For Immediate Release:

ViVOtech Deploys Industry’s First Integrated NFC Payment and Promotion Solution for MasterCard® PayPass™ Mobile Phone Payment Trial With Taipei Fubon Bank and Taiwan Mobile

ViVOtech solution first to combine Over-The-Air provisioning of coupons and payment cards for mobile users

SANTA CLARA, Calif – 07 February, 2007 — ViVOtech, Inc., the leading supplier of NFC (Near Field Communication) mobile phone and contactless payment solutions, today announced the first deployment of an end-to-end NFC payment and promotion infrastructure software in Taiwan as part of a joint initiative by MasterCard, Taipei Fubon Bank and Taiwan Mobile. The three companies are launching a broad NFC mobile phone payment pilot program based on ViVOtech technologies in the region.

ViVOtech’s over-the-air (OTA) infrastructure solution, ViVOnfc Suite 2.0, enables program participants to securely download Taipei Fubon MasterCard® PayPass™ cards, as well as incentive promotions and coupons over the cellular networks directly to their NFC mobile phones. Available for the first time, coupons are also downloaded using NFC technology by simply touching mobile phones on smart posters located throughout the region and at retailer’s storefronts.

“ViVOtech is proud to deliver trial participants an industry first integrated NFC payment and promotion solution that showcases the mobile phone as a value added payment device, making NFC one step closer to commercial availability for consumer transactions” said Michael Mullagh, ViVOtech CEO. “ViVOtech over-the-air (OTA) infrastructure assures that issuers and retailers are able to work in unison with cellular carriers to deliver better value and ease of use to their customers.”

The trial participants in the program use the ViVOwallet software application on their NFC mobile phones to view and select cards for payment and coupons for redemption ViVOpay-enabled point of sale systems. These contactless systems are installed at some of the most prestigious retailers throughout Taipei and are used by just touching the mobile phone to ViVOpay readers to transfer card or coupon information.

NFC is a very short-range proximity technology that uses radio frequency (RF) to enable secure, contactless communication between devices. Contactless payments are only one of the many data-transfer applications that NFC technology enables, making it an attractive technology for carriers looking to increase handset utility for consumers.

MasterCard PayPass offers consumers a convenient alternative to cash that allows for small-ticket purchases to be completed quickly, securely and easily. Consumers no longer need to fumble for cash and coins, swipe a card, or sign a receipt for any PayPass purchase under US$25. Users simply tap their PayPass-enabled phone, card, or device on the PayPass reader at participating merchants and they are on their way.

The patent-pending ViVOnfc Suite 2.0 is comprised of the ViVOnfc Issuer ServerTM, ViVOnfc Control ServerTM and ViVOwallet® mobile phone application.

• ViVOnfc Issuer Server (VnIS) – The VnIS server resides onsite at the issuer’s premises providing secure Softcard provisioning services for mobile payment devices, allowing the issuer to maintain full possession and control of their softcard data that they wish to issue to their customers mobile devices.
• ViVOnfc Control Server (VnCS) – The VnCS server resides onsite at the mobile operator’s premises, providing administrative services to support the secure element on a mobile payment device. As such, the VnCS provides for a central secure management point for control of all softcard provisioning to a mobile device. The pre-personalization and provisioning of payment applets to the mobile device, as well as the device authentication and softcard provisioning are controlled and managed by the VnCS.
• ViVOwallet® – ViVOwallet application runs on NFC mobile phones enabling multiple payment-related applications, managing secure data, to enable secure contactless payment transactions. ViVOwallet provides the interface for provisioning softcard data to mobile devices as well as the user interface to transmit payment card or coupon information directly to POS terminals equipped with a contactless reader.

ViVOtech is providing coupon-enabled smart posters and VIVOpay contactless readers for the pilot program. All ViVOtech solution components were delivered in the native Mandarin language to facilitate usage by trial participants. The program went live in February 2007.

About ViVOtech
ViVOtech (www.vivotech.com) is the market leader in contactless/NFC payment software, transaction management systems, smart posters, and readers. These innovative solutions allow consumers to make contactless payments with radio frequency-enabled credit cards, debit cards, key fobs, and NFC-enabled mobile phones. ViVOtech's products are used by some of the most prominent retailers in the United States. Currently, with more than 210,000 units in 20 countries, ViVOtech's products are in use at movie theaters, fast food restaurants (QSR), casual dining establishments, convenience stores, gas stations, drug stores, grocery stores, buses, taxicabs and vending machine locations, enabling a wide variety of businesses to accept contactless/NFC payments. ViVOtech was recently honored with a MasterCard "Best Vendor Partner Award" as the first vendor to deliver stand-alone contactless readers for MasterCard PayPass customers.