Natl City Names New EVP

The board of directors of National City Corporation elected A. Joseph Parker executive vice president, effective immediately.

Mr. Parker, 43, is responsible for National City’s consumer finance businesses, including credit card, out-of-market home equity, indirect auto and education finance across the six-state National City franchise.  As executive vice president, Mr. Parker will continue to report to National City vice chairman Vincent A. DiGirolamo.

“Joe’s promotion to executive vice president is a much deserved recognition of the outstanding job he has done in making retail banking one of National City’s best performing businesses,” said National City Chairman and Chief Executive Officer David A. Daberko.  “Under his direction, the retail business group has more than doubled its net earnings in four years.  Joe has turned our call centers into responsive service and sales vehicles and invigorated the sales efforts of our branches by empowering branch employees with powerful customer information management tools,” Mr. Daberko added.

Profile of A. Joseph Parker

A. Joseph Parker has served as head of the Consumer Finance division since June 1998.  He is responsible for card services; out-of-market home equity; education finance; indirect auto, floor plan and auto leasing; consumer loan services; consumer credit administration and consumer finance product management.

Mr. Parker joined National City Bank of Columbus in 1977 as a management trainee.  He subsequently held management positions in retail operations, finance and card services, including development manager in the credit card division.  He was elected senior vice president in 1990 and was named chief financial officer for the Columbus bank in 1993.  That same year, Mr. Parker was named senior vice president and head of strategic planning for the Corporation.  In September 1993, Mr. Parker was charged with developing a new delivery system strategy for the National City’s retail banking units corporate-wide and coordinating that strategy with better customer service programs.  In September 1994, he was named retail business line manager for National City Corporation.

Mr. Parker is a graduate of The Ohio State University and has a master’s degree in business administration from Xavier University.

Profile of National City Corporation

National City Corporation is an $81 billion bank holding company based in Cleveland, Ohio.  The company offers a full range of financial services, ranging from investment banking and brokerage services to traditional banking services for individuals and businesses.  National City has branch offices in the states of Ohio, Pennsylvania, Michigan, Indiana, Kentucky and Illinois.  National City can be found on the World Wide Web at .

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Smart Card Keys

More than 6,000 cardholders participating in a pilot of smart card versions of the ‘American Express Corporate Card’, ‘Hilton Optima Card’ and the ‘Hilton HHonors Worldwide Diamond VIP Card’ will be able to use their cards to access hotel rooms this fall. The Hilton New York & Towers, the largest hotel in New York City, will install new electronic locks on each of its 2,041 guestroom doors by the end of September, becoming the first hotel in the nation to link a ‘SmartLock’ system with both ‘SmartKeys’ and multifunction smartcards.The locking system technology was developed by CISA of Italy. Hilton is purchasing the ‘CISA CS9580 Smartcard Locking System’. CISA claims its ‘SmartKeys’ are nearly impossible to duplicate. In 1985, the Hilton New York became the first hotel in the U.S. to implement magnetic-stripe technology for its guestroom locks.

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EPS Acquires ATM Driving Business

Electronic Payment Services, Inc. announced Tuesday the acquisition of Transaction Network Services, Inc.’s ATM terminal driving business.  The acquisition will add more than 3,000 dial-up ATMs to its total base of 37,500.  Dial-up ATMs currently account for 47% of the ATMs that EPS drives. Over 60% of the ATMs deployed by TNS clients are in petroleum and convenience store locations.TNS obtained the ATM terminal driving business in its purchase of Suntech Processing Systems LLC in February. EPS has begun a program to offer electronic advertising at ATMs enabling merchants to display specific marketing messages and print coupons at individual ATMs.

