Capital One’s NIM Tops 9.0%

Cap One realized a remarkable quarter as earnings hit $49 million compared to $39 million last quarter and $38 million in the third quarter 1996. During the third quarter, the Company added 868,000 net new consumer accounts, bringing the total to 10.7 million, or a 32 percent annualized growth. Managed consumer loans increased by $736 million to $13.5 billion in outstanding receivables. The managed net interest margin increased to 9.05 percent in the third quarter of 1997 from 8.30 percent in the second quarter of 1997 and 8.35 percent in the comparable period of 1996. This increase principally reflects growth in the Company’s higher-yielding loans, the impact of repricing $700 million in introductory rate credit card loans during the quarter and scheduled increases in fees. The managed net charge-off rate increased to 6.66 percent in the third quarter of 1997, compared with 6.38 percent in the previous quarter. This increase reflects the continued aging of the portfolio and the effect of increases in industry losses. Delinquency rates increased slightly to 6.36 percent as of September 30, compared with 6.33 percent as of June 30.

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RSA Used in Gemplus’ Advanced Card

RSA Data Security, Inc., a wholly owned subsidiary of Security Dynamics Technologies, Inc. (Nasdaq: SDTI), today announced that its cryptographic technology is providing the underlying security in Gemplus Corporation’s recently announced GPK4000 smart card.

Gemplus’ smart card features an advanced cryptographic co-processor and is the first public key smart card to combine digital signature, on-board key generation and electronic payment with multi-application functionality. The GPK4000’s cryptographic functionality includes 1024-bit RSA-based digital signature at sub-second speed and 4Kbytes of application memory.

The new GPK4000 card was designed with a number of advanced security features, including an on-board key generation mechanism that ensures the private component of the public key pair that performs the digital signature is never seen outside the card, and also can store industry-standard X.509 certificates in memory.

“Gemplus is a worldwide leader in the design and production of smart cards,” said Jim Bidzos, president of RSA Data Security. “The company’s selection of RSA encryption technology for its advanced GPK4000 product demonstrates once again that RSA’s encryption technology is the product of choice for consumer and corporate electronic commerce applications. Our cryptography provides a strong solution to assure the privacy, authentication and integrity of smart card enabled electronic transactions.”

“In developing the GPK4000 card for the electronic commerce market, we wanted to be sure we incorporated the most advanced security technology,” said Dominique Trempont, president of Gemplus Americas. “With RSA, we know we have the most trusted encryption available to support the card’s authentication, digital signature, and privacy features.”

The Gemplus announcement follows by only one month another major win for RSA in the smart card segment of the security market. In September, RSA announced that Visa International plans to conduct a market trial of RSA public-key encrypted smart cards in the United Kingdom and Japan. The Visa trial will use a Philips Semiconductors P83C858 cryptocontroller chip which features embedded RSA public-key cryptography.

As announced earlier this year, Gemplus’ smart card technology will also be used as part of Security Dynamics’ Enterprise Security Services (ESS) framework. RSA and Security Dynamics plan to use Gemplus technology to provide SecurID smart cards for network security applications such as user authentication and secure, electronic storage of user identification.

Gemplus Corporation

Gemplus is the world’s leading producer of magnetic stripe and smart cards. It manufactures and sells memory cards, microprocessor cards (both contact and contactless), magnetic stripe cards, as well as electronic tags. It also designs and markets software, terminals and systems; and provides personalization, consultancy and training services to offer its customers comprehensive solutions.

In 1996, Gemplus Group’s total sales were $440 million. By the end of 1997, the company will have a production capacity of 900 million plastic and smart cards.

Gemplus sells its products worldwide for such applications as public and cellular telephony, financial transactions, loyalty, transportation, education, healthcare, gaming, identity, access control, pay TV, security for computer networks and electronic commerce. Information about Gemplus’ products and services can be found on the World Wide Web at: [http://www.gemplus.com.][1]

RSA Data Security, Inc.

