Hypercom Awarded US$3 Million Contract to Support New Electronic Lottery in Moscow.

Business Editors & High Tech Writers

PHOENIX--(BUSINESS WIRE)--Sept. 5, 2000

Hypercom Corporation (NSYE:HYC) today announced that it has been awarded a US$3 million contract with the Progress Company to support Moscow's new electronic lottery with terminals, networking equipment and professional services. Under the terms of the agreement, Hypercom(R) ePic ICE(TM) 5000 terminals will be deployed in shops, post offices, metro and railway stations throughout Moscow during the next 24 months. Hypercom networking equipment will also be installed across the city.

The new electronic lottery, called Elloter, was created by Moscow-based Progress Corporation and piloted using ePic ICE terminals. The software application for the lottery was developed by Hypercom Moscow's research and development facility, which will provide technical assistance to Progress. The lottery is now being promoted through an aggressive media, broadcast and print campaign. Mass consumer participation among Moscow's 8.3 million residents is expected. Proceeds will be directed to various city social and economic programs.

Nikolai Lifanov, General Director of Progress, explains: "Hypercom's ePic ICE 5000 card payment terminal is an extremely consumer-friendly device that has an easy-to-use touch-screen interface and high security. It is perfect to support the city's first electronic lottery."

Elloter will feature six games. The first game, called "Happy 4," calls for lottery players to select and enter four numbers onto the Hypercom card payment terminal. Up to ten four-number combinations can be chosen in any one transaction. The terminal then dials the host system and transmits all of the combinations. An authorization code is sent back to the terminal, which then prints a combination receipt and lottery ticket. Winning numbers will be drawn weekly and televised live. Winning customers present their tickets at an authorized retail outlet. The security code is checked on-line, and winnings are paid out.

Hypercom's ePic ICE 5000 is a powerful, multi-function touch screen-based payment terminal, with a high-speed thermal printer, paper cutter, and Hypercom FastPOS(TM) 9600 bps modem technology. The ePic ICE 5000 provides a highly interactive and intuitive user interface that allows the support of complex transactions and multiple applications with minimum user training. In addition to traditional credit and debit functions, the ePic ICE 5000 supports payment options such as smart cards, and new business opportunities including loyalty management programs. When used in concert with Hypercom's ePicPortz(TM) software, the ePic (ePOS-infocommerce(TM)) ICE 5000 also enables merchants to access a range of Internet-based services including: e-mail, on-screen advertising, interactive electronic coupons, electronic receipt storage, and merchant e-commerce functions through a standard browser.

Comments Rob Meli, Managing Director, Hypercom Europe. "We are pleased to provide this technologically advanced and highly-secure platform in support of Moscow's new electronic lottery."

Hypercom Corporation (NYSE:HYC) is a global provider of end-to-end electronic payment solutions, including card payment systems, peripherals, network products, software and e-commerce payment solutions that add value at the point-of-sale for consumers, merchants and acquirers.

Headquartered in Phoenix, Arizona, Hypercom markets its products in more than 100 countries through a global network of affiliates and offices in Argentina, Australia, Brazil, Chile, China, France, Germany, Hong Kong, Hungary, Japan, Mexico, Puerto Rico Russia, Singapore, South Africa, Sweden, the United Kingdom and Venezuela. Hypercom's Internet address is www.hypercom.com.

Hypercom is a registered trademark of Hypercom Corporation. ICE, ePOS-infocommerce and ePicPortz 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 management of Hypercom 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 Form 10-K and subsequent 10Qs.

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