Freedom ATM Alliance Grows

The Freedom ATM Alliance announced Monday that three new members will become operational in April. This brings the membership up to thirty banks. The new members are Farmers National Bank, and Merchants National Bank, both headquartered in Kittanning, and Second National Bank, located in Fayette County.

A customer of one of the thirty member banks can use the ATMs owned by the other twenty-nine without a surcharge, the extra fee imposed on transactions by ATM owners.

With the new members, the Alliance now consists of 222 ATMs (126 of them in Allegheny County) at 210 sites in 9 counties. (See chart below for details.)

FREEDOM ATM ALLIANCE

18-Feb-99
Bank Name Start-up # of ATM’s # of ATM sites
Allegheny Valley Bank 01/99 6 6
Bell Federal Savings & Loan 01/99 5 5
Brentwood Savings Bank 01/99 2 2
Carnegie Savings Bank 01/99 2 2
Charleroi Fed. Savings Bank 01/99 6 6
Citizens National Bank 01/99 19 19
Community Bank 01/99 9 9
Compass Fed. Savings Bank 01/99 1 1
Dollar Bank 01/99 58 46
Farmers Nat. Bank of Kittanning 01/99 1 1
Fidelity Bank 01/99 8 8
First Fed. S&L of Greene Co. 01/99 5 5
First Federal Savings Bank 04/99 3 3
First Nat. Bk. of Slippery Rock 01/99 8 8
Great American Federal 01/99 9 9
Keystone State Savings Bank 04/99 1 1
Laurel Savings Bank 01/99 5 5
Mars National Bank 01/99 5 5
Merchants Bank 04/99 6 6
Mt. Troy Savings Sank 01/99 1 1
Pittsburgh Home Savings 01/99 4 4
Prestige Bank 0l/99 5 5
Reeves Bank 01/99 6 6
Spring Hill Savings Bank 01/99 3 3
Stanton Fed. Savings Bank 01/99 1 1
The Second National Bank 04/99 5 5
Three Rivers Bank & Trust 01/99 22 22
Washington Fed. Savings Bk. 01/99 10 10
West View Savings Bank 01/99 4 4
Workingmen’s Savings Bank 01/99 1 1
30 221 209

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Managing Risk

A highly regarded consumer credit management training program, scheduled for April, is open to executives from all financial institutions. The program, ‘Consumer Credit: Managing Risk and Reward’, is headed by former Citibank and Ford Motor executive David Lawrence. Mr. Lawrence is also the author of ‘The Handbook of Consumer Lending’. The seminar is usually offered internally at major banks such as Bank of America, Chase, CitiGroup and U.S. Bancorp. The program uses case studies, exercises, and a PC-based profit-modeling game to ensure active involvement. The seminar will be held in New York City, April 6-8. For additional information/reservations call (212) 866-2395. or e-mail [asaipres@aol.com][1]

[1]: mailto:asaipres@aol.com

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I-Bank Opens

First Internet Bank of Indiana, a real-time Internet-only financial institution will officially open today following ceremonies at The Museum of American Financial History. firstib.com will be the first ‘Extended Value Online Bank’ to offer a full suite of banking services in a real-time environment via the Internet. firstib.com will offer a full product line of checking, money market savings, certificates of deposit, loans, credit cards and ATM cash cards. Customers can make deposits through MAC ATMs, payroll direct deposit, mail, wire transfer, etc. Withdraws can be made from any PLUS or MAC ATM.

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Cutting Down

Morgan Stanley Dean Witter indicated last week it is cutting the size of its Board of Directors from fifteen to thirteen. Two internal directors are leaving, including Thomas Schneider, who served as EVP and CFO of Dean Witter Discover until 1997. The Wall Street Journal reports this morning that Philip Purcell, Morgan Stanley Dean Witter’s CEO received total compensation last fiscal year of $31 million, a 5% increase over 1997.

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Heat on ATM Fees

Another bill to ban ATM fees was introduced last week by the Wisconsin legislature. Wisconsin State Rep. John Lehman introduced the ‘ATM Consumer Protection Bill 113’, which is expected to be referred to a Wisconsin Assembly committee this week. According to the Milwaukee Journal Sentinel, Wisconsin is also debating taxes on ATMs. Wisconsin’s governor has proposed exempting ATMs from the state’s personal property taxes. Meanwhile Illinois State Rep. John Fritchey introduced a bill last week to ban ATMs fees on ATMs owned by banks but not those owned by non-bank firms. The San Francisco Board of Supervisors rejected a proposed local ordinance to forbid ATM surcharging last week. However the Oklahoma state Senate Finance Committee narrowly passed S.B. 317 two weeks ago to put a $1 cap on ATM surcharges.

