Mondex Expected to Gain Worldwide Compatibility With VeriFone Systems

VeriFone's Smart Card Solutions Being Designed to Enable "Electronic Cash"
Payments Using Mondex Smart Card System

LONDON, England -- May 20, 1996 -- VeriFone Inc. (NYSE: VFI), a leading
global provider of secure payment solutions, announced an agreement with
Mondex which will enable VeriFone to offer hardware and software that is
compatible with the new Mondex "electronic cash" payment system.
VeriFone's SC Family of smart card system products is expected to allow
retail merchant and consumer Mondex smart cards to interface and to
facilitate digital cash payments for all goods and services currently
purchased with coins and currency.

Mondex is a smart card-based electronic cash payment system being
introduced by banks around the world. Because the microprocessors
contained on the Mondex smart cards can communicate securely with one
another, cash-equivalent value can be stored in the cards, enabling
consumers to purchase goods at retail stores and on the Internet.

Compatible with VeriFone's existing range of point-of-sale (POS) systems
for credit and debit, the new VeriFone SC 552 and SC 542 solutions will
enable merchants to add Mondex chip card capability to their existing
applications. In addition to supporting the Mondex electronic cash system,
VeriFone chip card payment solutions are being designed to process smart
card-based stored-value, credit and debit programs of other payment
associations.

"The availability of VeriFone's chip card solutions means that Mondex can
potentially be accepted by a large percentage of retailers using much of
the same equipment installed in their current credit and debit card
authorization systems around the world," said Tim Jones, Mondex chief
executive officer. "Having the support of such a worldwide market leader
shows the speed with which the idea of 'electronic cash' is now becoming a
worldwide reality."

SC 552 and SC 542

The VeriFone SC 552 accepts two smart cards, the second of which can be a
Mondex merchant card, or alternatively a removable security application
module (SAM) or data storage card for merchant records. Meeting high
international security standards, the system features an integrated dual
track card reader that can run both magnetic stripe and smart card-based
applications. Additionally, the optional graphics display supports a
variety of icons, logos and various non-Roman character sets such as
Arabic, Cyrillic, Chinese and Japanese.

Similar to the SC 552 but without the magnetic stripe card reader, the SC
542 supports both a primary (consumer) and secondary (merchant) smart
card.

"Key to VeriFone's chip card strategy is to build on merchants' acceptance
of our systems on millions of retail countertops worldwide," said Michael
J. Shade, vice president, Chip Card Programs, for VeriFone. "As the world
leader in integrating smart cards, payment systems, software and networks
for nearly any type of transaction, our intention is to enable merchants
and consumers to enjoy the convenience of the Mondex payment method. We
also plan to distribute VeriFoneOs secure payment solutions to new global
venues, including retailers accepting only cash and those establishing
'virtual' storefronts on the Internet."

Major banks in the United Kingdom, Hong Kong, the U.S. and Canada are
already launching pilots for Mondex. Negotiations are under way between
Mondex and approximately 30 banks to introduce the electronic cash system
in more than 15 countries.

About VeriFone

VeriFone, Inc. (http://www.verifone.com) is a leading global provider of
Transaction Automation solutions used to deliver electronic payment
services to financial institutions, retail merchants and consumers, as
well as government agencies, healthcare providers and benefits recipients.
The company's more than 30 facilities -- including regional offices,
development centers. and manufacturing and distribution centers -- are
located throughout North and South America, Europe, Asia, Africa and
Australia. To date, VeriFone has shipped more than 4.9 million Transaction
Automation systems, which have been installed in over 100 countries. The
company's 1995 net revenues totaled $387.0 million.

About Mondex

The Mondex payment system (http://www.mondex.com/mondex) allows banks to
distribute electronic cash to customers via phone systems and ATMs.
Retailers can also bank their electronic cash using Mondex-compatible
phones. Mondex is being launched in the U.K. by a joint venture of NatWest
and Midland Bank working with British Telecommunications Plc (BT) who,
together, are piloting the service in Swindon, a large town of 190,000
people in the Southwest of England. The first North American community
trial will take place in Guelph, Ontario in 1996 through Canadian Imperial
Bank of Commerce and Royal Bank of Canada (RBC), working with Bell Canada.
Before the year-end, HongkongBank will initiate its launch at two sites,
one in Tai Koo Shing on Hong Kong Island and the other in Sha Tin in the
New Territories. Wells Fargo Bank has also begun a U.S. pilot in San
Francisco through an in-house trial involving employees.
 
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