Customer Names On Trial

First National Bank of Omaha and Trans Union are battling it out before a U.S. District Court jury in Omaha this week. FNB contends Trans Union violated confidentiality agreements by selling the names of First National’s cardholders to competitors. First National filed the lawsuit in February 1995 after it seeded its three million name cardholder database and discovered the seeded names receiving solicitations from other card issuers. The Omaha World-Herald reported this morning about 2,000 exhibits and 75 witnesses have been identified in the complex case. First National seeks $23 million in damages. At mid-year First National Omaha had $3.3 billion in receivables, $1.8 billion in year-to-date volume and 4,174,557 gross accounts according to CardData & Bankcard Update. The issuer recently acquired the card portfolio of Old Kent Bank.


Sun Buys Expertise

Sun Microsystems announced Friday it is acquiring Integrity Arts, Inc. to further accelerate its ‘Java Card’ development. Sun says it will absorb the entire firm into its JavaSoft division. Integrity was founded in May 1995 with a majority interest being held by Gemplus. The announcement was made on the eve of the Java Internet Business Expo which gets underway this morning at New York’s Jacob Javits Convention Center.


Financial Technology Expo

The market pulse of technology innovations for the world of banking, insurance and securities will be on display at the Financial Technology Expo, September 10-12, 1997 at the New York Hilton Hotel and Towers. New products will be showcased alongside interactive demonstrations — including a live Internet-based trading floor, the ConvenieNT Banking Pavilion, the Marketplace to MarketSpace Center, electronic kiosks and Java-enabled network computers.

New market technologies and provocative seminars will guide thousands of expected attendees in evaluating the latest products for an industry representing $50 billion annually in technology investment, according to a report by Meridien Research. More than 175 exhibitors will showcase their technology on the exhibit floor at the New York Hilton Hotel.

Interport Communications will demonstrate the Internet Trading Floor, sponsored by Wall Street & Technology, a Miller Freeman publication. Industry-leading technology companies such as IBM (the Marketplace to MarketSpace Center), Microsoft (Electronic Kiosks and CyberCafe), Sun Microsystems (Enterprise-Wide Enabled Solutions with Java and SunConnect), and Unisys (ConvenieNT Banking) will also display interactive technologies for the financial industries.

A special keynote address by Robert M. Howe, general manager, Worldwide Banking, Finance and Securities, of IBM Corporation, will open the show. He will chart the future of financial services technology in his speech, at 2 p.m. on Sept. 10.

Management of customer service excellence is the common thread uniting two official pre-conference workshops, on Tuesday, Sept. 9, at the New York Hilton. The first workshop, “Benchmarking and Delivering Mission-Critical Customer Service,” sponsored by Hewlett-Packard Company and Pegasystems Inc., will run 8:30 a.m. – 1 p.m., including lunch. In the afternoon, Hewlett- Packard and SAS Institute will present expert speakers, who will explore data mining and data warehousing technologies, in “Taking Action for Profitable Customer Relationship Management,” from Noon – 4:30 p.m.

On Friday Sept. 12, Miller Freeman, the producers of Financial Technology Expo and Meridien Research will present the results of an exclusive research report about the financial technology marketplace.

The Financial Technology Expo World Conference ’97 will be presented by Miller Freeman Inc., in conjunction with its five leading technology trade magazines for the industry: Bank Systems & Technology, Insurance & Technology, Wall Street & Technology, Financial Trader and Financial Technology International.

More than 5,000 expected attendees will see the latest products and services such as application development tools, ATM systems, banking applications, call center, client/server and legacy solutions, disaster recovery, electronic data interchange (EDI), electronic banking and commerce, object-oriented development tools, OCR, order processing, portfolio and risk management, security, trading systems and software, Windows NT solutions, workflow applications and Year 2000 conversion solutions.

Companies exhibiting at the Financial Technology Expo will include: 3Com, AMS Services, ADP, A.M. Best, Bloomberg Financial Markets, CheckFree Investment Services, Comdisco, The Davidsohn Group, Deloitte & Touche Consulting, Dyad, EDS, First Call, Fluke Corporation, Hewlett-Packard, IBM, Informix, IPC Information Systems, Lockheed Martin, Market Data Corp., Moody’s Investors Services, National Registry, NEC Technologies, Nokia Display, Oracle, PeopleSoft, Pilot Software, Planar Display, Reuters, Silicon Graphics, Softbridge, Starlight Networks, Sun Microsystems, Sybase, Tandem Computers, Thomson Financial Securities, Transarc, Unisys and USWeb.

