VeriFone Advances E-payment for the Multi-application Marketplace; New Technology Platform Designed for Rapid Deployment to Merchants Worldwide - Company Business and Marketing

Cambridge Telcom Report, June 5, 2000

VeriFone, a division of Hewlett-Packard Company, Tuesday introduced its global e-payment platform, which provides a new level of performance and security to support and run multiple applications at the point of sale (POS). The payment terminals, operating environment, security architecture, e-payment software and appliance-management platform for VeriFone's new family of e-payment solutions incorporate flexible features that reflect VeriFone's years of leadership and expertise in responding to the e-payment needs of the market. The modular architecture allows the system to be adapted to specific country requirements and, therefore, the needs of merchants and acquirers worldwide.

"The dramatic increase in the demand for multiple applications will trigger significant changes in our industry," said Pierre-Francois Catte, general manager of VeriFone. "The pace required to keep up with these changes has the potential to overload infrastructures that were not designed to handle them, resulting in a significant increase in operating costs, a slower response time to market changes and compromises in security. VeriFone has anticipated these changes and has built a comprehensive solution that will ensure that our customers are successful within this rapidly emerging environment."

Verix Operating Platform

The rising demand for multiple applications at the point of sale requires an operating system that can efficiently and securely support a variety of applications running on the same terminal. Verix features include the following:

-- True application separation -- The combination of hardware and software separation allows multiple applications to run on an appliance without corrupting one another. It speeds time to market and dramatically lowers certification costs.

-- Dynamic memory allocation -- This feature ensures efficient use of memory by automatically adjusting to the size of each application residing on a terminal, maximizing the amount of memory available.

-- Multitasking capability -- This feature saves time for merchants by enabling them to perform simultaneous functions, such as processing a transaction and printing a report.

Omni 3300 and 3350

VeriFone's new terminals, the Omni 3300 and 3350, with the fastest processor and modem available on the POS market, are designed to speed the processing of multiple applications. VeriFone's new terminals are designed for rapid global deployment with features such as a multimarket modem and a universal power supply, allowing terminals to be easily and quickly adapted to meet various e-payment needs.

The terminals can process all forms of e-payment and feature high performance in a sleek integrated design. The Omni 3350 features a built-in smart-card reader.

"Our new global platform reflects VeriFone's engineering strategy to build products and solutions that require fewer re-engineering and manufacturing changes in order to be implemented in various markets around the world," said Eric Lecesne, manager of product development at VeriFone. "This enables VeriFone and its partners to be nimble in the marketplace while more efficiently managing resources and inventory."

VeriShield Security Architecture

Security is more important than ever to ensure the integrity of the e-payment process. VeriShield incorporates sophisticated security features at the hardware and software level to provide a comprehensive solution to defend against fraud. File authentication allows only authorized applications to be downloaded and executed on a terminal, reducing the risk of criminal interference with confidential transaction data.

SoftPay Software

To keep pace with the demand for new e-payment applications, SoftPay software provides a rich set of turnkey applications that can be easily customized for a wide variety of merchant needs on the Verix platform.

VeriCentre Appliance Management Software

As the complexity and size of applications continue to grow, the need to quickly update applications to a diverse terminal network is of concern to processors and acquirers. VeriCentre allows for quick downloading of applications by utilizing file-compression technology and the ability to download files to an unlimited number of terminals simultaneously.

VeriFone (http://www.verifone.hp.com), a division of Hewlett-Packard Company, is the leading global provider of secure electronic-payment solutions for financial institutions, merchants and consumers. The division has shipped more than seven million electronic-payment systems, which are used in more than 100 countries.

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that's always on.

Excluding Agilent Technologies, HP has 86,000 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.