Schlumberger’s SmartWare & SafePak

Schlumberger Electronic Transactions today introduced new smart card products supporting the Microsoft® Smart Card Software Development Kit (SDK). The products, which include cards, readers PC software and developer’s kits, enable ISVs and VARs to implement smart-card-based applications for Windows® with the most advanced smart card technology available today. These products support industry-standard interfaces providing opportunities to leverage new applications across a large platform base. The new products introduced include: SmartWare(TM), a comprehensive smart card developers’ kit to build PC-based smart card applications using one of the Schlumberger’s industry-leading smart cards, such as Cryptoflex(TM), Cyberflex(TM), Multiflex and Payflex. SafePaK(TM), a client PC package for information security supporting Microsoft Internet Explorer 4.0, based on the Cryptoflex smart card and a family of different smart card readers to fit any need. “We are excited that Schlumberger is delivering smart card products for Microsoft Windows,” said Ed Muth, Group Product Manager for Security and Enterprise marketing at Microsoft. “This will enable our mutual customers to take advantage of smart cards to design and build unique new applications for a wide range of market segments.” “Smart cards are the most personal, portable computing device, and these are the attributes that make them so exciting for application developers around the world,” said Jacques Cosnefroy, vice president and general manager of Schlumberger Smart Cards division. “The products that we are introducing show the power of smart card technology to bring the best security and privacy to browsers and other PC applications with them, developers in all different markets can catch the next wave in computing.” SafePaK is an information security application product, supporting Internet Explorer 4.0® and Outlook Express®. With SafePaK, individuals and corporations can improve the security of their network communications and assure the integrity of data and messages. SafePaK comprises Cryptoflex, the industry’s leading cryptographic smart card with strong 1024-bit RSA security, one several optional smart card readers and PC software. SafePaK is being demonstrated during the Microsoft Professional Developers Conference. Cryptoflex cards are being issued to individuals, which they can use to download X.509 certificates, and then use them to demonstrate secure web site access and sending signed and encrypted e-mail, all with Internet Explorer 4.0 and Outlook Express. With SmartWare, an application developer can take advantage of standardized APIs working in the Windows 95 and Windows NT environments to build PC applications of all types. Smart cards are ideal for applications personalized to individuals, such as home banking, health care, insurance, and personal identification. The built-in hardware security of a smart card makes it the logical choice for secure, controlled access to sensitive databases, protecting the privacy of such information. Each of these products is built on the PC/SC Workgroup specifications, developed by the leaders in smart cards and PC hardware and software. The specifications provide a uniform API for smart card readers and smart cards themselves when used with personal computers. Schlumberger’s complete line of PC/SC compliant smart cards are designed to offer features and performance for virtually any application: Cryptoflex(TM), the only smart card supporting 1024-bit RSA functions; Cyberflex(TM), the Card for Java(TM), adhering to the Java Card API; Multiflex, a general purpose card ideally suited for ID applications; and Payflex, the most cost-effective choice for secure financial applications. A variety of PC/SC compliant smart card readers have also been announced including: Reflex 20 PCMCIA-slot reader for laptops; Reflex 60 serial port readers; Reflex 60 Chip Set for hardware integration into PCs and other devices; Pocket Dock(TM) serial port reader with secure keypad entry and display; and Floppy Dock(TM) smart card reader designed to use the floppy disk drive.


KeyBank Moves E-Commerce to Senior Management

KeyBank signaled its focus on integrating Internet-based banking alternatives with its nationwide branch, call center and ATM network this week by naming its electronic commerce executive, Patrick J. Swanick, to its senior management team.

Swanick, 39, has been named vice chairman for KeyBank, the nationwide company formed last month when Key integrated its numerous state-chartered banking operations into a single operating unit. He previously was executive vice president for electronic commerce, responsible for Key’s telebanking, ATM, and PC-based banking functions.

“With the transition to a nationwide branch, call center and ATM network now complete, our focus for the next six months will be completing development and integrating several PC-based alternatives for our clients across our office network and technology infrastructure,” said Gary R. Allen, KeyBank chairman, president and CEO. “With his extensive background in electronic banking, marketing and sales, Pat is ideally equipped to complete that important link.”