RSA Data Security, Inc., a wholly owned subsidiary of Security Dynamics Technologies, Inc., is the world’s brand name for cryptography, with more than 80 million copies of RSA encryption and authentication technologies installed and in use worldwide. RSA technologies are part of existing and proposed standards for the Internet and World Wide Web, CCITT, ISO, ANSI, IEEE, and business, financial and electronic commerce networks around the globe. RSA develops and markets platform-independent developer’s kits and end-user products and provides comprehensive cryptographic consulting services.

Founded in 1982 by the inventors of the RSA Public Key Cryptosystem, the company is headquartered in Redwood City, Calif. Information about RSA can be found at: [http://www.rsa.com.][2]

SecurID is a registered trademark of Security Dynamics Technologies, Inc. All other product and brand names are trademarks or registered trademarks of their respective corporations.

This press release contains forward-looking statements relating to (i) the planned market trial by VISA International of RSA public-key encrypted smart cards in the United Kingdom and Japan and (ii) the planned use by Security Dynamics and RSA of Gemplus technology to provide SecurID smart cards for network security applications, and such statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are delays in product development, undetected software errors or bugs, competitive pressures, technical difficulties, market acceptance of Gemplus smart cards and Security Dynamics’ ESS framework, changes in customer requirements, general economic conditions and the risk factors detailed from time to time in Security Dynamics’ periodic reports and registration statements filed with the Securities and Exchange Commission, including without limitation Security Dynamics’ Registration Statement on Form S-3, as amended (File No. 333-35035), filed on September 5, 1997.

[1]: http://www.gemplus.com
[2]: http://www.rsa.com

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VISA SETS Two Firsts

Visa International completed the world’s first SET 1.0 transactions in Latin America and the first-ever SET 1.0 transactions with an EMV Visa chip card in Asia-Pacific. The transactions involved a Banco Frances del Rio de la Plata Visa card used to purchase a bottle of wine from a supermarket in Buenos Aires, Argentina, and the second to purchase a book from an office supply merchant in Sao Paulo, Brazil. The world’s first chip and electronic commerce transaction was also completed today as part of the Smart Commerce Japan project in Tokyo, Japan using SET 1.0 software and a Visa chip card. Visa, Toshiba Corporation and technology providers CyberCash, IBM, Netscape and VeriSign completed the transactions with a chip card and SET software just hours after the first SET 1.0 transaction in Latin America.

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MBNA Acquires PA Portfolio

BT Financial Corporation (BTFC) has agreed to sell its credit card business to MBNA American Bank, N.A.

According to John H. Anderson, Chairman and CEO of BTFC, the credit card portfolio will transfer by the end of the year to MBNA, which will take over the marketing and servicing of the program. BTFC will share in the credit card business over the next five years by offering MBNA products through its banking affiliate.

Credit card competition has prompted BTFC to contract with MBNA in anticipation that the bank will be able to offer a more competitive rate and maintain the efficiency needed for quality customer service, according to Anderson. The credit card industry has become a critical mass business requiring a national product scope. “We are proud of our relationship with MBNA, the second largest credit card lender in the country.” Anderson said the decision was part of a focus on core competencies that BTFC has redirected itself upon. The sale of the $4.5 million credit card portfolio will have a positive impact on 1997 earnings.

Current cardholders will receive new cards and information on new features in the near future. New applicants will receive special introductory rates for transferring balances. Merchant program participants will be contacted by bank representatives.

“Our agreement with MBNA is another example of BTFC responding to the needs of its customer,” Anderson said. “Foresight is imperative in today’s banking environment.”

BT Financial Corporation is a bank holding company headquartered in Johnstown, Pennsylvania, whose banking affiliate includes Laurel Bank, Johnstown, Pennsylvania. It comprises a total of 72 offices serving Allegheny, Armstrong, Bedford, Blair, Butler, Cambria, Fayette, Greene, Indiana, Somerset, Washington and Westmoreland counties. BT Financial Corporation’s other affiliates are Laurel Trust Company, a Pennsylvania state-chartered trust company and Bedford Associates, Inc., a real estate company.

