GlobeID Banking

GlobeID Software SA today announced the introduction of GlobeID Banking, a new software product suite based on the Company’s patented technology that enables banks and financial institutions to offer consumers and businesses a variety of integrated retail banking services.

An extension of the GlobeID Banking Middle Office Solution (MOS), the new software suite includes optional modules that support home banking, Internet payments and micropayments, financial EDI services as well as customer care and administration services. Whether directly operated by a bank or through a third-party service provider, GlobeID Banking enables financial institutions to develop their customized retail banking strategy and to take advantage of their own look and feel. Beyond standard payment instruments such as credit cards, GlobeID Banking supports the development of multiple new Internet payment instruments including direct debit account, pre- or postpaid virtual cash, electronic cash, and billing services, with custom payment conventions such as installment or certified payments. GlobeID Banking is expected to be available by the end of the second quarter of 1998.

“With this introduction, GlobeID Software is well positioned to be a leading supplier of secure transaction platforms for numerous electronic business value-added services,” said Francois Chaillou, President and CEO of GlobeID Software. “The launch of GlobeID Banking underscores our long-term commitment to meeting the evolving electronic commerce needs of the financial services industry. This new product also demonstrates our determination to support open standard protocols.”

The patented GlobeID technology, which has generated more than US $5 million of licensing revenues, was purchased from GCTech SA, GlobeID Software’s predecessor company in October 1997. More than 80,000 customers have access to the GlobeID payment system, and merchant kits have been distributed across Europe, Latin America and the Middle East.

Alain Couder, Chief Operating Officer of Bull SA, the majority stockholder of GlobeID, said, “GlobeID Banking opens up unprecedented opportunities for banks and other financial institutions to offer their customers innovative, value-added payment services for electronic commerce. GlobeID’s payment experience, combined with Bull’s expertise in secure transactions and smart cards, will provide a safe and convenient shopping environment for customers and merchants alike.”

GlobeID Banking 2.0

GlobeID offers a highly customizable set of solutions, including a wide variety of payment methods, such as credit card, e-check, direct-debit account, virtual cash, micropayments and electronic purses. The technology also supports standard payment protocols, such as SET and C-SET, as well as standard security protocols, such as SSL, enabling maximum interoperability across and between customers’ platforms and legacy platforms. GlobeID’s technology is already used by Kleline SA of the Paribas Banking Group in Europe and is integrated with major international merchant servers, such as Microsoft, Intershop, Oracle, iCat and Ilog.

GlobeID Banking Middle Office Solution (MOS) GlobeID Banking Middle Office Solution (MOS) is the core of the GlobeID banking services. MOS lets banks manage their retail and corporate services in a secure Internet environment with support for hardware and software based authentication mechanisms. Equally important, MOS does not require banks to modify their retail banking interfaces, but is designed to incorporate into banks’ existing network infrastructures through a set of extended APIs. MOS also includes a set of databases (consumers, merchants, brands, networks, banks) and associated database management tools. Its CORBA based Core Software Bus supports additional modules such as a Support module (call center), Security module (firewall) and Management module (accounting and registration). The CORBA-based Application Software Bus, meanwhile, allows a GlobeID MOS to operate the retail banking solution using one or more GlobeID Banking application modules (IPH, IVC, HB, FEDI).

GlobeID Banking HomeBanking (HB) With support for new standards in Internet financial services technology, such as OFX and Gold Standard, the GlobeID Banking HB module plugs into the GlobeID Banking MOS Application Software Layer and seamlessly integrates with legacy networks, systems and services.

GlobeID Banking Internet Payment Handler (IPH) IPH allows a middle-office operator to offer value-added Internet payment services. In conjunction with payment gateways, IPH supports a wide range of payment instruments such as major credit cards, echecks as well as direct debit accounts, virtual cash, electronic cash, private label credit or debit cards.