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Air Miles Acquisition

Dallas-based Alliance Data Systems announced Tuesday the acquisition of Loyalty Management Group Canada Inc..  The Loyalty Group created and manages the ‘AIR MILES’ Reward Program, in which 44% of all Canadian households actively participate.  The ‘AIR MILES Reward Program’ enables cardholders to earn reward miles while shopping for everyday goods and services at participating ‘AIR MILES’ sponsor locations, such as Shell and Safeway, or by using their American Express card.  These reward miles can be exchanged for free air travel and other valuable non-flight rewards. Alliance says it will use the acquisition to expand its international presence. Under terms of the agreement Alliance will provide continued employment of the more than 600 Loyalty Group employees at the Toronto, Montreal and Calgary locations. There Alliance currently employs more than 6,000, principally owned by the private investment firm of Welsh, Carson, Anderson & Stowe.

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IBM to Release PKIX Next Month

IBM and Lotus Development Corp. announced Tuesday they are donating industry-standard security software source code to the Internet community which can be used for making online commerce easier and more secure.

The security software is based on Internet standards defined by the Internet Engineering Task Force, the leading international standards organization for the development of the Internet. This will help unify the Internet community by enabling vendors to more easily adopt, develop and promote a standard way to secure any and all applications with digital certificates. With digital certificates, people can sign their names electronically, much like drivers’ licenses are used for identification.

The software source code, also known as a reference implementation, delivers on the IETF’s draft Public Key Infrastructure standards, commonly referred to as PKIX. PKIX provides the mechanism to issue, validate, revoke and renew digital certificates. The reference implementation will be available through the Massachusetts Institute of Technology’s Web site at the end of August.

“Internet software vendors and customers today face a major interoperability hurdle due to proprietary implementation of public key infrastructure, ” said Jeff Schiller, IETF Area Director and MIT Manager of Systems and Operations. “By developing and making the PKIX reference implementation code available to all, IBM and Lotus are enabling software vendors to develop products that interoperate and are giving customers the option to choose products that support cross-product and cross-vendor interoperability.”

“By providing the code at no charge, IBM is making it much easier for companies to adopt the PKIX standard…enabling them to securely link their customers, their remote offices and sites, their partners, their suppliers and vendors via the Internet,” said Jeff Jaffe, IBM General Manager of eNetwork Software and Security. “Internet software vendors now will be able to get encryption-based products to market faster, and users will be able to conduct business safely and securely online while reducing their costs.”

Systems and software vendors now may take advantage of the source code, or reference implementation, and no longer need to invent their own core technology or worry about interoperability of certificates. By selecting a product based on the emerging standards, customers will be able to deploy a single public key infrastructure for all of their security applications, reducing the total cost of ownership including deployment time and expense.

In addition to more than 20 organizations participating in authoring the PKIX standard, leading companies, associations and software vendors have lined up to support PKIX, including (see quotes attached): General Motors, JP Morgan, Netscape, Sun, International Computer Security Association, Security Dynamics, Inc., Intel, Equifax, and DASCOM.

Building on IBM’s leadership in promoting and delivering PKIX, IBM and Lotus intend to integrate this standard public key infrastructure throughout their products, including:

Applications, such as Lotus Notes and Lotus Domino;

Networking software, such as IBM eNetwork Firewall and IBM Global Sign-On;

IBM operating systems, such as AIX, OS/2, OS/400 and OS/390;

IBM’s newly announced digital certificate solution, IBM Vault Registry;

IBM SSL toolkits, which are used today in more than 20 products such as IBM Websphere Application Server and eNetwork Host on Demand.

In addition, Tivoli will provide management support for the standards-based digital certificate environment.

Services and Consulting

Continuing IBM and Lotus’ thrust with PKIX standards, customers in every part of the world can also take advantage of services and consulting support through IBM Global Services. IBM can help implement and deploy an architecture that supports an enterprise-wide PKI that all applications can use. IBM services offerings enable customers to develop their PKI policy, strategy and requirements definition. Planning, architecture and implementation services are also available to help customers effectively use PKI to enhance their business operations.

