1. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Point-of-Sale (POS) Terminals Study A study on Electronic Fund Transfer (EFT) Terminals, POS Systems, Installed Base of EFT Terminals, Distribution Structure, and Emerging Markets AutoID/Security Group “The fast-approaching deadline for the Europay, MasterCard, and Visa (EMV) migration is likely to revive the demand for POS terminals. In case of POS systems, replacement of equipment purchased prior to the launch of Pentium processors and those bought in preparation for the Y2K problem is likely to drive growth.”

2. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Industry Trends The POS terminal manufacturers are facing a huge challenge of driving sales in an increasingly mature market, especially in the U.S., Europe, and some parts of Latin America. The EMV migration as mandated by the card associations is likely to boost market growth. Many of the terminals currently installed do not have the upgradation capacity and will hence require replacement, which in turn, is likely to promote market growth. With card associations showing a lot of interest in India and China, the payment card industry is experiencing a boom, and this provides enormous opportunities for terminal manufacturers.

3. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: Market analysis and forecast for POS terminals and systems A study on emerging markets for POS terminal manufacturers Detailed insight into the complex distribution structure of EFT terminals market Current installed base and penetration levels of EFT terminals in the various consumer segments

4. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What We Offer Global Coverage: America; Europe, Middle East, Africa (EMEA); Asia Pacific Proven methodology encompassing primary and secondary research Focused information that cover business and market issues Credible data and analysis highlighting industry dynamics

5. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Current Market Participants Find out how to improve the company’s current growth rate Assess current and future market potential Determine and exploit market growth opportunities New Entrants Analyse opportunities and challenges associated with the industry and untapped potential Assess current and future market growth potential Position yourself to capitalize on the market’s unmet needs Investment Community Analyse long-term strategies of the POS terminal manufacturers Determine which participants will outperform the competition Assess attractiveness of investing in the POS terminal markets

6. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What’s Included EFT terminals market POS systems market Analysis of emerging markets such as India and China as well as consumer segments such as quick service restaurants (QSR) and the government sector in the U.S.

7. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Axalto (SchlumbergerSem) Fujitsu Transactions Solutions, Inc. Hypercom Corp. IBM Ingenico Lipman Micros NCR Corp. Sharp Electronics Thales e-Transactions Verifone Key Market Participants

8. © Copyright 2003 Frost & Sullivan. All Rights Reserved. For More Information Call toll free 877 GO FROST (877.463.7876) Fax toll free 888.690.3329 Email myfrost@frost.com Visit www.frost.com