Revere Comm to Expand Phone Cards

Revere has begun negotiations with several companies to create a North American distribution base both at the retail/ mass consumer and corporate level for prepaid phone cards. With these strategic alliances, Revere expects to increase its penetration both in the Prepaid calling markets and enhanced Long Distance product sales. Pierre Van Neste, Revere’s VP of Sales and Marketing, expects positive returns on these potential alliances:

“It is important for Revere to be one step ahead of it’s competition both in aggressive posturing and market awareness. By maximizing Revere’s distribution potential in the North American market place, we are able to proliferate Revere branded calling programs as well as provide direct to market support for North American Corporate initiatives.

Revere is currently completing it’s preliminary implementation of it’s Montreal and Toronto direct to market strategy. This is part of Revere’s plan to ensure a National presence in the major centres across Canada. Expansion is expected to continue through 1998 in the Canadian, US and International market place.

Revere is pleased to announce the appointment of Rick Villanueva as Special Projects Manager. Mr. Villanueva has a wealth of experience in the Prepaid Calling Card industry and brings with him a host of key industry contacts as well as, expertise in managing and implementing new clients and “Value Added” mechanisms.

Revere has positioned itself in the market place with respects to fundraising initiatives both in the 1-900/ 1-800 and Prepaid Calling Card realms for registered Canadian Charities. The Kidney Foundation of BC, The Victorian Hospice Society, The Father/ Mother Equal Rights Society and the Kinsmen Foundation Rehabilitation in support of the 1-900-565-MOMS donation drive, are new additions to Revere’s fund raising relationships. The Kinsmen project is expected to be a year round donation platform with concentration in March 1998 for the Kinsmen’s Mother’s March of Dimes.

Revere waives all set up charges for registered Canadian Charities.

Revere is in process of investigating the implementation of an Investor Relations firm that will complement the aggressive posturing Revere is taking with respects to maximizing return on investment to the shareholders. Revere is currently investigating several options and expects to have this component in place no later than January 12, 1998.

The Alberta Stock Exchange has neither approved or disapproved of the information contained herein.

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FDC & Wells Fargo

First Data Enterprises and Wells Fargo inked a 10-year bankcard processing agreement yesterday. First Data will provide data processing and other card portfolio management services to more than 3.4 million credit cards and more than 3.5 million debit cards. At the end of the third quarter Wells held $7.4 billion in card receivables with a YTD card charge volume of $7.7 billion, according to Bankcard Barometer. Wells was also the first partner to join First Data’s ‘Merchant Bank Alliance’.

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Card Industry’s Pulse

American cardholders are paying about 6% more in basic pricing and about 33% more in punitive pricing according to data released this morning and gathered by CardData for Bankcard Barometer. On a weighted-to-outstandings basis, most consumers are paying an annual percentage interest rate of nearly 19%, and if an annual fee is involved, it will average about $18. The average card APR has been driven higher this year by the proliferation of high-risk APRs. The highest tier rates now range from 21.4% to 32.6%. The most dramatic pricing change this year has been late fees and over-limit fees. Meanwhile the growth in delinquency and chargeoffs continues to outpace the rise in core pricing.

1997 YEAREND SNAPSHOT
DEC 97 DEC 96 CHANGE
Standard APR 18.81% 17.68% +6%
Standard Ann Fee $17.82 $16.70 +7%
Gold APR 17.93% 16.91% +6%
Gold Ann Fee $35.28 $34.39 +3%
Late Fee $19.24 $14.21 +35%
Over-limit Fee $18.44 $13.94 +32%
Delinquency 5.36% 4.89% +10%
Charge-Offs 5.63% 4.85% +16%
Bankruptcy 42.2% 41.1% +3%
Attrition 8.14% 8.35% -3%
Fraud 0.10% 0.18% -44%
Yields 13.35% 13.39% -0.2%
Note: for definitions/methodology see Bankcard Barometer, Dec 97 issue

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CT Bank Intros WisePay Next Week

Tolland Bank announced today that it will introduce WisePay — its complete telephone bill payment service — on December 29, 1997. This expanded telephone banking service allows retail customers to pay any bill by phone through a toll free number … including rent/mortgage, car payments, credit cards, and utilities. Customers will be able to pay bills to virtually any company they choose. In addition, customers will have the opportunity to pay bills 24 hours a day 7 days a week from home, the office, even on the road — anywhere there’s a phone!

Joseph Rossi, President/CE0 said, “Tolland Bank is committed to keeping up with the rapidly changing world of technology and offering electronic products, that give people added convenience and ultimately more time to enjoy life.”