Availability

Available to the public and at no charge, the Public Key Infrastructure reference implementation can be downloaded from the World Wide Web on MIT’s Web site located at at the end of August for Windows NT. A version of the reference implementation will be available for Sun Solaris by the end of the year. IBM plans to offer the complete reference implementation function plus additional enhancements on AIX in January 1999, and plans to support the PKIX standards in the OS/2, OS/400 and OS/390 environments. Distribution of other products incorporating the PKIX standard will be decided by the respective vendors of those products.

About IETF

The IETF, Internet Engineering Task Force, is an international organization of network designers, operators, vendors, and researchers who continuously work to improve Internet architecture and the smooth operation of the Internet. More information is available at .

About IBM

IBM creates, develops and manufactures some of the industry’s most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics. IBM offers information about the company and its products through the World Wide Web. The fastest, easiest way to get information about IBM software is through the IBM software home page at . More information about today’s announcements is available at .

About Lotus

Lotus Development Corporation, founded in 1982, is a subsidiary of IBM. Lotus offers high-quality software products and services that reflect the company’s unique understanding of the new ways in which individuals and businesses must work together to achieve success. Lotus Notes, Lotus’ premier messaging and collaboration software for the Web, incorporated the first commercially available public key infrastructure (PKI) in 1989 and, with more than 25 million seats, is one of the largest PKIs deployed today. Lotus now markets its products in more than 80 countries worldwide and provides numerous professional consulting, support and education services through the Lotus Services Group. More information is available at .

Customer/Vendor Quotes and References     IBM/Lotus PKIX Reference Implementation Announcement

Contact: Randy Sanovic, General Motors Corporation     General Director Information Security     Phone: 313 667-4767     Debbie Yedlin, Asst. – 313 667-4603

“Common security standards will allow us to interoperate with future as well as with existing information technologies,” said Randy Sanovic, General Director Information Security at General Motors Corporation, the world’s largest industrial corporation and full-line vehicle manufacturer.

“This is an essential building block in constructing a worldwide e-commerce framework.”

Contact: Charles Blauner, JP Morgan     Phone: 212-648-4284

J.P. Morgan is a leading global financial firm that meets critical financial needs for business enterprises, governments, and individuals.

“From accessing portfolio information to providing access to markets, businesses are increasingly using the Internet,” said Charles Blauner Vice President; Security & Internet Architecture at J.P. Morgan & Co. Incorporated, a leading global financial firm. “Public-key Cryptographic Infrastructures are the key facilitator for providing these services in a secure fashion. The progress announced today in advancing common open standards through the development of a freely available reference implementation will help accelerate the adoption of those standards. These standards are critical to insure the interoperability of products that financial service companies need to serve their clients today and in the future in a secure fashion.”

Contact: Ben Horowitz, Netscape Communications Corporation

“In the Net Economy, companies require extranet security solutions that provide performance, scalability, reliability and that extend outside the enterprise to include partners, customers and suppliers,” said Ben Horowitz, vice president of the Mission Control product line at Netscape Communications Corporation. “Interoperability among vendors’ security products is key to success. With IBM’s announcement today, IBM joins Netscape among the growing list of vendors validating the Internet open source code model for product development and cross-company interoperability.”

Contact: Robert Moskowitz, ICSA, Inc.

“I applaud IBM and Lotus for putting the PKIX reference implementation in the public domain,” said Robert Moskowitz, Senior Technical Director, ICSA, Inc. “Having a reference standard to follow helps improve computer security worldwide by enabling people to more rapidly build and test interoperable security products.”

Contact: Richard Mack, Security Dynamics     Phone: 781-687-7846.     Email: [RHMack@SecurityDynamics.com][1]

Security Dynamics helps enterprise customers and their partners protect business information. The Company provides information security solutions, technologies and services that leverage Security Dynamics’ expertise in authentication management, encryption and access control.

“Security Dynamics and RSA Data Security applaud IBM’s initiative to present the PKIX standard in the public domain,” said Chuck Stuckey, chairman, president and CEO of Security Dynamics Technologies, Inc. “This philosophy of interoperability and open security standards is paramount to the successful implementation of PKI products and services, and one that is embodied in Security Dynamics’ architecture for enterprise security.”

