NEWS

First American Payment Systems' Colleen Lee Dies

Colleen Lee, Vice President of Sales and Marketing for First American Payment Systems, died Aug. 22, 2004. Colleen joined First American in September 2001. She previously held positions at National City Processing Co., First Data Corp., Envoy Corp., and Triton Systems, Inc. The company said Colleen will be remembered most for her quick wit, humor and upbeat attitude and that her presence, both personally and professionally, will be greatly missed. Colleen is survived by her husband, John, their sons, Joshua and Christopher, and a host of family and friends. Donations may be made on Colleen's behalf at the Baylor Foundation, Fund #52921, 3600 Gaston Avenue, Suite 100, Dallas, Texas 75246.

Survey Shows EIPP Growing

While 80% of all business-to-business (B2B) transactions are still being completed with paper checks, a trend toward greater use of electronic payments is emerging, according to the "B2B Spend Management Survey" by MasterCard International and Ariba, Inc.

The survey found that two out of every three companies with annual revenues exceeding $500 million use electronic invoicing presentment and payment (EIPP) systems. Of the estimated 9.58 billion B2B transactions that will be completed in 2004, 7.63 billion, or 80%, will be done with checks. Also, electronic B2B payments are expected to grow from 20% to almost 50% by 2010.

Survey respondents cited cost (25%), complexity (22%), and aversion to making changes to their IT systems (19%) as reasons for not deploying an EIPP system. However, 69% of respondents whose companies currently do not have EIPP reported plans for a future deployment.

Lightbridge President, CEO Resigns

After nearly 15 years as President and CEO of Lightbridge, Inc., Pamela D. A. Reeve resigned and stepped down from her post as a member of the company's Board of Directors. She will remain available for advisory purposes as the company conducts a formal search for a new President and CEO. Robert Donahue, a member of the company's Board and Chairman of the Audit Committee, will serve as the full time interim President and CEO. Donahue has held corporate positions at the senior executive level including President and Chief Operating Officer at Manufacturers Services Ltd. and CFO of Stratus Computer, Inc.

Lawsuit Filed Against MasterCard and Visa

PSW, Inc., a credit card processing company for Internet merchants, filed an anti-trust lawsuit against MasterCard and Visa seeking over $240 million in damages. First Data Corp.-owned First Financial Bank and First Data Merchant Services were also named as defendants. The 12-count complaint alleges the defendants used monopoly power to employ policies and practices that unreasonably excluded competition and restrained trade in the credit card and credit card processing markets. The complaint alleges interference with contractual relations, breach of good faith and fair dealing, embezzlement and breach of contract. PSW alleges that it was forced to pay higher prices for network services, pay excessive fees, and comply with unknown, continuously changing rules. PSW also claims that the defendants usurped PSW's profits and forced it out of business.

2004 ATM Spending Expected to Reach $1.8 Billion

Research and consulting firm TowerGroup, Inc. estimates that total ATM spending by large U.S. banks will total almost $1.8 billion this year, 12% over 2003. TowerGroup's research, "Advanced ATM Technology: Too Fast, Too Furious," examines the drivers behind banks' increased ATM investments and the different technologies implemented to extend the usefulness of ATMs.

The study found that while ATM manufacturers have been building high-performance banking devices for 10 years, much of that power has gone unused because of customers' lukewarm reception. However, the group believes that there is renewed interest in ATM technology, particularly through new ways for banks to interact with customers. To purchase a copy of the research, contact TowerGroup by phone at 781-292-5200 or by e-mail at service-info@towergroup.com .

Zenou to Leave Lipman USA

Mony Zenou, President and CEO of Lipman USA, who was directly involved in the establishment of Lipman USA over 10 years ago, has decided to leave the company and pursue other endeavors. Zenou's contract expires on Sept. 30, 2004; however, he will be available as a consultant to the company until the end of 2005. Until Lipman appoints a successor, Isaac Angel, Lipman's President and CEO, will assume Zenou's responsibilities.