GlobeID Banking Internet Virtual Cash (IVC) Recent developments in smart card technology will contribute significantly to the growth of electronic purse solutions. While these solutions are being tested and deployed, the GlobeID Banking IVC module–a secure software approach using a notational stored value mechanism–enables GlobeID Banking operators to issue a cash- like payment instrument on the Internet. IVC also supports both multiple foreign currencies and micropayments (small transactions typically less than $1) which cannot be economically processed by credit cards or direct debit accounts. An SSL- based implementation is used for micropayment transactions, and a SETbased implementation is available for larger transactions with optional non-repudiation services. A first implementation of IVC has been operational since mid-1996 and is currently being used by merchants for micropayment services.

GlobeID Banking Financial EDI (FEDI) Advances in EDI over the Internet, too, will lead to an increasing number of small businesses embracing GlobeID technology. The GlobeID Banking FEDI enables merchants and businesses to report GlobeID 2.0 transactions to their accounting systems — an important advantage for small businesses when transaction volume is high and an absolute requirement for micropayment service providers who must account for all transactions.

Commenting on these technological advances, Pieter Van Der Linden, GlobeID Software’s Chief Technology Officer, said, “Internet-based commerce has evolved significantly since the GlobeID Payment product was developed in 1996. New standards have emerged and software now needs to support multiple protocols for customers using various payment and authentication instruments.”

Mr. Van Der Linden continued, “When developing GlobeID’s technology, our guiding insight is that one enters a store to buy, not to pay. After the success of the value-added purchasing functions included with GlobeID Payment 1.2, we extend these functions to end-to-end standard payment protocols such as SET and C-SET in the GlobeID Banking 2.0 product.”

About GlobeID Software

Paris-based GlobeID Software SA () develops and markets software for securing and certifying online transactions. GlobeID Software carries on the work of its predecessor company, GCTech SA (Paris, France), which pioneered the technology in 1995 and joined forces with Bull SA to establish GlobeID Software in October 1997.

Edeltrust, the management holding company, and Bull respectively own 31.5% and 68.5% of GlobeID Software’s stock. GlobeID Software’s product line includes GlobeID Banking and GlobeID IAM.

About Bull SA

Bull () is an international I.T. group based in Europe with 21,267 people and operations in more than 85 countries. In 1997, Bull earned revenues of $4.2 billion including over 65% outside of France, its country of origin.

Bull offers a wide range of systems, infrastructure software and I.T. services, through focused innovation, alliances with the best partners and its own integration expertise.

In its industry, Bull is recognized for innovative products such as Escala servers, Sagister multiframes, CP8 smart cards and infrastructure software such as ISM/OpenMaster for management of systems and networks. In I.T. services, Bull is ranked in Europe as the third largest systems integrator and fifth in maintenance and support services.

GlobeID Banking Testimonials Pierre Simon, President of Kleline SA     “Kleline has been using GlobeID technology since 1996. Last December, we renewed this commitment and will implement the GlobeID Banking product on our Internet payment platform, the leading platform in the European market.” Abdallah Hitti, Chief Operating Officer of Kleline SA     “GlobeID Banking 2.0 meets all of our expectations for the electronic commerce marketplace. The open MOS platform will enable us to offer more payment options and customer care services to over 120 merchants and 80,000 consumers.” M. Colonna d’Istria, On-line Editor, Le Monde     “GlobeID’s micropayment features have allowed Le Monde to sell entire copies of its daily paper on the Internet to thousands of customers worldwide for a little less than a dollar on a pay-perview basis. The use of this technology for near-dollar transactions with non-repudiation and digital receipt services, as well as built-in customer care services, helped us launch services without having to deal with the usual technical challenges, such as VAT and record-keeping. We expect that GlobeID Banking will enable us to reach more customers since it will allow them to set up GlobeID accounts directly with GlobeID Banking operators, without installing any specific software on their client platforms.” Gael de Kertanguy, Chief Operating Officer of Globe Online Internet Mall     “After eleven months of operation, GlobeID Payment has processed more than 60,000 transactions for our merchants. We expect that GlobeID Banking will be the most efficient way to process secure Internet payments in 1998. Moreover, a large portion of our business involves international currencies, and Globe Online’s merchants have been successful in foreign sales because IVCs support multiple currencies.