Contact: Mike Premi, Intel Corporation     Phone: 503-264-2842     Email: [Mike.Premi@intel.com][2]

Intel supplies the personal computing industry with the chips, boards, systems and software that are the “ingredients” of the most popular computing architecture. These products help create advanced computing systems for personal computer users. Intel helps you build faster, simpler networks.

“Interoperable PKI frameworks are a critical requirement for electronic commerce,” said Michael Glancy, general manager of the Platform Security Division at Intel, “and we are delighted by the step that Lotus has taken with this reference implementation. By building on top of CDSA, the PKIX reference provides a single, open public key infrastructure that will accelerate the deployment of electronic commerce solutions.”

Contact: Penny Bruce, Partner PR Manager, Java Software     Sun Microsystems, Inc.     Phone: 408-343-1796     Email: [penelope.bruce@sun.com][3]

“Public Key Infrastructure is a crucial component of Internet security and electronic commerce, and Sun is pleased that IBM is donating a reference implementation that will help accelerate PKI deployment,” said Dr. Li Gong, Java Security Architect and Distinguished Engineer, Sun Microsystems, Inc.’s Java Software. “The publicly available reference implementation will also provide a testbed for interoperability with other PKI technology products, such as the certificate support in the core JDK 1.2 packages.”

Contact: Dave Mooney, Public Affairs, Equifax     Phone: 404-885-8117

Equifax’s worldwide knowledge-based information, transaction processing, consulting and software businesses, are designed to bring buyers and sellers together…thus changing the shape of global commerce.

“Strong standards are fundamental to the phenomenal growth that we expect within the electronic commerce arena. Today’s announcement by IBM and Lotus to donate a reference implementation of the PKIX standard for digital certificates should accelerate interoperability. IBM has a long history in the security arena and this latest contribution of standards simply confirms our decision in choosing them as the technology partner for our digital certificate service,” said Jeff Johnson, SVP of Electronic Commerce.

Contact: Lauren de Vries, Manager of PR and Events for DASCOM, Inc.

Phone: 408-460-3600     E-mail: [lauren@dascom.com][4]

DASCOM is a leading provider of scalable Intranet security solutions to the Global 1000. IntraVerse provides network security management and authorization for enterprise intranets and extranets.

“IBM’s leadership in furthering the standard for Public Key Infrastructure through the PKIX Reference Implementation is a significant step towards establishment of interoperable security standards for electronic commerce,” said Greg Clark, DASCOM Chief Technology Officer. “DASCOM looks forward to the benefits of this work underpinning our security solutions”.

[1]: mailto:rhmack@securitydynamics.com
[2]: mailto:mike.premi@intel.com
[3]: mailto:penelope.bruce@sun.com
[4]: mailto:lauren@dascom.com

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CyberCash 2Q Revenues Hit $2.5 Million

CyberCash, Inc. , the world leader in e-commerce payment technologies and services, Tuesday announced business and operating results for the second quarter ended June 30, 1998. CyberCash reported revenues of approximately $2.5 million for the three months ended June 30, 1998, up from $812,000 for the second quarter of 1997.

                           Financial Summary Table

                                                   Three Months Ended
                                                        June 30,
                                              1998                 1997
    Revenues                               $2,505,706            $812,361
    Cost of Revenues                       $1,646,187            $765,046
       Gross Profit                          $859,519             $47,315

    Operating costs and expenses           $9,283,870*        $6,682,266
    Amortization of intangible assets      $1,291,014             $–
    Interest and other income, net           $113,839            $311,403
    Net loss                              $(9,601,526)        $(6,323,548)
    Net loss available to shareholders    $(9,767,366)        $(6,323,548)
    Net loss per share                       $(0.68)             $(0.58)
    Weighted average shares outstanding    14,303,615          10,888,088

    * Includes a one-time restructuring charge of $608,758.

