Hitachi Launches Mondex Transaction Processing Services; System Advances Business Case for Smart Card Issuers

Business Wire, May 11, 1999

CHICAGO--(BUSINESS WIRE)--May 11, 1999--

Hitachi, Ltd. (NYSE:HIT) (TSE:6501) today announced that it will be the first independent processor to provide Mondex electronic cash transaction processing services. The newly created Mondex Service Bureau ("MSB") from Hitachi will be based in San Francisco, and offer a "Mondex in a Box" clearinghouse that provides an easy-entry processing solution for customer organizations issuing smart cards with the Mondex electronic purse application.

The Mondex Service Bureau from Hitachi offers the first stand-alone processing technology that can support any level of Mondex electronic purse implementation, from test pilots to full scale rollouts. As a result, Mondex and MULTOS deployments through MSB from Hitachi will be the most economical and flexible programs to date.

Comerica Incorporated, a multi-state financial services provider headquartered in Detroit, Michigan, is expected to be the first customer of MSB from Hitachi. Comerica's first Mondex campus pilot is scheduled to occur in the third quarter with approximately 250 of the company's Auburn Hills employees receiving a smart card that will provide purchasing capabilities. The card's capabilities will be expanded later to include building access, data security and other services. All processing and management functions will be handled by MSB from Hitachi.

According to Daniel McCarty, first vice president of Treasury Management, the campus pilot will provide a working example that Comerica can use in marketing a multi-application card to its corporate customers. "The second phase of the pilot will be to allow our employees to transfer money from their accounts directly to the smart card through PCS and ATM-like devices that will be installed in our Auburn Hills campus," explained Richard G. Lyons Jr., Comerica's senior vice president of Electronic Banking and Marketplace Technology.

"Hitachi is pleased to demonstrate its ongoing commitment to Mondex and MULTOS," stated Mr. Kunihiko Misaki, general manager, New Financial Systems, Services and Products Division of Hitachi, Ltd. "The North American market is of primary importance in allowing the world to realize the benefits of smart cards. We are proud to play a role in making Mondex and MULTOS an effective and feasible choice for a wide range of organizations."

The Mondex Service Bureau from Hitachi is designed to allow the deployment of Mondex electronic cash quickly, comprehensively and at a lower cost, regardless of implementation scale. The bureau will offer a full range of services to issuers, including management and processing support for entry systems, campus projects, and major mass-market deployment. In addition, Hitachi personnel will provide issuers with smart card education, consulting, and application development support. Hitachi will also focus on enabling issuers to migrate seamlessly to multi-applicmpora, vice president for U.S Chip Product Management of MasterCard International.

A live demonstration of the Mondex Service Bureau from Hitachi solution will takeminals and systems that support Mondex and MULTOS. The company is also one of the founding members of MAOSCO,hi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 1997 (ended March 31, 1998) consolidated sales of 8,417 bchange rate of 132 yen to the dollar.