Swanick will lead Key’s introduction of a suite of PC- and Internet-based banking options marketed as Key2Your$. Key has recently partnered with Intuit and Microsoft to launch new, on-line banking products in this area, and expects to add a unique Internet-based product for individuals and small businesses to its award-winning Website later this year.

Swanick, who joined Key in 1992, will also be responsible for overseeing KeyBank’s quality management programs and the units involving all distribution functions, including all KeyCenter (branch) support, electronic commerce, telemarketing and ATM systems. He will also have responsibility for Key’s in- store and ‘KeyExpress’ initiatives — which are developing and deploying new types of banking technology into grocery stores and other high-traffic, high volume locations throughout the U.S.

Prior to assuming responsibility for Electronic Commerce activities, Swanick guided the creation of a standardized, national operations platform for Key’s consumer loan, auto lease, credit card, ATM, and call center functions through various integration, consolidation and reengineering activities following the Key/Society merger in March, 1994.

A two-time graduate of Saint Joseph’s University in Philadelphia, Swanick holds a B.S. degree in Marketing, with a Minor in Spanish, and an M.B.A. in Management. He is on the board of Integrion, a 15-bank consortium a past chairman of the Retail Financial Services Commission for the Bank Administration Institute (BAI), and serves on the advisory board of the Salvation Army of Greater Cleveland, and is a member of the Society of Consumer Affairs Professionals in Business (SOCAP) and the International Customer Service Association (ICSA).

KeyBank is a the banking unit of KeyCorp ( (NYSE: KEY) is one of the nation’s largest financial services companies. Through three principal lines of business — corporate banking, consumer finance, and community banking — the company’s operating units provide retail and wholesale banking, investment, financing and money management services. Key companies have a presence in 46 states, and operate a nationwide network of KeyCenters, 1,900 ATMs and four telebanking centers (1-800-KEY2YOU).


Magazine Smartcard

MegaWorld, Inc. (OTC BB: MEGW) today announced its plans to work with SmartCard technology beginning with its initial publishing ventures. MegaWorld has signed an agreement with ITV, Inc., a consulting and marketing company that develops and markets interactive multimedia products and services based in Los Angeles, CA.

“We are thrilled to be working with ITV,” stated Kenneth Hom, Executive Vice President and Multimedia Director of MegaWorld. “They are helping us develop a customized Smartcard where subscribers to our publications can access a host of benefits just by dialing their telephones. This adds even greater value and usefulness to our magazines and newsletters, setting us apart from other publications.”

The SmartCard by ITV will provide access to an informational database developed specifically for MegaWorld. MegaWorld is planning its initial publications for launch in the next few months, including the full color glossy NYC-New York City(TM) Magazine and a newsletter on business opportunities in the Pacific Rim. All subscribers to MegaWorld’s publications will receive the SmartCard by ITV. Through a calling card platform, subscribers can access up-to-the-minute editorial information, entertainment or business directories, travel services, corporate news, long distance services, etc.


Fleet Gets Personal

Fleet Financial and First Data Resources jointly developed a completely customized credit card statement for Fleet’s cardholders that features a customer-specific, target marketing page. Fleet says it will use the message page to advise cardholders of new products and special program promotions. The messages will vary by customer. For example describing low interest rate opportunities or discounts at the cardholder’s favorite retailer. Fleet said it will also utilize FDR’s duplex printing option to print on both sides of the statement form.


I-Billing System

Kenan Systems Corporation today announced a significant new release of EC/Arbor(TM), its industry-leading UNIX-based billing and customer care system designed specifically for Internet and electronic commerce service providers offering a variety of services. New features that satisfy the requirements of Internet-based businesses include: more advanced billing features for increased flexibility, improved Web-based customer self-care capabilities for higher customer satisfaction, and a more robust network integration environment to speed initial deployment across a wide range of Internet service delivery and front office platforms. Kenan Systems has deployed its billing and customer care solutions at numerous large Internet and electronic commerce providers, including AT&T WorldNet, GTE Internetworking and Verio.