ANNOUNCEMENTS

AmeriCard Changes Name to OneBridge

Card processing company AmeriCard changed its name to OneBridge. Under the name OneBridge, the company debuts a new vision of providing card processing solutions to help credit unions and small- to mid-sized banks gain control of their credit and debit card programs. The company will expand offerings, beginning with the recent introduction of a proprietary system.

Industry Encyclopedia Available

The Electronic Transactions Association (ETA) recently released its new "Encyclopedia of Terminology for the Acquiring Industry." The volume of more than 250 pages contains cross-referenced definitions of nearly 3,000 industry terms and acronyms. It also contains information on banking rules, card association regulatory bodies, processing policies and a timeline of important industry dates. Order the publication through ETA's Web site at www.electran.org . The cost is $50 for members and $75 for non-members.

Ezic Secures Hotel Interchange Rates

Internet transaction processor Ezic, Inc., secured certification for hotel interchange rates for users of its Digital Payment Platform. This certification enables independent reservation agents and property management companies that book and bill hotel or rental property transactions over the Web to qualify for lower rates. As part of this feature merchants may, after an amount has been authorized for a purchase, but prior to capture, increase the amount to be charged without requiring a second authorization.

Intell-A-Check Now ClearTran

Intell-A-Check Corp. changed its corporate name to ClearTran, Inc. and will relocate its Belleville, N.J., headquarters to Parsippany, N.J. The company reports that ClearTran more adequately reflects the type of services it offers. The new location will provide additional space for expansion and greater access to telecommunications and power infrastructure.

JUSTCHEX Adds Instant Check Verification

JUSTCHEX, LLC now provides online access to instantly verify checks through its Online Verify solution. JUSTCHEX designed the service for organizations that accept checks in an office environment with Internet access, such as dentists, cable companies, wireless providers, schools and cities. Clients enter routing and account numbers online and within seconds receive replies with a result. The company is offering Online Verify to all merchants, and it doesn't require changing an existing check-service provider.

Moneris Offers Electronic Check Services

Through an agreement with Electronic Clearing House, Inc. (ECHO) to provide Visa POS Check Service to Moneris Solutions' merchants, Moneris now offers check conversion with verification, check conversion with guarantee, and check recovery. With check conversion with verification, Moneris integrates multiple national databases and verifies the check transaction before the consumer leaves the merchant location. With check conversion with guarantee, the guarantor will take the risk on behalf of the merchant for all checks deposited. With Check Recovery, the merchant outsources the collection of bad checks.

Mexico's Order Express Chooses VeriFone

Order Express, a provider of money transfer services between the United States and Mexico, is deploying VeriFone, Inc.'s Omni 3750 payment terminals in more than 700 of its offices throughout Mexico and the United States. Headquartered in Mexico, Order Express completed 1.5 million money transfer transactions in 2003. The company distributes more than 50,000 magnetic stripe cards to customers, allowing them to set up and transfer any amount of funds in seconds. Recipients can access the transferred funds almost immediately, while the sender can track the process in agent offices or over the Internet.

PARTNERSHIPS

Discover Card Accepted at Dollar General

Discover Financial Services signed an exclusive acceptance agreement with Dollar General Corp. Discover Card will be the only credit card accepted for payment at more than 5,500 Dollar General stores in 27 states and will be accepted at all of Dollar General's more than 7,000 stores chain wide. In the past, Dollar General accepted only cash and personal checks. Fifth Third Bank Processing Solutions will serve as the electronic card processor for all electronic payments.

Global Payments Launches New Applications

Global Payments Inc. recently introduced two new products: Retail @dvantage NURIT Wireless and Retail @dvantage NURIT Dial. Both products provide processing for credit, debit and EBT cards as well as optional electronic check, gift and loyalty card processing and operate on the Lipman NURIT family of terminals. Global designed the Dial solution for restaurants, taverns and bars. The Wireless solution offers processing capabilities ideal for mobile and temporary locations such as stadiums, kiosks, delivery services and pay-at-the table establishments.

