ViVOpay Press Release

VIVOTECH™ DELIVERS VIVOPAY™ -- A NEXT GENERATION PROXIMITY PAYMENT SOLUTION FOR EXISTING POINT-OF-SALE SYSTEMS

Plug-and-Play Application Enables Merchants to Accept Payment from Contactless Cards

Santa Clara, CA, February 4, 2003 - ViVOtech™, a provider of proximity payment solutions, today unveiled ViVOpay™ -- a contactless payment terminal developed for use with 30 million existing Point-of-Sale (POS) systems. Rather than requiring merchants to purchase new systems, ViVOpay enables them to easily and cost-efficiently upgrade their current magnetic-stripe POS to accept payment from contactless (RF) cards.

ViVOtech also heralds the industry's first plug-n-play contactless solution to accept both forms of payment cards - the new contactless (RF) cards or the traditional magnetic stripe - without altering the hardware. By avoiding expensive and time-consuming replacement of current hardware, installment of new software, and upgrading of transaction networks, ViVOpay could enable the retail and financial industries to save billions of dollars in capital expenditures.

"ViVOtech is answering the emerging needs of the proximity payment marketplace," said Jorge Fernandes, CEO of ViVOtech. "Interoperability with existing POS systems is mission-critical for merchants looking to incorporate convenient contactless solutions at a low cost. Utilizing existing hardware not only hastens the adoption of proximity payment solutions with merchants, but also gives a boost to card issuers, acquirers, and ISOs."

ViVOpay is designed to accept RF payments, as well as infrared proximity payment technologies -- using the same system. In addition to contactless cards, consumers will soon be able to make payment by pointing or clicking their cell phones or PDAs.

In 2002, ViVOtech commenced a partnership with MasterCard International to deploy ViVOpay terminals for an Orlando, Florida-based trial of MasterCard PayPass™, a new contactless payment program that provides consumers with a simpler way to pay. ViVOtech is enabling several merchants in the trial, including gas stations, convenience stores and fast food restaurants, with proximity technology.

ViVOtech will be exhibiting at the Electronic Transactions Association (ETA) Conference, booth #915, in Las Vegas, April 8-10. Private demonstrations of the ViVOpay contactless terminal can also be arranged.

About ViVOtech, Inc.
ViVOtech enables more than 30 million existing (and new) merchant point-of-sale systems with rapid, scalable and cost-effective deployment of secure contactless cards and cell phone payment capabilities. ViVOtech has more than 10 patents pending on various enabling technologies. The company is privately held with its headquarters in Santa Clara, CA. ViVOtech's management and advisory board includes former executives from First Data Corp, Citibank, Diebold, Intuit, McCaw Cellular, Mervyns, VeriFone and Visa International/USA. For more information on ViVOtech, call 408-248-7001 ext. 107, email info@vivotech.com or visit www.vivotech.com.

For More Information Contact:
Marcelo de Lima, ViVOtech, Inc.
Phone: (650) 776-7109
mlima@vivotech.com

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

Editor note: A photo of the ViVOpay terminal can be downloaded at http://www.vivotech.com/aboutus/vivopay.asp.