MONDEX on MULTOS WINS HIGHEST SECURITY RATING EVER Submitted By: Pleon Thursday, 9 September 1999

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MONDEX ON MULTOS WINS HIGHEST SECURITY RATING EVER Submitted by: Pleon Thursday, 9 September 1999

Mondex electronic cash and the MULTOS operating system have become the first commercial products to have ever attained an ITSEC Level E6 assurance and security rating Mondex International announced today that the Mondex electronic cash product and the MULTOS operating system on the Hitachi H8/3112 MULTOS chip - have been awarded a security rating of ITSEC Level E6, - the highest possible rating achievable in ITSEC (Information Technology Security Evaluation Criteria), the globally recognised security evaluation standard. This represents a major milestone in smart card security with Mondex becoming the first commercial product ever to have achieved this security rating level. Mondex's unique security architecture allows for person-to-person payments using a personal wallet device, telephone line or Internet service. The cash-like nature of Mondex means that there are no processing costs, making it significantly less expensive than other systems. Mondex is globally interoperable and is under development in 60 countries worldwide. ITSEC (Information Technology Security Evaluation Criteria) is a set of criteria for evaluating computer security, which was originally published in 1990. It represents a single uniform standard adopted across Europe and Australia. ITSEC operates on a scale that represents ascending levels of assurance (Levels E0 to E6) that can be placed in the security functions and determines the rigour of the evaluation. The ITSEC Level E6 rating gives card issuers assurance that Mondex electronic cash and MULTOS on the H8/3112 Hitachi chip fulfils their security claims* (see note to editors) and have been thoroughly tested against those claims by an independent and expert third party. To date, the highest ITSEC evaluation for a commercial product has been E4. Mondex electronic cash and MULTOS are the first commercial products to complete ITSEC Level E6 evaluation.

Page 1 MULTOS is a high-security, industry-controlled, multi-application operating system for smart cards. MULTOS includes unique end-to-end card management to simplify the process and reinforce the business case for smart card issuers. It is available on a non-proprietary open systems basis to ensure that it becomes a standard for smart cards. The MULTOS implementation on the Hitachi H8/3112 chip is the first output resulting from the joint activity between Hitachi, Dai Nippon Printing (DNP) and Mondex International to deliver highly secure advanced MULTOS microcomputer devices. Michael Keegan, Mondex International's Chief Executive Officer explains, "It is hard to emphasise enough the scale of this success. Achieving such a high level of assurance as ITSEC Level E6, allows card issuers to manage product risk with the greatest degree of understanding as to where that risk lies, which remains fundamental to any financial product. "Achieving an ITSEC Level E6 rating is the ultimate accolade for any high security product; however, while this represents a major milestone, Mondex's security continues to evolve to ensure that it remains at the forefront of smartcard security going forward". Graham Higgins, Head of platform seven and co-inventor of the Mondex electronic cash system said: "platform seven, formerly the NatWest Development Team, was responsible for the original technical design and development of both Mondex and MULTOS. Together with Mondex International, we have achieved a world first in the certification of these products to ITSEC Level E6. As such this announcement represents not only a milestone in smart card security, but also a major milestone for platform seven. "Security must always be the critical factor for any financial services product and with ITSEC Level E6, Mondex electronic cash has achieved the highest rating for any smart card system on the market today". David Braidwood, Royal Bank of Canada, commented, "Consumers and merchants will not use these products, however clever

Page 2 they may seem, if they don't trust them to be safe. By successfully meeting the ITSEC Level E6 criteria Mondex on MULTOS has proven it is a product that the industry and more importantly our customers can rely on. In addition, we would encourage all other electronic cash providers to join MXI in certifying their products to this level." "In a world where any issuer of a card-based financial product, invests huge resources in assurance and security evaluation, ITSEC Level E6 offers a proven method of providing assurance to issuers from an independent third party. With Mondex, card issuers now have a pre-supplied mark of assurance and a process which makes product evaluations much easier." Kunihiko Misaki, General Manager, New Financial Systems, Services and Products Division of Hitachi said:"We are proud of this outstanding achievement, and are pleased that Mondex on MULTOS has achieved the highest ITSEC rating. The ITSEC Level E6 rating proves our product (the Hitachi H8/3112 chip) to be the front runner in the rapidly growing smart card market." Mr Hidenori Nokubo, Director of Dai Nippon Printing, said: "As a co-developer of this MULTOS implementation, DNP is very proud of the ITSEC Level E6 rating. We are particularly pleased that the evaluation strategy also includes Mondex electronic cash and view this as an important achievement for the smart card industry. We are certain that Mondex on MULTOS will contribute greatly to the increased use of smart cards not only in financial services but also in the area of secured network communications." Dr Robin Pizer, Head of the UK Certification Body which granted the certificates, said: "UK ITSEC was established in 1990, and has now certified the security claims of over 200 IT products and systems against both ITSEC and Common Criteria. The resultant certifications are recognised throughout Europe, enhancing their value to evaluation sponsors. Increasing reliance on smart card technology in electronic commerce has led customers to demand high levels of security. The certification of Mondex electronic cash and MULTOS to ITSEC Level E6 demonstrates a fundamental advance in the assurance that customers can expect , and need in smart card products."

