ViVOgiftcard Press Release

ViVOtech Announces Industry’s First Contactless Gift Card Available in Unique Form Factors to Meet Consumer Lifestyle Needs

Contactless Technology Allows One Gift Card for Multiple Retailers to provide Enhanced Walletshare

NEW YORK, NRF 2004, NY, Jan. 12, 2004 – For retailers looking at a way to differentiate their gift card offering from the thousands in the market, ViVOtech today is unveiling a contactless gift card solution called ViVOgiftcard™ that is not only the industry’s first “contactless” gift card but is also the first available in unique form factors to meet consumer lifestyle needs. Moreover, ViVOtech’s contactless gift card solution can be used at multiple retailers— giving consumers the ultimate in convenience and speed!

While gift cards are hotter than ever -- this holiday season merchants were expected to sell more than $17 billion worth or 8 percent of all business – retailers are facing a new challenge: wallet share. Consumers are being inundated with gift and loyalty cards that they have to carry in their wallet in order to make a purchase. ViVOtech’s contactless technology allows consumers to choose a preferred payment device that matches their needs—with no need to take up space in the wallet. Now, instead of the usual gift card, a retailer can offer his customers a very differentiated product -- a self-branded gift card, a key fob that hangs on a key chain, or on a cell phone. A retailer can even customize the form factor offering a payment tool that relates to its business such as a burger fob for the one in the QSR business or a guitar for another in the guitar business.

ViVOtech also announced a contactless gift card called ViVOcard, a key element of the ViVOgiftcard™ solution that allows rolling gift cards from complementary retailers into one single gift card that can be used at various locations of multiple retailers. The ViVOpay reader, ViVOplatform and ViVOcard integrate seamlessly with existing systems and POS infrastructure to allow usage of this gift card at complementary retailers.

“The market for gift cards is immense and constitutes a critical element for adding revenues and growing a retailer’s business. Gift cards are the fastest growing segment in the payment space with sales expected to total $36 to $38 billion for 2002, up 20% from the prior year. Gift cards account for 5% or more of total sales at major retailers, said Jorge Fernandes, CEO and co-founder of ViVOtech. “Now, for the first time, retailers can differentiate their gift card product, enhance loyalty programs and provide a means to measure these programs. And they can help consumers at the same time by solving the wallet share problem and offering a delightful payment experience – fast, flexible, secure and extremely convenient.”

The ViVOtech loyalty instruments work seamlessly with the existing POS systems. Customers can load/reload their gift cards/fobs and check their balances online or through cell phones using this technology. Moreover, ViVOtech’s ViVOplatform software and services provide the necessary processing for card activation, card acceptance, reloading, balance inquiry, and for online customer services.

The ViVOgiftcard™ solution announced today is now available.

About ViVOtech, Inc.
ViVOtech, a leader in lifestyle payment transactions, provides breakthrough software technology that allows consumers to make contactless payments in a style that best fits their needs – with a radio frequency (RF) enabled credit or debit card in various form factors, an infrared/RF enabled cell phone, PDA or an access card at existing point-of-sale (POS) systems. ViVOtech’s software allow banks, retailers, merchant acquirers and wireless operators to offer a choice of preferred payment devices to target their customers such that they enjoy a convenient, secure and fast payment experience and in turn benefit from additional revenue and cost savings. Up until now, contactless payments faced an insurmountable obstacle to growth - billions in cost to replace or upgrade the installed base of 30 million merchant POS terminals. ViVOtech is defining the new wave of money with its innovative and cost effective solutions helping you make contactless payments that are faster than cash, safer than checks. ViVOtech is headquartered in Santa Clara, Calif., with offices in Europe and Asia.

Editorial Contact :
Seema Kalra
Weber Shandwick, for ViVOtech
408.559.6090
skalra@webershandwick.com

ViVOtech, ViVOgiftcard, ViVOpay, ViVOplatform and ViVOcard and are registered trademarks of ViVOtech, Inc. Other brand and product names are registered trademarks or trademarks of their respective holders.