Hypercom chosen as new global network standard for HSBC; Network spans 68 countries; Encompasses Multiple Legacy, LAN, WAN Technologies

Business Wire, April 15, 1996

PHOENIX--(BUSINESS WIRE)--April 15, 1996--Hypercom Network Systems, an international provider of multi-service branch telecommunications solutions, has been chosen by the HSBC Group as vendor of choice for replacement of the network technology used in the Group's existing Tymnet-based global packet-switching network.

Hypercom's Integrated Enterprise Network(TM) (IEN) technology was chosen after a 12-month tender exercise involving 14 competitors to provide a more versatile, powerful and future-ready frame relay backbone and branch office solution for the trans-national banking corporation.

The HSBC Group, one of the world's leading international banking and financial services organizations, is expected to invest up to USD30 million over 5 years to upgrade its worldwide enterprise network with Hypercom technology.

A Truly Global Presence

The HSBC Group, whose international telecommunications are centered in its founding company HongkongBank in Hong Kong, has assets in excess of $360 billion and more than 3,000 offices in 71 countries worldwide. These include Marine Midland Bank USA, the Midland Bank UK, HongkongBank Hong Kong, British Bank of the Middle East, Saudi British Bank, James Capel and HSBC Securities Inc.

HSBC's global data network embraces the operations of group member banks and financial institutions on all continents ranging from South Africa to Saudi Arabia, Canada to China, and Australia to Armenia. The network supports teller terminals in bank's branches, a global ATM service, point-of-sale and card products terminals, and customer electronic banking services, among others.

"Our network communications infrastructure forms the arteries of our global business in addition to extending well into our various national operating areas," said Tim Cureton, head of HSBC Group Telecommunications.

"We chose Hypercom's IEN technology because our evaluation revealed that it's one of the most powerful and flexible frame relay network products on the market today. We were looking at a 10-year horizon and believe we've found a technical diamond in the collection of lesser alternatives presented."

Product Versatility Makes for Sound Growth Strategy

Hypercom's IEN family of products is designed to facilitate the consolidation of different network applications within a single architecture and, as ATM (Asynchronous Transfer Mode) looms large on the networking horizon, to provide a path for the future.

HSBC's migration from the X.25 environment to frame relay allows the group to maintain a cost effective branch communications strategy via single network architecture which supports all legacy and LAN data protocols, as well as voice and multimedia traffic, while minimizing service costs and management requirements.

The new network will provide support down to the smallest branch level for traditional BSC and SNA connections as well as a variety of self-service and teller terminals, ATM (Automated Teller Machines), card products devices, and new Intranet and other LAN services based on both Ethernet and Token Ring. The Bank's existing branch user equipment investment is thus protected.

Setting New Standards for Global Technology

The HSBC Group's international network backbone includes some 143 offices in 42 countries with national extension into USA, UK, Canada, India, Indonesia, Malaysia, Saudi Arabia and China.

The network transports some 20 billion characters per month and has recently been extended to South Africa, to Armenia via private VSAT connection, to Beirut where HSBC operates a domestic spread-spectrum radio network, and to the Maldives in the Indian Ocean.

Hypercom will replace both the HSBC Group's backbone, and in phases its national extensions, with an infrastructure that combines frame relay packet switching, circuit switching and cell relay technologies. The new network will facilitate future client/server technology applications, as well as voice and video used in multimedia functionality needed for new unattended and "kiosk" branches.

According to Hypercom Network Systems President Paul G. Wallner, the versatile architecture of Hypercom's IEN product range makes HSBC's investment future-proof.

"The IEN is a multiservice enterprise switch," Wallner explains. "It not only supports frame relay, circuit switch and cell relay technologies, it also integrates all legacy, LAN and WAN telecommunications functions in a single device."

IEN Multiservice Enterprise Switch

The IEN serves as a frame relay switch, a frame relay access device (FRAD), a legacy/LAN protocol converter, a multiprotocol LAN router, a hub or MAU, and adds integrated link back-up via ISDN or PSTN dial, compression and encryption options. In addition to providing frame relay, TCP/IP and X.25 WAN technologies, IEN supports voice and video networking, ISDN and ATM, and accommodates the migration between and co-existence of multiple services.

Hypercom Network Systems

Hypercom Network Systems, a division of Hypercom Inc., provides advanced data communications technology to Fortune 1000 industries. Hypercom Network Systems' primary mission is to allow integration of legacy and client/server networks using a combination of packet switching, circuit switching and cell relay technologies. Founded in 1978, Hypercom Inc. is a multinational company headquartered in Phoenix. Its products are sold in more than 30 countries and produce revenues in excess of $230 million annually.