Hypercom Corporation (NYSE: HYC)

Hypercom Corporation is one of the largest global providers of complete electronic payment solutions and value-added services at the point-of-transaction.

The company delivers a full suite of high security, end-to-end electronic payment products and services to customers that include large domestic and international financial institutions, electronic payment processors, large retailers, independent sales organizations (ISOs) and distributors. Hypercom’s full suite of products and services address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, healthcare, prepaid, unattended and many other markets. The company’s solutions enable businesses in more than 100 countries to securely expand their revenues and profits.

Hypercom is widely recognized as the global payment technology innovator. It is the only company in its industry to provide complete, end-to-end high security payment solutions, from countertop and mobile credit/debit payment terminals to the network devices and services that quickly expedite the fast and secure transmission of vital financial and business data.

The company was founded in 1978, in Australia, and at the onset primarily focused its operations in the Asia-Pacific region. In 1987, the company expanded its operations into the United States and, in 1990, relocated its headquarters to Phoenix, Arizona. Hypercom expanded into Latin America in 1991, and then into Europe in 1996.

Hypercom markets its products and services through a worldwide network of sales, service and development offices. Regional sales headquarters are located in Brazil, China, Hungary, Mexico and the United Kingdom.

Industry Leading Products

Hypercom designs, manufactures and sells high secure electronic transaction terminals, peripheral devices, transaction networking devices, transaction management systems, application software and information delivery services. Additionally, the company provides directly, or through qualified contractors, support and related services that complement and enhance its hardware and software products.

The company’s new payment and transaction solutions include high-speed, high-security multi-application countertop and mobile card payment terminals, unattended payment products, EMV and PCI-approved PIN Pads, network access controllers, gateway converters and transaction transport services. Key products include:

Card Payment Products

Multi-application Optimum card payment terminals -- including the high-performance, signature capture and PIN entry Optimum L4100 and L4105 RF-capable payment terminals and lower cost L4200 and L4250 terminals specifically designed for multi-lane retailers; the powerful 32-bit IP-enabled and RF-capable T4100 countertop terminal for smaller retailers; the hand-over countertop T2100 that provides fast EMV transactions; the mobile M2100 wireless terminal that leverages the latest wireless communications technologies; the palm-sized 32-bit mobile wireless credit/debit and general purpose M4100 Blade terminal; and the EMV-compliant P2100 PIN Pad for integrated retail environments.

T7Plus -- a compact countertop point-of-transaction terminal that accepts all magnetic stripe cards, delivers fast authorization of payment transactions, provides "One-Touch" shortcut keys that speed operation, and includes a built-in printer. Specifically designed for retailers who require a reliable, low-cost point-of-service device.

Peripherals -- including printers, PIN Pads, check readers, receipt capture devices, biometric and radio frequency verification devices and external modems. Hypercom's durable, high-security PIN Pads and card acceptance devices are designed for either indoor or outdoor use. Specific products include the S9 and S9Plus secure PIN Pads for indoor use, the S1200 and S1300 which are the outdoor components to Hypercom's QSR (quick service restaurant) drive-thru card payment solution.

Transaction Network Devices, Management Systems and Application Software -- interface with point-of-transaction terminals and specifically designed to support the unique requirements of high volume, high value transaction-based networks. Specific products include the MegaNAC® 180 and 240 network access controllers, and IN-tact® Ethernet/Internet gateway devices. Every Hypercom network application software program includes a management and control module that interacts with the company's HypercomView® management system to monitor system operations. The company also offers a complete portfolio of software applications for terminal operations, network device operations, systems development and management.

SmartPayments Technology and software – for merchants who want to integrate electronic transactions and peripherals into their PC- based point-of-sale system.

Services

Hypercom's separate services businesses include NetSet Brazil, NetSet Chile, Hypercom de Mexico and the company's transaction transport business.

NetSet Brazil, NetSet Chile, Hypercom de Mexico -- are full service organizations maintaining service contracts with major banks and card associations to provide product installations, repairs, help-desk, on-site technician visits and supplies, and special customer-requested efforts such as software uploads or payment terminal enhancement programs. NetSet Brazil is Hypercom's largest service organization, covering all of Brazil with multiple service centers. Hypercom de Mexico uses the NetSet Brazil business model and covers all of Mexico, while NetSet Chile covers all of Chile.

Transaction Transport Services -- provides value-added data communications services for transaction-based applications. These services include protocol conversion, intelligent transaction routing and web-based, transaction level reporting. As technologies such as IP and wireless begin to take hold at the point-of-transaction, that market will see a growing shift towards more sophisticated applications. Transaction transport will provide a support infrastructure for our multi-application operating systems to quickly and cost-effectively deliver transactions to diverse processing entities. Early adopters include companies involved in biometrics, health care, prepaid, micro-payments, gift and loyalty.

International Awards

Examples of awards include:

• Frost & Sullivan's prestigious 2004 Customer Value Enhancement Award. In presenting Hypercom with this coveted award, Frost & Sullivan specifically cited the global payment technology leader's "outstanding and continuous delivery of enhanced value to its customers with innovative technologies, high quality solutions, unmatched services and faster time to market."
• Frost & Sullivan 2003 Market Engineering Company of the Year Award - first ever consecutive year designation makes payment industry history. In again naming Hypercom Company of the Year, Frost & Sullivan determined very clearly that Hypercom surpasses all competitors in each of the following areas: product quality, product functionality, product reliability, product rich features, technology leadership, customer support, developer support and marketing support.
• Visa EU & CEMEA Chip Vendor of the Year Award 2003 for Hypercom's strong and unwavering commitment to technology excellence and its rigorous, on-going strategy and ability above all others to provide smart, fast, easy to use payment terminals and technology that meet the most demanding EMV standards.
• Frost & Sullivan 2002 Market Engineering Company of the Year Award for Hypercom's strategic global leadership, innovative value-added products, and major market advances in electronic payments.
• Frost & Sullivan 2000 Marketing Engineering Product Innovation Award for Hypercom's leadership in introducing the first stand-alone point-of-sale payment terminal with a large color touch graphics display screen and built-in web browser.
• Business Communications Review "Best Managed Integrated Access Device" (IAD) Award (2000).
• Frost & Sullivan 1998 Market Engineering Marketing Strategy Award for Hypercom's strategic moves to shift the focus of the financial services industry to value-added solutions at the point-of-sale.