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Oracle Processing

Oracle Corp announced the official release of ‘Oracle Payment Server 1.0’ Wednesday. The new solution provides Web site developers to ability to deploy complete e-commerce applications quickly. The server is bundled with third-party payment systems from ICVERIFY and CyberCash. As a ‘Java’ cartridge to Oracle’s ‘Web Application Server 3.0’, ‘Payment Server 1.0’ offers rules-based payment routing, easy application integration, SSL/SET security and single/multiple site support.

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Amtrak Smart Cards

Giesecke & Devrient America picked up a contract to provide the security key card system for Amtrak’s new high-speed train service. The system, consisting of contactless smart cards and card readers, will be installed in trains that begin service in the Northeast Corridor in 1999. Amtrak’s ‘High-Speed Rail’ program is a $2.4 billion initiative funded jointly by the federal government and the private sector. Under the program 18 new trains will be manufactured to travel at speeds up to 150 mph. The trains will operate between Boston, New York and Washington, DC.

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Cardservice Intl Alliance

Continuing its dedication to e-commerce solutions, Encanto Networks announced a strategic alliance with Cardservice International to provide e.go Commerce customers with merchant acquiring accounts.

Cardservice is the leading provider of merchant acquiring services for Internet-based businesses, while Encanto is the first company to provide a complete Internet commerce solution for small business. Working together, Encanto and Cardservice are making it substantially easier for small businesses to make money through Internet commerce.

“Our goal is to eliminate the complexity and delays involved in getting a Web storefront up and running,” said Bob Frankenberg, CEO and President of Encanto Networks. “Cardservice is an ideal partner due to their experience in providing acquiring services for small business Internet merchants.”

e.go Commerce webstations provide an easy-to-use and affordable way for small businesses to accept payments over the Internet. Through previous partnerships with CommerceWAVE and VeriFone, Encanto has built an e-commerce architecture to accommodate Webstore creation, order processing, and electronic payment. In addition to providing all the tools needed to establish an online storefront, e.go Commerce offers a comprehensive Internet solution, including Web site creation, company-wide email and Internet connectivity.

Encanto and Cardservice will provide a Web based application process which streamlines merchant enrollment and setup of the merchant account. Once the account is set up at Cardservice, the merchant will be able to authorize and settle credit card orders directly from their e.go Commerce web storefront.

Offering merchant accounts to e.go Commerce customers, Cardservice provides a critical and often overlooked component of Internet Commerce. In order to authorize and settle credit card transactions, it is necessary for a merchant to have an account with an acquiring financial institution. One of the biggest problems for small merchants is obtaining a relationship with an acquiring institution. Criteria that are applied for evaluation of the worthiness of traditional brick-and-mortar businesses to accept credit cards are often inappropriate for Internet based merchants, requiring weeks of processing time. Working together, Cardservice and Encanto are streamlining the merchant enrollment process on the Internet so that e.go owners will have their applications processed in a manner best suited to Internet-based businesses. Merchant applications for accounts will be processed in a matter of days.

Cardservice specializes in providing merchant acquiring services for small businesses. Cardservice has underwritten a significant number of the merchants currently doing business on the Internet, and is the largest privately owned business in the electronic transaction processing industry today.

“Being on the forefront of e-commerce advancement, Encanto is providing a solid Internet solution for small businesses,” said Chuck Burtzloff, President and CEO of Cardservice. “This partnership is opening doors to companies who would otherwise find it too difficult or time consuming to secure an acquiring bank for online processing. We are happy to make it possible for Encanto customers to do business over the Internet.”

About Encanto Networks

Encanto Networks, Inc., headquartered in Santa Clara, Calif., is dedicated to the creation of successful small businesses on the Internet. By removing today’s cost and complexity barriers, Encanto’s e.go webstations and InstantConnect(SM) services enable everyone to own and personally maintain an affordable, active Internet presence. Additional information about Encanto and its products can be found on the World Wide Web at [http://www.encanto.com][1].

Encanto Networks’ e.go is the industry’s first Java-based, integrated hardware/software webstation. e.go enables anyone who can use a browser to establish an operating Web site in as little as 30 minutes. That same person can use e.go Commerce to create a Webstore with catalog that accepts secure electronic payment over the Internet. e.go connects to the Internet using Encanto Networks’ InstantConnect service. Starting at $49.95 per month, InstantConnect is six-to-ten times less expensive than leased-line alternatives.

