Tim Bannon Product Manager, EMEA RoHS & WEEE Compliance Programme Update

2 Agenda  VeriFone Environmental Compliance Programme  RoHS  Part Numbers  Product Release  “Put on market”  WEEE  Timeline Summary  Current activities

3 VeriFone Environmental Compliance Programme  As a trusted global leader in the secure electronic payment industry, VeriFone is committed to address the RoHS Directive as part of its corporate Environment Compliance Programme (ECP)  Under the ECP, VeriFone has been actively working with industrial partners, suppliers and service providers to comply with all applicable substance legislation worldwide  The use of environmentally friendly substances will not affect VeriFone’s commitment to delivering high quality products. We will continue to work diligently with our customers to ensure a smooth transition to RoHS compliant products

4 RoHS (Restriction of the use of certain Hazardous Substances)  EU directive effective 1 July 2006 – adopted as law in EU member states  Defines the prohibited substances (lead, mercury, cadmium, hexavalent chromium, PBBs, PBDEs) in terms of maximum concentration value  All product imported and deployed into the EU from 1 July 2006 must be RoHS compliant  SC5000, PP100SE, Vx510, Vx610, Vx570, Vx670, MX870 product families will be RoHS compliant  RoHS product will begin shipping to ALL of EMEA from1 July 2006

5 RoHS Part Numbers RoHS compliant part numbers end in an alpha characters:

6 RoHS Part Numbers continued Items NOT requiring RoHS Part Numbers  Intangible items such as firmware, services, on-line manuals etc  Plastic Parts  Paper products such as Certs and Regs, Quick install guides, labels, boxes Spares  Spare parts are not required to be RoHS compliant  Most product lines will move to RoHS spares which will be backward compatible to non RoHS variants

7 RoHS Product  RoHS product does NOT require different OS or software  Currently sent out limited units for functional testing SC 5000, PP1000SE and Vx610 GPRS sleds sent out on 2 May 610 WiFi sleds/terminals, 510 and 570 terminals to be sent out around 25 May)  Target is to begin shipping RoHS compliant product for deliveries scheduled after 1 Jul 2006  VeriFone can only ship Non-ROHS compliant product to non EU countries

8 “Put on market”  Non-RoHS goods can be resold in EU countries after 1 Jul 2006 if the goods have been “put on the market” before 1 Jul 2006  The Guide to the implementation of directives based on the New Approach and the Global Approach defines “put on the market” as follows: Ownership – Must of exchanged between VF and another legal entity Delivery - Goods have been physically delivered and cleared EU customs Packaging - Goods are packaged in their final working condition without requiring further measures (e.g. OS has already been loaded) Shipping - Goods must be shipped with the intent of being sold into that country. “In-transit” goods are not considered to be “put on the market” “The market” can be considered to be the EU market or the local market. This varies by the domestic laws.

9 “Put on market” is defined as…

10 Importing Non-RoHS Product Implications  Non ROHS goods are imported into an EU country and “put on market” before 1 Jul 2006  VIP wants to export goods to Country Y  Country Y’s interpretation of “the market” must be the EU market for the goods to be imported  From confidential sources we have learned that the European Commission has taken the issue of whether the relevant "market" is the EU market versus the local market seriously by issuing warning letters to certain Member States.

11 RoHS readiness, max fine & prison sentence

12 WEEE Directive  Waste Electrical & Electronic Equipment (WEEE)  EU directive effective 13th August 2005 – adopted as law in EU member states  Requires that the importer (producer) of the product “put on market” after 13 Aug 2005 registers for WEEE and provides for take-back and destruction at end of life  Producers are responsible (by individual financial guarantee) for financing waste management costs for “new” products “put on market”  Noncompliance with WEEE may result in penalties beginning from August, 2005

13 WEEE registry, max- fine & prison sentence

14 WEEE - Summary Waste mgmt costs shared by all producers for “historical” products on the market  WEEE Registration laws require VIPs to register for WEEE, including a WEEE take-back program  Where VeriFone is registered as a legal company such as UK, France and Poland, VeriFone will be responsible for the WEEE take-back  Failure to register may result in (but not limited to) Maximum fine Prison sentence Confiscation Closure of premises Revocation of trade licenses  Our legal consultants have advised us that the Scandinavian countries and especially The Netherlands are very stringent

15 VeriFone’s Environmental Leadership

16 Current Activities  Part Numbers – Only RoHS product can be ordered after 1 July. Speak with your Sales Manager / Sales Support Consultant if you require help with RoHS part numbers.  Functional testing feedback  610 WiFi sleds, 610 terminals, 510 and 570 terminals due to be sent out around 25 May for functional testing  Send out information update Updated position statement Certification marketing / operations information sheet Update RoHS product spares lists  Distribute WEEE letter for signature

17 RoHS / WEEE Timeline WEEE Pre Aug 2005 Waste mgmt costs shared by all producers for “historical” products on the market WEEE Producer has responsibility to finance recycling of marked products 13 Aug 2005 WEEE Collection, treatment and financial system must be in place Sep 2005 RoHS All products sold in EU must be RoHS compliant 1 July 2006 WEEE 1 st collection and treatment targets attained 31 Dec 2006

18 Closing  Laws are “self-policing” but if a product is challenged we must be able to show due diligence was followed in our processes  Failure to comply with RoHS and/or WEEE may result in significant penalties

19 Questions Thank you Any Questions Tim Bannon