“Through our work with Internet content and on-line service providers since the early 90s, Kenan Systems has been committed to delivering systems that solve the complex billing and customer care issues facing Internet and electronic commerce service providers,” said Kenan Sahin, president and founder of Kenan Systems. “The introduction of EC/Arbor in 1996 and today’s enhancements, coupled with our experience from many successful customer implementations, reinforce Kenan’s leadership role in providing superior Internet commerce solutions to this dynamic industry. We have the only Internet and electronic commerce billing system in production supporting over one million subscribers and have also implemented our system in as few as three months.”

EC/Arbor is the most production-proven, flexible and easy-to-use answer to the billing and customer care needs of Internet and electronic commerce providers. Internet service providers can easily introduce a wide range of innovative services to both residential and business customers using EC/Arbor’s enhanced message processing capabilities. Competitive providers in today’s market must be able to employ targeted marketing programs designed to increase customer acquisition and loyalty, such as innovative pricing and discount plans. Providers can offer more competitive prices, ranging from simple monthly fees to complex usage-based charges, using EC/Arbor’s highly configurable pricing and rating structures.

EC/Arbor also offers providers and their customers easy access to customer and account information for improved customer care capabilities. With iCARE(TM), an HTML front end for account management and remote access for customer service representatives (CSRs), providers can lower operational costs and increase customer service quality and customer loyalty. Customers can view and modify their own account information over the Internet. Remote CSRs, including dealers and affiliates, can also use iCARE to easily access and modify account information from multiple off-site locations.

With today’s release, EC/Arbor features an expanded 4-tiered client/server architecture that leverages providers’ existing system environments to facilitate rapid deployment. This enhanced architecture offers providers the flexibility to easily add new services and delivery platforms, such as Internet fax or Internet telephony.

Kenan Systems has made major enhancements to EC/Arbor in the following areas:

Enhanced Web-based Customer Self-care and Network Integration Environment:

iCARE — end-users and CSRs at remote locations can access and modify account and service information online.

iCARE also features an expanded network integration architecture and support for real-time network provisioning so that customers and CSRs can add new services to an account in real-time. iCARE’s architecture dramatically decreases implementation time while offering increased flexibility to easily add new service delivery platforms.

Expanded Real-Time Capabilities:

Real-Time Credit Card Authorization — allows customers to activate their service as soon as they establish an account.

Real-Time Network Provisioning — Using iCARE’s network provisioning gateway, providers can benefit from rapid deployment as well as the addition of new network devices.

Expanded User Interface Capability:

Account Segmentation — EC/Arbor offers a secure segmented CSR and end- user account access capability that gives dealer-based CSRs controlled access to only their own customer and account information. As a result, providers can leverage a wide range of business relationships with dealers and affiliate providers.

Advanced Billing and Rating:

Aggregate Usage Rating — allows providers to apply special rate structures based on aggregate usage, such as number of Web hits or downloads per month. This flexibility enables providers to offer innovative pricing and packaging options to their customers.


This release of EC/Arbor will be generally available in Q3 ’97. EC/Arbor EC/Arbor is a production-proven solution that leverages Kenan Systems’ technology expertise as well as its industry experience through successful deployments of multiple Internet and electronic commerce applications.

EC/Arbor provides comprehensive billing functions including message processing, rating, discounting, bill production, remittance processing, accounts receivable, collections and journaling. At the same time, EC/Arbor provides critical customer care functions such as account provisioning, inquiry and adjustments as well as iCARE. EC/Arbor includes robust open systems APIs to help customers augment the customer care and billing functionality already included in EC/Arbor with their own business rules, specialized integrations and front-end user interfaces.

