Priority One Sets Record

Randall King, President of Priority One Electronic Commerce Corp. announced that each of the past 4 months has set new sales records for Priority One.

Processing transactions in January 1998 were five (5) times larger than the number processed a year ago in January 1997.  Mr. King went on to say “We expect a 35% increase in February 1998 over the number of transactions processed in January 1998.

Priority One is a privately held company that has developed a proprietary system called BILL COLLECT(TM) that allows client companies to improve cash flow by collecting their receivables on the due date instead of waiting weeks or months for their customers to mail remittance checks.

While studies show that it costs companies from $2 to $5 to collect a single payment, Priority One does this for less than the cost of a postage stamp per payment. This has  the effect of reducing operating costs and increasing bottom line.

Randall King of Walnut Creek, Ca.  was elected President of Priority One last month.  He joins Priority after having been President of Quadron Software and Premenos Technology in its formative years.

Priority One has a strategic partnership agreement with CITX Corp. of Quakertown, Pa. who developed the Intrapay system of doing electronic commerce over the Internet and secure intranets hosted by CITX.

CITX recently announced the signing OF a strategic partnership agreement with NCR Corp. of Dayton, Ohio under which they will work with NCR to integrate the NCR Top End software with the CITX Intrapay system and expand electronic commerce opportunities around the world.

Priority One provides the processing for payment transactions that arise from these electronic commerce transactions over the CITX Intrapay system.

Priority One’s corporate e-mail newsletter “ELECTRONIC PAYMENTS” is available free on request at


Advanced PIN Pad

Hypercom unveiled the ‘ICE’ or “Interactive Customer Equipment” Peripheral this morning at the London Smart Card ’98 show. The ‘ICE’ peripheral is an advanced PIN Pad for Hypercom’s ‘T7’ series terminals providing a POS touch screen solution for retailers. Hypercom also introduced a portable version of ‘ICE’ called ‘ICE Portable’ offering the industry’s first battery- powered, apron-pocket-size, wireless solution for restaurants and other mobile merchants. Hypercom says the ‘ICE Portable’ will ship within the next two to three months.


Wayne Johnson Moves On

UCI Medical Affiliates, Inc. announced Friday that it has executed an Acquisition Agreement in which UCI will acquire the assets of MainStreet Healthcare Corporation of Atlanta, Georgia for a combination of cash, UCI stock and debt assumption. The closing is expected to occur on or about March 3l,1998.  MainStreet, with annualized revenues of approximately $7 million and with approximately 100 employees, owns and operates nine primary care medical offices in the Atlanta, Georgia area and two primary care medical offices in Knoxville, Tennessee.

With this acquisition, Columbia, S.C. based UCI will operate 51 freestanding, primary care focused medical centers in South Carolina, Georgia and Tennessee.  “This expansion into neighboring states fits perfectly into our core business plan of enhancing our influence as a primary care based physician group which negotiates with insurance payors for fair rates and which is committed to quality, affordable and accessible care for our patients,” said M. F. McFarland, III, M.D., UCI’s President and Chief Executive Officer.

A. Wayne Johnson, MainStreet’s Chairman and Chief Executive Officer, will join UCI’s Board of Directors concurrent with the closing of the acquisition. Mr. Johnson brings to the UCI Board added expertise in the areas of investment banking and multi-state development.  Prior to co-founding MainStreet, Mr. Johnson was President of one of the operating subsidiaries of First Data Corporation, was an Executive Vice President of Visa USA and was a partner in the consulting division of Deloitte & Touche LLP.

The Company also announced that revenue for the first quarter of the fiscal year ending September 30, 1998 increased by 25% to $8,078,000 from $6,488,000 for the first quarter of the fiscal year ended September 30, 1997. Revenue growth is attributed to both same center increases in patient visits and patient charges at established centers and to the expansion in the number of centers UCI operates.

Patient encounters increased to 115,000 in the first quarter of fiscal year 1998 from 96,000 in the first quarter of fiscal year 1997.

The Company reported a net loss of $877,000 or $.15 per share for the first quarter of fiscal year 1998, as compared to a profit of $30,000 or $.01 per share for the first quarter of fiscal year 1997.  “Recent losses are attributable in part to assimilation issues related to recent acquisitions, and in part to the Company continuing to invest heavily in the information systems and infrastructure necessary to support continued expansion by practice acquisitions (such as MainStreet), so that it can position itself to successfully operate in the rapidly changing primary care market place,” said Jerry F, Wells, Jr., CPA, UCI’s Executive Vice President of Finance and Chief Financial Officer.

The Company’s December 31, 1997 balance sheet reflects an increase in total assets to $22,961,000, as compared to $16,549,000 at December 31, 1996, while stockholders’ equity at December 31, 1997 increased to $9,441,000 from $7,852,000 at December 31, 1996.

