IFS & Y2K

IFS International, Inc. announced plans to complete Y2K certification of its TPII family of products by October 31st, 1998.

IFS is taking the Y2K matter very seriously and has had a team assigned to the Y2K verification project since April of 1998.  Certification of IFS International’s core TPII software has been completed and subsequent certification of all ancillary TPII products is due by October 31st, 1998. All current customers affected by TPII Y2K issues will be scheduled for enhancement upgrades after certification completion.

“The changes to our base code have thus far proven to be minimal and we do not have as extensive a problem as legacy based systems.  We also have access to powerful client/server tools to assist us in editing and testing our system for Y2K compliance” said Dave Hodge, CEO of IFS.

Oracle, which is the database used by TPII, has stated that its products are Y2K compliant.  In addition, IFS hardware partners have indicated that all operating system components will be Y2K compliant as well.  Therefore, the impact of Y2K issues on the TPII system should be minimal.

In addition to analyzing the system software for possible Y2K issues, IFS is in a position to be able to simulate various environments for testing Y2K issues and scenarios.  Using transaction simulators, IFS systems were rolled forward in time to December 28, 1999.  Transactions were introduced for a period of several days allowing TPII system components to be tested across the Y2K boundary.

IFS generated sets of test credit cards with issue dates and expiration dates both before, on, and after the Y2K boundary.  All tests were completed successfully on schedule by July 31st, 1998 on the core TPII system.  IFS International plans to start formal Y2K certification with VISA’s Denver Processing Center early next month to ensure Y2K compliance for its VISA Cash product lines.  Recent releases of TPII have included any completed enhancements related to Y2K.

“We consider the Y2K issue as a serious matter and plan a thorough certification of our base and our customer systems.”   We believe Dave Hodges previous experience of managing two large certification projects will be a great asset to the project,” said Frank Pascuito, Chairman.

IFS International, Inc. develops, markets, and supports software products for the Electronic Funds Transfer (EFT) market.  IFS International products are used to provide ATM, POS, smart-card, debit card management, bank teller, bank platform, home banking and call-center solutions to the EFT industry. Its family of software products, marketed under the name TPII, serves as a manager of EFT systems for automated teller machines (ATM), point-of-sale (POS) and voice authorization.  The NCI International, Inc. subsidiary adds complementary products to the IFS family, including NCI Business Center, an enterprise-wide retail banking solution designed to automate all traditional as well as Internet/Intranet transactions.  IFS also provides a turnkey system for smart-card implementation.

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Earning Credit

VISA chose two college students yesterday to co-host a series of 30 Hollywood-style game shows on college campuses nationwide to teach students about wise money management.  The show/tour, which kicks off August 22 at Arizona State University,is called “Earning Credit”, and will award $1,000 tuition scholarships and other prizes to students who take turns answering questions on such topics as credit cards and budgeting money. As part of its back-to-school education drive, VISA is also distributing “What’s Up with Money in Your Life?” teaching kits to 4,000 colleges and universities.

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PNC-Pirates

PNC Bank Corp. and the Pittsburgh Pirates announced a 20-year marketing alliance under which the new home of the Pirates will be named PNC Park when it opens in 2001. Under the naming rights agreement, PNC Bank will pay approximately $1.5 million a year through the 2020 baseball season.  In addition, the bank has negotiated a separate marketing agreement that provides a variety of marketing, advertising and merchandising opportunities with the Pirates — including the exclusive right to offer financial services at the ballpark.

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Utell – VISA Promo

Utell International has paired up with VISA to offer travelers added values and discounts of up to 53% off at eleven Thailand hotels.

Running now through Oct. 31, 1998 guests staying at participating hotels and paying with VISA will receive such added extras as room upgrades or a complimentary breakfast. Added extras vary for each hotel and are designated by the individual property. These special rates and added extras are exclusive to Utell International, for single or double occupancy, require no minimum/ maximum stay and are available seven days a week.

The properties participating in ‘Thailand Prefers VISA’ include: Allamanda Laguna, Central Waterfront Suites, Karon Villa Phuket/Karon Villa Royal and Pearl Village Hotel in Phuket; Central Grand Plaza, Imperial Queen’s Park Hotel and Rembrandt Hotel in Bangkok; Central Wong Amat Beach Hotel and Royal Cliff Beach Resort in Pattaya; Central Sukhontha Hotel in Hat Yai; and Imperial Samui Hotel in Samui.

Utell International, a REZsolutions Inc. company, is the world’s leading hotel marketing and reservations company representing more than 7,700 hotels in over 180 countries. Member properties range from budget to deluxe, city center to resort and include major international brands as well as independent hotels.