For a demonstration of WisePay, the new telephone bill pay service, call 800-374-6502. Information on WisePay is available at the Bank’s website: [www.tollandbank.com][1], all seven Tolland Bank offices, or by calling 860-875- 2500 or 800-326-5984.

Tolland Bank is a Connecticut-chartered savings bank with offices in Vernon, Tolland, Ellington, Coventry, Stafford Springs, and Willington. Tolland Bank is the subsidiary of Alliance Bancorp of New England, Inc. which is traded on the American Stock Exchange under the symbol ANE.

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

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NBS Picks CMA

NBS Card Technology has selected Creative Marketing Alliance as its marketing communications agency of record.

Based in Princetion Juncion, N.J., CMA will handle public relations, advertising and other marketing communications for NBS Card Technology, a business of NBS Technologies, Inc. headquartered in Toronto, Canada.

“CMA has exceptional exceptional expertise and experience in marketing communications and PR that includes a proven track record in the card industry,” NBS Card Technology Vice President of Marketing Martin Chu says. “To meet our marketing communications goals, we needed someone who first understood them, and then could address them – CMA has that ability.”

“We’re excited to partner with NBS Card Technology,” CMA President Jeffery Barnhart says. “As a key player in an expanding technology, NBS CArd Technology has enormous potential to grow as a leader in marketplace. We look forward to helping them attian and maintain that postion.”

NBS Card Technology Corporation, a division of NBS Technologies Inc., is a world leader in the manufacturing of card personalization systems. NBS Card Technology offers a full line of card personalizaiton solutions to the financial, healthcare, telecommunications, transportation and retail markets, as well as government agencies and the education community. The company’s products are sold and serviced worldwide.

NBS Technologies, Inc. is a Toronto-based information technology company with offices in Canada, the United States and the United Kingdom. NBS specializes in providing card technology, transaction automation and digital imaging identification-based systems and solutions.

Creative Marketing Alliance is a single-source resource for strategic marketing counsel and creative communications. Through its four strategic business groups: strategic marketing, public relations, advertising/creative services and association management/event planning, clients receive strategic soluitons for building their business.

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Last Minute Tips from NFCC

Time is running out. For those who have not completed their holiday shopping, just a few precious days are left. However, the shopping decisions made between now and the holidays will determine whether or not we will be paying off 1997’s holiday bills well into 1998.

“When we’re in a time crunch, we’re likely to shop with our heart rather than with our head,” says Durant Abernethy, president of the National Foundation for Consumer Credit (NFCC). “But, by keeping the season in perspective, consumers can avoid the overspending that comes with last-minute shopping.” To help holiday shoppers, NFCC is offering a four-part series called: Holiday Spending: A Plan for the Season. Parts one through three covered budgeting, inexpensive gift ideas and smart shopping strategies. This final installment offers advice for last minute shopping.

Part Four: Last Minute Tips

• Review your budget. How much have you spent already this holiday season? Add up what you’ve spent to date. Subtract this amount from the money you had allocated for holiday spending. Refine your gift list and other holiday spending to stay within your overall budget. And remember, if you overspend on one item or another, you don’t have to throw the whole budget out. Simply readjust the rest of your spending. If you don’t have a budget, devise one now.

• Think twice before you buy. Before buying a gift, ask yourself if the gift will be both appropriate for the recipient and within your price range. Don’t buy the gift just to have something, and watch the extra impulse gifts. Plan to pay for gift purchased with a credit card within 90 days. A $20 sweater bought on credit could end up costing $30 if not paid off promptly.

• Use presentation to dress up inexpensive gifts. We all love to receive beautiful packages. Put home-made cookies in a decorative basket or hand paint a photo frame. Make your own wrapping paper with butcher paper, glitter and stamps.

• Put off some gift giving until after the holidays. You may agree in advance with family and friends to exchange gifts after the holidays. This way you cn take advantage of the after-Christmas sales and you can shop leisurely.

• Take time for yourself. Make room in your schedule for a trip to the gym or a long, hot bath. This will enable you to relax and rejuvenate. After you are rested, then tackle your remaining shopping and chores. This approach should help you from overspending simply because you are stressed.