Exhibit hours are: Wednesday, September 10: Noon – 6 p.m.; Thursday, September 11: 9 a.m. – 5 p.m., and Friday, September l2: 9 a.m. – Noon. For more information about attendee registration, please call, 800-829-3976 ext. 2765, or 212-615-2765, fax: 212-615-2901 or register online at the Web site: [][1]

Financial Technology Exposition ’97 is produced by the New York office of Miller Freeman [(][2], a worldwide producer of exhibitions and publications.



NBS Intros Major Product Line

NBS TECHNOLOGIES INC. (OTC Bulletin Board:NBSTF: TSE:NBS) has successfully launched the Horizon product line, a modular, one pass card personalization system which is being marketed worldwide to large card issuers and card service bureaus.

The Company expects this product line to be one of the major drivers of future growth as NBS penetrates new markets and as additional card personalization modules are introduced over the next 12 to 18 months.

In June, the Company introduced the Impressions Series of colour card printers used to produce photo identity and other cards for a variety of low volume, instant card issuance applications. To date, the product line has been a success, particularly amongst users in access control and security sectors where the combination of economy and sophistication are a key requirement.

NBS is continuing development programs for the integration of smart card capabilities into their full line of card personalization and transaction systems. Recently NBS received type approval from Mondex for a new smart card issuance system based on the ImageMaster product line. Mondex is an electronic purse system based on smart card technology that is currently being market tested in Guelph, Ontario (Canada), and other locations worldwide. NBS anticipates many opportunities in the next few years to supply complete card solutions, such as the smart card issuance system, for a variety of applications and markets.


Sales for the period ended June 30, 1997, increased $666 thousand compared to the prior year resulting from growth of cards, card personalization and imprinting systems, offset by lower demand for identification and transaction systems. Gross profit margins decreased 2 percent when compared to the prior year due to the change in product mix. Research and development expenditures increased 43 percent or $1.9 million over the same period in the prior year as the Company steps up its product development activities in order to meet new customer requirements.

Short-term and long-term interest expense decreased $533 thousand from the prior year, a result of significantly lower debt for the period, offset by an increase in interest rates. Foreign exchange expense decreased $443 thousand due to more stable exchange rates over the nine month period ending June 30, 1997.

Net income for the nine months ended June 30, 1997, was $1.5 million. In the prior year net income was $11.0 million, which included an $11.7 million gain from an out-of-court settlement of a lawsuit.


The Company’s short-term results are continuing to be impacted by investments in sales distribution, marketing and new product development activities, supported by process improvement initiatives such as the “Total Quality” program. The market outlook and the opportunities for the Company remain both exciting and challenging, and NBS believes that these investments are necessary for the Company to maintain its leadership position.

Consolidated Statement of Operations

(in thousands of Canadian dollars, except per share amounts)

Three Months Ended Nine Months Ended
June 30, June 30,
1997 1996 1997 1996
Sales $36,347 $34,570 $105,594 $104,928
Cost of sales 24,183 21,772 68,893 65,842
Gross profit 12,164 12,798 36,701 39,086

Selling, general
administrative 6,316 6,441 19,781 19,841
Research and
development 2,270 1,517 6,249 4,364
amortization 1,864 1,860 4,897 5,626
– short-term 442 205 957 877
– long-term 832 951 2,692 3,305
Foreign exchange 203 55 138 581
operations – (450) – –
Other – 7 – (11,687)
Income before
income tax 237 2,212 1,987 16,179
Income taxes 127 247 521 5,164
Net income
for the period $ 110 $ 1,965 $ 1,466 $ 11,015
Net income
per share $ – $ 0.07 $ 0.05 $ 0.37
Weighted average
common shares
(thousands) 29,981 29,981 29,981 29,981

Consolidated Balance Sheet

June 30, Sept 30,
(in thousands of Canadian dollars)
1997 1996
Accounts receivable $ 22,317 $ 25,709
Inventories 16,262 14,484
Prepaid expenses and deposits 1,886 1,495

40,465 41,688

Capital assets 27,822 26,724
Deferred financing costs 1,278 1,048

$ 69,565 $ 69,460

Bank indebtedness $ 19,071 $ 8,683
Accounts payable and accrued
liabilities 26,520 26,391
Deferred revenue 2,340 3,372
Current portion of long-term debt 9,602 6,593

57,533 45,039

Long-term debt 27,798 41,608
Deferred exchange loss on long-term
debt (386) (341)

84,945 86,306

Shareholders’ Deficiency
Capital stock 90,712 90,712
Deficit (106,092) (107,558)

(15,380) (16,846)

