News from the Wire

Pay By Touch Announces Partnership With Pick n' Save Metro Market and With Discover Financial Services

Monday, August 16, 2004 — 16:48:59 (EDT)

SAN FRANCISCO – (August 17, 2004)— First came cash…then checks, credit%%Ncards, and debit cards. Starting today, customers at one of Roundy’s family%%Nof grocery stores can just leave their wallets at home.%%N%%NThe new Pick n’ Save Metro Market is joining the walletless world today by%%Nintroducing its customers to Pay By Touch, a new payment service that lets%%Nusers purchase groceries with the touch of a finger.%%N%%N“The new Pick n’ Save Metro Market is an ideal retailer to launch Pay By%%NTouch in the Midwest,” said Craig Ramsey, chief executive officer of Pay By%%NTouch. “With a wireless café, clerks with handheld scanners, and now the%%NPay By Touch system, this innovative store is leading a technology%%Nbreakthrough in the retail grocery market.”%%N%%NThe one-time Pay By Touch enrollment takes just a couple of minutes.%%NShoppers scan their finger, enter a search code, swipe rewards cards and/or%%Npayment cards, and add their checking account information to build a%%Npersonal Pay By Touch wallet, which is stored at secure IBM data centers.%%N%%NThe Pay By Touch finger scanning technology does not store actual%%Nfingerprints; instead, it creates a set of 40 data points that cannot be%%Nreverse engineered back to a fingerprint. Once enrolled – no matter what%%Nstore or state they are in – customers can simply scan their finger and%%Nselect a preferred payment method every time they pay.%%N%%NPay By Touch has also recently been implemented into Piggly Wiggly Carolina%%NCo. stores throughout South Carolina, and has been operational in Seattle%%Nfor over two years. Pay By Touch plans to roll out this innovative%%Nconsumer payment system in other national retail chains later this year.%%N%%NAbout Pay By Touch%%NHeadquartered in San Francisco, Pay By Touch is a free consumer payment%%Nservice that allows shoppers to pay for purchases using a finger scan to%%Naccess their financial accounts and loyalty programs. With Pay By Touch,%%Nthe checkout process is faster, more convenient, and more secure than other%%Npayment methods. It eliminates the need to present checks and IDs, credit,%%Ndebit, membership, or loyalty cards at the point of sale. For additional%%Ninformation, visit www.paybytouch.com.%%N%%NAbout Roundy’s, Inc.%%NFounded in 1872, Roundy’s, Inc. is a leading food retailer and wholesaler%%Nin the Midwest. Roundy’s operates 120 retail grocery stores under the Pick%%N‘n Save, Copps and Rainbow Foods banners. From seven distribution centers,%%NRoundy’s supplies over 800 retail grocer store locations. The Company is%%Nowned by investment funds controlled by Chicago-based Willis Stein &%%NPartners III, L.P. For more information, visit www.roundys.com.%%N%%N%%NPAY BY TOUCH AND DISCOVER FINANCIAL SERVICES TO JOINTLY MARKET USE OF%%NFINGER-SCANNING TECHNOLOGY TO ACCESS DISCOVER CARD ACCOUNTS%%N%%NSAN FRANCISCO – (August 16, 2004)— Pay By Touch™ today announced it has%%Nentered into a strategic alliance with Discover Financial Services, a%%Nbusiness unit of Morgan Stanley (NYSE: MWD). The new alliance is expected%%Nto increase daily usage of Discover Card at retail point of sale and drive%%Nadoption of Pay By Touch, a payment service that allows shoppers to pay%%Nwith the touch of a finger.%%N%%NUnder the agreement, Discover Financial Services will be one of the first%%Nfinancial services companies to be associated with a viable biometric%%Npayment option – offering customers more convenience, flexibility and%%Nsecurity with their daily purchases.%%N%%N“This is a mutually beneficial alliance because it allows Pay By Touch%%Ncustomers to take advantage of Discover Card’s benefits, and Discover%%NCardmembers the option for a faster, more secure way to pay,” said Craig%%NRamsey, chief executive officer of Pay By Touch.%%N%%N“Consumers are always looking for quick and convenient payment options,%%Nwhich has contributed to the success of our own Discover 2GO® Card, the%%Nfirst key chain credit card in the industry,” said Diane Offereins,%%NExecutive Vice President and Chief Information Officer, Discover Financial%%NServices. “By teaming up with Pay By Touch, we can continue to provide our%%Nmore than 50 million Cardmembers with the latest in payment technology by%%Nliterally putting all of Discover Card’s benefits at their fingertips,”%%Nadded Offereins.%%N%%NThe one-time Pay By Touch enrollment is very simple and takes just a few%%Nminutes. Shoppers scan their finger, enter a search code, swipe rewards%%Ncards and/or Discover Card (or other payment cards) and add their checking%%Naccount information to build a personal Pay By Touch wallet, which is%%Nstored at secure IBM data centers.%%N%%NThe Pay By Touch finger scanning technology does not store actual%%Nfingerprints; instead, it creates a set of 40 data points that cannot be%%Nreverse-engineered to a fingerprint. The data points are then converted%%Ninto a mathematical equation that allows for a secure identity match at%%Nretail point of sale. Once enrolled – no matter what store or state they%%Nare in – customers can simply scan their finger and select a preferred%%Npayment method every time they pay.%%N%%NAbout Pay By Touch%%NHeadquartered in San Francisco, Pay By Touch is a free consumer payment%%Nservice that allows shoppers to pay for purchases using a finger scan to%%Naccess their financial accounts and loyalty programs. With Pay By Touch,%%Nthe checkout process is faster, more convenient, and more secure than other%%Npayment methods. It eliminates the need to present checks and IDs, credit,%%Ndebit, membership, or loyalty cards at the point of sale. For additional%%Ninformation, visit www.paybytouch.com.%%N%%N%%NAbout Discover Financial Services%%N%%NDiscover Financial Services, a business unit of Morgan Stanley (NYSE:MWD),%%Noperates the Discover Card and the Discover Network for its more than 50%%Nmillion Cardmembers. The Discover Network is the largest independent%%Ncredit card network in the United States with approximately 4 million%%Nmerchant and cash access locations. For more information, visit%%Nwww.discovercard.com.%%N%%NSource: Company Press Release

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Source: Company press release.