EC/Arbor, featuring a client/server architecture, is available on DEC, HP, IBM, and Sun UNIX hardware platforms, and now supports Windows 95 and Windows NT clients. Kenan Systems offers a seamless upgrade path to the industrial- strength scalability and functionality of Arbor/BP to support the growth of the organization. EC/Arbor is fully Year 2000 compliant. Kenan Systems provides a full complement of integration, training and maintenance services to support EC/Arbor deployments. In addition, Kenan has forged worldwide partnerships with major corporations, such as AMS, Andersen Consulting, Price Waterhouse and Siemens AG, to integrate and support EC/Arbor within their product and service offerings.

Kenan Systems Corporation

Kenan Systems Corporation provides a suite of software products and services for billing, customer care, order management and decision support to the Internet and electronic commerce, telecommunications, and cable TV industries worldwide. Kenan products and services allow service providers to grow and enhance relationships with their customers, promoting customer satisfaction and retention. With offices throughout the US, Europe and Asia- Pacific, Kenan delivers powerful software solutions to key communications and information services organizations, including AT&T WorldNet, British Telecom, GTE Internetworking, Worldcom/MFS, Optus and Verio. Additional information on Kenan Systems’ products and services may be obtained by calling 1-888-AT- KENAN, visiting Kenan’s World Wide Web site at or via e-mail to

NOTE: Kenan, the Kenan logo, EC/Arbor and iCARE are the trademarks or registered trademarks of Kenan Systems Corporation in the United States and other countries. All other product and brand names are the service marks, trademarks, registered trademarks, or registered service marks of their respective owners.


Standard Register Distributes Smart Cards

Standard Register’s Imaging Services Group today announced it is joining Schlumberger Electronic Transaction’s Associates program to provide personalization and distribution of smart cards to the healthcare, retail and membership markets. Standard Register, the leading document management company to personalize smart card technology in the U.S., will utilize smart card technology to improve the security of electronic documents and e-commerce.

Personalization, the process of taking a “generic” smart card and customizing it with data that is specific to a single-or multi-application card and the individual card holder, is an essential service to implement any smart card applications system. To personalize the cards, Standard Register will image a person’s name and identification number on the card, embed vital statistics in the chip, and customize applications stored on the chip.

For smart card holders, personal identification is essential to provide secure access to company networks, Internet transactions and other electronic commerce applications. Personalization also enables issuers to build brand recognition and customer loyalty by enhancing frequent shopper and similar loyalty programs.

In addition to card personalization, Standard Register will provide specialized fulfillment and secure distribution of smart cards. With specialized fulfillment, Standard Register coordinates ongoing, complicated mailings of smart cards. Secure distribution ensures that card issuers know where every card is from the time that it leaves Standard Register’s plant to arrival at its final destination.

“As an industry leader in developing secure, effective plastic card programs, our customers rely on us to guide them through this evolution of card technology,” says Dave Fehrman, director, Imaging Services Group. “We look forward to offering personalized smart cards to our many card-based customers as well as working with Schlumberger on new business opportunities.”

“Standard Register will play an important role in opening new opportunities for smart cards in business and consumer markets,” says Lou Bisasky, general manager of Schlumberger Smart Cards, North America. “With its depth of knowledge and expertise in card personalization and distribution, as well as an established record of successful card-based programs, Standard Register fills an important niche in our Associates Program.”

Schlumberger offers its customers a flexible portfolio of smart card-based solutions for businesses and communities of all sizes, including the telecom, banking, retail, mass transit & parking, and healthcare sectors. Through its Associates Program, Schlumberger continues to build upon an already comprehensive product line of smart card solutions through associations with leading value-added resellers, integrators and service providers in major vertical markets.

Similar in appearance to a traditional credit card, a smart card is embedded with a microprocessor chip. The chip provides intelligence and computational power similar to that of early personal computers, making smart cards much more secure than magnetic stripe cards. A smart card permits numerous applications – such as secure financial transactions, a frequent shopper database, and storing medical information – to be run by one card.

“We are excited about the potential of smart cards will advocate their benefits to both our customers and their clients,” Fehrman adds. “As the infrastructure is built for universal use of smart cards in the U.S., we will take the lead in distributing smart cards securely into the hands of consumers while helping to fulfill the promises of electronic commerce.”