Bill Melton, President and Chief Executive Officer of CyberCash, commented, “During the second quarter, CyberCash made tremendous strides on several fronts.  We completed our acquisition of ICVERIFY, Inc. and substantially completed the integration of both companies’ businesses and resources.  We also introduced several new products, including CashRegister 3 service, which greatly simplifies the use of our three payment services, and ICVERIFY for Windows, Version 2.2.  One of the exciting features in both products is that they make the process of becoming a CyberCash merchant almost instantaneous — through Integrated Merchant Registration (for the CashRegister 3 service) and AutoValidation (for ICVERIFY for Windows, Version 2.2).”

Mr. Melton also commented on the momentum that CyberCash is carrying into the third quarter.  “CyberCash recently announced two agreements it has entered into with IBM (NYSE: IBM).  Under one agreement, IBM will work with CyberCash’s ICVERIFY unit to develop and market a new Internet payment offering that will increase the number of options available to merchants for processing credit card orders.  Through this technology exchange, we plan to develop ways for merchants to accept credit card data from consumers in mail order, telephone order or retail point-of-sale environments, as well as over the Internet,” said Mr. Melton, adding, “The goal of this initiative is to make e-commerce more attractive to consumers and merchants by replicating the payment methods they already know and are comfortable using.”  CyberCash and IBM have also entered into cross-marketing agreements whereby IBM will market CyberCash’s NetVERIFY, and CyberCash will market IBM’s Payment Server* through the companies’ respective sales channels.

“In addition,” said Mr. Melton, “we have just concluded a cooperative agreement with First Virtual Holdings Incorporated (Nasdaq: FVHI), now a provider of Internet messaging services, to offer all the merchants and buyers who previously used First Virtual’s Internet Payment System (IPS) a migration path to CyberCash’s CashRegister Payment Service.  The agreement could result in CyberCash’s providing its premier Internet payment solution to over 2,000 merchants who previously used First Virtual’s IPS until it exited the business.  In exchange, First Virtual’s Interactive Messaging Platform will be CyberCash’s preferred solution for interactive messaging.”

In an important sign of the continued faith of investors in the CyberCash vision, two weeks ago the Company raised $15 million in a private placement of convertible preferred stock and options. “This equity infusion comes at a time when electronic commerce appears poised to begin a period of rapid expansion,” Mr. Melton said.  “The additional capital will allow us to strengthen CyberCash’s position as the leading provider of electronic payment technologies and services through several different means.”  CyberCash plans to use the funds to finance the Company’s current network expansion and architecture upgrade and to take advantage of strategic opportunities in the future.

On the operating side, CyberCash reported that its transaction and merchant volume in the second quarter had increased to new levels.  As of June 30, 1998, merchants were using CyberCash’s services to process over 2.5 million transactions per month, up from 2.0 million transactions per month for the first quarter of 1998 and 1.5 million transactions per month for the fourth quarter of 1997.  This growth in merchant signups and transaction volume occurred despite market uncertainty over the announcement of the ICVERIFY acquisition and the introduction of CyberCash’s new pricing model for its Internet payment services.

Additional Highlights

— In an important breakthrough for merchants’ ease of use of payment options, CyberCash launched CashRegister 3, which connects online storefronts and web sites directly to CyberCash’s three payment services — credit cards, electronic checks and electronic cash.  With CashRegister 3, CyberCash has moved most of the transaction processing from the merchant’s server to the Company’s payment server system.

— CyberCash agreed to team with UUcom, Inc., one of the nation’s premier Internet engineering companies.  UUcom will design and implement a network expansion and upgrade CyberCash’s Internet architecture and operational facilities.  CyberCash also made an equity investment in UUcom.

— In the bill presentment marketplace, Digital Cities and CyberCash will work together to help merchants and utility companies in the Washington, D.C. area to send bills and receive payments over the Internet.  The pilot program will run through 1998 and could expand to 37 Digital Cities sites in the U.S.

