MagTek Upgrades Its IntelliCAT Customer PIN Selection and Card Issuing System; Motorized Encoder Improves Reliability; P-PED Support Increases Versatility.

Business Editors

CARSON, Calif.--(BUSINESS WIRE)--June 5, 2002

MagTek, Inc., a leading provider of products and solutions for branch automation, today announced an upgraded version of its IntelliCAT(TM) integrated card issuing and management system.

The new version incorporates the recently released MagTek Motorized IntelliCoder(TM) card encoding device, as well as support for offsite secure PIN selection by consumers via MagTek's proprietary P-PED (Paper PIN Encryption Device) technology. And for institutions that select the hybrid Motorized IntelliCoder -- which includes EMV smart card capability alongside its mag-stripe card capability -- the IntelliCAT system provides an upgrade path to smart card technology as it becomes available.

"This upgraded version of our core IntelliCAT card issuing system provides financial institutions with the increased encoding reliability built into the new Motorized IntelliCoder card encoder," said Thomas McGeary, MagTek's founder and President. By eliminating manual swiping by operators, the new Motorized IntelliCoder sharply increases precision and reliability in the encoding process. This in turn reduces misreads at the point of card use, yielding cost savings for the financial institution both directly and through increased consumer satisfaction. The new Motorized IntelliCoder's small footprint also makes it ideal for crowded retail branch environments.

"Additionally," said Mr. McGeary, "support for P-PED customer PIN selection in the upgraded IntelliCAT system gives financial institutions more flexibility in administering PIN selection." With P-PED, the institution can allow consumers to securely select their PINs offsite via an encrypted, self-enciphering printed form developed by MagTek. The form, which resembles a scratch-off lottery ticket, enciphers the consumer's PIN so that it can be returned to the financial institution by mail without any security risk. This allows financial institutions to extend the customer service benefits of customer-selected PIN even to those consumers who cannot visit the branch, and allows cost-sensitive financial institutions to balance the benefits of direct consumer interaction with its costs when establishing standards for the PIN selection process.

IntelliCAT System Details

IntelliCAT is MagTek's PC-based system that allows financial institutions to securely and cost-effectively manage customer PIN selection and on-site card issuing across multiple stations and installations. The IntelliCAT system consists of three components, which can easily be integrated into the platform automation solution of the financial institution: the Motorized IntelliCoder card encoder; the IntelliPIN portable PINpad; and the IntelliCAT software suite.

The entire IntelliCAT system was conceived, designed, and manufactured by MagTek, ensuring seamless and consistent operation of all its elements. "Unlike our competitors, MagTek manufactures its own hardware and develops its own software, enabling a reliable integration of the components, while assuring stringent quality control on all aspects of the system," said Mimi Hart, MagTek Senior Vice President.

The MagTek Motorized IntelliCoder Card Encoder

The MagTek Motorized IntelliCoder, an ISO 7811-compliant card encoder, can encode up to three tracks on a magnetic stripe card at high or low coercivity. The Motorized IntelliCoder captures and houses the card internally until the encoding process is complete, increasing encoding precision and reliability as compared with manual-swipe encoding. The encoder's compact footprint makes it ideal for environments where space is at a premium, such as the new accounts desk in a crowded retail banking branch or credit union. And a hybrid version of the Motorized IntelliCoder is also equipped with an EMV smart card reader/writer, providing an easy upgrade path to smart card technology.

Existing IntelliCAT installations that use manual-swipe card encoders can be reconfigured to support the new Motorized IntelliCoder with a simple software upgrade.

The MagTek IntelliPIN PINpad

The MagTek IntelliPIN is a portable PINpad that consumers can use to privately and securely select their PIN. With the attached 3-track magnetic stripe reader, it can be used to read an existing ATM, debit or credit card as well as a driver's license for gathering information at the new accounts workstation. And the IntelliPIN can securely store multiple single and double length keys (Triple DEA) for encryption calculations.

Beginning with this release, the IntelliPIN also supports the innovative P-PED (Paper PIN Encryption Device) technology developed by MagTek to allow consumers to securely select and specify their PINs without visiting a branch. The encrypted information returned to the financial institution via the P-PED form is entered into the IntelliCAT software, which securely transforms it to an offset or PIN Verification Value (PVV) without revealing the consumer's PIN at any point in the process. This allows financial institutions to extend the benefits of customer PIN selection even to those consumers who are unable to make a personal visit to the branch, making it possible to extend the penetration of PIN-based card products.

The MagTek IntelliCAT Software Suite

The MagTek IntelliCAT software suite is a powerful set of modular applications that allow the institution to create, manage, monitor and secure a card-issuing system across multiple stations and installations. The IntelliCAT system has been designed to comply with the standards for instant card issuance published by Visa and MasterCard, which means that it can be used to securely produce and deliver Visa and MasterCard debit cards in an instant-service environment. Reporting is easy, accurate, fast and secure. And data from every transaction that takes place within the IntelliCAT System is automatically saved to a secure database, giving the financial institution a comprehensive electronic audit trail and allowing information to be synchronized with existing data systems. Information necessary to update CAF files and processors can be customized and automatically generated on a batch or transaction basis.

The IntelliCAT System can be deployed in standalone mode within a branch environment, or across a LAN/WAN to link multiple stations and installations or the entire enterprise. In a networked environment, multiple workstations, each with an attached IntelliPIN, can direct card requests to a shared card personalization device such as the Motorized IntelliCoder or another embosser/encoder; sharing hardware in this way minimizes costs, while consolidated reporting maximizes efficiency. The IntelliCAT System is compatible with Single DES and Triple DEA, VISA PVV, and ANSI Encrypted PIN Block algorithms. It allows for a seamless migration path to Triple DEA for financial institutions currently using Single DES.

For More Information

More information, including full product specifications, is available at www.magtek.com. The MagTek Motorized IntelliCoder and upgraded IntelliCAT card activation suite are now available to financial institutions through the MagTek sales force. Prospective customers are invited to visit www.magtek.com for sales contact information, or to call 888-624-8350.

About MagTek, Inc.

Since 1972, MagTek has been a world leader in electronic transaction technology, from magnetic stripe card readers and writers, to MICR check readers and imaging equipment, to secure PIN issuance and cardholder verification systems. The company's products and components are in use today at point-of-sale (POS) and back-office locations in thousands of companies around the world; they are incorporated into kiosks and ATMs, into banking customer service terminals and custom retail point-of-sale (POS) terminals, and into restaurant and hospitality equipment.

Recent MagTek innovations have included MICR check reading and imaging products to meet the growing demand for check conversion, high-reliability motorized card encoding technology, USB-enabled interface readers, an integrated customer PIN selection and management system, and hybrid mag-stripe/smart card reader/writer technology. Thomas McGeary, MagTek's President and Founder, has been a leading proponent of electronic payment standards for over three decades. MagTek has 250 employees at its Carson, California headquarters and in sales offices throughout the United States, Europe, and Asia, and distributors in over 40 countries.

NOTE TO EDITORS: A high-resolution photo of the IntelliCAT System can be downloaded from: http://www.magtek.com/news_info/press_room/prodphotopin.htm.

Photo cutline: The IntelliCAT system consists of three components, which can easily be integrated into the platform automation solution of the financial institution: the Motorized IntelliCoder card encoder; the IntelliPIN portable PINpad; and the IntelliCAT software suite.