Since it was formed in 1992, Standard Register’s Imaging Services Group has developed prepaid phone, HMO, ATM, membership, frequent shopper and numerous other plastic card programs.


New Mondex Chip

Mondex said yesterday it will begin to incorporate a new high security chip, the ‘Mondex H8/3109’, into more than 500,000 Mondex cards to be issued by year’s end. The new chip, developed by Hitachi, utilizes public key cryptography. The Mondex card is a reloadable, multi-currency smart card which allows up to five different currencies to be carried on the card at any one time in separate electronic pockets. Mondex said more than one million reloadable cards will be produced this year with a projected 5 million cards next year.


Hypercom Gets SET

Hypercom introduced a new line of SET-based Internet commerce products at the ABA Bank Card Conference yesterday and also announced the first chip card loyalty product designed with the assistance of VISA. The new products include ‘PinnacleSET’, ‘PinnacleSET POS’, ‘PinnacleSET Gateway’ and ‘PinnacleSET CA’. The ‘PinnacleSET’ product suite will leverage Hypercom’s client/server product line, the ‘Pinnacle’ transaction environment. Merchants using ‘PinnacleSET’ products will gain advantages for the use of the Internet for transaction modes such as loyalty, chip care and stored-value applications that are now only available through traditional POS devices. Hypercom’s ‘Pinnacle Loyalty Management System’ utilizes chip card technology to allow instant bonus point redemption at the point of sale. ‘LMS’ was piloted earlier this year in China by Hypercom and VISA in a multi-merchant environment.


Vital Signs First Premier

Today, at the ABA Bank Card Conference, Vital Processing Services (Vital) announced it has teamed with First PREMIER Bank of Sioux Falls, S.D., to provide a full range of merchant card processing solutions through its Portfolio Management and Merchant Point of Sale services. The agreement enables First PREMIER to access Vital’s full offering of services, from point-of-sale processing through the complete payment cycle.

Under the service agreement with Vital, First PREMIER will convert its merchant portfolio to Vital and will outsource all services, including front- end, back-end and back-office. The back-office, which is marketed by Vital under Operational Fulfillment Services (including the outsourcing of chargeback and retrieval resolution, customer service, data entry, transaction risk management and paper draft capture) was recently developed, and is the latest service addition to Vital, completing its full-service, turn-key product line.

Portfolio Management Services give acquiring banks all the tools needed to manage their merchant portfolio. The Vital product and service line truly offers a complete, front-to-back package, including merchant POS products, electronic authorization and data capture; clearing, settlement and exception processing; merchant accounting, billing, and reporting; and Operational Fulfillment Services.

From a simple fax to a state-of-the-art electronic bulletin board or the Internet, Vital provides multiple methods for acquirers and merchants to access information needed to effectively manage their businesses.

“We are excited about having First PREMIER as a full-service, turn-key client because the bank has been so aggressive in the past in managing and growing its merchant portfolio,” said Fred Gumbel, president and CEO of Vital. “We’re looking forward to the institution’s success in the marketplace.”

“We could not have found a better fit than Vital,” said Miles Beacom, president of First PREMIER Bank’s Credit Card Division. “Vital’s commitment to provide leading-edge technology and high service levels will help enable the bank to successfully grow its portfolio. We want to be at the forefront of the market with Vital because they don’t compete with us for our merchant business.”

First PREMIER Bank, with current assets at $303 million, serves six eastern South Dakota communities with locations in Sioux Falls, Watertown, Castlewood, Kranzburg, Lake Norden and Wakonda. The bank has more than 350 employees. First Premier’s capital ratio is 8.60 percent. First PREMIER’s Credit Card Division, established in 1989, has grown from 88 employees in January 1996 to more than 200.

Vital Processing Services (Vital) is a leading full-service merchant processing company. Its clients include financial institutions that provide credit card processing to their merchant customers. Headquartered in Tempe, Ariz., Vital offers financial institutions operational services that enhance business solutions without competing for their merchant business. Its services include merchant POS products, electronic authorization and data capture; clearing, settlement and exception processing; merchant accounting, billing, and reporting; operational fulfillment services (including the outsourcing of chargeback and retrieval processing); risk management; and customer service. Vital’s Internet address is .

