Prime Factors and Thales e-Security Renew Reseller Agreement

Business Wire, June 19, 2007

EUGENE, Ore. & WESTON, Fla. -- Prime Factors is pleased to announce the renewal of its agreement with Thales e-Security to resell the Thales HSM 8000 Host Security Modules (HSM) within the domestic United States market. The HSM 8000 secures retail financial transactions, involving mag-stripe and chip cards, and provides all the security functions necessary for acquirers, switches and issuers in these financial networks. The HSM 8000 utilizes technology that is validated to the stringent NIST U.S. Government Security Standard (FIPS 140-2 Level 3). The HSM 8000 offers a range of performance options up to 800tps (PIN block translates per second). This partnership is ideal, as the HSM 8000 has been integrated with all the leading software addressing this market, including the Bank Card Security System (BCSS) from Prime Factors. BCSS is designed to provide a smooth transition from older software-based security for mag-stripe cards to the latest hardware-based security for mag-stripe cards and chip cards.

Cindy Provin, President of e-Security activities of Thales in the Americas commented: "This ongoing partnership with Prime Factors continues to provide our collective customers with comprehensive integrated solutions. Our HSM products have been a key security component at the heart of the global card payments infrastructure for over 25 years. Thales and Prime Factors have had continued success throughout our long standing partnership and I am pleased and excited to continue our agreement."

Patrick Walker, President of Prime Factors concurred, adding: "The renewed agreement with Thales will add value to every new sale of our BCSS product and improve the prospects for cross-selling the products and services of both companies in the USA. We have been doing business with Thales for 15 years. They are a great organization, and we are very excited about extending our relationship."

About Prime Factors

Prime Factors, Inc. (www.primefactors.com) has been producing practical security software for the financial industry since 1981, and now has over 1,000 customers including 24 financial institutions in the Fortune 500. Their flagship software product for the financial industry is called the Bank Card Security System. BCSS is used in both bankcard issuing & acquiring applications, and is designed for (a) credit, debit and prepaid cards, (b) mag-stripe card & chip card media, (c) Visa, MasterCard, & American Express requirements, and (d) host computers such as mainframes, AS/400s, and PCs. Prime Factors was founded in 1981 and is located in Eugene, OR with offices in Dallas, TX and Atlanta, GA.

About Thales

Thales is a leading international electronics and systems group, serving defense, aerospace and security markets worldwide, supported by a comprehensive services offering. Thales offers unmatched capability in the development and deployment of critical information systems. The group's civil and military businesses develop in parallel to serve a single objective: the security of people, property and nations. Thales group employs 70,000 people in 50 countries and generated revenues of $13 billion in 2006.

The new Security Solutions & Services Division, operational since 5 January 2007, combines the businesses of Thales's former Security and Services divisions with those of Alcatel-Lucent's Transport Systems Division and Integration & Services Division. The new division makes Thales a world market leader in transport and security markets. Our security solutions and services activities around the world now generate revenues of about 4 billion dollars, with 20,000 employees in 35 countries.

Thales is a world leader in the provision of cryptographic security products and solutions for all critical infrastructures including governments, the military, satellite networks, enterprises and the finance industry. Thales has 40 years of unrivalled track record in protecting networks up to TOP SECRET and a complete portfolio of products which includes network encryption, access control and remote user solutions. In the financial world, Thales secures value bearing transactions, data preparation for card and PIN issuing, and provides advanced user and message authentication solutions supported by secure identity management and token issuing. Over half of the world's banks, together with the majority of the busiest exchanges, currently use Thales technology and services. Visit the Thales website at www.thalesesec.com.