Page 3 William I Jacobs, Senior Executive Vice President, MasterCard International said, "As an enabler of secure, high assurance financial products, we are extremely pleased to see both Mondex electronic cash and MULTOS achieve this world first. Our members can have the highest possible confidence that all our products on the MULTOS platform - Mondex, MasterCard and Maestro - are fit for purpose, highly reliable and provide them with a significant competitive advantage." Notes to Editors * Mondex Security Claims tested in ITSEC can be summarised as follows: · No value is created ie sum of balances before and after a transaction does not increase · Authentic purses will only engage in value transfer with authentic purses · All value is accounted (incomplete transactions offer a protected audit trail which allows secure reimbursement of lost value) *MULTOS Security Claims tested in ITSEC can be summarised as follows: · Application load process must be able to check the authenticity and integrity of an application being loaded and to ensure the confidentiality of the application code and data. · Applications are to be segregated from other applications - an application may not read from or write to another application's code or data. About ITSEC In May 1990, France, Germany, the Netherlands, and the United Kingdom published the Information Security Evaluation Criteria (ITSEC), a structured set of criteria for evaluating computer security within products and systems. Each evaluation of ITSEC involves a detailed examination of technology security features. This is conducted through an examination of the relevant documentation and comprehensive and informed functional and penetration testing which ensures that a product or system meets its security specification. ITSEC operates on a scale that represents ascending levels of confidence (Levels E0 to E6) that can be placed in the security functions and determines the rigour of the evaluation. Since its launch, a number of other

Page 4 European countries have agreed to recognise the validity of ITSEC evaluations. The UK ITSEC Scheme is managed by the Communications-Electronics Security Group which is the UK Government's National Technical Authority for the use of cryptography and for Information Security (Infosec) more generally. For more information visit the ITSEC website at: www. itsec.gov.uk. About Hitachi H8/3112 chip In 1998, Hitachi Ltd, in co-operation with Dai Nippon Printing Co Ltd and Mondex International launched the Hitachi H8/3112 (MULTOS) chip - a new high security chip enabled by MULTOS. The Hitachi H8/3112 contains 8Kbytes of EEPROM and 24Kbytes of ROM and uses the industry standard H8/300 microcomputer core. The device also contains a powerful co-processor to hardware accelerate the complex cryptographic calculations necessary to support MULTOS and Mondex. About Mondex International Mondex International Limited (MXI) is a world leader in the provision of smart-card based products and services. The company is a subsidiary of MasterCard International Incorporated and employs over 180 people at its London headquarters and technology centres around the world. Mondex is the most "cash-like" of the electronic cash smart cards to be available around the world, as a more efficient alternative to cash. Mondex electronic cash is designed for use in both the physical and the virtual worlds, with the advantage of allowing retailers and consumers to send and receive Mondex value securely down a telephone line, through a mobile phone or over the Internet. Further information regarding Mondex is available on its web sites at: www.mondex.com / www.mondexinternational.com About MasterCard International MasterCard International has the most comprehensive

Page 5 portfolio of payment brands in the world. With 23,000 member financial institutions, serving consumers in 220 countries and territories, MasterCard is the industry leader in quality and innovation. Nearly 700 million MasterCardâ, Maestroâ, Cirrusâ and MondexÔ cards are in circulation today. With more than 16.2 million locations, no card is accepted in more places and by more merchants than the MasterCard Card. In 1998, gross dollar volume exceeded $650 billion. MasterCard can be reached through its World Wide Web site at http://www.mastercard.com. About Hitachi Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 1998 (ended March 31, 1999) consolidated sales of 7,977 billion yen ($65.9 billion*). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's Web site at http://www.hitachi.co.jp. * At an exchange rate of 121 yen to the dollar. Dai Nippon Printing Co (DNP) Dai Nippon Printing Co Ltd. is one of the world's leading printing companies with a world wide turnover of USD10 billion in the 1998 fiscal year. DNP was the first company to implement the MULTOS operating system bringing a number of MULTOS chips to market in partnership with Hitachi. DNP has also been involved in the development of operating systems for Mondex e-cash smart cards and has supplied over 500,000 smart cards for the Mondex Scheme around the world since 1991. About platform seven platform seven is a leading independent provider of smart card and e-commerce security products, solutions and services. Although part of Nat West, a leading UK bank, the team is independent and operates with strict client confidentiality procedures in place. The team currently numbers over 100 of the world's leading smart card and e-commerce experts based in Europe, North America and Asia Pacific. For more information, please visit platform seven's

Page 6 website at http://www.platform7.com.

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