This news release may contain forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and product may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filing with the Securities and Exchange Commission.

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Smarty VISA Platinum

Fischer International Systems Corporation (FISC) today announced that its Smarty(TM) Smart Card Reader/Writer will be offered as an important element within Visa International’s Visa Platinum product for Latin America and the Caribbean region.

The initiative sets the stage for widespread growth of electronic commerce in Latin America. The product, presented this week at Visa International’s Regional Member Meeting, Latin America and Caribbean Region, offers the Visa Platinum card — a credit card enhanced with a micro-chip that can provide programmability, increased data storage, security and off-line transactions — together with Fischer’s Smarty smart card reader. The Smarty looks like a 3.5 inch diskette, has a slot in the back that accepts a smart card, and fits into any personal computer’s 3.5 inch floppy disk drive to access smart card information. The Smarty requires no cables or connectors.

“Visa International’s research indicates that a significant share of the upscale cardholders in the region use the Internet regularly. Therefore, Smarty is a viable option enabling usage of the Visa Platinum micro-chip on the Internet,” said Lisa Brito, Vice President of Credit and Commercial Products, Visa International Latin America and Caribbean Region. “Though there are other smart card reader choices available, the Smarty, with its very easy implementation for the end-user, is a very innovative product and an attractive feature for banks to offer consumers,” she added.

To demonstrate how the Smarty can be used in connection with the Visa Platinum card, Visa International set up a private network of 30 personal computers at the meeting, each with a Smarty and a Visa Platinum card. In combination with the Smarty, the Visa Platinum card was able to access a customized electronic wallet, containing a virtual Visa Platinum card, and an exclusive Web site. The Web site features travel and entertainment information, as well as Visa Platinum rewards program account updates.

“We are very pleased to work with Visa International and to support the goals of Visa Platinum in the region. Smarty, again, has taken on the role of facilitator, easily linking the Visa Platinum card to the PC,” said Art Burton, vice president of sales and marketing at Fischer International. “We see the interaction of Visa Platinum with Smarty as a real world example of a strategic solution for organizations and individuals committed to Internet-based business. Smart card technology is a natural complement to our expertise in the areas of token design and security software. We look forward to an ongoing, productive partnership with Visa International.”

About Visa Platinum

Visa Platinum has as its core benefits throughout the Latin American and Caribbean region a minimum US $20,000 credit limit, 24-hour customer service, a concierge service, a comprehensive package of travel insurance, and a flexible point program redeemable for travel and entertainment rewards on any airline, selected hotels and selected car rental agencies, among other rewards.

About Visa

Visa, “the world’s best way to pay,” is the preferred payment brand and the largest consumer payment system worldwide. It plays a pivotal role in advancing new payment products and technologies to its 21,000 member financial institutions, their card holders and the global economy. As the leader in emerging products, Visa has 65 chip programs underway worldwide, including more than 6 million Visa Cash cards, and is pioneering SET Secure Electronic Transaction programs in more than 25 countries for secure Internet commerce. Visa’s 600 million cards, generating over US$1 trillion in annual volume, are accepted at more than 14 million worldwide locations, including nearly 370,000 ATMs in the Visa Global ATM Network. Visa’s Internet address is

About Fischer International Systems

Fischer International Systems Corporation (FISC) was founded in 1982 by Addison M. Fischer to develop electronic mail and PC data security software. FISC designs, develops, markets, licenses and supports a family of enterprise-wide office automation (electronic mail and scheduling) software, computer security software and the SmartDisk family of products. These products focus on electronic commerce and security for the Internet, intranets/extranets, LANs, desktop PCs, laptops, and large mainframe environments. FISC has a diverse international customer base and is headquartered in Naples, Florida with offices in North America and Europe. Please contact the FISC web site at

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VISA Smart Card Milestone

Visa International today unveiled the Visa Open Platform Card Specifications 1.0 for multiple-function cards using JavaCard Technology. These specifications enable credit, debit, stored value and other applications to function on a micrchip, leading the way for the payment services industry to standardize its services.

