INTRODUCING

An unwavering commitment. The deepest industry knowledge. And a level of experience that’s simply unrivaled. VeriFone is the partner our customers rely on to deliver exacting solutions time after time, every time.

No other company in the payment industry has more connections worldwide Processors Banks Major Retailers Card Brands Value Added Providers Systems Integrators VIP’s ISO’s Telecom Providers

VeriFone leads the industry with the deepest and broadest portfolio of products and services complemented by strategic integration, industry partnerships and resources that make it all a seamless success. VeriFone offers end-to-end solutions that meet every payment need.

PORTABLEPINCONTACTLESS INTEGRATED SOLUTIONS COUNTERTOP UNATTENDED SOLUTIONS SOFTWARE VeriCentre ENTERPRISE SOFTWARE Verix

VeriFone’s unique organizational structure gives regions the agility to act locally within a worldwide network. This local-market presence, paired with global resources, translates to quick, responsive service and robust, tailored solutions for our customers.

Honolulu Sacramento San Jose Mexico City Clearwater Miami Atlanta Sao Paolo Buenos Aires Dallas Savannah Toronto New York Paris Warsaw London Bangalore Singapore Taipei Hong Kong Manila Beijing Spain Italy China Russia India Turkey Australia Dublin Product Design Centers Platform Software Development Centers Application Development Centers VIPs & Resellers  Extensive partner network worldwide, plus we have employees in over 40 countries  Thousands of channels and partners: Including VIPs, ISOs, Integrators, Developers…

Honolulu Sacramento San Jose Mexico City Clearwater Miami Atlanta Sao Paolo Buenos Aires Dallas Savannah Toronto New York Paris Warsaw London Bangalore Singapore Taipei Hong Kong Manila Beijing Spain Italy China Russia India Turkey Australia Dublin UNATTENDED QSR WIRELESS IP CONTACTLESS Developing an Impressive Track Record of Leveraging Regional Expertise Globally

An unrivaled level of expertise – the culmination of VeriFone’s industry experience, global footprint and fully integrated network of partnerships and products. With great investments in R&D, VeriFone is on the leading edge of innovation, dedicated to developing new solutions that define the industry. This future-ready mentality is a key component to the VeriFone EDGE.

Contactless EMV Wireless IP-Enabled Security Unattended VAT Tax

Contactless Wireless Security Contactless Wireless Security

Contactless Wireless Security

Contactless adoption in the US leads to trials around the world… Q Issuing Banks Chase ,000,000 (c) Citibank ,500,000 (d) KeyBank ,200,000 (d) AmEx ,000,000 (c) HSBC ,000,000 (d) Citizens Bank.....1,000,000 (d) GE Money ,000 (c) Wells Fargo ,000 (c) Total Contactless Cards In U.S. Market (Millions) By year end 2006, there were over 35,000 merchant locations accepting contactless payments including … Source: Card Technology, Mercator Advisory Group, 2006, 2007 McDonald's ,000 CVS ,400 7-Eleven ,300 Arby’s ,500 Ritz Camera ,100 plus others including MLB and NFL stadiums Millions of Cards

Source: Smartcard Alliance Contactless Acceptance at U.S. Merchants June 30, 2007 C-Store Grocery Gas Station Pharmacy Quick Service Restaurant Retail Stadium

Simple Tap and Go Payments … Card Brands Consumer Marketing Messages Focused Entirely on Speed and Convenience THANK YOU

Contactless Payment Drivers Value Proposition Speed / convenience No need to carry cash Consumers Increase card transaction volume and revenue by replacement of low value cash transactions Reduced card skimming fraud Fast transaction time, throughput Greater spend at checkout, no cash shortage Competitive differentiation Card Issuer, Banks and Merchants

Speed / convenience No need to carry cash Mobile NFC Payment Drivers Value Proposition Increase card transaction volume and revenue by replacement of low value cash transactions Reduced card skimming fraud Fast transaction time, throughput Greater spend at checkout, no cash shortage Competitive differentiation Card Issuer, Banks and Merchants Value Proposition Speed / convenience No need to carry cash Consumers More Consumer Benefits Needed To Balance The Equation!