Vital Processing Services is a joint venture between Total System Services, Inc.(NYSE: TSS) (TSYS(R)) and Visa(R) U.S.A.


INTERSHOP Supports MS Wallet

INTERSHOP Communications, one of the world’s leading providers of complete and professional electronic commerce solutions, today announced the commitment to support the Microsoft Wallet, a tool for conducting financial transactions on the Internet in a secure and convenient manner.

The integration of Microsoft Wallet in future product releases will expand the broad selection of online payment methods already supported by INTERSHOP. With the Microsoft Wallet customers will get another quick and secure option to pay for purchases in electronic stores that are built with INTERSHOP technology.

Residing on the shopper’s personal computer, the Microsoft Wallet uses password protection to store confidential information including name, personal, billing and shipping addresses, credit or debit card information and additional data that may be required by digital payment services such as CyberCash, ICVerify or Kleline. The Microsoft Wallet allows customers of INTERSHOP stores to choose their preferred method of payment with the click of the mouse and submit all necessary information for the financial transaction.

“INTERSHOP is providing state-of-the-art technology that makes electronic commerce a convenient, secure and pleasant experience for merchants and shoppers alike,” said Stephan Schambach, CEO of INTERSHOP Communications. “The Microsoft Wallet fits this mission very well because it is open and extensible, adding convenience, speed and security to online business transactions.”

Microsoft includes the Wallet with the next version of the Windows(TM) operating system and its Internet Explorer 4.0 Web browser software. Currently, more than 80 percent of all PCs worldwide are running on Microsoft Windows OS. “We are pleased to see the adoption of the Microsoft Wallet by INTERSHOP,” said Jonathan Weinstein, Lead Product Manager, Internet Commerce Marketing at Microsoft. “The Microsoft Wallet allows INTERSHOP to add value to its eCommerce systems by enhancing the shopping experience on the Internet and increasing the security of confidential data.”

CyberCash, a leading provider of secure electronic payments on the Internet and an INTERSHOP technology partner, now offers the CyberCash CashRegister V 2.1.2 Adapter Kit for the Microsoft Wallet. With the support of CyberCash’s Secure Internet Payment Service and the Microsoft Wallet, INTERSHOP enables financial transactions to be processed over the Internet in real-time to almost any bank in the U.S.

“Combining these software components provides merchants with the flexibility, security, and tools that are essential to building and running a successful Internet store,” said Scott Eisenberg, Director of Product Management at CyberCash. “By integrating software and services from CyberCash and Microsoft, INTERSHOP provides complete eCommerce solutions that allow online merchants to accept purchase requests instantly and get paid for it.”

INTERSHOP Communications Inc.

INTERSHOP Communications Inc. is the world’s paramount provider of electronic commerce software. Privately held, INTERSHOP Communications is headquartered in San Francisco with offices in Germany, France and the UK. Founded in Germany in 1992, INTERSHOP develops, publishes and distributes standard and custom software, offering a full spectrum of electronic commerce solutions. INTERSHOP Communications markets to Fortune 500 enterprises such as Hewlett-Packard and Siemens Nixdorf. Value Added Resellers, and large Internet Service Providers such as Deutsche Telekom select INTERSHOP as their core-technology to build thousands of online stores for small and mid-size merchants. INTERSHOP’s standard products, single-store INTERSHOP Online and multi-store INTERSHOP Mall, include all components to design, maintain and run complete front-to-back electronic commerce solutions. INTERSHOP applications are proven in key markets including business-to-business, business-to-consumer, supply-intranets, or extranets. For more information, call INTERSHOP at 800/736-5197, send e-mail to or visit .


VFW Donates Calling Cards

When VFW national junior vice commander John Smart presents an oversized prepaid phone card to the Fisher House Foundation, Inc. today, it will be symbolic of the VFW commitment to the Fisher House program – a commitment to provide every family staying at a Fisher House with 20 units of free long distance dialing.

