Hypercom's Payment Technology Is China's, World's Choice.

Business/High-Tech Editors

PHOENIX--(BUSINESS WIRE)--Sept. 5, 2002

China UnionPay Selects Hypercom to Network the

Country's Largest National Payments System: 400

Million Cardholders, 100 Cities By 2005

Hypercom Corporation (NYSE:HYC), a leading global provider of electronic payment systems, has been awarded a multi-million dollar contract by China UnionPay to provide electronic payment networking equipment for China's largest unified domestic payments network.

By the end of this year, Hypercom's network system will enable cross-city and cross-bank transactions in 40 major cities. By the year 2005, Hypercom's system will allow more than 400 million bank cardholders in 100 cities to use their cards at any payment terminal in China.

Hypercom Technology to Link 100 Major Cities in China 

Under the terms of the agreement, Hypercom will initially provide Network Access Controllers (NACs) and its industry-leading network management systems for 100 of China's largest markets to build up the payment network, including Beijing, Shanghai, Guangzhou, Hangzhou and Shenzhen. The Hypercom(R) network equipment will be used to transmit millions of data packets between China UnionPay's host computer, banks, and card payment terminals.

Hypercom is Designated China UnionPay's Provider-of-Choice

"As China's largest unified bank card payments network, we have received considerable interest from companies, banks and associations worldwide who want to participate in the construction of the infrastructure of China UnionPay. With that said, we have selected Hypercom's remarkable payment technology, really the only provider of a comprehensive solution, as our network equipment provider of choice for this highly significant endeavor," said Chai Hong Feng, Executive Vice President, China UnionPay.

"China UnionPay wanted a payment technology partner who could help them create and deploy quickly a modern high performance transaction network. Hypercom was their first choice. And we are set to deliver what will become the largest payment network in the great nation of China," said Jairo E. Gonzalez, President, Hypercom Transaction Systems Group. "The potential for both China UnionPay and Hypercom with this huge national payments network can not be overstated."

Escalating Global Demand for Hypercom's Smart, Fast and Secure Transaction Technology...Payments and Much More

This new multi-million dollar contact award demonstrates and reinforces the continually escalating global demand for Hypercom's smart, fast and secure transaction technology. In addition to existing large networks in the US, Latin America, Asia and Europe, within the last few months alone, Hypercom has created and installed customized networks for the Taiwan Lottery, the Western Canada Lottery Corporation, and is also providing support to the Moscow Lottery and Fubon Bank, one of Asia's leading financial conglomerates.

Additionally, and less than 60 days ago, Hypercom announced that it is working in support of the Georgia Health Partnership to help create the first system in the US that consolidates the administration of health care programs covering state employees.

About China UnionPay

China UnionPay is a share-holding financial institution established with the consent of the State Council and the approval by the People's Bank of China. China UnionPay was launched jointly by the bankcard issuing financial institutions, including the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, China Construction Bank (CCB) and Bank of Communications (BoCom).

About Hypercom (www.hypercom.com)

Hypercom Corporation is a leading global provider of electronic payment solutions that add value at the point-of-sale for consumers, merchants and acquirers, and yield increased profitability for its customers. Hypercom's products include secure, high performance, web-enabled card payment terminals that work seamlessly with its networking equipment and software applications for e-commerce, m-commerce, smart cards and traditional payment applications. The company's widely-accepted ePOS-infocommerce(R) (epic) framework of consumer-activated, EMV-certified, touch-screen ICE(TM) (Interactive Consumer Environment) terminals enable acquirers and merchants to decrease costs, increase revenues and improve customer retention.

Headquartered in Phoenix, Arizona, Hypercom maintains an installed base of more than 5 million terminals in over 100 countries, which conduct over 10 billion transactions annually.

Hypercom and ePOS-infocommerce are registered trademarks of Hypercom Corporation. ICE and epic are trademarks of Hypercom Corporation. All other products or services mentioned in this document are trademarks, service marks, registered trademarks or registered service marks of their respective owners. Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Hypercom management believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include industry, competitive and technological changes; risks associated with international operations and foreign currency fluctuations; the composition, timing and size of orders from and shipments to major customers; inventory obsolescence; market acceptance of new products and other risks detailed from time to time in Hypercom's SEC reports, including the company's most recent 10K and subsequent 10Qs.