Henry Polmer Named President of Mondex USA Originator and General Counsel of Mondex USA; James Rudd Appointed Chief Technology Officer.

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 1, 1997--Henry M. Polmer, 52, has been named president of Mondex USA Originator and general counsel of Mondex USA.

James Rudd, 38, will become chief technology officer of the company. Both begin their new posts on Oct. 6 and will report to Janet S. Crane, president and CEO of Mondex USA Services.

Mondex USA comprises two companies. Mondex USA Services is commercially developing and implementing the Mondex electronic cash and smart card platform in the U.S. Mondex USA Originator issues and redeems Mondex cash and oversees risk management.

Mondex is electronic cash on a reloadable and highly secure computer chip. Mondex smart cards make small-dollar transactions efficient and convenient over the Internet and in the physical world. MULTOS, the Mondex operating system, permits Mondex smart cards to carry multiple nonpayment applications like retailer loyalty programs that reward consumers for their repeated business, and corporate or college campus programs that provide users access to data and services.

"We are honored and delighted that Henry will be joining Mondex USA," said Crane. "Henry brings to our team a vast knowledge of electronic payments issues and a proven effectiveness in working with government regulators and industry leaders for more than 20 years."

Rudd was previously president of Mondex USA Originator before accepting the position of chief technology officer for Mondex USA.

"As head of technology, Jim will leverage his extensive technical expertise to build a seamless and flexible Mondex infrastructure in this country," Crane said. "Our team is delighted that Jim has taken on this crucial role in making Mondex the 'wallet' of the future."

As president of the Mondex USA Originator, Polmer will ensure the safety and soundness of the Mondex electronic cash system. He will manage the creation and distribution of Mondex electronic value in U.S. currency and will meet regularly with Mondex Originators for nearly 20 other currencies around the world to resolve issues regarding the global interoperability of the Mondex payment system. As general counsel of Mondex USA, Polmer will advise the board and staff of Mondex USA and coordinate the work of the companies' outside counsel.

Polmer has been a partner in the Washington, D.C. law office of Bell, Boyd & Lloyd since 1981. He is nationally recognized for his legal expertise in electronic payment issues. In the late 1970s, he was the deputy general counsel to the National Commission on Electronic Fund Transfers. Later, he worked with the U.S. Congress and the Federal Reserve to create the Electronic Funds Transfer Act and Regulation E, and he advised the U.S. State Department in efforts to create an international wire transfer code.

Polmer managed the legal work in the formation of the international Cirrus System ATM network in 1982 and has served as its outside counsel since then. He has been general counsel to the Electronic Funds Transfer Association for more than 15 years. He is a member of the American Bar Association's Task Force on Stored Value Products.

Polmer earned his JD with honors from George Washington University Law School in 1971, and clerked for Judge Luther Youngdahl on the U.S. District Court for the District of Columbia. He received his AB degree from Washington University in 1967.

As chief technology officer, Rudd will help the company commercially deploy Mondex in the U.S. by building alliances in market niches that could benefit from Mondex technology. He will support these alliances by driving Mondex's infrastructural development that will ultimately include end-user devices, affordable card issuer systems, network connectivity devices and software for chip, device and support systems.

Prior to joining Mondex USA, Rudd was vice president at Wells Fargo Bank in San Francisco. Starting in 1987, he spent eight years auditing the effectiveness of the company's electronic banking systems. From 1985-87, he supported Pacific Gas and Electric's defense in litigation, and was with Deloitte & Touche during the previous four years.

Rudd earned his MBA from the University of California, Berkeley, in 1989, and an undergraduate degree from University of Notre Dame in 1981. He is a Certified Public Accountant.

Both Mondex USA Services and Mondex USA Originator were formed in April 1997 and are based in San Francisco. The companies are owned by AT&T Universal Card Services, Chase Manhattan, Dean Witter Discover (NOVUS), First Chicago NBD, MasterCard, Michigan National Bank and Wells Fargo. For more information, visit the company on the Internet at mondexusa.com .

CONTACT: Mondex USA

Janet Otsuki, 415/222-1871