MASTERCARD AND DATACARD SIGN STRATEGIC ALLIANCE FOR SMART CARD SOLUTIONS
Cooperative Efforts Will Help Simplify Smart Card Issuance and Management; Minimize Chip Migration Costs for Member Financial Institutions

Minneapolis, MN and Purchase, NY — June 18, 2002MasterCard International and Datacard Group today announced that they have formed a strategic alliance to drive worldwide acceptance of smart cards and accelerate the implementation of open technical standards. Through this agreement, the two global smart card leaders will cooperate on a variety of key initiatives to support the deployment and management of smart card programs by MasterCard’s member financial institutions. The multi-year agreement will provide MasterCard’s members with Datacard’s proven solutions for developing, testing, personalizing and managing smart cards. The solutions are specifically designed to simplify the migration from traditional magnetic stripe cards to smart cards by creating and collecting new smart card data and personalizing the data needed on the chip. In addition, MasterCard and Datacard will provide MasterCard’s members with smart card security consulting services, training and education programs.
“We believe that smart cards offer our members an enhanced ability to launch highly customized, differentiated programs that set them apart from their competitors,” said Art Kranzley, Chief e-Business Officer for MasterCard International.  “Through this alliance, MasterCard is expanding its menu of custom-tailored solutions to ensure that smart card issuance is simple, cost-effective and profitable for our members.”
The solution set includes Datacard’s Affina™ Platform Management Architecture, a life cycle management solution that allows card issuers to manage smart cards after they are in the cardholder’s hands. The concept of post-issuance card management is one of the great advantages of smart cards over magnetic stripe cards because it lets cardholders add new applications and benefit from new features without the need for financial institutions to re-issue the card.  MasterCard’s members and service bureaus can acquire Affina software and create their own life cycle management system or they can purchase life cycle management as a service from Datacard. Both MULTOS and JavaCard issuance are supported in addition to proprietary platforms.
 “Smart card issuance and management present entirely new and potentially complex challenges for card issuers,” said Jerry Johnson, Datacard’s president and CEO.  “This alliance will simplify the management process for MasterCard’s members, whether they choose to run the management system themselves or outsource the process to Datacard.”
MasterCard International has long been a global leader in the development and deployment of smart cards.  Currently, more than 100 million MasterCard®-, Maestro®-, Mondex®-, and Clip™-branded smart cards have been issued around the world.  Over the long term, MasterCard continues to believe that chips will replace magnetic stripes as the technology that powers MasterCard credit and debit cards.  MasterCard is the only global payments leader that supports all smart card operating platforms, allowing members to focus on business decisions rather than technology issues.
The Datacard offering is part of MasterCard’s suite of chip applications and solutions available to members under theOneSMART™ MasterCard. OneSMART MasterCard represents a comprehensive, four-point approach for delivering the promise of smart cards to its members. Using a new supporting tagline, “OneSMART Card.  More Smart Choices," MasterCard will demonstrate to the marketplace how and why its unique approach makes MasterCard the best partner for smart cards.

About Datacard Group

Leading smart card issuers rely on Datacard for the systems and consultative services they need to achieve their business objectives. The company’s smart card portfolio features a wide range of solutions, including open and highly secure chip operating systems, complete smart card personalization architectures and systems for life cycle management of multi-application smart cards. This portfolio of proven Datacard solutions and services bring simplicity and cost savings to card issuers transitioning from magnetic stripe to smart card technology. The company also offers the industry’s only fully integrated infrastructure, consisting of hardware, software and systems for the issuance and management of multi-application smart cards. The Datacard Consult p7 group, based in the United Kingdom, is the world’s foremost authority on smart card security and a trusted advisor for card issuers looking to prevent fraud, forgery and theft. Datacard smart card experts also serve on the executive boards of GlobalPlatform and the Smart Card Alliance.
In addition to its world-leading portfolio of smart card solutions, Datacard provides financial institutions, corporations, consumer marketers, governments, schools, healthcare providers, service bureaus and other enterprises with the software, systems and professional services they need to build successful card programs. The company’s offerings include the world’s best-selling and broadest family of card issuance systems, a complete line of digital identity systems and a full menu of solutions services, which includes planning, implementation, training and ongoing support for large-scale card programs. DataCard Corporation, doing business as Datacard Group, is privately held and based in Minnetonka, Minn. Datacard Group serves customers in more than 120 countries.  Datacard can be reached through its World Wide Web site at http://www.datacard.com                                                                                              

About MasterCard International
MasterCard International is a leader in global e-business.  The association is focused on providing its member financial institutions with customized, meaningful global e-business solutions that connect them to their accountholders.  Through its investment in industry innovation, participation in standards development and business alliances, MasterCard is staying in the forefront of technology integration to enable anytime, anywhere payments across multiple channels and various devices. MasterCard's global e-business solutions include Internet security, smart cards, mobile commerce/wireless, business to business electronic commerce, and numerous emerging technologies.
MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCard, Cirrus and Maestro. More than 1.7 billion MasterCard, Cirrus and Maestro logos are present on credit, charge and debit cards in circulation today. An association comprised of more than 15,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories.  MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds.  MasterCard’s award-winning Priceless advertising campaign is now seen in 90 countries and in 45 languages, giving the MasterCard brand a truly global reach and scope. With more than 24 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. For the year ended December 31, 2001 gross dollar volume exceeded US$986 billion.  MasterCard can be reached through its World Wide Web site at http://www.mastercard.com.