Clear2Pay acquires Element.

Clear2Pay extends its PayPark platform with 3-D Secure card payment solutions.

Summary: Brussels, 15 January 2004 - Clear2Pay, the international software vendor of next generation payment solutions for financial institutions, has announced the acquisition of Element, in an undisclosed cash and share deal. Element is a Belgium-based e-payment solutions provider specialized in security related services. Element brings a range of 3-D Secure certified products for handling card-based payment transactions. Element's customers include leading global financial institutions in Western and Eastern Europe as well as in North and South America.

Brussels, 15 January 2004 - Clear2Pay, the international software vendor of next generation payment solutions for financial institutions, has announced the acquisition of Element. Element is a Belgian-based e-payment solutions provider dedicated to provide innovative secure payment-enabling multi-channel solutions. Element's products offer end-to-end secure e-payment solutions for handling transactions in both card issuing and card acquiring domains. Card Acquirer products include a Virtual Point-Of-Sale (POS) and Payment Gateway and a Merchant Plug-In; Card Issuers are offered an Access Control Server and Cardholder Enrolment Server.

Element's products are certified to comply with the 3-D Secure standard, which forms the basis of Visa's "Verified by Visa" and MasterCard's "SecureCode". This authentication technology is endorsed by Visa and MasterCard as the worldwide standard in order to reduce card transaction fraud. Element is listed as a compliant vendor for both Visa and MasterCard 3-D Secure implementations.

Michel Akkermans, Chairman & CEO of Clear2Pay, states, "The acquisition of Element is an important stepping stone towards becoming a global player in the payment industry. Debit and credit cards play a major role for the payment of goods and services in today's world, with the volume of card payments amounting to over 25% of the total volume of all payment transactions. This share will even substantially grow in the coming years. The current challenges for the payment industry create an excellent opportunity for payment solution providers such as Clear2Pay to gain market share. In October 2003, Clear2Pay already announced the acquisition of MaXware Benelux, focused on providing software solutions for working capital and cash management, geared towards large corporations and financial institutions. By extending Clear2Pay's PayPark product offerings with Element's 3-D Secure certified card-based payment solutions, we are much better equipped to service card issuing and card acquiring financial institutions across the globe. Element's leadership in the 3-D Secure area enables Clear2Pay to offer the financial industry a complete range of certified products that are compliant with the latest security specifications."

Ronny Leplae, Managing Director Element, comments, "Element and Clear2Pay are offering complementary products in the internet payment arena. Clear2Pay's PayPark is a broad payments processing platform that is able to deliver customers a wide array of innovative payment and payment-related products. I am convinced that in joining forces, Element can not only add its full set of Secure Payments products to suit the business needs of both Card Acquirers as well as Card Issuers, but can also leverage its professional expertise on card-based transactions to strengthen the evolution of Clear2Pay's next generation payment solutions. Over the past years, Element has not only invested in the development of a product portfolio, but also in the training of its staff, resulting in one of highest headcount ratio's of Certified Information Systems Security Professionals (CISSP) in the industry."

Element will relocate to the Clear2Pay offices in Ghent, Belgium, and will, together with the existing team, form a new business unit dedicated to card payments. Under Ronny Leplae's leadership, Clear2Pay Ghent will focus on next generation card payment solutions.

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About Clear2Pay

Clear2Pay is an innovative international e-finance company focused on delivering globally applicable solutions for secure, timely electronic payments. Headquartered in Brussels, Belgium, the company's focus is to facilitate banks and financial organizations in their provision of electronic payments services. Clear2Pay's technology helps to reduce transactions processing costs, and to deliver new, compelling e-payment services in a competitive way. Clear2Pay's payment solutions offer organizations easy, branded ways for their customers to pay online: from complex trade-supporting business-to-business environments, through e-commerce applications, to retail payments and micro payments. Functions embrace payments origination, reporting, linkage with back-office processing systems, clearing, netting and settlement. Clear2Pay's customers include global financial institutions such as VISA, ING, ABN AMRO, SEB Kort, LuottoKunta, and MasterCard. More information is available on www.clear2pay.com.


About Element

Element is a Belgian-based e-payment solution provider specializes in security related services. Element's products offer end-to-end e-payment solutions for both issuers as well as acquirers, supporting the latest e-payment protocols and authentication methods such as 3-D Secure for both Visa's Verified by Visa and MasterCard's SecureCode. Element's expert team hold a variety of industry recognized certifications such as PMP, CISSP, CISA, GIAC/SANS, MCP and MCSE. Element's customers include world-wide leading financial institutions such as Proton World International, Banksys, InterPay, Visanet Brazil, Trintech, EuroConex and Emporiki Bank.
More information is available on www.element.be.


Contacts for More Information:

Clear2Pay
Kimball Felix
Marketing and Communications
Clear2Pay NV/SA
Zikkelstraat 64
1970 Brussels (Wezembeek Oppem)
Belgium
E:
T: +32 2 759 94 96

Element
Ronny Leplae
CEO
Element NV
Stoomtuigstraat 6
8830 Gits
Belgium
E:
T: +32 51 24 87 42