Hypercom and Pagic.net Create Customized Network for Taiwan Lottery.

Business Editors/High-Tech Writers

New Network Will Expedite More Than

3.65 Billion Transactions Annually with a

Growth Capacity Up to 14 Billion Transactions

Hypercom Corp. (NYSE: HYC), the leading global provider of electronic payment solutions, Monday announced that it has created and installed a customized transaction communications network for the Taiwan Lottery in concert with Pagic.net, a value-added networking service in Taiwan.

The new network is now operational, and it is handling the transmission of more than 10 million lottery ticket purchases daily, or a projected 3.65 billion transactions annually, between Pagic.net and more than 7,000 online and in-store retail lottery retailers.

Hypercom's IEN 6000(R) Integrated Enterprise Network access devices (IADs) are employed for the transmission of millions of data packets between Lottery Taiwan Service Corp.'s host computer and Taiwan lottery retailers. The system was implemented without requiring any changes to the host communications interfaces, host software, or card payment terminals.

The customized, scalable network, which uses X.25 protocol at the central and remote sites, has a capacity to conduct more than 40 million transactions a day, or more than 14 billion transactions every year.

"The Taiwan Lottery is one of the most popular lotteries in the region, and its popularity is surging. With that in mind, it was essential that we put in place a highly scalable, reliable and cost-effective network that can quickly and securely handle the growing demand today and going forward. And that is exactly what we have just completed with Hypercom," said William Tsao, president of Pagic.net Inc.

"Hypercom's team understood the requirements of the lottery industry and exceeded our expectations, and the network is performing perfectly."

This latest announcement follows the installation of Hypercom(R) IENs in support of Western Canada Lottery Corp.'s lotteries in Alberta, Saskatchewan, Manitoba, the Yukon, Nanavut and Northwest Territories; the installation of Hypercom's IEN Network by the Fubon Bank, one of Asia's leading financial conglomerates; and the installation of Hypercom terminals and networking equipment in support of the Moscow Lottery "Elloter."

"We are committed to delivering advanced and completely customized networking solutions to corporations -- without sacrificing performance, quality or cost. This project was delivered and implemented on time and within our customer's budget," said Chris Alexander, president and cbief executive officer, Hypercom Corp.

Hypercom's Integrated Enterprise Network is the foundation used in creating networking solutions for the high value transaction market sector, including retail, banking, lotteries, automated teller machines and Internet. Hypercom's IEN devices support a wide range of capabilities for the transaction market.

About Pagic

Pagic.net Inc. is a wholly owned subsidiary of Acer Corp. Pagic's business focuses on an all-purpose value-added networking service, designed to accommodate the different business models of clients, providing a complete Internet service solution. For more information, visit www.pagic.net.

About Hypercom (www.hypercom.com)

Hypercom Network Systems, a division of Hypercom Corp. designs and manufactures customized voice, data and POS technology solutions to enterprise, carriers and service providers.

These solutions include support for data and voice over a single WAN or LAN connection with integrated capabilities such as VoFR, VoIP, analog and digital voice, router/bridge, VPN, POS networking and legacy protocol support.

Hypercom Corp. is the 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, Hypercom maintains an installed base of more than 5 million terminals in over 100 countries, which conduct over 10 billion transactions annually.

Hypercom, IEN 6000 and ePOS-infocommerce are registered trademarks of Hypercom Corp. ICE is a trademark of Hypercom Corp. 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 10-K and subsequent 10-Qs.