To learn more about budgeting and using credit or to receive confidential money management counseling, contact a local NFCC member agency. The National Foundation for Consumer Credit is the nation’s oldest and largest non-profit organization providing education and conseling services on budgeting and credit. NFCC members, located in 1,300 offices across the United States, Puero Rico, and Canada can be identified by the NFCC member seal. This seal signifies standards that include agency accreditation, counselor certification, and policies that ensure confidential services that are free or low-cost. Many members operate under the name Consumer Credit Counseling Services. To locate the closest NFCC member office, call toll-free, 24 hours a day 1-800-388-2227 or visit the NFCC Home Page at [www.nfcc.org][1]. Spanish speaking consumers can call 1-800-682-9832.

[1]: http://www.nfcc.org

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CyberCash Names Global Exec

CyberCash, Inc. appointed Steve Crispinelli to Vice President, Global Business Development. Crispinelli, 50, will oversee all strategic relationships and business development outside the US, expanding CyberCash’s reach in Asia, Europe and Latin America. The new role builds on his success helping to establish CyberCash’s presence in Japan, the United Kingdom, Germany, and Canada.

“This new position reflects CyberCash’s increasing leadership in global electronic commerce, as well as our continued expansion abroad,” said Bruce Wilson, Executive Vice President, Global Business Development. “Steve’s charter is to forge new relationships with merchants, key strategic alliance partners, and financial institutions. He has already helped develop some of our strongest relationships within the international banking community and significantly expanded our overseas merchant base.”

As CyberCash’s Director of Global Business Development, Mr. Crispinelli built joint ventures and strategic alliances with major leading financial institutions including Sumitomo Bank and Softbank in Japan, Dresdner Bank and Sachsen LB in Germany, Barclays Bank in the UK, and Royal Bank of Canada and Bank of Canada.

Mr. Crispinelli joined CyberCash in 1996 and has over 15 years of international business and management experience. He launched, ITSI, a data security company based in Europe while living in the UK. Upon returning to the US, Mr. Crispinelli established a consultancy to develop sales and marketing programs for newly formed companies including Wireless Transactions Inc. Prior to this, he held a number of senior positions including director of international sales and marketing at Diebold, a world leader in manufacturing ATM’s and security systems, and national and regional sales manager at Northern Telecom, and Olivetti. He holds a bachelor of science in business from Fordham University and a masters in English Literature from City University.

About CyberCash

CyberCash, Inc., of Reston, Virginia, is a technology-driven company that provides software and services to enable secure financial transactions on the Internet. The Company offers a complete suite of Internet payment services, including a credit card service, which handles payments using major credit cards; an innovative micropayment service, which enables cash transactions; and a secure electronic check service, which allows consumer-to-business payments from a bank account. CyberCash is traded on the Nasdaq Stock Market under the symbol CYCH. CyberCash’s web address is

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TSYS Signs Royal Bank

Total System Services, Inc. announced the signing of a multi-year agreement to provide consumer cardholder processing services to Royal Bank of Canada. With the signing of Royal Bank, TSYS now processes for seven of the leading financial institutions in Canada. This contract gives TSYS its second major signing in the Canadian region behind the recently announced, multi-year Canadian Tire Acceptance, Limited card processing agreement.

Royal Bank’s cardholder portfolio totaling more than five million accounts will be converted to TSYS’ state-of-the-art, Year 2000 compliant TS2(R) Cardholder System. The bank, which previously processed their consumer cards in-house, has been a commercial card customer of TSYS since 1995.

TSYS President Philip W. Tomlinson said, “Royal Bank has a sterling reputation in the industry. We are honored that Royal Bank has chosen TSYS as its processor of choice. We look forward to a long and mutually beneficial relationship based on the innovative solutions provided by our TS2 Cardholder System.”

TS2 is the complete rewrite of TSYS’ Cardholder System. The card processing system offers exceptional levels of service and performance beyond any application in today’s card processing domain.

Executive Vice President Mark K. Tonnesen of Royal Bank of Canada said, “We went through an exhaustive research and evaluation process before choosing TSYS. This partnership creates a win-win situation for Royal Bank, our clients and TSYS. It will enhance our ability to offer our cardholders new and innovative products in a timely manner.”

TSYS’ processing agreement with Royal Bank is conditional upon receipt of regulatory approval from Canada’s Office of the Superintendent of Financial Institutions.

