U.S. Wireless Data, Tillsmith Systems, Buypass Corporation, and Lockheed Martin IMS Facilitate USDA Food Stamp Program.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 16, 2000

Program to Enable Wireless Use of

Electronic Benefit Transfer (EBT) Cards

U.S. Wireless Data and Lockheed Martin IMS today announced that participants in the U.S. Department of Agriculture's (USDA) Food Stamp Program will soon be able to use their Electronic Benefit Transfer (EBT) cards to purchase produce and other foodstuffs in open-air farmers markets.

A pilot program coordinated by Lockheed Martin IMS, the program features the debut of the first-ever wireless EBT transaction. Beginning in New York City this summer, the pilot could potentially roll out to thousands of farmers nationwide.

This new initiative is made possible thanks to technology provided by U.S. Wireless Data, Inc. (USWD) (OTCBB: USWDA), the leader in wireless payment services; Tillsmith Systems, a leading manufacturer of wireless point-of-sale terminals; and Buypass, a subsidiary of Concord EFS, Inc., the industry leader in EBT processing.

With the federally-mandated move away from paper coupons in favor of electronic debiting of food purchases, New York State has been searching for technological alternatives to allow recipients to purchase food at sites that lack telephone or electrical access. Wireless provides an optimized solution that addresses this access problem. New York currently allows vendors to utilize EBT vouchers in these settings.

"This technology solution will benefit both farmers and consumers participating in the Food Stamp Program," said Audrey Rowe, senior vice president and managing director of Children & Family Services for Lockheed Martin IMS. "Most open-air markets lack the telephone and power lines needed for standard EBT transaction processing equipment. Plus, the authorization speed provided by U.S. Wireless Data enables EBT transactions to be as fast as cash."

Tillsmith's hand-held, battery-powered wireless payment terminals, enabled by U.S. Wireless Data's high-speed Wireless Express Payment Service(sm) (WEPS(sm)) platform, will be provided to qualified farmers authorized by the USDA under the Food Stamp Program. The USWD solution will enable the farmers to accept EBT card payments from Food Stamp Program benefits recipients. The wireless payment terminals will be on loan from Tillsmith for a four-month period to farmers who agree to assist in evaluating their usefulness. EBT transaction processing will be provided free of charge by U.S. Wireless Data and Buypass during this trial period.

Although the project is intended to facilitate EBT (Food Stamp) transactions, the wireless terminals also can accept standard credit cards (Visa/MasterCard/American Express) and debit (ATM) cards. Farmers will have the option to activate these functions on the terminal for the duration of the demonstration pilot, for a standard card processing cost.

"The Farmers Market Wireless EBT Project illustrates the huge potential market for wireless payment processing," stated Dean M. Leavitt, Chairman and CEO of U.S. Wireless Data. "Through this and other programs, WEPS is opening new markets for card acceptance at venues in which telephone dial-up is not feasible."

"We are pleased to be involved in the wireless pilot project," said OTDA Commissioner Brian J. Wing. "We, along with the state Department of Agriculture and Markets, will monitor its usefulness and cost effectiveness to determine whether it has the potential to become a statewide system."

Part of an effort to explore workable solutions for EBT cards at farmers markets, the initiative is a collaborative venture among the Council on the Environment of New York City/Greenmarket Program, the New York State Office of Temporary and Disability Assistance (OTDA), U.S. Department of Agriculture, New York State's EBT prime contractor, Citibank EBT Services, and its retail service provider in New York, Lockheed Martin IMS. Citicorp made its system available and helped facilitate the project, consistent with the company's commitment to support the USDA in finding ways to extend EBT services to farmers markets. This project is one of the first in the United States to enable Food Stamp customers to use their EBT cards in open-air venues.

About U.S. Wireless Data, Inc.

U.S. Wireless Data, Inc. (www.uswirelessdata.com), founded in 1991, markets proprietary technology that brings together three large, rapidly growing industries-transaction processing, wireless data transport and the Internet-to enable wireless payment processing. The Company's WEPS platform provides a gateway among all of the parties within a wireless point-of-sale (POS) transaction. This enables businesses that require mobility (i.e., not tethered to a telephone line) and/or faster transaction speed to accept wireless point-of-sale payments. By providing a seamless interface among merchants' POS terminals, wireless carriers and card processors, credit, debit and other card transactions can be processed as fast as cash, without the cost and inconvenience of a telephone line. In addition, WEPS' Internet-based tools offer on-line, real-time transaction monitoring, remote diagnostics and automated terminal activation. The Company is headquartered in New York City.

About Lockheed Martin IMS

Lockheed Martin IMS (www.lmims.com) provides technology-based services to more than 200 state and local government customers, with a focus on transaction processing, program management and systems integration services. A wholly owned subsidiary of Lockheed Martin Corporation, IMS has a 20-year history of successfully partnering with government agencies in such areas as child support enforcement, welfare-to-work services, electronic toll collection and other "intelligent" transportation services involving the trucking industry, photo enforcement of red-light and speeding violations, parking management, information technology outsourcing and electronic commerce services. In the area electronic benefit transfer, IMS last year served 3.7 million EBT recipients in 18 states, representing 44 percent of the national caseload. IMS' EBT network encompasses more than 40,000 point of sale devices located at 62,000 retail sites.

About Tillsmith Systems

Established in 1989, Tillsmith Systems (www.tillsmith.com) is a wholly owned subsidiary of Australian electronic commerce and smart card company, Keycorp Limited (ASX: KYC). Tillsmith is an ISO 9002 certified manufacturer of point-of-sale payment terminals for North American merchants. In addition to a range of both wired and wireless point-of-sale payment terminals and credit transactions, Tillsmith's Nobil Secure Internet Payment System provides payment processing for e-commerce. Together, Tillsmith and Keycorp continue to design, manufacture and market a wide range of payment solutions to satisfy an evolving marketplace. Tillsmith is headquartered in Phoenix, Arizona.

Forward-Looking Statements: Except for historical information contained herein, this news release contains forward-looking statements that involve risk and uncertainties. While the management of the Company believes that current expectations reflect reasonable assumptions, actual results could vary materially depending on risks and uncertainties including, but not limited to: success of the Company's new business plan; market acceptance of the Company's products; the Company's requirement for additional capital; the failure to execute definitive agreement with potential strategic alliance partners; technological change; system capacity constraints or system failures; the ability of the Company to develop new distribution channels; or competition. The Company assumes no obligation to update this information. The reports filed by the Company pursuant to United States securities laws contain a detailed discussion of these factors and certain other risks to which the Company is subject. Management of the Company advises the reader to review these reports (which are available from the United States Securities and Exchange Commission's EDGAR database at http://www.sec.gov and at various other reference facilities in the United States).