NFC = Near Field Communications Enter NFC … Short range wireless technology which enables secure, bi-directional communications between electronic devices Peer to PeerBuilding AccessSmart PosterTicketingPAYMENT

NFC is Compatible with Contactless Payments Traditional Cards can be “issued” to your Mobile Phone and securely stored and accessed in a Mobile Wallet application. PAYMENT MOBILE WALLET APPLICATION + + PAYMENT SCHEMES

Simple Tap and Go Payments … THANK YOU

Value Proposition Increase card transaction volume and revenue by replacement of low value cash transactions Reduced card skimming fraud Fast transaction time, throughput Greater spend at checkout, no cash shortage Competitive differentiation Card Issuer, Banks and Merchants Speed / convenience No need to carry cash Consumers More Secure than your current wallet Convergence of payment and non payment applications More “at hand” than your wallet Value Proposition

 Understand the growth rate and new technology adoption!  Help customers build a contactless strategy which can be the foundation for NFC!  3.3 billion potential virtual wallets?  Average transaction per day? Four?  3.3 x 4 = 13.2 billion potential transactions per day?  This entire install base could be converted in a matter of 18 months!  That’s much faster then POS churn rates (3-8 years)  Where is the infrastructure?  Faster then anyone is prepared to handle  Payment Infrastructure will lag behind Unbelievable Sales Growth Opportunity

2008 and Beyond Multiple contactless providers Multiple interfaces and standards No one-stop provider Limited integrated solutions Cumbersome add-ons Peripherals TODAY PIN Pad / Retail Multimedia Mobile Merchant Tomorrow’s Contactless Products Unattended Products  Acceptance Growth Collaborate with providers Single protocol interface VeriFone is single provider Multiple embedded solutions Purpose-centric designs

Contactless Wireless Security

Regional Trends North America Significant saturation in the Tier I and Tier II – lead to creative approach towards wireless based solutions In addition, there is a move from niche markets (mainly QSR) into widespread use LAC Brazil, Mexico and Colombia have been leading the wireless path in the region This trend is expected to keep growing in the next years EMEA Landline telecommunication costs are still quite high In Middle East and Africa – wireless infrastructure is sometimes easier to implement and is more available than wired Asia Historically, the growth in ASIA came from Turkey and China Higher growth is expected in other countries India just starting to adopt wireless

Est VeriFone Wireless Sales VeriFone’s Wireless Experience  VeriFone wireless products are certified and sold in over 90 countries  Certified with over 100 carriers 52,308 68, , , , , ,000

GPRS vs. WiFi vs. Bluetooth GPRS/CDMAWiFiBluetooth No infrastructure at POS Subscription and/or SIM per terminal Internet security issues Suitable for 1-2 terminals per location no local servers A must in long range applications IP infrastructure, AP or router Internet subscription Internet and local network security Suitable for Many terminals Local servers Savings justify complexities Infrastructure in place Point-to-point, gateway services Possibly phone line fees Bluetooth & end-to-end security issues Suitable for Several terminals not used together Shared comm line is acceptable No local servers

Roadmap - Technologies to Watch EDGE & EVDV (EVDO) Increased efficiency & cost effectiveness of existing networks Current carrier partners may change certification requirements –GPRS  EDGE –CDMA  EVDV UMTS, HSPDA 3G, 3.5G technologies Much higher bandwidth Not really needed for applications today WiMax MAN (city wide networks) Currently not deployed commercially Currently not cost-effective for our customers ZigBee (LAN) Cutting Edge Technology, with market interest Low cost Could represent the next Bluetooth & DECT

Wireless Market Segmentation Pay for Gas at the Car Stadiums (in-seat service) Hand HeldTransportable Fixed Pay at the Table Taxi/Limo Home Services (delivery, repair) Hotel/Event (“line busting”) Flea Market Home shopping “parties” Retail Mall Carts/Kiosks General Retail QSR Mall Stores Parking Stadiums (countertop)

Handheld: V x 670 Overview  Pay at the Table  Pay at the Car  Stadiums  Delivery/Home Services Industry’s largest user-interface on the smallest form-factor 1.Smallest footprint with biggest user interface! 2.Usability and MAXui 3.Ruggedness/Spill resistance Unique Selling Propositions

