VeriFone Launches Expanded Smart Card Product Family

Global Systems Enhance Current Point-of-Sale Systems and Provide Migration
Strategy

ATLANTA -- May 14, 1996 -- Merchants will soon be able to accept an
expanding range of emerging payment solutions using an affordable new
family of smart card system products introduced today by VeriFone, Inc.
(NYSE:VFI). VeriFone is the world leader in integrating smart cards,
point-of-sale (POS) systems, software and networks for payment, health
care, government and other applications.

Unveiled at the CardTech/SecurTech conference in Atlanta, VeriFone's SC(TM)
Family provides smart card acceptance capabilities, enabling banks and
merchants to easily and affordably evolve their electronic payment
systems. The emerging smart card payment applications include the
automation of cash transactions using stored value cards, bringing speed,
safety and convenience to consumers and merchants along with new revenue
to banks. Complementary applications include consumer loyalty cards which
benefit consumers and merchants alike.

The SC Family products are designed to operate with current VeriFone
payment solutions, as well as those of other POS systems, providing a
cost-effective migration path and minimizing change to merchants'
operations. Smart cards, which are the same size as conventional credit or
debit cards, contain an embedded microprocessor chip, often in addition to
the magnetic stripe on most payment cards.

Widely used in Europe and Asia because of advanced security features,
convenience and flexibility, smart cards enable consumers to combine cash,
debit and credit cards, as well as a variety of electronic information on
a single card. Acting as stored-value cards, they open up opportunities
for merchants to increase revenues in formerly cash-only venues such as
convenience stores, movie theaters, newsstands and fast food restaurants.

"VeriFone recognizes that a shift in consumer payment methods will evolve,
and that this evolution is happening at varying rates around the world,"
said Michael J. Shade, vice president of Chip Card Programs, for VeriFone.
"Since the transition from magnetic stripe to smart card media will be a
gradual process, payment systems must have the ability to support both
types of cards. As such, VeriFone's products and full integration services
will continue to evolve, providing payment solutions that allow our
customers to upgrade at their own pace."

Smart cards provide secure off-line transaction processing for environments
where on-line processing is time consuming and cost prohibitive. The
card's memory, storage and processing power are used in loyalty programs
that encourage consumers to shop more frequently, spend higher amounts, as
well as enable merchants to reward patrons for their business and to learn
more about their spending habits.

The VeriFone SC Family supports both memory and microprocessor chip cards
and all stored value cards conforming to the ISO 7816 standard. The
products are also designed to support the Europay, MasterCard and Visa
specifications.

SC Product Family

The VeriFone SC Family is comprised of a series of smart card-accepting PIN
pads that combines high security PIN pad and smart card functionality into
a singe hand-held package. Sharing a common design architecture, each
member of the SC Family offers a different range of capabilities and
options. The VeriFone SC Family meets current market requirements, while
providing configuration options to accommodate planned growth.

 SC 455 -- As an upgrade to the SC 450 announced in November 1994,
 the SC 455 accepts a single smart card, in addition to meeting
 the very high security requirements of countries such as Holland
 and Germany. An optional graphics display supports a variety
 of icons, logos and various non-Roman character sets such as Arabic,
 Cyrillic, Chinese and Japanese.

 SC 550 -- The SC 550 has similar features as the SC 455 and includes
 an integrated dual track card reader, enabling it to support multiple
 types of card media -- magnetic stripe and smart cards. Consumers
 contain complete control of their cards at the point of sale by
 using the consumer-activated, hand-held SC 550 to swipe their
 own magnetic stripe cards or to insert their smart cards.

 SC 552 -- Supporting all of the features of the SC 550, the SC
 552 permits the acceptance of a second smart card. Typically
 used to store a removable security application module (SAM) or
 adata storage card for merchant records, the SC 552 is ideally
 suited for many of the emerging stored value card schemes --
 including Mondex and Visa Cash.

 SC 542 -- Similar to the SC 552 but without the magnetic stripe
 card reader, the SC 542 supports both a primary and secondary
 smart card. This device is suited for markets or applications
 that do not require a magnetic stripe card reader.

The SC Family is the first of several planned expansions to the VeriFone
line of smart card system products. While all future VeriFone solutions
will be "smart card ready," some new offerings will be specially designed
to serve in smart card-only payment environments.

Pricing and Availability

The VeriFone SC family is available now worldwide. The company also offers
a full range of consulting, systems integration and financing services.
Pricing and additional information can be obtained from local VeriFone
sales offices.

The Company

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 100 countries. The
company's 1995 net revenues totaled $387.0 million.
 
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