UCI Medical Affiliates, Inc., provides nonmedical management and administrative services for freestanding medical centers which operate as Doctor’s Care urgent care centers, Doctor’s Surgical Group, Doctor’s Orthopedic Group, the UCI Division of Family Medicine and Progressive Therapy Services.

This press release contains forward-looking statements subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995.  The Company cautions readers of this press release that such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward- looking statements.  Although the Company’s management believes that their expectations of future performance are based on reasonable assumptions within the bounds of their knowledge of their business and operations, there can be no assurance that actual results will not differ materially from their expectations.  Factors which could cause actual results to differ from expectations include, among other things, the difficulty in controlling the Company’s cost of providing healthcare and administering its network of Centers; the possible negative effects from changes in reimbursement and capitation payment levels and payment practices by insurance companies, healthcare plans, government payors and other payment sources; the difficulty of attracting primary care physicians; the increasing competition for patients among healthcare providers; possible government regulations in multiple jurisdictions negatively impacting the existing organizational structure of the Company; the possible negative effects of prospective healthcare reform; the challenges and uncertainties in the implementation of the Company’s expansion and development strategy; the dependence on key personnel, and other factors described in other reports filed by the Company with the Securities and Exchange Commission.


ABI Battle Heats Up

The battle for credit card insurance king American Bankers Insurance Group is heating up as Cendant Corp, formerly HFS and CUC International, filed suit Friday against AIG for canceling its ‘D&O’ insurance. According to this morning’s Wall Street Journal, Cendant obtained a “Directors & Officers” insurance policy from AIG subsidiary National Union Fire Insurance Company effective Dec. 17. The policy was canceled under questionable circumstances on Jan. 21 for alleged non-payment. Last week AIG claimed to state regulators that Cendant was not experienced at running an insurance concern and is highly leveraged. AIG has offered $2.2 billion while Cendant has offered $2.7 billion for American Bankers.


Hypercom Hungarian Pilot

Hypercom Corporation is helping MOL Company, Hungary’s largest oil and gas firm, launch a newly implemented smart card loyalty program throughout Hungary. The program rollout, the result of a previous agreement, uses Hypercom’s point-of-sale terminals and software upgraded by Hypercom.

Hypercom is the world’s largest independent provider of payment transaction solutions, including point-of-sale terminals, peripherals, networking equipment and software. MOL Company handles all processes from exploration through processing and sales.

A trial program of the MOL customer loyalty system was launched February 4 with 45 Hypercom point-of-sale terminals at 40 of MOL’s filling stations in the Budapest area. The trial program is now scheduled to run through May.

“The introduction of smart cards by MOL required only a relatively simple software upgrade to the Hypercom terminals and PC cash registers. We expect to do the same for electronic purse functionality later this year. By purchasing Hypercom equipment, MOL Company ‘future proofed’ its systems,” said Lajos Kecskemeti, country manager for Hypercom Hungary.

“We have been using Hypercom terminals in 330 of our petrol stations since 1995. We are delighted that it has proven so easy to introduce smart card functionality to our existing Hypercom system,” said Dr. Janos Gyorfi, general manager of MOL’s Filling Stations Division.

Concurrent with the trial program, MOL Company is updating its cash registers in its filling stations outside the Budapest area. MOL’s nationwide system is scheduled to rollout in May with 500 terminals at 330 filling stations.

The system uses personal computer-based cash registers attached to Hypercom T-7P terminals with Hypercom’s S7SC pin pads and smart card reader.     The MOL program is designed to introduce a loyalty program for the company’s regular customers. The aim of the MOL program is to increase market share and average transaction values.

Using smart cards with Hypercom point-of-sale terminals, cardholders can earn points by purchasing fuel or other goods at MOL Company filing stations. The loyalty program rewards customers for higher margin non-fuel purchases in addition to fuel. Cardholders earn one point per liter of fuel and one point per 100 forints spent on non-fuel goods and services.

The system is offline and points are stored on the smart cards. Cardholders can then either redeem their points for discounts of goods available at MOL Company filing stations or from an exclusive MOL catalogue.

MOL Hungarian Oil and Gas Company is among the largest companies in Central Europe. It is active at all levels in the oil industry. MOL Co. gives high priority providing superior service, primary through its nationwide network of 330 filling stations. MOL Co. is currently upgrading its station network to become of the most modern and environmentally-friendly in Europe.

Hypercom Corporation (NYSEHYC) is the world’s leading independent supplier of point-of-sale technology. The company also supplies Internet-based payment processing solutions. Hypercom provides innovative solutions for delivering and processing secure electronic payments and the infrastructure to quickly and cost-effectively integrate and deploy new payment applications.