Encanto, Encanto Networks, e.go, and e.go Commerce are trademarks and InstantConnect and InstantConnect with ISDN are service marks of Encanto Networks Inc. All other trademarks are the property of their respective owners.

About Cardservice International

Cardservice International, is an independent credit card processor and an Internet communications company based in Agoura Hills, Calif.     Cardservice International is one of the fastest growing transactions processing companies in the United States. Incorporated in 1988, the company has more than 550 corporate employees, 200 sales offices and in excess of 2,200 Sales Representatives nationwide. Cardservice International offers a complete range of traditional and Internet consumer payment options.

Cardservice International has a rapidly growing customer base of over 150,000 merchants processing an annual bankcard volume in excess of 6 billion dollars.

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

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SEAL Support

VISA urged Congress yesterday to approve the ‘Digital Signature and Electronic Authorization Law of 1998’ and to promote an international environment that supports the use of digital signatures. VISA testified that inconsistent state law requirements coupled with inconsistent rules of other countries will stifle the development of secure on-line payment technology. VISA also told the Senate Subcommittee on Financial Services and Technology that digital signature laws should not apply to closed systems, such as the VISA system.

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Off-Shore, Off-Site ATMs

Triton Systems projected a boom in off-premise ATM deployment in the international marketplace over the next two to three years. Company officials said yesterday more than 60% of the 33,000 ATMs deployed in the U.S. during 1996 were off-site cash dispensing machines. They believe the same trend is emerging, at a faster pace, globally. The MS-based company announced yesterday a major initiative to capture some of the expected growth by signing distributors in Latin America and Europe. Triton’s ATMs are currently available throughout Ireland and the U.K. from ITG Group PLC based in Dublin. Triton’s Mexican distributor is SEISA. The company says it will also shortly introduce ATMs using the CDPD wireless technology.

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MSFDC Picks Princeton

Billers using the MSFDC Internet-based system for bill presentment and payment services will make use of Princeton TeleCom Corporation’s Presentment Server and value added electronic clearing technologies. MSFDC’s system provides Internet bill presentment and payment services to banks and consumers. Princeton TeleCom was selected as a key participant to play a major role in MSFDC’s newly formed Systems Integrator Program. The Systems Integrator Program follows the announcement of MSFDC’s pilot program for financial institutions and billers, which is being initiated with three leading banks and a number of nationally recognized billers.

Princeton TeleCom has established long-standing relationships with over 700 of the nation’s leading billers, which for years have used Princeton TeleCom’s els Electronic Lockbox Service(TM). This places Princeton TeleCom in a key position to lead the automated billing and payment revolution.

When MSFDC’s Internet bill payment service is more widely introduced later this year, customers of billers will be able to see customized utility, banking and other bills via an electronic format on a home computer screen.

The goal of the MSFDC Systems Integrator Program is to provide billers, financial institutions and processors with an extensive pool of professional technology companies to help them quickly and efficiently implement the MSFDC electronic bill presentment and payment system. Systems Integrators are expected to offer a variety of products and services including consulting, development, integration, Web-based design, support and ongoing maintenance.

“MSFDC wants to offer both banks and billers maximum flexibility in customizing our electronic bill presentment and payment system,” said Richard Pickering, senior vice president at MSFDC. “To satisfy their varying needs, we’ve built a team of heavy hitters in systems integration and solution implementation. So, whether a bank or biller wants vertical industry expertise or specific systems or applications expertise, we have the solution providers to help them.”

“With the help of companies like Princeton TeleCom, MSFDC will take electronic bill presentment and payment beyond its infancy stage to large-scale acceptance and usage,” said Warren Dent, senior vice president at MSFDC. “Princeton TeleCom provides a valuable service by helping billers prepare their data from various platforms and integrate it with MSFDC’s technology.”