The new specifications will also allow cardholders of Visa’s member financial institutions to have a customized card in their wallet, with products and services unique to and chosen by the individual.

With JavaCard version 2.0 and Visa Open Platform Card Specifications 1.0, industry standards for chip card technology to meet security and functional requirements of financial payments have been established.

Since its announcement in late 1996 of an open specification, JavaCard has received enthusiastic industry-wide support form leading financial institutions, payment associations, chip vendors and card suppliers.

The Visa Open Platform Card Specifications 1.0 are a key component of Visa’s Partner Program, announced in March. The Partner Program consists of a set of applications, open technology platform, tools and processes, acceptance infrastructure standards and rules, and systems required to migrate credit and debit services to chip, and to add other functionality to payment cards.

By combining the JavaCard standards with the adaptations defined by the Visa specifications, vendors can differentiate their offerings to the marketplace. Visa has already received commitments form leading card manufacturers to implement its specifications. Physical cards will be available to member financial institutions in early 1998 form a number of suppliers, including Bull, De la Rue, Gemplus, IBM, Motorola Smart Cards, Schlumberger and Toshiba.

Visa applications on JavaCard will include credit and debit, migrated from magnetic stripe technology, and Visa Cash, the worldwide stored value system for small purchases, such as subway fares, telephone calls, and snacks in vending machines. In addition, early-adopting member financial institutions will develop and implement proprietary applications, such as loyalty, electronic banking, facilities access and consumer preference programs on their Visa payment card.

Visa is working with leading chip suppliers to optimize the implementation of JavaCard. This will result in significant gains in price/performance and security, as well as provide adopters with innovative and leading-edge services.

“The release of the Visa Open Platform Card Specifications 1.0 represent a significant milestone for the payments industry,” said Francois Dutray, group executive vice president, Visa International. “Open acceptance and interpretability are keys to establishing the infrastructure necessary for the widespread adoption of chip cards, and we at Visa are proud to once again demonstrate our commitment toward open, non-proprietary industry standards. Together, with a cross-section of businesses, as well as financial institutions, we can drive fundamental smart card technology through innovative partnerships and can ensure that results are delivered quickly and efficiently,” he said.

Visa, “the world’s best way to pay”, is the preferred payment brand and the largest consumer payment system worldwide. It plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions, their cardholders and the global economy. As the leader in emerging products, Visa has 65 chip programs underway worldwide, including more than 7 million Visa Cash cards, and is pioneering SET Security Electronic Transaction programs in more than 25 countries for secure Internet commerce. Visa’s 600 million cards, generating more than US$1 trillion in annual volume, are accepted at more than 14 million worldwide locations, including nearly 370,000 ATMs in the Visa Global ATM Network. Visa’s Internet address is [www.visa.com][1]

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

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SMARTALK Update

SMARTALK Teleservices, Inc. (Nasdaq: SMTK), a leading manufacturer and distributor of prepaid long- distance calling cards and enhanced telecommunications products and services, reported 1,770,574 new PIN activations and 91,207,466 decremented minutes for the third quarter ended September 30, 1997, as compared to 693,447 PINs activated and 54,824,541 decremented minutes for the quarter ending June 30, 1997, and 262,872 PINs activated and 23,510,042 decremented minutes for the quarter ended September 30, 1996.

Personal Identification Numbers (PINs) are used by certain of the Company’s customers to access the SMARTALK system. “Decremented minutes” represent the number of minutes of usage of the Company’s services. SMARTALK manufactures and distributes prepaid calling cards and other enhanced telecommunications products that are sold at retail.

SMARKTALK recently announced an agreement to acquire ConQuest Telecommunication Services Corp., a Dublin, Ohio-based developer and marketer of prepaid calling cards and other enhanced telecommunications services, which is expected to close this quarter. ConQuest currently distributes its cards through more than 6,000 storefronts and provides domestic and international calling card services for the tour and travel industry.

