Hypercom Introduces SmartPayments Client for PC-Based Merchant Payment Processing.

Integrates Payment with PC-Based POS Systems; Rapid Rollout Due to Built-in Hardware Integration

LAS VEGAS -- ETA Annual Meeting & Expo -- Hypercom Corporation (NYSE: HYC) today introduced SmartPayments[TM] Client, the first electronic payment processing solution that integrates into PC-based point-of-sale systems without expensive and time-consuming integration with POS hardware. The product enables merchants who use Windows-based POS systems to accept credit cards and other forms of electronic payment on their PCs with all the benefits of integrated solutions, offering key advantages for small and midsized retailers as well as the ISOs, VARs and system integrators who service them.

In addition, SmartPayments Client has been optimized for use with select customer-facing Hypercom PIN entry, signature capture devices and card readers, providing a complete solution with package pricing and single-supplier accountability. The software can be bundled with Hypercom S9, P1310 and P1320 PIN pads for secure debit functionality, or with debit-equipped Hypercom Optimum L4100, L4200 or L4250 multi-lane payment terminals to provide advanced capabilities such as signature capture and contactless payment along with multi-lane data integration that was previously practical only for larger retailers.

SmartPayments Client serves the growing number of retailers who are replacing traditional cash registers with PC-based POS systems that can not only record sales but also manage inventory, track customer information, and connect to back-office accounting systems. These systems do not come with electronic payment processing capabilities, forcing merchants to handle payment-related tasks separately. Hypercom's solution solves the problem with a simple add-on to the POS software.

SmartPayments Client captures electronic payment information either from a keyboard entry or a hardware peripheral, passes it to the integrated POS system, and routes transactions to the payment processor. It accepts credit, debit, Electronic Benefits Transfer (EBT), electronic check services and gift/loyalty cards as well as signature capture/receipt retrieval and check image capture and retrieval. It is designed exclusively for North American merchants, and securely processes payments in five seconds or less.

Advantages for retailers include:

* Faster checkout and reconciliation, integrating POS and payment processing enables consumers to use PIN pads or card readers while the cashier is completing the transaction, and allows payment data to be automatically transmitted to the POS screen and database. This saves time, reduces errors by eliminating the need to enter payment amounts manually, allows all information to be printed on one receipt instead of two, and speeds reconciliation by incorporating the processor's approval code and other data into the POS system for easy retrieval.

* Built-in support for most leading POS systems, along with rapid integration capabilities for non-supported systems because no hardware integration is required.

* Rapid deployment achieved by out-of-the-box integration with leading POS hardware, including Hypercom payment devices as well as third-party peripherals. This patent-pending technology, unique to SmartPayments Client, brings integrated PC-based payment processing to small and mid-sized merchants for the first time by eliminating the time and expense of building and deploying custom hardware drivers.

* Optional use as an independent payment system without POS integration, enabling merchants to accept electronic payments on their PCs by swiping payment cards themselves and then manually entering the payment amount on a SmartPayments Client pop-up screen.

* Intuitive interface for merchants and consumers, including customizable prompts for the customer-facing PIN pad or card reader.

These same features provide a strong value-added sales offering for ISOs, VARs and system integrators, who previously had no products to offer retailers with PC-based cash registers. ISOs can combine SmartPayments Client and Hypercom hardware with their own merchant processing services to provide a complete solution that aids merchant retention, while VARs and system integrators can use the SmartPayments Client software to drive sales of their integration services as well as POS hardware.

"Until now, only the largest retailers have been able to integrate payment processing with multi-lane terminals into their PC-based POS systems because of the time and expense involved. This has slowed checkout lines, caused data entry errors, and forced smaller merchants to maintain separate POS and payment databases," said John Andrews, Hypercom Senior Vice President, Global Customer Service. "The combination of SmartPayments Client and Hypercom hardware equips merchants with a complete payment solution that not only streamlines checkout and reconciliation but also provides the peripherals required for card or debit entry -- all from a single supplier."

SmartPayments Client can be used on a standalone basis or in conjunction with Hypercom's SmartPayments Server, companion software for businesses that want to centralize payments and own and manage their payment processing technology.

SmartPayments Server can be used with any payment device to capture, encrypt and route transactions for authorization over the Internet (IP), dial and wireless protocols supporting multiple industries including retail card-present, restaurants, mail-order/telephone-order (MOTO), Internet and e-commerce transactions. It also facilitates the processing of loyalty cards, convenience charges, tip adjustments, signature capture, and check retrieval for chargebacks. The product is useful for a variety of businesses including multi-lane retail outlets, restaurants, convenience stores, enterprise multi-channel merchants, online merchants operating their own Web sites, and large Internet Service Providers hosting multiple merchant sites.

About Hypercom (www.hypercom.com)

Global payment technology leader Hypercom Corporation (NYSE: HYC) delivers a full suite of high security, end-to-end electronic payment products and services. The company's solutions address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, healthcare, prepaid, unattended and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits.

Hypercom and Optimum and Design are registered trademarks of Hypercom Corporation. SmartPayments is a trademark 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. This press release includes statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding market acceptance of new products, product performance, product sales, revenues and profits. These forward-looking statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, factors that could cause actual results to differ materially from those in forward-looking statements include, industry, competitive and technological changes; the loss of, and failure to replace any significant customers; the composition, timing and size of orders from and shipments to major customers; inventory obsolescence; market acceptance of new products and services; the performance of suppliers and subcontractors; risks associated with international operations and foreign currency fluctuations; the state of the U.S. and global economies in general and other risks detailed in our filings with the Securities and Exchange Commission , including the Company's most recent 10-K and subsequent 10-Qs. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements. HYCP