MSFDC’s bill payment and presentment system will translate accounts receivable data from a biller’s computer system, make them presentable to consumers through the Internet, and allow for electronic payment of the bill in full or partial amount on the date specified by the consumer. By supporting MSFDC, Princeton TeleCom will be a key component of the success of electronic consumer billing and payment.

About MSFDC

Based in Denver, MSFDC is the electronic bill presentation-bill payment joint venture between Microsoft (NASDAQ MSFT) and First Data Corp. (NYSE FDC), formed in June 1997. In the summer of 1998, the company is scheduled to introduce the nation’s first end-to-end system for electronic presentment of richly formatted bills over the Internet, as well as next-generation electronic payment and remittance capabilities. MSFDC’s service, which will use existing payment systems, will allow consumers to access and pay their bills through the branded home-banking services of participating financial institutions.

To implement the MSFDC system, MSFDC launched a Systems Integrator Program that will provide banks and billers the option of choosing from an extensive pool of professional technology companies that are trained on the MSFDC systems. Systems integrators will offer a variety of products and services including consulting, development, integration, Web-based design, support and ongoing maintenance. Seventeen nationally recognized solution providers are currently signed up with the Systems Integrator Program. For more information on MSFDC, visit its Web site at [www.msfdc.com][1].

About Princeton TeleCom Corporation

Founded in 1983, Princeton TeleCom is a leader in developing and operating electronic bill presentment and payment services for large corporate bill senders. The company’s core product, the els Electronic Lockbox Service(R), serves as a value-added payments network by routing transactions directly to billers’ accounts receivables host systems. The Company serves more than 700 national and large regional bill senders, and its Presentment Server(TM) technology currently houses more than 60 million receivables for Internet and telephone bill statement presentation and payment. Other clients of Princeton TeleCom’s electronic bill payment services include Lucent Technologies, Discover Card and Western Union.

For further information on Princeton TeleCom bill presentment systems and services, contact Princeton TeleCom Corporation, 165 Wall Street, Princeton, N.J. 05840; telephone 609-924-1244, or visit its Web site at [www.princetontele.com][2]

[1]: http://www.msfdc.com
[2]: http://www.princetontele.com

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Credit Suisse & AmEx Partner

Credit Suisse and American Express announced today that they have jointly agreed to grow their card business in Switzerland. Credit Suisse will become the first Swiss bank to offer Swiss franc American Express cards, Eurocards, and Visa cards. The two companies have also formed a new joint venture entity that will support their card activities in the market.

“This is a unique and innovative new partnership,” said James Cracchiolo, president of American Express’ Global Network Services Group. “The forming of the new joint venture, which combines the forces of one of the world’s leading banks with the world’s leading card issuer, supports our philosophy of freedom of choice in the marketplace. It will ensure that a wide range of payment products and services will be made available through Credit Suisse to the Swiss consumer.”

Cracchiolo added: “We are delighted to be able to add Credit Suisse to our growing family of bank partners. Through strategic arrangements like this one, we are matching the global strengths of the American Express brand and worldwide service with the strong customer relationships and strong presence of a local partner committed to the same kind of high quality service standards American Express offers its customers around the world.”

The joint venture company will be responsible for a range of card operations such as product design and customer service. Credit Suisse and American Express will jointly own the new company which will be managed by a combined board of Credit Suisse and American Express executives. The new company will be located in Zurich. Employees of the card business of Credit Suisse and American Express will be gradually transferred to the new joint venture.

This new agreement represents another major step in American Express’s global strategy of forming relationships with banks to offer payment products to consumers. American Express has recently announced business partnerships with financial institutions in several countries including the United Kingdom, Ireland, Spain, Turkey, France, Brazil, and Japan.

Credit Suisse, a business unit of the Credit Suisse Group, has an extensive network of approximately 240 branches in Switzerland and is a leading bank for Swiss corporate and individual customers. Last year, Credit Suisse redefined its credit card strategy with to exloit the opportunities of a changing market and significantly expand its market share. The partnership with American Express is a cornerstone of Credit Suisse’s growth strategy in the credit card market.

American Express Company founded in 1850, is a diversified worldwide travel and financial services company. It provides card, Travelers Cheques, travel and financial services in over 160 countries.

