Telephone Banking Meets Electronic Cash; Amdahl Enables World's Most Technically Advanced Mondex Implementation in Israel

Business Wire, July 13, 1998

SUNNYVALE, Calif.--(BUSINESS WIRE)--July 13, 1998--Technology and services from Amdahl Corporation have made possible the introduction of the world's most technically advanced Mondex electronic cash implementation in Israel. The Amdahl SmartCard Group was chosen as business consultants, systems integrators, and software and hardware providers for the implementation by Mondex Israel, the company set up to introduce Israel's Mondex-based electronic payment scheme.

With the commencement of the initial phase in May 1998, thousands of Israeli citizens in the university city of Rehovet, 30 kilometers south of Tel Aviv, will be able to use the Mondex "electronic purse" scheme to withdraw and deposit cash via their own personal ATM machines using normal telephone lines connected remotely to Mondex Israel's host server. They will be able to spend their cash using Mondex smart cards at a variety of the city's retail outlets, or securely transfer money to other consumers or merchants across telephone lines.

To address the "virtual banking" challenge and ensure an integrated solution, Mondex Israel chose the Amdahl SmartCard Group, one of the worldwide leaders in smart card implementations, as systems integrators for the whole implementation. With responsibility for the coordination of all business and technical activities, Amdahl integrated leading-edge smart card devices or services from specialist companies including Nortel, Datelnet, Intervoice, GIS and Ingenico with telecommunications facilities and Amdahl's own Amdahl Mondex System environment. Amdahl also worked closely with Mondex International, the Mondex technology licenser.

"Mondex technology offers the ideal base from which to develop advanced smart card applications, said Isaac Levy, chief executive officer, Mondex Israel. "Working with Amdahl we have been able to realize and adapt Mondex' potential in accordance with our own unique business structure to deliver a solution which not just eases cash transactions but revolutionizes the way consumers use monetary value and merchants conduct business. With its broad Mondex experience, its open technology and deep understanding of the banking and financial businesses, Amdahl has taken us from concept to implementation in record time."

The software at the heart of the Israeli installation is the Amdahl Mondex System, an open, modular software application which runs on Microsoft's Windows NT(R) and manages all the back office transaction requirements of the Mondex system. The Amdahl Mondex System is just one component of the Amdahl Smart Processing Solution, which has been designed to handle large-scale smart card deployments for banks, retailers, telecommunications and other companies. With major smart card installations in Europe, USA, Canada, Australia and New Zealand, the SmartCard Group leads the field in large scale Mondex smart card deployments worldwide.

"The Mondex Israel initial launch demonstrates how the Mondex platform can provide the flexible base for a move to the next generation of financial products and services, unconstrained by legacy banking environments," said Clive Guest, Mondex Israel project director, Amdahl SmartCard Group. "Together with Mondex Israel, Amdahl has been able to deliver a system which empowers consumers and merchants with greater flexibility in how they conduct secure cash transactions."

From Amdahl's initial contact with Mondex Israel one year ago, the technical implementation was completed in just over six months. Mondex Israel's implementation is the first phase of a national launch and over time Mondex will be made available throughout Israel. As the launch continues, Mondex Israel plans to continue working with Amdahl to harness the multiple applications capability of the MULTOS platform and deploy further integrated smart card applications including credit, debit and loyalty card functionality.

About Mondex Israel

Mondex Israel is jointly owned by Discount Investment Corporation (DIC), part of the IDB Holding Group and Paz Oil Co. The franchise gives DIC and Paz the exclusive rights to commercially develop Mondex electronic cash for Israeli residents. Discount Investment Corporation (www.dic.co.il), of the IDB Holding Group, invests and participates in the initiation, development and direction of a diverse portfolio of business enterprises including telephone services, cable TV, Internet services, supermarket chains, gasoline stations and parking facilities. Since its establishment in 1961, the company has played a significant role in the development of the Israeli economy through its investments in local companies in all sectors of the economy.

About Mondex International

Mondex International is a subsidiary of MasterCard International. MasterCard International acquired 51% of the company in February 1997 and has decided to adopt Mondex International's technology as its future choice of strategic chip platform.

Mondex International grants licenses to franchisees to allow them to exploit the Mondex electronic cash technology in a given territory. Since its incorporation in 1996, Mondex has issued 30 licenses across 6 continents. Mondex is being developed by franchisees in over 50 countries. Mondex is currently being used 23 implementations around the world including Australia, Canada, Hong Kong, Costa Rica, Philippines, UK and USA.