Hypercom’s end-to-end product family of terminals, peripherals, POS network products and software enables merchants and service providers to automate credit, debit and other electronic payment transactions with seamless integration, scalability and interoperability.

Headquartered in Phoenix, Arizona, Hypercom markets its products in more than 50 countries through a global network of offices and affiliates in Argentina, Australia, Brazil, Chile, China, France, Hong Kong, Hungary, Japan, Mexico, Russia, Singapore and the United Kingdom. Hypercom’s Internet address is [][1].



UK Competition

Sun Banking Corporation, a subsidiary of Sun Life of Canada, announced today it will enter the credit card business in the UK. Sun will compete against the likes of Capital One, MBNA America, Household’s Hamilton Direct, and Bank of Scotland’s Capital Bank. According to this morning’s London Daily Mail, U.S. based People’s Bank offers the best long term pricing in the UK with a 15.9% rate on standard and 14.9% rate on gold cards without annual fees.


VISA Fraud

VISA announced yesterday its card fraud rate has dropped to an unprecedented eight basis points of total volume or about $400 million. VISA says fraud has been dropping each year since 1993 primarily due to programs aimed at ‘not received issued’ cards, identity fraud and suspicious purchase patterns. According to VISA stats, 1996 fraud was eleven basis points of volume (approx. $450 million) while 1993 fraud stood at nineteen basis points (approx $385 million).


New Secured Card

Telecommunications marketer Quintel Entertainment of Pearl River, NY announced Thursday it has signed agreements to offer and issue a secured credit card on behalf of Merrick Bancorp of Salt Lake City. Quintel says its expertise with check debiting and clearing technology in conjunction with its direct marketing techniques makes the secured card program a natural extension. Quintel has a database of 30 million consumers.


Allied Collection Expands Dialer Systems

With the recent installation of two additional System 7000 dialer packages at the Allied Bond & Collection Agency call center, EIS International Inc., a leading provider of call center software, is now the sole supplier of dialer systems for Allied’s 280 agent stations.

“We looked at every major manufacturer in the industry and decided on EIS,” said Richard Strahm, manager of predictive dialer technology at Allied. “The finalists were EIS and Mosaix,” he added. The 93 agent stations provisioned by these  System 7000s were previously supported by older installed Mosaix systems, according to Strahm.

“The reason we selected EIS,” Strahm said, “is EIS’ continued responsiveness to our growing and ever-changing requirements, as well as their true partnership approach and commitment to our relationship, whether we are in a current buying cycle or not. In addition, I believe no other vendor can out-perform EIS’ openness, flexibility and responsiveness.”

The two additional System 7000s bring Allied’s total to five, according to Rhine Morgan, EIS vice president of collections/industry applications. “Many of the nation’s largest collections agencies, retailers, credit card issuers and telephone companies use System 7000 to execute their calling strategies,” Morgan said. “It is designed to manage the unique productivity challenges experienced by these types of organizations,” he explained.

System 7000 is a flexible call automation system designed to meet the unique needs of the collections industry and includes such features as

* Digital Announcement to Answering Machines — a digital messaging feature that can play messages to connected calls identified as answering machines without the intervention of an agent;

* Diligence — the ability to record information (time, date, action result code, phone number attempted, session name and agent ID) about the attempts made to contact the debtor as part of the patron record; and

* Skip Tracing + Add New Number — in addition to providing the ability to locate and dial a series of numbers or parties related to a particular debtor, the “Add New Number” feature permits the agent to add a new number to the record and direct the system to call the number.

In addition, System 7000’s EIS-patented call-pacing algorithm — SmartPace(TM) — dynamically adjusts the dialing speed to maximize the number of contacts while producing fewer no-contact or abandoned calls. With this function, users can set a target abandon rate that allows them to meet state and federal regulations. The system then automatically maintains that rate for the duration of a campaign, keeping agents as busy as possible within the target abandon rate.

Allied Bond & Collection Agency, headquartered in the Philadelphia suburb of Trevose, Pennsylvania, is a major supplier of accounts receivable, collections and call center outsourcing. Allied is a wholly-owned subsidiary of Outsourcing Solutions Inc. (OSI) of St. Louis, Missouri.

EIS International Inc., headquartered in Herndon, Virginia, is a leading provider of advanced solutions for outbound and integrated inbound/outbound applications for the call center industry. With more than 1,460 systems and more than 80,000 workstations installed worldwide, EIS provides systems for telemarketing, customer service, fund-raising, market research and collections to increase productivity, enhance operational efficiency and improve agent effectiveness in the call center. A member of the Object Management Group (OMG), EIS recently adopted CORBA(TM) (Common Object Request Broker Architecture) as a platform for future products. Additional information about EIS is available by calling 800-274-5676 or by visiting the company’s Web site at .