That commitment is part of “Operation Uplink,” an innovative program through which the Veterans of Foreign Wars of the U.S. and its Ladies Auxiliary provide courtesy calling cards to hospitalized service men and women, veterans, and their families. The program is supported by VFW and Ladies Auxiliary posts and individual donors. The program also supports members of the armed forces serving overseas, enabling them to keep in touch with their loved ones at home.

The Fisher House program is the single largest recipient of the prepaid calling cards. Throughout 1997 and 1998, the VFW will donate to the program more than 5,000 cards, with a retail value in excess of $50,000. This will enable managers to give a card to every family staying at a Fisher House.

The partnership between the VFW and Fisher House program was a natural. The VFW program had an objective to provide the cards to those with the greatest need. The Fisher House program was established to assist families of service men and women and veterans at the most stressful time – upon the hospitalization of a loved one. In the words of VFW assistant adjutant general for marketing Ron Browning, “It is a true win-win relationship, and the winners are the members of the armed forces, veterans and their families. It is their dedicated service to our nation we wish to recognize and reward.”


US Bank’s E-Merchant Services

GST Internet, Inc., a subsidiary of GST Telecommunications, Inc. (AMEX: GST), and U.S. Bank announced today that the companies have signed a joint agreement to bring electronic commerce services to U.S. Bank merchant accounts in Oregon, Washington, Nevada, Idaho, Utah and California. To deliver the service, the companies will use Open Market’s award-winning Transact(TM) software, a robust order capture, management and service solution.

Under the terms of the agreement, GST Internet will become U.S. Bank’s preferred electronic commerce service provider to its growing base of more than 30,000 merchant accounts. New services will include processing credit card transactions for U.S. Bank merchant customers via secure web servers at GST’s new Portland Internet Data Center as well as web site development and hosting services.

“U.S. Bank merchants and their customers will have the ability to shop electronically and complete purchases over the Internet in an interactive, secure environment,” said Joseph A. Basile, Jr., president and chief operating officer for GST Telecommunications. “With the tremendous demand for Internet-based electronic commerce, GST Internet is focused on providing tools and services to help companies, such as U.S. Bank and its merchant customers, successfully utilize the Internet for business transactions.”

“Most businesses are excited about the opportunities this new marketing channel provides,” said Bartt Brick, U.S. Bank senior vice president and manager of merchant services. “The partnership between U.S. Bank and GST will help smooth the transition to electronic commerce, enabling our customers to take advantage of the marketing potential the Internet offers,” Brick added.

Benjamin R. Peek, president of GST Internet, noted, “GST will utilize Open Market’s Transact(TM) software to build and service an electronic commerce environment focused on providing services to U.S. Bank’s merchant customers. The industry-leading Transact(TM) software offers functionality, such as complete order management, on-line customer service, authentication, record keeping and secure transaction processing. Essentially, this software differentiates GST’s electronic commerce services from other Internet service providers.”

Gary Eichhorn, president and chief executive officer of Open Market, commented, “The agreement between GST and U.S. Bank reaffirms the appeal of the commerce service provider model. Merchants wishing to outsource the complexity of Internet commerce can do it easily and cost-effectively, with known and trusted entities. Open Market’s software is ideally suited for the scalable, flexible and secure requirements of this approach to Internet commerce.”

GST Internet is a wholly owned subsidiary of Vancouver, Wash.-based GST Telecommunications, Inc. GST, a full-service telecommunications provider, operates fiber networks throughout the western United States and Hawaii, and posted record revenues of $27 million for its third fiscal quarter 1997. Facilities-based GST provides a broad range of integrated telecommunications products and services, including voice, video, data and Internet. GST strategically clusters its networks to achieve synergy and maximum opportunity within each service territory. In addition, the Company manufactures telecommunications switching equipment and provides network management and billing systems through its subsidiary, NACT Telecommunications, Inc., of Provo, Utah. Visit GST’s web sites at , , and .