— The Edison Electric Institute (EEI) has teamed with CyberCash in a program that gives EEI members — more than 120 of the country’s largest electric utility companies — the availability of secure Internet payment services at a significant discount.  Utility companies, which collect nearly $200 billion annually, as well as telephone companies and other large consumer billers, are a target market for CyberCash’s PayNow Secure Electronic Check Service.

— CyberCash’s Board of Directors adopted a Stockholder Rights Plan designed to deter coercive or unfair takeover tactics.  Under the plan, preferred stock purchase rights have been granted as a dividend at the rate of one Right for each share of Common Stock held of record as of the close of business on June 30, 1998.

About CyberCash, Inc.

CyberCash is the world leader in secure, convenient payment technologies and services, enabling e-commerce across the entire market spectrum from electronic retailing environments to the Internet.

CyberCash provides a complete line of software products and services allowing merchants, billers, financial institutions and consumers to conduct secure transactions using the broadest array of popular payment forms. Credit, debit, purchase cards, cash, checks, smart cards and alternative payment types (e.g., “frequent buyer” or loyalty programs) are all supported by CyberCash payment solutions.  Leading brands of CyberCash include ICVERIFY, PCVERIFY, CashRegister, NetVERIFY, CyberCoin and PayNow.

For financial institutions, software developers and integrators, commerce and Internet service providers, and technology partners, CyberCash solutions are the preferred choice, offering unmatched ease and flexibility in integrating payment capabilities into value-added offerings to customers.

CyberCash, Inc., headquartered in Reston, Virginia, USA, maintains a global presence with offices and joint ventures operating throughout North America, Europe and Asia.

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Business Logic & VeriSign Partner

Business Logic Corporation and VeriSign, Inc. have partnered to provide security using digital certificates in the implementation of Business Logic’s Internet commerce solutions.  Business Logic, a leading provider of financial applications, will resell VeriSign OnSite, a turnkey digital certificate and management system which allows an enterprise to establish itself as a Certificate Authority.  With this solution, VeriSign, the leading provider of enterprise digital certificate solutions, will provide Business Logic’s customers in the banking and financial services industry with a high level of safety and security.

VeriSign OnSite allows enterprise security managers to control and customize digital certificates for its employees, customers or business partners for use in gaining secure access to a wide range of e-commerce applications as well as to digitally sign and encrypt electronic mail.  OnSite provides enterprises with full control over the digital certificate authentication, issuance and lifecycle management process and enables organizations to issue certificates under their own private hierarchy or as part of the VeriSign Trust Networks(SM), the world’s only interoperable network of public digital certificates.  Since OnSite is based on open standards, it eliminates the need to purchase additional costly hardware and software as part of deploying a digital certificate solution.

First of America Bank Corporation, recently merged with National City Corporation, is currently using Digital Certificates to provide assurance of identity when accessing a 401(k) Web application created by Business Logic Corporation.  “In addition to certificates giving us the ability to maintain high-quality security standards and data integrity, establishing ourselves as a Certificate Authority will allow us to manage the entire process relating to how our customers obtain and maintain their certificates.  This way, we can ensure that the user experience meets our high standards and is not compromised for the sake of security”, commented Mindy Kulasa, First of America Bank, VP, Director of Communication and Education.

Because Business Logic provides custom Web-based self-service application products for the financial services industries, the company needs to be at the forefront in providing safe and confidential on-line products.  Business Logic implements complete solutions in highly sensitive areas including interactive banking, 401(k) and other retirement planning products.  The company also provides precision finance analysis tools such as loan modules that can stand- alone or be embedded into an interactive banking solution.

“We’re happy to be partnering with Business Logic Corp. to provide digital certificate solutions to First of America Bank for their secure, web-based applications,” said Anil Pereira, VeriSign Director of Marketing.  “Business Logic is a key partner for us as certificates become widely used in the banking and financial services markets.  Security is critical as individuals begin to access personal information via their corporate intranet.”