For more information or to make reservations with a Utell-represented property from the U.S. and Canada, call 800/44-UTELL. REZsolutions Inc. is the result of the merger of Anasazi Inc. and Utell International and is the leading provider of technology-based systems, reservation and distribution networks, private label reservations services and marketing programs for the hospitality industry.

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MasterCard Online Promo

MasterCard and Preview Travel, Inc., put together a marketing alliance Wednesday to promote the use of Preview’s online travel service. The alliance makes MasterCard a premier advertiser and the exclusive payment system sponsor for Preview Travel, as well as the primary sponsor of the Preview Travel Business Travel Center.  The program, which will appear on Preview Travel’s Web site and America Online, provides Preview Travel’s MasterCard users with travel and entertainment offers, upgrades, special awards and discounts.  The program will also feature a point-of-purchase promotion on Preview Travel’s services on Excite and Lycos. The alliance between MasterCard and Preview Travel follows MasterCard’s recently announced alliance with Yoyodyne and Excite.

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PULSE – Chase Renew

The PULSE EFT Association has renewed its contract with Chase Bank of Texas to provide the network’s technical operation for the next five years. The new agreement calls for Chase Bank to continue to provide operation of the hardware and software associated with the PULSE system. In addition, Chase is responsible for management of the on-line functions of the network.

In making the announcement, Stan Paur, PULSE president and CEO, noted, “Over the years, Chase has done an extraordinary job in providing the technical services necessary to maintain the highest levels of service for PULSE member financial institutions and their customers. This agreement will ensure the continued high level of uninterrupted service that PULSE provides. The levels of support provided by Chase are essential as the use of electronic banking services through PULSE continues to expand.”

Tom Vicknair, executive vice president at Chase, commented, “Our organization is delighted at PULSE’s decision to extend the switch agreement. We are committed to maintaining the highest levels of service. In fact, over a 26-month period, the PULSE switch has experienced zero minutes of unscheduled down time.”

Chase Bank of Texas, N.A. has 123 branches throughout the state and market leadership positions in retail, corporate and commercial banking and community development lending. Chase Texas is a unit of The Chase Manhattan Corporation, one of the world’s largest financial institutions with $367 billion in assets.

PULSE is a not-for-profit, shared electronic funds transfer network comprising nearly 2,000 banks, credit unions, and savings and loans in Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee and Texas. The network includes more than 30,000 ATMs and 122,000 PULSE PAY point-of-sale terminals.

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eCommerce Solution

eCommerce Corporation ([www.ecommerce.com][1]) is announcing the roll-out of the first-ever turnkey electronic commerce solution for business.

The pending acquisition of eCommerce by Enhanced Services Company, Inc. allows eCommerce of Stamford, Conn., to create, market, build, host and fulfill for their customers interactive business solutions, all under one roof.

“It’s clear that e-commerce represents the next wave of development in the continuing metamorphosis of the Internet as a business communications medium,” said Lance Estes, president and CEO of eCommerce Corp. “We’re very enthusiastic to be the first to market a true turnkey system for the interactive business community, because we know how important it is to our customers’ business success. We recognize how critical it is for our customers to remain on the cutting edge of information technology and keep a step ahead of their competitors.”

The key to eCommerce’s success has been to deliver high-quality, commerce-enabled, scalable web sites available around the clock to the Internet community. The company has built on such success as Sports Illustrated and the NFL store ([www.ultimatefootballshop.com][2]), Gymboree Corp. ([www.gymboree.com][3]) and such Turner properties as the WCW ([wcw.ecommerce.com][4]).

With its turnkey system, eCommerce offers complete credit card authorization and settlement, along with a total integration with a 150,000-sq.-ft. fulfillment house and state-of-the-art fulfillment backend system. The completion of the integration of the front-end web site with the backend system allows for the real-time communication of data to the web database, bank gateway, site administrator and the self-serve online customer service center. Double quantity pricing for fulfillment makes this come together in one complete package that is easily managed by a single individual at the corporate headquarters or anywhere. All administration functions are performed through secure browser-based screens including daily reporting of activity and sales.

eCommerce plans to launch nine new enterprise-quality sites within the next six weeks that will take advantage of the new backend integration.

Enhanced Services Company, Inc. of El Segundo, Calif., recently announced the execution of a Letter of Intent to acquire eCommerce for a combination of cash and stock. The marriage will result in a one-stop shopping electronic commerce organization offering the full spectrum of graphics design and technology, Internet advertising, digital marketing and database fulfillment services. eCommerce will become a subsidiary of ESVS.