Keycorp in Wireless Payment System for Taxis

Keycorp Canada Inc. and Digital Dispatch Systems Inc. recently introduced an in-vehicle solution for accepting debit card payments in Canadian taxis. SmartPay allows Canadian taxi companies to accept real-time payments using Interac, Canada's national debit card service. SmartPay uses a taxi's existing radio system to transmit wireless data to authorize card payments. Until now, Canada's only in-vehicle wireless point-of-sale solutions were based on cellular networks and required the merchant to pay airtime connection fees. Keycorp worked with Digital Dispatch Systems to integrate the Keycorp K23 payment terminals into the taxi radio dispatch terminal.

M&I Joins NYCE Network

M&I Marshall & Ilsley Bank (M&I) will participate in the NYCE Network. Metavante Corp., the financial technology subsidiary of Marshall & Ilsley Corp., acquired NYCE Corp. earlier this year. M&I operates 250 banking offices and 470 ATMs located in Arizona, Florida, Illinois, Minnesota, Missouri, Nevada and Wisconsin, where it is the state's largest bank.

MasterCard and Visa Standardize Security Requirements

MasterCard International and Visa International are cooperating to align PIN-entry device (PED) security requirements and approval procedures. The two organizations have agreed to standardize security requirements, testing methodologies and procedures for approving PEDs. The organizations are also working toward reaching similar agreements with other key industry players.

Retail Decisions and CardinalCommerce Partner

CardinalCommerce Corp. and Retail Decisions (ReD), an international provider of payment processing and fraud prevention services, formed an agreement to offer the Cardinal Centinel service through ReD's payment and risk management platforms. The agreement will enable Retail Decisions' customers to access Cardinal's merchant software platform for authenticating payments through the Verified by Visa, MasterCard SecureCode and JCB J/Secure payment initiative programs.

Systech and CrossCheck Partner for IP-based Check Processing

Systech Corp., designer of Internet Payment Gateways for electronic transaction markets, has allied with CrossCheck, Inc. to deploy Systech Internet Payment Gateways to convert dial-up check processing transactions to IP-based transactions. Under the agreement, CrossCheck certified the Systech product and will encourage CrossCheck channel partners to integrate and deploy Systech dial-to-IP conversion gateways. The gateways connect terminals and check readers to the CrossCheck processing host over the public Internet using secure SSL IP protocols. Merchants with existing, private IP networks can also use the solution to convert and re-route dial transactions through existing WAN links.

TransAKT and Global Telecom Enter Agreement

TransAKT Corp. entered into a distribution agreement with Global Telecom Unlimited Inc. (GTC). GTC will be the exclusive distributor of the company's VoIP products in Canada provided that GTC orders a minimum of 7,500 units every three-month period of the two-year agreement. TransAKT agreed to brand the TaiChi line of products under the GTC name in Canada. In addition to the hardware sales, TransAKT will receive a monthly fee per client for every unit active on the network.

U.S. Bank Partners with NKU

Northern Kentucky University (NKU) has chosen U.S. Bank to be its bank partner for the school's multi-use identification card. The All-Card allows NKU's 14,000 students and more than 1,650 faculty and staff members to check out resources from the campus library, purchase meals, gain access to campus fitness facilities and other amenities. Participants can also use the device as a U.S. Bank ATM card on and off campus.

U.S.P.S. to Install Self-service Units

The United States Postal Service selected self-service devices from Wincor Nixdorf and its U.S. alliance partner, IBM, for installation at 2,506 postal branches throughout the country. The installations of the Automated Postal Center (APC) units will continue through November 2004. The APC allows customers to conduct postal transactions at the self-service platform, including weighing packages and printing bar-coded postage. The units include a 15-inch touch screen, a card reader for credit or debit transactions, a receipt printer, a color camera and an encrypting PIN pad.

ACQUISITIONS

7-Eleven, Inc. Purchases ATM Portfolio From AMEX

7-Eleven, Inc. recently acquired the ATM portfolio currently deployed in its stores from American Express Co. The $44 million purchase involves ATM services offered in more than 5,400 7-Eleven stores in the United States. The company believes the acquisition will add to its 2004 earnings and is thus increasing capital spending for 2004 from $345 - $375 million to $360 - $390 million.

