Diversified Investors unit inks pact to roll out smart cards, EFT technology in Mexico, Latin America, Spain and Portugal; sees $550,000 income in next two quarters.NEW YORK--(BUSINESS WIRE)--May 14, 1996--Diversified Investors Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on Bulletin Board: DVIN DVIN Dobermann Vrienden In Nederland (Dutch: Dobermann Friends in the Netherlands) DVIN Digital Video Input ) announced today an agreement between its subsidiary Transaction Network Plus Inc. (TNPI TNPI The Network People, Inc. ) and Grupo Omnilife of Guadalajara, Mexico. The pact establishes a joint venture to provide electroinic switching and transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. for bank credit cards, private label credit cards, debit cards and smart cards initially in Mexico but thereafter throughout Latin America, Spain and Portugal. Under the agreement, TNPI will receive initial payments totalling $550,000 which will be recorded as income in the quarters ending May 31 and August 31. TNPI has also taken a 20 percent equity stake in the joint venture and will receive cash distributions as it grows. TNPI will also generate income from system sales and consulting services to the joint venture. According to Lowell M. Dicke, president of Diversified Investors and CFO See Chief Financial Officer. of TNPI, the joint venture in EFT (electronic funds transfer See EFT. (application, communications) electronic funds transfer - (EFT, EFTS, - system) Transfer of money initiated through electronic terminal, automated teller machine, computer, telephone, or magnetic tape. ) will go a long way toward moving Mexico's post-NAFTA economy into the age of digital commerce. Grupo Omnilife, privately held and headquartered in Guadalajara, is one of the most successful direct marketing companies in the world. Its more than 400,000 distributors sell in excess of $400 million of vitamins, herbal and health-related products in Mexico, Spanish-speaking areas of North America, Central and South America and Spain. Dicke said that stored value or smart cards were now being designed for Omnilife distributors to simplify and streamline their purchases of product from and receipt of credits and commissions from Grupo Omnilife and to greatly enhance their service to retail customers. "We believe that this Ommilife family group of 400,000 smart card holders will be the largest such group in the world apart from telephone and transport users," Dicke said. "Adding a magnetic stripe to the chip-based smart card will allow it to be usable in the Visa or MasterCard networks," he added. Diversified Investors Corp., through its subsidiary Transaction Network Plus Inc. (TNPI), has been a processor of debit and credit card transactions since 1991. TNPI provides electronic switching and transaction processing for leading U.S. banks, American Express, Visa, MasterCard, Discover, MAC, NYCE See New York Cotton Exchange. NYCE See New York Cotton Exchange (NYCE). and private label card systems. CONTACT: Diversified Investors Corp., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Dr. Lewis N. Pergament, 212/509-5000 or The Cavior Organization, New York Warren J. Cavior, 212/687-6070 |
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