Mondex First With Electronic Cash Euro.

BERLIN--(BUSINESS WIRE)--Jan. 14, 1999--

Mondex set to race ahead in electronic cash market with

multi-currency including the Euro

Mondex International, a subsidiary of MasterCard International, today demonstrated the first multi-currency smart card capable of carrying an electronic version of the new European currency unit, the Euro. Exhibiting at Germany's leading smart card event, Omnicard, Mondex International is the first to deliver the technology that will allow Europeans to take advantage of the single currency without having to wait until the arrival of the "physical" notes and coins in 2002.

The swift implementation of the Mondex electronic Euro, coming only days after the introduction of the currency, underlines the flexibility and technological advantages of the Mondex architecture over competing systems. By anticipating the need for multi-currency capability, Mondex has gained a three to four year time-to-market advantage over competing technologies who have yet to define their multi-currency requirements.

Commenting, Stefan H. Tarach, managing director of XCOM, said, "To use the Euro in daily life is still Utopia, Yet, 13 days after its official introduction, Mondex has the new currency available for everyone at Omnicard. Congratulations!"

Dr. Hugo Godschalk, Chief Executive of Paysys, said, "In my view, this is the first real electronic cash denominated in Euro. Euro is critical for electronic cash because if we wait until 2002, physical money will win, not least because it works cross-border."

Also commenting on the announcement, Dr. Stephan Klein, Senior Consultant at Eutelis Consult, said, "As always, Omnicard is the venue where, alongside a major congress, significant steps forward in real technology are demonstrated. Mondex is a card for both virtual and physical payment, now combining this with Euro we see the coming together of two critical new trends."

In order to demonstrate the simplicity, functionality and business case for multi-currency e-cash, Mondex International will distribute a Mondex card and balance reader to each of the delegates at the conference. Each Mondex card will be pre-loaded with Mondex value in Euros, Deutschemark, French Franc, Pound Sterling and US Dollar. Using their cards, delegates will be able to conduct cash-like transactions at the show.

Owain Powell-Jones, responsible for business development in Northern Europe at Mondex International said, "We are now 13 days into the age of the Euro, but we are still three years away from seeing Euro notes and coins. Through our unique multi-currency capabilities, Mondex has the capability to bring the benefits of the single currency to the people of Europe today - while at the same time offering businesses zero-cost transactions, convenience and competitive advantage".

Unlike other stored value smart cards, Mondex is the only e-cash system that can accommodate the Euro and multi-currency capabilities. Using the MULTOS operating platform, Mondex cards can be easily adapted to provide solutions for different business needs, such as security and network authentication, giving Mondex an unparalleled business proposition.

Commenting on the move, smart card analyst Mark Stevenson* said, "The ability to deliver the electronic Euro is a tribute to Mondex International's forward thinking and the architecture of the Mondex system. Whilst other smart card vendors are still working on specifications to ape the Mondex system, Mondex has a significant competitive advantage which is unlikely to be eroded in the near future".

For further information please contact:

Gerry Hopkinson Mondex International 0171 557 5016 Emma Simpson/Chris McCafferty Shandwick 0171 329 0096

Notes to Editors

Mark Stevenson is the co-author of the 1998 Ovum report, "The Balance of Power - Uncertainty and Opportunity in the New Smart Card Market" and is now an independent accepted authority on smart card issues.

The Euro

The Euro, the new European currency unit, became the official currency of the following eleven EU states on 1 January 1999: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. These countries are currently engaged in the three-year European Monetary Union currency transition period, starting this month.

The Euro is now in use for electronic, banking and other non-cash transactions.

Mondex International

Mondex International Limited (MXI) is a world leader in the provision of smart card based products and services. The company is a subsidiary of MasterCard International Incorporated and employs over 180 people at its London headquarters and at technology centres around the world.

MXI is best known for pioneering the Mondex Electronic Cash system, one of the world's leading smart card-based electronic purses. Its unique security architecture allows for person-to-person payments using a personal wallet device, telephone line or Internet service, without the need for authorisation. This is one of the features which makes Mondex the most advanced and cash-like of all available electronic cash products. Mondex is globally interoperable and is under development in over 50 countries.

MXI is also responsible for the development of MULTOS, the open, industry standard, multi-application operating system for smartcards managed by MAOSCO.

Mondex Electronic Cash in Europe

Mondex is currently under development in Norway, France, Ireland and UK and further franchises in Europe are under negotiation. Mondex is the only stored value product designed to hold multiple currencies and is recognised as an ideal vehicle to introduce the Euro to European consumers and retailers. Mondex is also unique in that it uses a single global technology which enables cross-border transactions, essential for a pan-European electronic cash system.

Mondex derives another unique advantage from its single global technology; already today a global corporate governance structure has been developed, reviewed and approved in conjunction with financial institutions and central banks from both leading and developing economies from around the world. While many first generation electronic cash products struggle to redefine their technical specifications to operate across borders, both in Europe and around the world, Mondex remains the only technology with clearly a defined governance structure for taking electronic cash into the 21st Century.

Mondex value transfers utilise public key cryptography including RSA, Zero Knowledge and others, thereby ensuring the highest level of security and assurance for issuers, merchants and consumers.

Further information regarding Mondex is available on their web sites at: www.mondex.com / www.mondexinternational.com

MasterCard International

MasterCard International has the most comprehensive portfolio of payment brands in the world. With 23,000 member financial institutions, serving consumers in 220 countries and territories, MasterCard is the industry leader in quality and innovation. More than 600 million MasterCard(R), Maestro(R), Cirrus(R) and Mondex(tm) cards are accepted at more than 15 million locations worldwide. In 1997, gross dollar volume exceeded $600 billion. MasterCard can be reached through its World Wide Web site at www.mastercard.com.

Paysys is a German-based International smartcard consultancy.

Eutelis Consult is a major consultancy with specialist knowledge and experience in the fields of telecoms, smartcards and electronic commerce. Dr. Stephan Klein is a member of the steering committee of Omnicard.

XCOM is a business and computer consultancy, currently focused on smartcards, electronic commerce and payments in Germany.