Global Payments Acquires Cash & Win

Global Payments Inc. acquired the remaining 49% interest in the Cash & Win service from Comerica Bank. As a result of this acquisition, Global Payments owns 100% of the Cash & Win service, which provides credit and debit card cash advance services to patrons of the gaming industry. Global Payments originally obtained a 51% ownership interest in the Cash & Win service in 2001, when Comerica Bank sold the former Imperial Bank merchant portfolio to the Global Payments Comerica Alliance. The Cash & Win service will be integrated into Global's comprehensive suite of gaming products.

NOVA Continues International Expansion

NOVA Information Systems, SEB Kort AB and Europay Norge AS, signed an agreement for the sale of SEB/Europay's merchant acquiring business to a Norway-based affiliate of NOVA. EuroConex Technologies Ltd. will manage the processing services for all new and existing merchant customers, and will market merchant services under the EuroConex brand. SEB Kort's portfolio in Euroline Norge consists of more than 45,000 points of sale for MasterCard and Visa in Norway.

PRE Solutions Acquires Everything Prepaid

PRE Solutions, Inc. recently acquired the prepaid products and processing business of Everything Prepaid, LLC. With the acquisition, PRE Solutions assumed Everything Prepaid's approximately 10,000 relationships with retail partners. As a result of the acquisition, PRE Solutions will have more than 50,000 retail partners throughout the United States and Puerto Rico. Claude Ricks, former CEO of Everything Prepaid, joined PRE Solutions as Vice President, Indirect Sales. Ricks has more than 20 years of experience in the bankcard and prepaid technology industries.

APPOINTMENTS

Barrett Appointed Senior VP Sales

John Barrett has joined the executive management team of First Data's Third Party Sales Channel. As Senior Vice President of Sales, Barrett oversees First Data's ISO program as well as Cardservice International. He will be responsible for strategic sales, ISO/Agent relationship management and sales support. Barrett comes to First Data with 20 years of experience in strategic sales planning, sales management and operations.

Hartfield Elected to ATMIA Board

Sandra Hartfield, President of Palm Desert National Bank's Electronic Banking Division, has been elected to an executive officer position on the Board of the ATM Industry Association (ATMIA). ATMIA is an alliance dedicated to the global advancement and proliferation of ATMs. Hartfield will fill the vacant officer position of Secretary on the board until the next board elections at ATMIA's major annual conference in Florida in February 2005.

Janssen Joins First Data

Debra A. Janssen joined First Data Corp. as President of First Data Debit Services. Janssen, with 20 years of payments industry leadership experience, will manage processing activity. From 1998 - 2000 Janssen served as President and CEO of eFunds Corp. and was integral to the company's start up. While at eFunds, Janssen increased revenue by more than 30% and operating income by 120%. Janssen's entrepreneurial experience also includes the start-up ventures Surepayroll, Inc. and ebizmix.com . Janssen's payments career began at Metavante Corp. in 1984.

VeriFone's ISO Group Adds Team Members

Dale Laszig has been hired as VeriFone's Senior Sales Representative for the company's North American ISO Group Sales Organization. Laszig most recently served as Vice President of Sales for Hypercom North America. In that position she worked with ISOs and in the QSR vertical market. Prior to her six years with Hypercom she spent two years with Thales North America and seven years with First Data as a Sales Development Specialist and National Trainer.

VeriFone also appointed two to its ISO sales and training team. The company promoted Nancy Austin to Sales Training Manager. Austin, a long-time Senior Sales Executive for VeriFone, will manage a staff of sales trainers providing services to the MLS community. The company also hired Rhonda Walsh as a Sales Trainer. Walsh comes to VeriFone after spending 10 years with a major ISO, Delta Card and MCCS.

Bottom Lines

• Costco is selling steel caskets in two Chicago-area stores, CNN/Money reported.
• Gap, Inc. wants to further expand into markets in the UK, France and Japan, the Financial Times reported.
• Shares of Wet Seal, Inc. plummeted by more than 60% to 85 cents after the retailer announced meager second-quarter results.
• Casual Male Retail Group, Inc., operator of Casual Male Big & Tall, will acquire privately held Rochester Big and Tall Clothing, Inc. for $15 million in cash.
• Factory 2-U Stores, Inc. plans to sell all of its assets to Factory 2-U Acquisition, LLC for approximately $28 million.