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Mobile Cash

Barclaycard and the U.K.’s Cellnet announced they will roll-out a pilot in April of mobile e-cash machines last week. The machines will allow consumers to download e-cash over Cellnet’s GSM network onto their Barclaycard by inserting it into a specially designed Motorola mobile phone. About 1,000 participants will also be able to use the card as part of the ongoing ‘VISA Cash’ UK trial in Leeds. To use the new mobile electronic cash machine, a Barclaycard with the added ‘VISA Cash’ function is inserted into a Motorola StarTAC mobile phone. The phone then asks the user to enter the withdrawal required, up to a limit of 50 stg, and a bank PIN. The e-cash is then deposited onto the Barclaycard via the Cellnet GSM network, and debited from the user’s account.

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Race Track ATMs

Lone Star Park at Grand Prairie has become the first race track in Texas to install ATM machines. Located just inside the Post Time Pavilion across from the security office, the two machines became operational as of February 19, 1999.

In order to comply with the Texas Racing Act of 1997, Choice Enterprises Inc. and Sieman’s ATM Services joined together to develop specialized software that ensures all ATM withdrawals are no greater than $200 per day per person and are withdrawn only from the customer’s checking account. The ATM’s operate like every other debit machine across the nation.

Lone Star Park plans to install four additional ATM machines by April 15, 1999, Opening Day at the track. The machines will be located in the Grandstand.

Live thoroughbred racing at Lone Star Park resumes on April 15, 1999. The 72-day Thoroughbred meeting will continue through July 25, 1999.

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AmEx Gets the Boot

A retailer revolt against American Express, similar to the “Boston Fee Party” of the late 80s, is underway in Britain. According to London’s Daily Mail, Boots has taken American Express off its list of approved cards. Other U.K. retailers are expected to follow Boots’ action. The 1,300-store Boots chain says American Express is charging merchant fees of 4% versus the approximate 1.5% fee charged to most U.K. retailers for accepting VISA and MasterCard. AmEx says the basis for the premium is the fact that its cardholders charge 20% more than holders of other cards. In the Boston revolt, a group of restaurants banded together to drop American Express over higher merchant fees. AmEx responded by lowering its fee structure for smaller merchants.

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Billing Concepts Installations

Billing Concepts Corp. , a leading billing solutions provider to the communications industry, announced Friday the completion of three installations of its Internet product, TotalBill. Internet Service Providers (ISPs) Now Online, Minnesota Online and CityNet (a division of City National Bank) have licensed Billing Concepts’ TotalBill, a customer management and billing software solution.

TotalBill is Billing Concepts’ premier link between services, customers and revenues for Internet and next generation communications services. The combination of TotalBill’s real-time technology and scalability allows Internet service and communications companies to generate more revenue and be more competitive by enabling them to bring new services to market quicker. Oriented around the automation of normal activities, TotalBill offers Order Processing, Customer Service, Trouble Tickets, Automated Credit Card Processing, Automated Provisioning and Automated Billing Modules. The flexible product definition process combined with the billing engine allows TotalBill to handle Usage-based services such as Voice Over IP, Premium 800-Number Access, Packet Billing and all types of time-based charges. Installation, Training and Implementation are a part of the high level of service provided by Billing Concepts for each customer.

Parris H. Holmes, Jr., Chairman and CEO of Billing Concepts, stated, “TotalBill’s design makes the rapid deployment of new services, marketing strategies and new technologies a simple process for service providers. The demand for our TotalBill product continues to grow, with 24 additional customers in various stages of installation. It is clearly our mission to provide leading Internet services companies with a customer management and billing infrastructure that enables them to be more competitive by delivering highly differentiated services.”

Billing Concepts is one of the most experienced providers of comprehensive billing and customer care solutions to the communications industry. The Company licenses fast-to-implement and cost-effective convergent billing software to virtually any size company in the industry. Billing Concepts is also the largest third-party provider of billing clearinghouse and information services to the telecommunications industry. Billing Concepts supports multiple services such as Internet, PCS, cellular, paging, cable/satellite TV, local service, long distance and Carrier Access Billing. With over 600 customers throughout North America, the Company offers billing solutions for service providers including LEC, CLEC, ILEC and ISP companies, from the newest entrants to some of the largest facilities-based providers in the industry. Headquartered in San Antonio, Texas, Billing Concepts maintains offices in Corpus Christi, Texas, Glendale, California and Albany, New York. For more information, visit www.billingconcepts.com.

For more information on the three companies listed above, you can visit their web sites at the following address:

Now Online www.now-online.com
Minnesota Online www.state.net
CityNet www.citynet.net

Certain statements contained herein are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Companies with the Securities and Exchange Commission.

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Taking Hart

Destiny Software Corp. announced Friday that Alex “Pete” Hart has joined its Board of Directors. Mr. Hart formerly served as CEO of Advanta and prior to Advanta, as CEO of MasterCard International for six years. Hart serves on the Boards of several financial services technology companies including HNC Software, Sanchez Computer Associates, Who?Vision Systems and GetSmart.com. GetSmart.com was sold to Providian last week for $33 million.