Transportable: V x 610 Overview  Home Services / Mobile Merchant  Event Line Busting  Temporary Business/Flea Market  Retail / Mall Kiosks 1.Large Paper Roll 2.Long Battery Life 3.Perfect blend of desktop and portable features Unique Selling Propositions

Fixed: V x 510 Desktop Wireless Overview  Stadiums Concession / Parking Lots  General Retail  Quick Service Restaurants  Mall Stores 1.Cost Effective Wireless Desktop 2.Simple Migration from IP applications to Wireless 3.Internal Antenna / Dial Back-up Unique Selling Propositions Coming Soon!

Contactless Wireless Security

 Resulted from a collaboration between individual card brands’ security programs  PCI-PED establishes unified standards for PIN entry device security  PCI-DSS establishes unified standards for security associated with the storage, transmission, and processing of card data

Over 30 PCI-PED Approved Systems 1 Visit: Host Annual Payment Security Conference … One of 20 Global Companies on PCI-SSC Proactive Stance…

PCI-PED: Are you up to Date? Can NOT BUY from Manufacturer for PIN after 12/2007 Merchants/Retailers Must Stop PIN use by 7/2010 Not PED Approved Visa PED Approved PCI PED Approved Manufacturers MUST sell for PIN after 12/2007

PCI-PED Approval Classes: Do you know the difference? PED Class B is Significantly More Challenging to Achieve than PED Class A PED Class B is Significantly More Flexible then PED Class A

PCI-DSS: The Real Costs of Security Breaches  “A single lost, stolen, or compromised customer record costs your company exactly $197.” according to the Ponemon Institute, a privacy research firm  “A security breach can cost anywhere between $90 and $305 per record.” according to Forrester Research  “Fines associated with a compromise can equal $25-35 per account number.” according to Retail Systems Research  “80% of credit card data breaches are tied to cash register and other POS devices.” according to Gartner Inc.

Issue: Currently impossible to guarantee security level of cardholder information in a consistent way –Variable: No two retail systems are alike, so no single solution can protect against data breach –Expensive - Any system change, no matter how small, is costly and time consuming to retailers and requires end-to-end re-certification –Vulnerable – Only secure until the next system upgrade, employee issue or yet to be discovered security flaw Conclusion: PCI Compliance does not necessarily mean your enterprise is secure, just compliant Opportunity: Retailers may never totally eliminate data breaches to their systems, but VeriFone believes we can virtually eliminate data compromises from those breaches. 2 PCI-DSS: Definitive Security – the Elusive Goal

 Cardholder data is never exposed in the POS environment Simplifies PCI DSS compliance  Significantly reduces impact of costly audits, prevention methods and potential breaches  No impact to cardholder Does not require any additional steps or actions by the customer  No impact to current POS system Installing VeriShield Protect is transparent to the POS and does not require any software changes INTRODUCING

PCI Audited PROCESS OR In-store LAN WAN Protects Cardholder Data as it flows through the end-end system VeriShield® Protect Router Decryption Appliance Merchant HQ Encrypted Cardholder Information Internet VeriShield Protect: How does it Work?

= BIN RoutingH-TDESLast FourTrack Data Resident on Card = Track Data encrypted with Hidden Triple DES (H-TDES) No Impact to current POS System: How is this accomplished? Track data is immediately encrypted using “Hidden Triple DES” algorithm, a patented technology that reformats the data in a manner that the POS system and network still receive the track data in the format expected…

VeriShield® Protect – Initial Target Markets Tier 1, 2 “Integrated Retailers” using consumer facing Payment Systems and Petroleum Merchants using Gas Dispenser Payment Systems. Products Channels 4

Contactless Wireless Security Combined Expertise

Combined Expertise Delivers: A Complete Product Portfolio Countertop Wireless PIN pad V x 570 V x 510 V x 510 LE V x 810 DUET V x 610 V x 670 V x 810 V x 800 Unattended V x 700

Count on V x Solutions Enhanced communications to support more sophisticated market needs Easy to use with low failure rates Fast transactions and application downloads Sophisticated, end-to-end security Wide selection of solutions Connectivity Reliability Versatility Security Speed