SMARTALK also maintains distribution agreements with mass merchandisers, consumer electronics retailers, supermarkets and home office superstores, such as Office Depot, Future Shop, Venture Stores, The Good Guys, Staples, Service Merchandise, Jewel/Osco Combo Stores, Osco Drug, Sav-On Drug, OfficeMax, Dominick’s Finer Foods, Eckerd Drug, Food4Less, Ralphs Supermarkets, Bradlees, Marshall Field’s, Best Buy, and Builders Square, as well as university book stores and convenience stores nationwide. SMARTALK also offers specialized value-added promotional phone card programs to clients including Gillette, Hewlett-Packard, Wells Fargo Bank, Nabisco, Pfizer and Prudential Securities. The Company maintains strategic marketing partnerships with Choice Hotels and HFS, the two largest hotel franchisors in the US, along with Simon Brand Ventures, one of the largest operators of shopping malls in the country.

SMARTALK is a member of the Telecommunications Resellers Association, International Telecard Association and the Consumer Electronics Manufacturer’s Association.

The Company is scheduled to announce earnings for third quarter ended September 30, 1997 on Wednesday, November 12 before the close of business. A conference call to discuss earnings will follow on Thursday morning, November 13 at 11:00 AM (EST). Please contact SME Financial Communications at 310-312-7880 for information on conference call participation.

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Unisource to Use Proton

In cooperation with Banksys, Unisource NV is extending its Internet electronic payment system to include payments using electronic purses based on the Banksys’ Proton operating system.

“This dramatically increases the number of customers who will be able to make fast, efficient and safe transactions over the Internet”, says Julian Wilson, director Unisource Smart Access. “It is also ample proof of the flexibility of our technology to accommodate various payment vehicles and systems”.

“This agreement is a first step ensuring interoperability between the different Proton technology based smart card schemes in Europe first and worldwide later ” says Armand Linkens, Banksys’ Director of Marketing and Sales, “it will benefit all Proton World members in offering an efficient application in the fast growing sector of the payments over the Internet”.

The Unisource smart access project is based on enabling users to make payments via the Internet on a low cost and secure basis, by simply using their smart card with either a PC, hand-held computer or advanced telephone screen, which needs to be equipped with a smart card reader. The money transaction provides the user with the requested result instantly, without having to go through a lengthy and costly subscription process with the information provider. The transaction also has the benefit for the merchant of being much more efficient at lower cost than other payment systems such as credit cards. Any means of Internet access, e.g. fixed line, dial-up or GSM, is suitable.

As the result of technological cooperation with Banksys, customers will be able to pay for digital goods with their local Proton based electronic purse in their own currency, independent of their own location or the nationality of the Internet merchant. The next in a series of electronic payment trials will provide customers using Proton technology the opportunity to purchase network products in a controlled environment. Following that, full scale operation of the system will be pursued.

Banksys is a subsidiary of the Belgian banks and is the national EFT/POS operator and authorisation centre. It has been created in 1989 with the merger of Bancontact and Mister cash debit card schemes. Banksys also handles all EFT/POS related activities from the design and production of payment terminals & security devices to the edition of pin mailers. Banksys has been licensing the Proton smart card scheme to 14 countries or organisations so far, all linked in a global association called Proton World. The objective of this organisation is to promote the worldwide marketing, interoperability and multi-application of the Proton electronic smart card scheme.

Unisource NV is a pan-European telecommunications company, created in response to the changing European business environment and customers’ requirements for pan-European and global communication services. The company was established in 1992 by Telia of Sweden and PTT Telecom of the Netherlands. Swisscom of Switzerland became a partner in 1993. In 1994, Unisource gave its pan-European venture a global reach by forming a joint venture with AT&T, called AT&T-Unisource Communications Services. Unisource is also a founding equity partner with AT&T, KDD of Japan and Singapore Telecom of the WorldPartners company. AT&T-Unisource Communications Services is a member of the WorldPartners Association, which today consists of 17 telecom service providers, distributing services in over 30 countries around the world. Unisource shareholders also hold a majority stake in Infonet, whose WorldNetwork data communications services now cover 180 countries world-wide.