“Security is a concern with any Internet application,” remarked Business Logic President John Patterson.  “Part of our total function is that we are very strong in terms of security.  We use 128 bit encryption, plus a firewall, plus user passwords.  These security levels have become accepted as industry standard.”

“Our partnership with VeriSign allows us to offer even greater levels of security,” Patterson continued.  “Digital certificates and other VeriSign products perform to put customers’ minds at ease regarding security and confidentiality.  Once freed of these concerns, customers can then focus with confidence on the Internet commerce they want to transact.”

VeriSign, Inc. is the leader in providing digital certificate solutions to enterprises and individuals engaged in electronic commerce.  The company has issued over 50,000 Secure Server IDs and over 2,500,000 Individual Digital IDs to ensure trusted and secure communications over the Internet.  VeriSign’s e-commerce solutions also enable large enterprises to deploy digital certificates to their customers, employees and business partners to secure large-scale electronic commerce applications.  For more information, visit the company’s Web site at .

Business Logic Corporation is a leading provider of custom Web-based self- service application products for the banking and financial services industries.  From its headquarters in Chicago, Illinois, Business Logic connects financial services firms and their customers via the Internet.

The partnership with VeriSign, Inc. enables Business Logic to better serve its growing client base, which includes Scudder Kemper Investments, Inc., Baxter Credit Union, First of America Bank, American Family Insurance, Bank of Montreal/Harris Bank, and many more companies.

Additional information on Business Logic Corporation is available on the Internet at http://www.businesslogic.com or by sending e-mail to [info@businesslogic.com][1].  Customers can also call 312-470-2800 for more information.

[1]: mailto:info@businesslogic.com

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Forbes Resigns

Cendant Corp. chairman Walter Forbes handed in his resignation yesterday as did 10 of 14 directors who were formerly involved in CUC International. The mass resignations come in the wake of accounting fraud which occurred just prior to CUC’s merger with HFS last December. Cendant CEO Henry Silverman was also named chairman yesterday to replace Forbes. There were indications yesterday that Cendant will restate earnings for the past three years due to the extensive accounting fraud at CUC, which included $300 million in phony revenue booked just prior to its HFS merger. A revised earnings report will be issued next month. The Wall Street Journal reported this morning that, according to its sources, Forbes will receive $48 million in severance including $35 million in cash.

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AmEx Names New Board Member

American Express Company announced Tuesday that Richard A. McGinn, chairman and chief executive officer of Lucent Technologies Inc., has been elected to the Board of Directors of American Express.

“Richard has provided outstanding leadership to Lucent, developing it into one of the world’s most successful growth companies,” said Harvey Golub, chairman and chief executive officer of American Express.  “He will be a strong addition to our Board.”

Mr. McGinn, 51, was named chairman of Lucent Technologies in February, 1998.  He previously served as chief executive officer and president of Lucent — which he helped launch as a spin-off from AT&T in 1996.  Mr. McGinn joined AT&T in 1978 and subsequently held executive positions in AT&T’s International and Computer Systems Groups before becoming chief executive officer of Network Systems.  He began his career at Illinois Bell in 1969.

In addition to serving on the Board of Directors of Lucent Technologies, Mr. McGinn is a director of Oracle Corporation.  He is a member of the Executive Committee of the Council on Competitiveness, a bipartisan policy group.  Mr. McGinn received a bachelor’s degree from Grinnell College, Grinnell, Iowa.

American Express Company (), founded in 1850, is a global travel, financial and network services provider.

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PaymentNet Released

PaymentNet (previously Segue Systems), an established vendor in the wide open market for electronic payment processing over the Internet, announced Monday general availability of its automated payment processing service.

The PaymentNet Service is the industry’s only single-source, automated, multi-payment, secure gateway that provides real-time processing services for multiple payment media: credit cards, purchase cards, electronic checks and others. The multi-payment gateway supports critical business requirements facing Internet merchants including recurring billing, installment payments, delayed product shipment and immediate softgoods delivery.