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Making Most of Scorecards

Credit analysts and senior managers in organizations already using application scoring models from Fair, Isaac and Company, Inc. will learn how to maximize the effectiveness of those models at company-sponsored seminars scheduled throughout the year. “Making the Most of your Scorecard” is a two-day, comprehensive training seminar offering strategies and tips from Fair, Isaac experts in interactive group exercises and mini-clinics. The first seminar this year was held in New Orleans. The remainder of the 1999 seminar schedule is as follows:

* April 15-16, Sheraton Centre Toronto, Toronto, Ontario

* August 12-13, Clift Hotel, San Francisco, Calif.

* November 10-11, Sheraton World Center, Orlando, Fla.

Fair, Isaac model developers and project managers, with years of experience in diverse kinds of credit operations, will explain:

* How to adjust the score thresholds to maintain acceptance rate and desired level of risk.

* How to make effective use of applicant demographic data for policy setting and marketing.

* How to produce and interpret reports to track population changes, scoring model effectiveness and account performance.

* How scoring models are developed and why they work.

Fair, Isaac ([www.fairisaac.com][1]) helps businesses worldwide maximize the value of data to make more profitable decisions about their customers, operations and portfolios. Known for its pioneering work in credit scoring and its use of data in transaction-level decisions, Fair, Isaac now delivers data management services, analytics, software, and consulting to the financial services, direct marketing, personal lines insurance, retail, and healthcare industries. Headquartered in San Rafael, Calif., Fair, Isaac employs 1,500 people in 17 offices worldwide. For the fiscal year ended September 30, 1998, the company reported revenues of $245.5 million. For more information, call Fair, Isaac at 800-999-2955.

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

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Triangulating the Euro

CitX Corporation of Quakertown, PA, Friday announced a new Internet Electronic Commerce service called IntraEuroX. The new service will enable individuals, businesses, and financial institutions to automatically triangulate, convert, and exchange financial transactions in the form of the Euro and/or other mixed currencies.

To facilitate secure transactions worldwide, theIntraEuroX service will use a new enhanced version of CitX’s proprietary Secure Electronic Transaction Exchange system (SETX), Intrapay – EDI / XML-enabled EFT / ACH E Commerce processing platform, and the Internet.

CitX is initially implementing the IntraEuroX service in two vertical applications. The first application will enable individuals and businesses to use the IntraEuroX service as a multi-currency exchange Portal to securely triangulate payment collection and settlement of financial transactions via EFT and Internet-based E Commerce.

The second application of the IntraEuroX service will enable individual and institutional securities investors, and financial intermediaries to triangulate between multiple currencies and settle individual, and/or block trades, securely, throughout the world, via EFT and Internet-based E Commerce.

The IntraEuroX services are delivered through Intrapay, CitX’s Internet-based E Commerce Platform that collects and disburses funds using the bank EFT process, facilitated by CitX’s sister company Priority One ECC of Akron, PA. IntraEuroX features a new enhanced version of the CitX SETX system that enables secure international transactions across the Internet, while protecting the personal financial information and anonymity of its users. The requirements for using the new IntraEuroX service are Internet access and a JAVA-enabled Web Browser.

“We are excited about the relationships we are establishing with businesses and system integrators who desire to integrate the IntraEuroX service into their products and services,” said Bernie Roemmele, CEO and founder of CitX Corporation. “We feel that the IntraEuroX service will help our partners create new solution opportunities in international B2B transactions and further differentiate their products and services from competitors”.

About CitX

CitX Corporation is a privately-held, leading high-tech company that primarily develops and markets B2B Electronic Commerce solutions, Community-Centric Portals, and Network-Centric (Web-Hosted) software applications, delivered securely across the Internet and private heterogeneous networks.

Most of CitX’s products and services are provided on a fee-for-use basis and are available through its many strategic partners, system integrators, independent representatives, and direct online users.

CitX’s management team has more than 8 years experience in providing Web-Hosted software applications, Electronic Commerce solutions, and Community-Centric Portals for Medical Societies, Hospitals, Physicians, and others in the Healthcare sector. CitX has developed a specialized medical Community-Centric Portal and Extranet called HCSIN.NET that currently services more than 50,000 healthcare professionals throughout the United States.

CitX has formed strategic partnerships with Redix, NCR Corp., Priority One ECC, Bell Atlantic, Alternative Link, and others to effectively deploy secure Internet-based, Business-to-Business Electronic Commerce, Community-Centric Portals, and Web-hosted software applications, for small businesses as well as the corporate enterprise.

Primary markets serviced are B2B, Healthcare, Insurance, Banking, Retail, Organizations, and the Government. For more information, contact CitX Corporation at 215-538-3535, by email at bernie@citx.net, or visit the CitX Web Site at .

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