$ 69,565 $ 69,460

Consolidated Statement of Changes in Financial Position

Nine Months Ended

June 30,
(in thousands of Canadian dollars)
1997 1996

Operating Activities
Net income for the period $ 1,466 $ 11,015
Depreciation and amortization 4,897 5,626
Amortization of deferred costs 173 241
Exchange loss on long-term debt 411 745
Change in non-cash working capital 167 7,129

Cash generated by operating
activities 7,114 24,756

Investing Activities
Purchase of capital assets, net (5,995) (8,598)

Cash applied to investing
activities (5,995) (8,598)

Financing Activities
Issuance of long-term debt 529 4,785
Repayment of long-term debt (11,633) (14,549)
Deferred financing costs (403) (114)

Cash (applied to) generated by
financing activities (11,507) (9,878)

Increase (Decrease) in cash during
period (10,388) 6,280
Bank indebtedness, at beginning
of period (8,683) (12,115)

Bank indebtedness, at end of
period $ (19,071) $ (5,835)


Europay’s SET Pilot

Commerzbank AG and Karstadt, Europe’s largest department store chain, have teamed up to launch a pilot project for secure electronic payments over the Internet using Eurocard-MasterCard cards and the Secure Electronic Transaction (SET) protocol, reports Europay International – Europe’s leading payment system. The pilot project involves 1,500 Commerzbank Eurocard- MasterCard cards and is the first of its kind in Germany – the fastest growing Internet market in Europe with some four million users.

Europay International worked in close cooperation with Commerzbank and Karstadt through all stages of the pilot project – from the initial organisation light through to final implementation.

SET – a global industry standard – secures PC keyboard-based payments over the Internet by utilising digital certificates. These validate the genuine identities of both cardholders and merchants participating in transactions via the Web, combined with the encryption of individual card numbers.

This announcement follows a number of other European electronic commerce initiatives also utilising the SET protocol combined with Eurocard- MasterCard cards. PBS Denmark set the scene for the world’s first live SET transaction using a Eurocard-MasterCard at the end of 1996 and then participated in the world’s first cross-border international SET payment together with Europay Norway. Other countries conducting SET pilots using Eurocard-MasterCard as the payment instrument include Ireland, Switzerland, Spain and France. The French pilot links SET to chip cards and will be launched to the general public in October 1997.

The addition of Germany to other SET electronic commerce pilots represents a huge step forward in terms of enhanced customer service and the growth of cross- border electronic commerce for Europe.

In an active move to also open up on-line selling opportunities to small and medium sized German retailers, Commerzbank, together with EURO- Kartensysteme, are currently co-operating with the Electronic Mail – Bodensee. This new initiative, which will enable Eurocard-MasterCard cardholders to shop at selected merchants located in the Lake Consitance region, is scheduled to go live during October of this year.

Commenting on the announcement, Mr. Rainer Sureth, Director of Retail Banking at Commerzbank, said: “With the ever-rising popularity of the Internet in Germany, Offering Eurocard- MasterCard cardholders access to goods and services via Karstadt straight from their armchairs is a significant boost to customer service and a further extension of choice. SET provides the highest level of security available today and enables on-line shopping to firmly establish itself in the market place.”

Mr. Holger Pleines, SET Pilot Project Leader at

Karstadt, added:

“We want to offer our customers payment facilities which enable them to go on- line shopping in “MY WORLD” – our Internet Mail – in complete security… That is why we decided to participate in Germany’s first SET pilot test by joining forces with Commerzbank and Europay International.”

Louis-Noel Joly, Director and CEO at Europay International, said: “Germany’s participation in a SET/Eurocard-MasterCard pilot is absolutely key not only because it boasts the biggest number of Internet users across Europe but also as it is an advanced market in terms of payment systems… With more and more SET pilots taking off around Europe, We are confident that cross-border transactions on the Internet will become common place in the near future.”


VISA – BART Donation

This week Visa U.S.A. announced that it is donating $25,000 to Project 180, an organization committed to empowering and turning around the lives of the homeless.

The program includes shelter, job training, rehabilitative services and permanent supportive housing, through a promotion to raise awareness of the Bay Area Rapid Transit District’s (BART) acceptance of Visa cards to purchase BART and BART Plus tickets.

From July 1 through September 30, every time a BART or BART Plus ticket is purchased from one of BART’s special Charge-A-Ticket (CAT) machines, Visa U.S.A. will make a donation to Project 180. Through this promotion Visa is guaranteeing a minimum donation of $25,000 to Project 180.

“This promotion is the perfect opportunity to raise BART patron’s awareness that they can now use their Visa cards to purchase their BART and BART Plus tickets, while also supporting Project 180, and organization that helps homeless people help themselves,” said Walt Conway, vice president, market development and acceptance.