Cautionary Statement

This press release contains forward-looking statements (statements that are not historical facts) that involve a number of risks and uncertainties, including references to customer and marketplace acceptance of new and existing products and services. Investors are cautioned that all forward- looking statements are subject to a number of risks and uncertainties, including, but not limited to, competitive factors, general economic conditions, customer relations, technological change, product/service introductions and acceptance, distribution networks, changes in industry practices, one-time events and other factors described herein and under the heading “Factors Affecting Future Results” in EIS’ quarterly Form 10-Q and annual Form 10-K reports filed with the Securities and Exchange Commission, copies of which are available from EIS. Should any of these risks or uncertainties materialize, or should any underlying assumptions prove inaccurate, eventual outcomes may vary materially from those anticipated.

EIS International is a registered trademark of EIS International Inc. System 7000 and SmartPace are trademarks of EIS International Inc. CORBA is a trademark of the Object Management Group.


NCR-EDS New Zealand Deal

NCR Corporation today announced that is has signed a multimillion dollar agreement with EDS New Zealand to supply ImageMarkTM – its state-of-the-art image item processing solution – for use withing EDS’ Item Image Processing Service.

Under the agreement – one of the largest orders for the ImageMark suite of solutions since its launch last year – NCR will provide the ImageMark Proff of Delivery (POD) and Image Archive and Delivery solutions to EDS New Zealand to implement a distributed cheque capture and storage facility on a multi-bank basis.

“ImageMark is one of NCR’s flagship solutions and we are delighted that EDS has decided to work with NCR to provide this innovative technology to banks in the New Zealand market. We are also proud of the fact that this solution is the first to be implemented with a seven-year storage capacity,” said Brenda Hemphill, NCR’s Payments solutions team leader for Europe, Middle East and Africa.

The ImageMark suite of solutions enables the processing of a cheque image – rather than the traditional physical paper cheque – eliminating the need for paper storage and presents the opportunity for substantial cost savings for the banks. In addition, a bank can use the information stored within the image to increase its knowledge of their customers’ banking activities, to allow them to offer products and services tailored to individual customers’ specific needs.

“ImageMark allows retail banks to reduce the time and cost of processing cheques presented by consumers and business customers, as well as the ability to provide revenue-generating products and services tailored to meet customers’ individual and specific needs,” added Ms. Hemphil. “It is a Year 2000 compliant cheque-processing solution that retains the data integrity requirements of each institution – and their customers – while reducing the financial burden imposed by implementing multiple cheque-processing solutions across the industry”.


Frst Tenn Signs 3 State Groups

Three state hospitality-industry associations have begun credit card discount programs through First Tennessee Merchant Services Inc., a subsidiary of First Tennessee Bank National Assoc. Members of the Alabama Restaurant Assoc., the Iowa Hospitality Assoc., and the New Hampshire Lodging and Restaurant Assoc. can receive very beneficial rates for processing of VISA and MasterCard purchases through First Tennessee Merchant Services. The results could save individual members thousands of dollars each year.

“These are very exciting, new relationships that further expand First Tennessee Merchant Services’ leading role in serving the hospitality industry,” said Ronald R. Nation, president of First Tennessee Merchant Services. “We will help restaurants, bars associated vendors and suppliers in these three states reduce their processing costs while providing them with the same top-notch service that ensures that First Tennessee Merchant Services remains one of the leading credit card providers in the nation.”

First Tennessee Merchant Services’ service includes detailed reports to ensure accurate review and analysis. Payments of deposits may also be faster than with other processors.

The Alabama Restaurant Assoc. has more than 700 members, the Iowa Hospitality Assoc. has more than 600 members, and the 80-year-old New Hampshire Lodging and Restaurant Assoc. has more than 800 members.

First Tennessee National Corp., parent company of First Tennessee Bank National Assoc., headquartered in Memphis, Tenn., is a nationwide, diversified financial services institution and one of the 50 largest bank holding companies in the United States in market capitalization and asset size. Banking and other financial services are provided through the regional banking group and three national lines of business FT Mortgage Companies, First Tennessee Capital Markets and transaction processing. Transaction processing includes credit card merchant processing, MONEY BELT (automated teller machine network), First Express (nationwide check clearing), and transaction-oriented cash management products. The corporation’s common stock is traded over the counter on the Nasdaq Stock Market’s national market system under the symbol FTEN. It is listed in the financial section of most newspapers as FstTN Ntl and is included in the Standard & Poor’s MidCap 400 index. More information is available at First Tennessee’s Web site at [][1].