Orbiscom Wins Ownership of Global Patents for Secure Online Payment Technology

Business Wire, May 24, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--May 24, 2001

Inventors of Controlled Payment Technology Expect Competitors To

Begin Licensing Global Patent Portfolio

On the heels of announcing a long-term 15 year patent cross-licensing agreement with Microsoft (Nasdaq: MSFT) earlier this week, Orbiscom, Inc, the leading online payment security company, confirmed it holds the rights to a portfolio of more than 50 worldwide patents and patent applications granted in the area of Controlled Payment Technology.

Through real-time online or mobile interfaces, Orbiscom's technology allows users to control and manage the way Card Payments are made. Orbiscom's patent portfolio includes the generation of unique user-controlled card numbers in real-time so that a consumer or business user does not have to send their actual card numbers over the Internet.

With the confirmation of Orbiscom's patents accepted and granted in the United States, Europe (patent number 1029311 covering countries throughout Europe), Israel and Singapore, Orbiscom holds the largest number of patents covering the greatest geographic area and economic value of the Controlled Card Payment industry.

"Our global patent portfolio ensures issuers who implement our technology are receiving the strongest Intellectual Property protection available and that their products are delivered by the leading provider of Controlled Payment Products in a standardized and uniform manner," said Dr. Ian Flitcroft, Director of Technology and Co-founder of Orbiscom.

The most recently issued and accepted patents, covering a broad spectrum of Controlled Payment functionality, are in Israel and Singapore (patent number 76119). Additional patents are expected to be granted in a range of other countries over the coming months. Orbiscom is the only provider of Controlled Payment Numbers that has been issued patents in this space.

"Orbiscom's global patent strategy is to ensure that Controlled Payment Number Technology develops as a single, interoperable global standard for secure authenticated online payments," Flitcroft continued. "As such, we at Orbiscom are using our Intellectual Property portfolio to develop the market in partnership with major players such as Microsoft in a consistent manner. Licensing our technology to other companies is a key part of this strategy and, as indicated by the recent Microsoft cross-licensing agreement, we look forward to future licensing deals as the growth of Controlled Payment Technology continues."

Orbiscom's patents and applications in the area of Controlled Payment Number Technology include a range of detail that makes it very hard for competitors to "work around these patents and create non-interoperable standards." Orbiscom patent filings cover the core Control Payment functionality including, but not limited to:

-- a range of controls on debit or credit card numbers that consumers can set
including the numbers of use, cash limits, time limits and more;

-- how Controlled Payment Numbers are generated by issuers;

-- how Controlled Payment Numbers are issued to users;

-- how Controlled Payment Numbers are processed; and,

-- authorization algorithms and system design.

In addition to the core concept, the patents and pending applications cover related concepts and products and a wide range of devices with which consumers could use Controlled Payment Number technology such as software, physical cards, phones, set-top boxes and more.

Controlled Payment Technology (CPN) - Explained

Working within the existing credit and debit card infrastructure, Controlled Payment Number technology allows consumers to generate an authenticated, individual controlled card number in real-time for each merchant or payment instead of transmitting their actual credit card number. They can also select the dollar limit, expiration date and specific merchant site for use. It allows consumers or business users to shop at any e-tailer worldwide with confidence and control and has the potential to eliminate online payment fraud.

Controlled Payment's available through MBNA, Discover

The technology is fully compatible with all credit card associations, including VISA, MasterCard, and Discover, and does not require merchants to make any system changes. Through its existing customers MBNA, Discover, and Allied Irish Banks, Orbiscom has a potential consumer base of more than 100 million cardholders. Orbiscom, through its global patent portfolio, will continue to license Controlled Payment Number Technology directly to bankcard issuers, processors, technology partners and other parties.

About Orbiscom

Orbiscom is the creator of Controlled Payment Number Technology for online and real world card payments. Orbiscom's flagship technology O-power(TM) enables card issuers, e-merchants, consumers and businesses to utilize online and wireless devices for controlled and secure debit and credit payments. Founded in early 1998 by professionals from the financial services, software and Internet industries, Orbiscom has operations in New York, Dublin, London, Brussels, Toronto and Sydney. The company has a highly experienced team of experts in software development, Internet banking systems, card processing systems and product marketing. Orbiscom has been granted patents on Controlled Payment Technology in the US, Europe and other countries worldwide. For more information about Orbiscom, go to: www.orbiscom.com