Cardservice International Begins Selling USWD's Wireless Express Payment Service.

AGOURA HILLS, Calif.--(BUSINESS WIRE)--Dec. 4, 1998-- Cardservice(R) International (CSI) announced today that it has begun offering the Wireless Express Payment Service(SM) to existing and potential merchant customers.

Beginning in late November after a brief training period, CSI equipped its 2,200 person national sales force to offer these services as a way for merchants requiring faster, mobile, or in some cases less expensive ways of accepting card payments.

CSI is a large independent processor of card, electronic, and Internet payment transactions, and is 50% owned by First Data Corp. (NYSE:FDC). The Wireless Express Payment Service(SM)(WEPS(SM)) is a proprietary service provided by U.S. Wireless Data, Inc. (USWD) (OTCBB:USWDA).

To start the sales program, CSI has purchased from USWD 100 POS-500 point-of-sale terminals and 250 WEPS(SM) Enabler devices. The POS-500 is a stand-alone point-of-sale terminal with integrated card reader, printer, and wireless modem. The WEPS Enabler is an add-on device that converts a merchant's existing POS terminal from using a land line to wireless transmission.

Beginning early next year, CSI will sell a wireless version of its proprietary terminal -- the LinkPoint 3000. All of these devices, including the wireless LinkPoint terminal will incorporate the USWD500 CDPD modem, designed specifically for processing payment transactions over wireless networks.

The Wireless Express Payment Service(SM) is a comprehensive and integrated set of equipment, wireless network, and server technology designed to securely deliver and efficiently transmit payment transactions from merchants to payment processors. WEPS(SM) utilizes the USWD500 CDPD modem integrated into a variety of merchant terminal devices.

It includes encryption and online diagnostic techniques. It uses the Cellular Digital Packet Data (CDPD) networks of several carriers. And, it includes a transaction processing server to reformat transactions and simplify the connections between wireless facilities and processors' existing front-end systems.

From a merchant perspective, the Wireless Express Payment Service(SM) provides faster transaction authorization, averaging three seconds versus the 12 to 15 seconds using dial-up facilities. It eliminates the need and cost of a separate telephone line for the payment terminal. And, like cellular telephones, it provides mobility since there is no need to be connected to a land-based line.

Chuck Burtzloff, chief executive officer and 50% owner of CSI, commented, "We've already begun to see results from the selling efforts. Some of our more successful sales agents are discovering they can differentiate their services and compete on terms of value instead of cost. They especially like the fact that once a sale is made, they don't have to wait for a phone line to be installed to start the service."

Commenting on the sales rollout, USWD chairman and CEO, Roger Peirce stated, "CSI has a history of innovation in bringing new technologies to the payments business. Getting the entire CSI sales force mobilized behind the Wireless Express Payment Service(SM) is a validation of its value in the market."

Cardservice International is one of the fastest-growing transaction processing companies in the United States. With 200 sales offices, and in excess of 2,200 sales representatives nationwide, CSI offers a complete range of traditional and Internet consumer payment options. CSI has a rapidly growing customer base of over 110,000 merchants, processing an annual bankcard volume in excess of $6 billion dollars.

U.S. Wireless Data, Inc. is the leader in applying wireless technology to the payments industry. Through the use of its proprietary technology, software, and carrier relationships, USWD enables existing payment processors to provide their customers with the fastest and most cost-effective transaction processing solutions.

Forward Looking Statements:

Certain information above contains forward-looking statements that involve risk and uncertainties. While the management of the company believes that current expectations reflect reasonable assumptions, no assurances can be given that the company will achieve its goals. Factors that could cause actual results to differ materially include, but are not limited to: the company's requirements for additional capital; failure of the company to execute definitive agreements with potential strategic alliance partners; technological change; the ability of the company to develop new distribution channels; or the intensification of competition. The reports filed by the company pursuant to United States securities laws contain a detailed discussion of these factors and certain other risks to which the company is subject. Management of the Company advises the reader to review these reports (which are available from the United States Securities and Exchange Commission's EDGAR database at http://www.sec.gov and at various other Commission reference facilities in the United States) before making an investment decision regarding the Company or its securities.