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Java Card Expands

Nokia’s Research Centre is testing a new smart card application which implements an existing remote banking security solution in a new way. Based on the new Java-compatible Cyberflex smart card from Schlumberger, the application handles a combination of one-time and fixed passwords. This technique is already used by a number of banks for their remote banking services. The smart card implementation makes the security technique easier and more secure to use.

“Cyberflex is very attractive because it opens up many development possibilities” says Martti Granberg, Senior Consultant, Nokia Research Center. “We like the idea of a smart card compatible with Java, as the ability to dynamically download applications is extremely interesting. Cyberflex is a strong platform for the development of telecommunications security applications such as user authentication, data integrity and data confidentiality, and is also good for implementing multi-functional cards, such as one combining payment and loyalty schemes for example.”

Schlumberger’s Cyberflex product provides an interoperable Java platform for smart card applications. Thanks to the interpreted nature of the Java language, applications can now be written and trialled in a matter of days, eliminating the mask creation cycle required for conventional smart card projects. This approach makes smart cards much more like conventional computers, allowing them to run Java Card-compliant application, and adapt to meet the needs of card users. Applications can also be added or removed from Cyberflex cards after they are manufactured, bringing much lower costs for support and new product roll-out.

The Java Card security test application has been developed by the Nokia Research Center in Helsinki, Finland. This is one of the world’s leading centres for communications technologies and systems concept research, and it interacts closely with Nokia business units worldwide. Headquartered in Finland, Nokia is a leader in digital technologies including mobile phones, cellular and fixed telecommunications networks, wireless data solutions and multimedia terminals. With sales in approximately 130 countries, net sales totalled FIM 39.3 billion ($8.5 billion) in 1996. Nokia employs more than 34,000 people in 45 countries. Nokia’s shares are listed in Helsinki, New York, London, Stockholm, Frankfurt and Paris.

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HONOR’s Annual Conference

HONOR will host its 1997 Annual Conference–“A Meeting of the Minds”–on October 26-28, 1997, at the Buena Vista Palace & Spa, located at the Disney World Village in Lake Vista, Fla. This will be the first network-wide meeting since the merger of the HONOR®, MOST® and ALERT® networks in January.

“The conference provides an excellent opportunity for financial institutions and processors to learn more about HONOR’s upcoming plans and the overall state of the EFT industry,” said Mary A. Kilby, senior vice president of marketing and strategic planning at HONOR. “We have assembled an impressive list of speakers in many areas of expertise, and we look forward to meeting our new members and clients.”

Conference activities will begin on Sunday afternoon, October 26, with a series of training and educational sessions. On Monday, T.O. Bennion, president and CEO of HONOR, will officially open the meeting with his welcoming address. The keynote speaker for the conference will be Susan Dentzer, chief economics correspondent of U.S. News & World Report, who will discuss the economy and its impact on banking and electronic funds transfer. Other Monday morning sessions include a panel discussion on “The Future of Retail Delivery,” featuring Jack Benton of Benton International, Jeffrey Kutler of the American Banker, Deborah McWinney of Visa, Richard Redick of Barnett Bank and Mary Jo Winterer of MasterCard.

Subsequent program topics include such wide-ranging issues as marketing, fraud prevention, smart card technology, electronic benefits transfer (EBT), off-line debit card programs and home banking.

“With the many changes at HONOR and in our industry, this conference takes on special significance,” said Kilby. “We look forward to an enjoyable, informative and productive three days with our members, clients and industry associates.”

HONOR Technologies, Inc. is headquarted in Mainland, Fla. and serves more than 40 million cardholders and 1,870 financial institution members with more than 28,000 ATMs and 350,000 merchant Point of Sale terminals. HONOR processes more than 80 million transactions per month, and offers a variety of EFT services such as terminal driving, card production, MasterMoney and Visa Check Card processing and home banking.

