inventory tracking and/or various Internet services to over 41,000 retail merchants, U-Haul dealers and casinos across the nation. ECHO also designs, develops and integrates software and point-of-sale hardware that is utilized as credit card processing terminals, automated money order dispensers, inventory tracking devices, and casino cash advance systems.

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Wachovia Surpasses 250,000

Wachovia Corporation announced today that it has surpassed the mark of 250,000 Internet banking customers, making Wachovia one of the nation’s leading providers of online banking services. Wachovia has among the nation’s highest percentages of customers banking on the Internet.

“Achieving a quarter of a million online banking customers is a significant milestone in our e-business program,” said G. Joseph Prendergast, Wachovia chief operating officer. “Now that we are able to deliver through the Internet almost all of Wachovia’s consumer banking services, we are experiencing rapid growth in customer interest in this channel. We expect to double the current number of online customers by the end of 2000 and hope to do that again in 2001.”

Started in 1996, Wachovia’s web site at http://www.wachovia.com has become one of the most highly rated financial services Internet sites and has been recognized for its broad array of transactional capabilities. Wachovia was the first bank in the country to have fully transactional banking and investing on its web site. The site also allows customers to apply for a variety of loans and credit products. Recently, online retirement and insurance services were added to the site.

“Wachovia is committed to combining Internet technology and banking operations in an aggressive but thoughtful and disciplined manner,” said Lawrence G. Baxter, head of Wachovia’s newly created eBusiness Division. “We are using the Internet to create true e-business — business that is lean, efficient, technologically advanced and attractive to existing and potential customers.”

Wachovia’s new eBusiness Division was formed on Jan. 1 to accelerate and enhance, across every area of the company, the development of applications that utilize secure electronic commerce payment systems, manage internal infrastructure development and web operations, and anticipate and respond to regulatory developments in the digital economy.

Wachovia Corporation, with dual headquarters in Atlanta and Winston-Salem, N.C., is a leading financial services company serving regional, national and international markets. At Dec. 31, 1999, Wachovia had assets of $67.4 billion, ranking 16th among U.S. bank holding companies. Member companies offer consumer and commercial banking, bank card, asset and wealth management, capital markets and investment banking, brokerage and insurance services. Wachovia Bank, N.A., the principal subsidiary, has more than 700 offices and 1,300 ATMs in Florida, Georgia, North Carolina, South Carolina and Virginia.

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E Statements Growing

Interface Systems this week announced the release of a major research study by Killen & Associates on the electronic delivery of statements. According to the market research firm’s study, the market for electronic delivery of statements will grow from less than $500 million in processing revenues in 1998 to over $18 billion by 2005, worldwide. The Killen & Associates study examines ESP adoption rates for the three kinds of statements (regular statements, activity reports or mid-period notices, and issuer copies), as well as candidate companies for ESP partnering and acquisition, ESP market drivers, and a host of other issues surrounding the importance of ESP. The study also discusses the relationship between ESP and Electronic Bill Presentment and Payment. Interface’s latest whitepaper on eDelivery in Financial Services is included as an addendum to the study.

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FDC Exec Shuffle

Pamela Patsley, former head of Paymentech, has been hired by First Data as EVP and also president of First Data Merchant Services. With Patsley’s addition, Eula Adams, who has headed First Data’s merchant processing business since 1998, will join David Bailis, in leading First Data Resources, the company’s domestic and international card issuing business. Adams will focus on sales, customer service and international expansion, while Bailis will continue to focus on improving internal operations and efficiency. Kimberly Patmore has been named EVP/CFO for First Data Corp. Patmore replaces Lee Adrean who announced he was leaving the company to become the CFO of Earthlink, Inc. The company also announced that Ric Duques, FDC chairman/CEO, will assume direct responsibility for First Data’s Internet initiatives, which had been managed by Adrean. Duques said that he will focus on accelerating the development of new Internet-based transaction processing and other payment services. Finally, FDC has hired Alan Silberstein as an executive vice president of First Data Corp. and also president of Western Union Financial Services.