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Card Capture Up 69%

Card Capture Services, Inc., a leading independent provider of ATMs nationally, reports strong earnings for 1997.

Contributing factors include sales of over 3,000 new machines, 1,800 of which were installed in 1997. As a result, during 1997, the company’s gross revenues increased 69% over 1996. Launched in 1993, the 5-year-old, privately held company has seen revenues double each year since its inception, posting $664,000 in 1993, $3 million in 1994, $7.6 million in 1995, $16 million in 1996 and approximately $27.5 million in 1997.

Enhanced Network Operations Center

During 1997, the company upgraded its Network Operations Center.     The enhanced center connects CCS to all of its ATMs in the field via a proprietary software program developed by the company called CCSConnect. As a result, the company is immediately alerted to maintenance needs electronically. CCSConnect also enables CCS to download advertising and couponing information to machines remotely from the Network Operations Center.

New on-screen advertising capabilities developed

CCS developed and launched CCSMediaPak, a multi-media ATM software and hardware package aimed at expanding machine capabilities, in late 1997. The new proprietary package expands ATM capabilities to enable on-screen advertising and the distribution of coupons while a transaction is taking place.

Company ranked country’s 7th largest ATM provider

According to the December, 1997 issue of Bank Technology News. “While banks still dominate ATM deployment, newcomers, such as seventh-ranked Card Capture Services, are now surfacing in the top 10.”

Major accounts signed

During 1997 the company signed several major accounts. AMF Bowling Centers Inc. was the largest with an agreement to place a total of 310 ATMs in AMF corporate bowling center locations nationwide.

New facilities and employees

To accommodate growth, CCS moved into a new, 19,000 square footage office space in November. The company also added 14 new employees in 1997.

Marketing consultants retained

The company also retained two experienced marketing firms. The Eisenberg Marketing Group and Lane Marketing Communications, both Portland-based agencies, to assist with marketing strategies. The Eisenberg Marketing Group provides strategic and tactical marketing planning including creative, advertising, direct response and brand development, while Lane Marketing Communications provides public relations services to the company.

Card Capture Services, Inc. (CCS) was incorporated in 1993, in Portland. CCS offers turnkey ATM programs providing transaction processing, machine maintenance, customer service, accounting and reporting to a growing base of merchant owned and operated Automated Teller Machines (ATMs) nationwide. By tapping non-traditional and unsaturated markets, CCS is leading the wave of independent ATM deployments nationally. The company currently has 45 employees.

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Rate Drop

The recent introduction of low, fixed, long-term interest rates is driving down average card interest rates. According to the upcoming March issue of Bankcard Barometer, average standard card interest rates dropped from 17.55% to 17.50% on an unweighted basis and from 18.83% to 18.79% on a weighted basis. Gold card rates also dropped from 16.40% to 16.38% on an unweighted basis and from 17.90% to 17.85% on a weighted basis. The decline is the first in more than a year. Since the fourth quarter some major issuers, including Capital One, have begun offering a no-fee, fixed 9.9% go- to rate to selected customers. First USA recently introduced the no-fee ‘Yahoo! VISA’ card with a fixed 9.9% go-to rate for charter applicants.

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NationsBank Online

NationsBank unveiled its new, free, web banking service yesterday to customers in FL, GA, MD, NC, SC, VA and DC. The bank says it will expand the service to all its customers, including Barnett, later this year. ‘NationsBank Online’. The new service offers customer access to checking, savings, money market, CDs, IRAs, retail loans, lines of credit and credit cards. Customers may also download transaction data into Quicken and Microsoft personal finance software.

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Falcon Retail

HNC Software is attacking the $250 million fraud loss problem connected with private-label cards. The company announced Tuesday the availability of its new private-label-card fraud detection solution similar to its predictive software technologies used by major bank credit card issuer. ‘Falcon Retail’ uses three different scoring models one for application fraud, one for new account fraud and one for mature account fraud. HNC estimates 50% of retail card fraud occurs in the application stage. The solution also employs retail-specific neural networks, expert rules bases and HNC’s proprietary behavior profiling technology. Yesterday’s release follows a pilot with Sears.

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