Headquartered in Columbus, Ga., TSYS is one of the world’s largest credit, debit, commercial and private-label card processing companies, serving card- issuing institutions throughout the United States, Puerto Rico, Canada and Mexico, representing more than 91 million cardholder accounts. TSYS provides a comprehensive on-line system of data processing services marketed as THE TOTAL SYSTEM(R). In 1996, TSYS formed a joint venture with Visa(R) U.S.A. to create Vital Processing Services L.L.C. (), a leading full-service merchant services provider. TSYS’ 1996 revenues totaled $311.6 million; the company is an 80.7 percent owned subsidiary of Synovus Financial Corp. (NYSE: “SNV”) (http://www.synovus.com), a $9.0 billion asset, multi-financial services company and a component of the Standard and Poors 500 Index. Synovus also includes 34 banking affiliates in four Southeastern states, a full- service brokerage firm, a comprehensive trust services provider and a mortgage services company. TSYS’ Internet address is .

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Saturation or Maturation

Unless the card industry posts an usually strong fourth quarter 1997 will go down as a very sluggish year. Between Jan 1 and Sept 30 receivables have grown a mere 2.8%, the number of gross accounts is only up 60 basis points and the number of cards-in- force has only inched up by 1.7%. The data are based on Bankcard Update/CardData’s quarterly portfolio surveys of 315 issuers, updated monthly. The number of active accounts declined 2.8% this year with the percentage of active accounts vs. gross accounts dropping from 68% to 66%, on average. Historically the industry posts a strong fourth quarter but holiday retail sales have sagged again this year. Last year industry receivables grew 3.4% and the number of accounts increased by 2.4% during the fourth quarter. Despite the weak financials for the industry, this year will go down as the year of platinum cards and of mergers/acquisitions. Some surveys are pointing to a five fold increase in platinum cards this year, from two million to ten million. Completed and pending mergers/acquisitions have topped $50 billion in receivables.

BANK CREDIT CARD INDUSTRY YTD SNAPSHOT
97-3 97-2 97-1 96-4

Receivables $416.2b 404.5b 392.7b 404.7b
Volume $207.2b 197.7b 169.8b 195.2b
Gross Accts 313.0m 309.9m 308.1m 311.1m
Actives Accts 205.9m 206.3m 209.8m 211.9m
Cards 450.9m 451.4m 449.2m 443.3m
Volume includes purchases and cash advances but excludes debit; Cards
excludes debit and business cards; Source: Bankcard Update/CardData

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AmEx Exits Phone Cards

American Express agreed yesterday to sell its American Express Telecom unit to SmartTalk Teleservices, Inc. for $44 million. As part of the agreement SmarTalk will become the exclusive provider of a co-branded calling card for American Express. AmEx says it still believes prepaid phone cards have significant potential but the company has decided to focus its efforts on the marketing and distribution aspects of the business. American Express Telecom has been no slouch as it established a distribution network of 14,000 locations. AmEx’s most successful phone card is the ‘FirstClass PhoneCards’ sold through the U.S. Postal Service.

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Cap One Hits Targets

Capital One Financial Corporation announced Monday that it expects earnings to exceed analysts’ expectations for the fourth quarter of 1997 and the year ending December 31, 1997.

For the full year, the Company now expects to report earnings 20 percent higher than the 1996 earnings of $2.30 per share. This is above the 15 percent increase indicated by the Company in September of this year. The 1997 earnings growth performance will mark the third consecutive year of 20 percent earnings growth for Capital One, since its spin-off from Signet Bank at the end of 1994. The Company also announced that it has reaffirmed its targets of 20% earnings growth and return on equity (ROE) for 1998.

Richard D. Fairbank, Capital One’s Chairman and CEO, said, “The improved earnings outlook is due to the success of our marketing innovations as well as a more positive credit outlook. We are happy to achieve another consecutive year of 20 percent earnings growth, and the outlook for sustaining this growth trajectory is very positive.”

Appointment of New Stock Transfer Agent

The Company is also very pleased to announce that First Chicago Trust Company of New York has assumed the duties of Stock Transfer Agent and Registrar as of December 15, 1997. As the new Stock Transfer Agent and Registrar, First Chicago will also act as the administrator of the Company’s Dividend Reinvestment and Stock Purchase Plan and as the Rights Agent for the Company’s Shareholder Rights Plan. Stockholders may contact First Chicago with any questions about their accounts at 1-800-446-2617.

The Company cautions that its current expectations for earnings are forward-looking statements and actual results could differ materially from current expectations due to a number of factors, including the number of delinquent accounts and the dollar amount of charge-offs actually experienced by the Company’s credit card portfolio.

Headquartered in Falls Church, Virginia, Capital One Financial Corporation () is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer financial products and services to consumers. Capital One’s subsidiaries collectively had 10.7 million customers as of September 30, 1997, and are among the largest providers of MasterCard and Visa credit cards in the United States.

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