February 4, 2003

As early as 1987 Lexcel Solutions, Inc. has participated in specification review groups and the development of software tools for the testing of CHIP Card data. In 1996, Lexcel Solutions was involved in the testing of CHIP Card data with First Union and Wachovia as part of their initiatives for the Olympic games. As a result of these experiences, Lexcel created our first CHIP enabled test system in 1997 for the largest ATM network in the world. Since that time CHIP Card technologies have advanced and are becoming more integrated into all points within the transaction lifecycle.

Today, Lexcel has implemented EMV compliant applications, such as M/CHIP TestSystems for distribution to 700 end-points as well as completed Level 3 / Network - certified software based CHIP TestSystems. Fully EMV compliant software CHIP applications such as M/Chip 2.1 Select and Lite, ICC in the United Kingdom, and M/Chip 4.0 are implemented solutions on Lexcel's Payment Network products throughout the world. Integration into the Payment Networks means not only accepting and transporting EMV data, but also data parsing validation, cryptography for the generation/validation of cryptograms and derivation using DES / 3DES / RSA / MAC. Finally, EMV-level processing and validation of data delivered to-and-from the EMV/Chip processing layer through issuer script commands, at the Host or within the CHIP memory.

Lexcel's EMV/CHIP testing tools enable data entry at the subfield level, response message configuration, internal processing logic, and subfield-level viewing of data for verifying online, back-office and CHIP Card system interoperability. Issuers are able to perform end-to-end testing with their cards through the verification of transporting network or device interfaces, verification of the Chip Card through application, personalization and processing, and EMV Command/Normal and Extended error testing. Acquirers also benefit by being able to verify their Network and CHIP interfaces, as well as their software emulation methods for full EMV/CHIP command set testing and Normal/Extended error testing.

Lexcel's EMV/CHIP applications enable our users to realize improved system quality and data integrity as they implement and test new EMV-based or CHIP-based production applications. The flexible architecture of our applications means all client-specific implementations of EMV/CHIP functionality are seamlessly integrated into our existing platforms. As CHIP technologies continue to evolve in the EFT environment.