[1]: http://www.ecommerce.com
[2]: http://www.ultimatefootballshop.com
[3]: http://www.gymboree.com
[4]: http://wcw.ecommerce.com

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CADRE System

NeuralTech and Frederick, MD-based Merlin Solutions signed an agreement whereby Merlin Solutions will use the NeuralTech ‘CADRE’  system to process disputes on behalf of its customers who are credit card acquirers and their processors.The ‘CADRE’ system, currently installed in 4 out of 10 of the nation’s largest merchant acquirers, delivers a highly modular interactive software solution that automates each phase of the dispute resolution process. ‘CADRE’ provides interactive customer service case management; sales draft retrieval requests; chargeback initiation; representment processing; and cardholder contact and correspondence management. ‘CADRE’ utilizes NeuralTech’s expert system technology, which codifies the VISA/MasterCard Association rules governing dispute resolution.

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Falcon Cheque

HNC Software announced the general availability of ‘Falcon Cheque’ yesterday to combat the $1 billion-per-year check fraud problem in the U.S.. ‘Falcon Cheque’ is a check fraud detection solution that builds upon HNC’s predictive software technologies currently used by top bank card issuers worldwide to prevent fraud. ‘Falcon Cheque’ runs in the bank’s check processing center and uses neural networks and HNC’s proprietary behavior profiling technology to uncover fraud on all types of check transactions, including savings account, ATM, ACH, and on-line banking. Using a neural network-based fraud model, the product evaluates each item and compares the prediction with an accurate model of the accountholder’s normal check usage. The software can address in-stream, off-line batch and real-time processing paths. When suspect-check data is uncovered, it is routed to the bank’s existing remedy systems. ‘Falcon Cheque’ is delivered with an algorithm for bottom-line return optimization, ranking out-sorted fraud cases in the order of potential dollars saved.

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Panama ACH Net

Equifax announced Wednesday that it assisted Centro de Intercambio Automatizado, S.A. to establish the first ACH network with same-day settlement in Panama.  The banking organization has purchased and installed ‘GOLDNET’ electronic banking software from Equifax’s Goldleaf Technologies, making Panama the first Central American country to implement an ACH network on a national scale. Those banks already on the network represent one-fifth of the banks in Panama. ‘GOLDNET’ software is already in use in the U.S. and at the Central Bank in Aruba.

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ABH Up 52% for 2Q

American Bank Note Holographics, Inc. announced yesterday the results for the second quarter ended June 30, 1998.

ABH’s sales for the second quarter increased 52% to $9.6 million from $6.3 million for the same quarter in 1997, while net income increased 60% to $2.3 million, or $.17 per share, from $1.4 million, or $.10 per share in 1997. Revenues for the six month period ended June 30, 1998 were up 44% to $16.6 million from $11.5 million in 1997, while net income nearly doubled to $4.1 million, or $.30 per share, from $2.1 million, or $.15 per share, in the first half of 1997.

Josh Cantor, President of ABH, commented, “We are pleased with the results for the quarter and first six months of the year. Our strong performance reflects expanded sales of secure holographic products. These results reflect the Company’s continued commitment to revenue growth and margin improvements.”

American Bank Note Holographics (“ABH”) is a world leader in the origination, production, and marketing of mass-produced secure holograms. The Company’s holograms are used for security applications, such as counterfeiting protection for credit and other transaction cards, identification cards and documents of value, as well as for tamper resistance and authentication of high-value consumer and industrial products.

                AMERICAN BANK NOTE HOLOGRAPHICS, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per share amounts)

                                 Three Months Ended   Six Months Ended
                                     June 30,            June 30,
                                 1998     1997       1998       1997

Sales                          $ 9,581   $ 6,296   $16,616  $11,537
Cost of goods sold               4,007     2,591     6,445    5,220
  Gross profit                   5,574     3,705    10,171    6,317
Selling and administrative
expense                         1,502     1,103     2,758    2,413
  EBITDA                         4,072     2,602     7,413    3,904
Depreciation  and amortization
expense                           292       288       584      581
Operating income                 3,780     2,314     6,829    3,323
Interest income, net (expense)     (26)      106       (21)     215
Income before taxes              3,754     2,420     6,808    3,538
Tax on income                    1,475       998     2,736    1,459
Net income                     $ 2,279   $ 1,422   $ 4,072  $ 2,079
Earnings per common share –
basic and diluted             $  0.17   $  0.10   $  0.30  $  0.15
Shares used in computing per
share amounts                  13,636    13,636   13,636    13,636

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