The PaymentNet Service has been deployed across a range of merchant customers (listed below) with excellent results, and has proved its value to key payment processing, banking, ISP/distribution and technology partners. It represents a powerful alternative for merchants who have been disappointed by slow, cumbersome, inefficient and costly Internet-based payment processing solutions that have their architectural and feature origins in the “pioneering” era of Internet payment technologies.

Key Relationships in Place

PaymentNet’s service is production-quality and already broadly deployed. It has proved compelling enough to enroll key players across the spectrum of the payment processing infrastructure and to attract a range of large, leading-edge merchant customers. Following is a partial list of early PaymentNet customers and business partners:

— Banking/Processing Partners: First Data Corp. (the leader in credit card processing), Telecheck, Wells Fargo, Unified Merchant Services (a Nation’s Bank/First Data Corp alliance partnership), and Cardservices International (others in process).

— Prior CyberCash Customers: Value America, Virtual Vineyards, Broadcast.com(formerly Audionet.com) portal merchants including Snake River Cigar Company, Landmark Community Interests, and DocuSearch.

— Other Customers: US Auto Club, KLM Dutch Airlines, AtYourOffice.com, CBS Sportsline, Hygrade Food Products (division of Sara Lee), Certified Email, Fantasy Sports Properties, Inc., and American Heart Association.

— ISP Providers: T3West, AnaServe, Best Internet, Netcom, The Big Net, Catholic Online, Catholic Telecom, First Internet, Interport Communications, LexiConn, Mindspring, Pair Networks, VikingNet, WebServe, and Webvisions.

— Shopping Carts: ICentral and Mercantec (others in process).

The PaymentNet Advantage

The PaymentNet system is based on a client/server architecture, and is deployed using a true thin client binary executable. PaymentNet leverages the Internet as a virtual private network between its proprietary payment processing server and individual clients dispersed on Internet and Intranet locations.

According to benchmarks conducted by PaymentNet customers, merchants using the PaymentNet service get lower cost of service and orders-of-magnitude faster processing speeds (benchmark specifics available from PaymentNet). They also get advanced services like delayed transaction settlement for delayed product fulfillment, secure credit card number storage, and a range of highly automated account management, processing and reporting functions.

Network Solutions, Inc. (NSI), supplier of all Internet domain names, and an early PaymentNet customer, processes all of its Internet transactions using the PaymentNet service. “Critical to the success of our Internet-based activity is throughput capacity, system performance, processing response time and system integrity and reliability,” stated Scott Williamson, Vice President Product Development, NSI.

“PaymentNet’s service and the attention to details exhibited by their organization has made this program a success for our customers.”

PaymentNet Service Details

By visiting the PaymentNet Web site and subscribing to one of PaymentNet’s annual service plans, based on transaction volume, any merchant – large or small, ISP-hosted or self-hosted — can quickly and cost effectively start accepting payment for products and services over the Internet.

The PaymentNet solution is enabled through its thin client (a binary executable of less than 100kb), which is integrated to the merchant’s web store using CGI scripts, or via an application programming interface. The information and effort required to integrate PaymentNet is minimal and is primarily related to transaction authorization.

The PaymentNet service includes back-end account management to assist merchants with their business operations. Each merchant is provided with secure, private access to a transaction management site that provides: a desktop virtual terminal, daily transaction reports, credit authorizations, delayed settlement for traditional packaged goods compliance rules with VISA and MasterCard, partial order settlement management, and overall account details.

For large merchants with sophisticated established payment processing systems, PaymentNet offers custom system integration services. For small merchants hosting their Web stores with Internet Service Providers, PaymentNet offers simplified storefront integration programs.

About PaymentNet

PaymentNet, Inc. is a provider of highly automated, Internet-based, real-time payment processing services for merchants of all sizes and business approaches. PaymentNet is headquartered in Pleasanton, California, and can be found on the Web at [www.paymentnet.com][1]. Contact PaymentNet corporate offices at 925/225-1670.

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

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