Hypercom, Mag-Tek agree to develop Quix, multi-lane payment system; devices will handle variety of payment forms

Business Wire, March 21, 1995

PHOENIX--(BUSINESS WIRE)--March 21, 1995--Hypercom Inc., a leading manufacturer of point-of-sale (POS) products and networking systems, and Mag-Tek, a Carson, Calif.-based manufacturer of card readers and check readers with a wide array of electronic cash register (ECR) connectivity options, Tuesday announced a tactical alliance to complete development of a versatile, multi-lane electronic payment system.

Called Quix, the system will include the ability to process a wide range of payment forms, including charge card, debit card, checks, smart cards and Electronic Benefits Transfer cards. Potential users will include large retail establishments, chain drug stores and supermarkets.

Peripherals used with Quix will include: POS terminals with an integrated check reader; PIN pads; signature capture devices and check readers. All devices will be built around Hypercom's industry-leading architecture that includes more memory than competing products, bigger displays and easier operation with labeled and color-coded buttons. The devices will also be supported with Hypercom's networking and telephone interface technology, enabling fast, efficient connections to credit card processing and check verification services.

"Our alliance with Mag-Tek will bring the power of electronic commerce to a wide range of merchants, while increasing the options a consumer has to purchase goods and services," said Al Irato, president and CEO of Hypercom Inc. "Quix makes good business sense for us because it leverages the core competencies of both organizations and provides efficient access to markets that might not be readily available to the individual companies."

Tom McGeary, Mag-Tek chairman, added, "This tactical alliance will provide an invaluable boost to the traditional Mag-Tek product offering. Quix will allow us to offer innovative and competitive solutions to both our installed base of customers as well as new prospects."

The companies anticipate initial roll out of Quix products in the late third quarter of 1995. International sales will begin in the first quarter of 1996.

Hypercom Inc., headquartered in Phoenix, is a leading supplier of POS terminal products and networking systems. Hypercom sells its products in 29 countries through 36 global distributors. The company maintains manufacturing facilities in Phoenix and Sydney, Australia.

Mag-Tek is a leading supplier of products for transaction automation to financial, retail and health care markets. Mag-Tek has offices in 40 countries through its distribution channel.

CONTACT: Hypercom Inc.

John Marshall, 602/866-5399

Mag-Tek

Tom McGeary, 310/631-8602

Wilson McHenry Co.

Gayle LeDoux, 415/638-3400

E:mail gledoux@wmc.com