Each year Project 180 helps more than 7,000 homeless people turn their lives around. For many living on the streets, the change begins with the very basics: a safe place to sleep at Project 180’s two San Francisco shelters, a hot shower, a change of clothes and two hot meals a day. The real difference is made when a shelter client works one-on-one with his or her case manager to address the core reasons that led to a life on the streets.

Visa 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. Visa’s nearly 600 million cards are accepted at more than 14 million worldwide locations, including over 355,000 ATMs in the Visa Global ATM Network. Visa’s Internet address is [][1]

Through shelter, job training, adult education, rehabilitative services, counseling and permanent supportive housing, Project 180 helps homeless people move from living on the streets to getting back on their feet. To find out how to make a contribution of time or money to Project 180, call 415/863-3893.



Postbank – CORONA ATM Monitoring

Management Data today announced that Postbank NV – part of the Dutch financial group ING – is implementing MD’s CORONA reconciliation solution at its head office in the Netherlands. CORONA will be used to reconcile the exchange of documents, as well as for cash management and for monitoring cash receipts to the automated teller machine (ATM) network. The system is scheduled to go live on September 15, 1997.

Over three million transactions are processed by Postbank on a daily basis. Two thirds of these are carried out electronically, partly through the national network of 2,200 post offices and 1,200 ATMs. The rest are made up of hand- written payment orders.

The Postbank ATM machines are supplied with cash from two sources: the Dutch National Bank and the post office tills. CORONA will enable Postbank to accurately monitor the receipt of cash from both suppliers by marking each payment with a technical ATM number. This number, together with the value date and amount will then be used to reconcile the amounts received from each supplier.

By automating the reconciliation process for bank to ATM transactions, Postbank will be able to reduce labour costs and to eliminate the transportation and archiving costs involved in processing hand-written reconciliation forms. CORONA will also greatly reduce the risk of human error – a risk, which up to now was a very tangible one given the fact that some 65,000 forms, recording each ATM receipt, had to be processed by the bank each year. All forms underwent three checks, with some checks inevitably resulting in reading or writing errors. CORONA will eliminate the need for such forms since the data is input automatically.

Commenting on the decision to implement CORONA, Jan Joore, Manager at Postbank – who was responsible for implementing CORONA within another division of the ING Group a few years ago – says: “While CORONA is normally used for the reconciliation of bank to bank transactions, we felt it would also make sense to implement CORONA for reconciling bank to ATM transactions. The potential to make huge cost savings encouraged us to look into this option in detail. The project is proving worthwhile. We expect to recoup our investment in CORONA within a month of the system going live.”

At Postbank, CORONA MVS is being implemented on an IBM mainframe, although Joore says that the bank will be looking at a client/server version of CORONA in the near future.

“This is the first time CORONA is being used to reconcile bank to ATM transactions,” explains Susanne Bachmann, Business Line Manager for Reconciliation Solutions at Management Data. “The success of this joint project between MD and Postbank clearly shows the versatility of the CORONA solution.”


Management Data (MD) ranks among the leading international suppliers of banking solutions and also offers consulting and software project services for financial institutions. Founded in 1971 as a subsidiary of Creditanstalt, MD is today affiliated with the largest Austrian banking group, the Bank Austria/Creditanstalt group.

With a customer base of about 700 installations in over 70 countries worldwide, MD’s banking software solutions are well-established in the global banking community. Its products include CORONA, the world’s most widely used computerised account reconciliation system, COMFORT for the automated matching of bank and broker deal confirmations and ARES for the automated reconciliation of securities messages.

Today the company has subsidiaries in place in the UK, Germany, France, Switzerland, Benelux, Hungary, Poland, the Czech Republic, Singapore, China, and most recently Spain. It also has a significant distributor network throughout the world.


Fleet Card Provider Expands

Ceridian Corporation (NYSE: CEN) announced today that it has completed the acquisition of International Automated Energy Systems, Inc. (IAES), a Naples, Fla., fleet management company providing services that enable businesses to pay for fuel for their commercial vehicles, and control and manage their ongoing fleet expenses. In February 1996, Ceridian purchased a 19.9 percent interest in IAES; now it owns 100 percent of the fleet management company. Terms were not disclosed.

IAES had been a member of the Barron Collier Companies, a family owned organization with interests in real estate and development, agriculture, and oil and gas exploration. Through an alliance with VISA, IAES provides the only fleet card operating in the market that has the national brand recognition and universal acceptance of a major purchasing card. Its revenue in 1996 totaled approximately $1.9 million.