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Clough Joins TSYS Board

Richard W. Ussery, Chairman of the Board and CEO of Total System Services, Inc., today announced the addition of Dr. G. Wayne Clough, President of the Georgia Institute of Technology, to the TSYS Board of Directors.

“We feel fortunate to be able to add someone of his stature to our Board,” said Ussery. “We believe that Dr. Clough’s outstanding initiatives in technological research will prove to be invaluable to TSYS.”

Dr. Clough became the tenth President of Georgia Tech in September 1994. He is the first alumnus to serve as president, having received his B.S. and M.S. in Civil Engineering from Georgia Tech in 1964 and 1965, and a Ph.D. in 1969 in Civil Engineering from the University of California, Berkeley. During his tenure as president, Georgia Tech served as the Olympic Village for the 1996 Centennial Olympics, and Tech’s second Capital Campaign was initiated, raising $500 million to date. Research expenditures have increased for five consecutive years from $212 million to $280 million, a required computer initiative for all students was implemented, and enrollments increased from 13,000 to 14,000. A state-wide Georgia Tech regional engineering program has been implemented and seven new buildings have been built, or are underway. Dr. Clough has been recognized for his teaching and research, including a total of seven national awards from the American Society of Civil Engineers. He is one of a handful of civil engineers to have been twice awarded Civil Engineering’s oldest recognition, the Norman Medal, in 1982 and in 1996. Clough’s current service activities include: Executive Committee of the National Council on Competitiveness, the Malcolm Baldrige National Quality Award Board of Directors, and Co-Chair of the Board for the Internet Policy Institute. He is a member of the Executive Committee of Central Atlanta Progress, the Board of Directors of the Metro Atlanta Chamber of Commerce and a Trustee of Georgia Research Alliance. He is listed among the 100 Most Influential People in Georgia by Georgia Trend magazine.

About TSYS

TSYS provides the electronic payment link between buyers and sellers. With more than 207.9 million accounts on file, TSYS makes it possible for 291 million consumers to use their credit, debit, commercial and retail cards any time, anywhere and through any medium or portal. Our sophisticated systems collect and retain more transaction detail data per account than any other company. We return that information to our clients in a meaningful way so they can better serve every customer and make wiser commerce decisions. Our services allow our clients to focus on building their brands while we focus on safety, security, ease and convenience. Based in Columbus, Ga., TSYS (www.totalsystem.com) is an 80.8-percent-owned subsidiary of Synovus Financial Corp. (www.synovus.com), No. 5 on FORTUNE magazine’s list of “The 100 Best Companies To Work For” in 2000.

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AssetExchange.com Opens DE Office

AssetExchange.com has opened an office in downtown Wilmington, Delaware, to provide easy access and personal service to East Coast financial institutions.

Senior Vice President John McMenamin, Jr., formerly an executive with MBNA, heads up the new office of the business-to-business Internet-based exchange for buying and selling credit card, commercial real estate and other loan portfolios.

“While anyone can join our network simply by registering online from anywhere in the world, a Delaware office puts us in close physical proximity to some of the country’s largest financial institutions,” says William C. Koo, AssetExchange.com CEO and co-founder. “This is particularly beneficial for members who wish to post a portfolio for sale, as we can work with them personally to present their deals most effectively for quick results.”

Registered members of the AssetExchange.com network anonymously share summary information and download confidential detailed data about portfolios sought or for sale. AssetExchange.com charges a commission at the time a transaction occurs. The lower costs of the Internet service mean a substantially lower commission fee than that of traditional brokers.

AssetExchange.com was founded in 1999 by Koo, formerly Vice President and Manager of Finance and Marketing at U.S. Bank, and Frank Selker, who has extensive professional experience in marketing and development of decision support software systems. The company’s initial funding came primarily from Net Value Holdings, an e-commerce incubator for Internet start ups. Since its launch last August, the company has grown rapidly as banks see the benefit of using the Internet channel to post or seek portfolios for sale.

For more information about AssetExchange.com, or to register for the on-line network, visit the company’s Web site, www.AssetExchange.com, or contact William Koo at 503/220-0007 or John McMenamin at 302/691-0123.

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