HONOR serves members across the Mid-Atlantic and Southern regions of the United States, with primary operations in Alabama, Delaware, Florida, Georgia, Maryland, North Carolina, New Jersey, Pennsylvania, South Carolina, Tennessee, Virginia, Washington, D.C. and West Virginia. In addition to its Maitland headquarters, HONOR has offices in Birmingham, Ala; Reston, Va; Columbia, S.C.; and Altamonte Springs, Fla.

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Java 2.0 API Ready

Sun Microsystems, Inc. (NASDAQ:SUNW) announced today that the Java(TM) Card Application Programming Interface (API) 2.0 specification is now final and available for download at [http://java.sun.com/products/javacard.][1]

Java Card 2.0 is a blueprint for building applications to run on smart cards. A smart card is a plastic card that looks almost exactly like a credit card. The difference is that a smart card has a computer chip that stores and processes information. For example, a smart card might contain bank account information, medical records or even money that acts just like cash at retail outlets or on the Internet.

Java Card 2.0 enables any card manufacturer to build smart cards that can interoperate, not only with each other, but with existing cards and card reading terminals. The cards integrating Java Card 2.0 technology will be used to store and update account information, money and personal data. The smart cards created will span a variety of industries, including financial services, telephony, healthcare, Internet access and electronic commerce.

“Java Card 2.0 is the catalyst that will launch the widespread use of multi-function smart cards worldwide,” said Alan Baratz, president of Sun Microsystems’ JavaSoft division. “With the ‘Write Once, Run Anywhere(TM)’ capabilities of Java, the smart card industry can provide the consumer with a card that can store money as easily as it can track frequent flyer miles or provide secure access to a cellular phone.”

The Java Card API, a specialized application programming interface, was unveiled by Sun on October 29, 1996. Sun’s Java Card has been licensed by companies representing more than 90 percent of worldwide smart card manufacturing capacity. The Java Card API 2.0 was developed in collaboration with the industry, including smart card manufacturers, card issuers and smart card associations.

Companies who have endorsed Java Card 2.0 include Bull, Citicorp, First Union, Gemplus, Giesecke & Devrient, Hitachi, Motorola, Schlumberger, Toshiba, VeriFone, Visa and many others (see attached addendum).

Many of Sun Microsystems’ Java Card partners will be introducing Java Card 2.0 applications and products at Cartes `97 in Paris France on October 16, 1997.

Java Card API 2.0 Features

— The Java Card API 2.0 includes support for code reusability. With the memory limitations in cards, efficient use and reuse of code is indispensable.

— Java Card supports secure inter-applet communication. For example, a payment applet can exchange payment transaction information with a cooperating loyalty applet.

— Support is provided for ISO standard card/terminal communication.

— A standard cryptography API is included for access to commonly used cryptographic functions.

— The Java Card API is compliant with ISO standards 7816-4 and 7816-5. With 7816-4, ISO has standardized a number of important functions included in the Java Card API such as I/O and file system access. 7816-5 has standardized identifiers and naming conventions which are supported by Java Card.

About Sun

Since its inception in 1982, a singular vision, “The Network Is The Computer(TM)” has propelled Sun Microsystems, Inc. (NASDAQ:SUNW) to its position as a leading provider of hardware, sofware and services for establishing enterprise-wide intranets and expanding the power of the Internet. With more than $8 billion in annual revenues, Sun can be found in more than 150 countries and on the World Wide Web at http://www.sun.com .

Press announcements and other information about Sun Microsystems are available on the Internet via the World Wide Web at [http://www.sun.com.][2] For inquiries about Java technologies and services, telephone 1-800-528-2763 (512/434-1591 for international callers) or visit [http://java.sun.com.][3]

[1]: http://java.sun.com/products/javacard
[2]: http://www.sun.com
[3]: http://www.java.sun.com

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