Ceridian’s Comdata subsidiary is a leading provider of fueling services for the long-haul trucking market and its Comchek(R) card is the primary fuel card used at the 8,000 truck stops where most fuel for over-the-road trucking is sold. IAES’s VISA(R) Fleet card is a complementary product that enables light and medium-duty fleets that are primarily operating in local markets to provide authorized drivers with the convenience of obtaining fuel at over 190,000 convenience stores and service stations where retail VISA cards are accepted.

Like the Comchek card, the VISA Fleet card captures transaction data, including vehicle odometer readings and the driver’s Personal Identification Number (PIN), as well as the merchant name, location and transaction amount. The information is provided to the customer in a detailed monthly report, and controls may be placed on individual cards within each account to restrict transactions according to the wishes of each fleet customer.

“The local fueling market is a strategic and important extension of Comdata’s business,” said Tony Holcombe, president and chief executive officer of Comdata. “IAES’s VISA Fleet card is an excellent point of entry into a market which, measured in terms of fueling transactions, exceeds Comdata’s traditional long-haul base. IAES’s local fuel management product is the only active product in the market that has the combined benefits of broad merchant acceptance, cashier recognition and the ability to capitalize on a general purpose business card while fulfilling the control and data-gathering requirements for fuel purchases.”

“This is a very exciting time for IAES, since we feel that Comdata’s strong market position in the long-haul segment is the perfect complement to IAES’s focus on the local fueling market,” said C.J. Hueston, president of IAES. “Our goal has always been to focus on a single-source solution for the fleet market. To be the best provider, an organization must address all market needs, not develop one at the expense of the other. We believe our current and future customers will benefit from the addition of new products and services that this exciting relationship will bring,” she said.

Comdata [(][1] provides funds transfer, fuel purchase, cash advance, and permit services, as well as fuel optimization and routing software, for the trucking industry; point-of-sale and data collection services for the truck stop industry; cash advance, cash access, and database marketing services for the gaming industry; and long-distance telecommunications services for the transportation and gaming industries.

Comdata is part of Ceridian Corporation [(][2], a leading information services and defense electronics company that serves the human resources, electronic media, transportation, gaming and government markets. Its information services segment includes Comdata; a group of human resources businesses, including Ceridian Employer Services, a leading payroll processor; and several marketing information businesses, including the Arbitron Company. Its defense business is Computing Devices International.

IAES Fact Sheet

Description IAES is a fleet management company that provides a
fleet management system to the local fueling market
for fuel and other vehicle-related purchases and

IAES administers this system through two products:
the VISA(R) Fleet card — an alliance with VISA — and
the proprietary IAES card. IAES has an established
distribution network of over 190,000 convenience
stores and service stations.

Customers IAES serves more than 4,000 local fleets across North
America, including corporate, commercial,
government and utility trucks and cars.

IAES has processing agreements with major oil
companies, including Amoco, Exxon, Shell, BP, Citgo,
and Marathon.

Revenue Approximately $1.9 million in 1996.

and Locations 48 employees work at the company’s headquarters
in Naples, Fla., and at a second location in Orlando.

Year of Origin IAES was founded in 1979.

Ceridian’s Businesses

Ceridian Corporation is an information services and defense electronics company that helps customers improve their productivity and competitive position.

Information Services for the Transportation and Gaming Industries

Comdata provides funds transfer, fuel purchase, cash advance and permit services, as well as fleet optimization and routing software, for the transportation industry, and funds transfer and other services for the gaming industry.

Information Services for the Human Resources Market

Ceridian Employer Services provides human resources management systems, outsourced payroll and tax filing services, self-service workflow solutions, and in-house payroll and benefits software.

Centre-file provides payroll and human resources products and services to customers in the UK.

MiniData provides payroll and related services to small businesses in the U.S.

Resumix provides advanced human skills management software and services that enable customers to electronically process resumes, build employee and applicant databases, and identify qualified candidates for hire, promotion and reassignment.

FLX Corporation is a leading developer of high-performance software for human resources, recruiting and benefits management.

Usertech helps companies implement new business systems by providing comprehensive user support programs; it also provides expert systems that enable employers to address employee and retiree questions about benefits, payroll, and human resources policies and programs.

Ceridian Performance Partners provides a broad array of work-life, employee assistance, wellness, training, and management services.

EAS Technologies provides advanced time, attendance and workforce management solutions.

Washington Consulting Services & Technologies is a provider of human resources software applications, consulting and seminar services, primarily to the government market.

Information Services for the Electronic Media Industry

Arbitron is a media information firm that provides ratings and other services to broadcasters, cable systems, advertisers and agencies.

Defense Electronics

Computing Devices International provides mission-critical electronics, software, systems integration and information management for defense, government agencies and commercial customers in selected markets.