MasterCard Records More Than 100% Growth in Smart Cards Issuance in Asia/Pacific

Key Successes MasterCard has achieved significant successes and launched several initiatives to accelerate smart card adoption in support of its overall smart card strategy. - New issuers and acquirers - In 2003, MasterCard strengthened its position as the best business partner for smart cards, with more than 50 card issuers and acquirers adopting MasterCard’s smart card programs. This is an increase of 75% from 2002. MasterCard will continue to expand its suite of smart card solutions for its customers in 2004. - First MasterCard Open Data StorageTM (MODS) pilot in Malaysia - Alliance Bank Malaysia Berhad was the first bank in the world to pilot MODS, an application programming interface for storing and retrieving data, which provides financial institutions the ability to offer cardholders more control over their personal information and offer greater privacy. - Continued roll out of mc2 – MasterCard launched six mc2 card programs in Asia/Pacific in 2003, bringing the number of mc2 card programs in Asia/Pacific to eight. MasterCard’s first mc2 card program launched in 2003 was the SBB BlueChip MasterCard in Malaysia, which was also South East Asia’s first EMV smart card with loyalty benefits. This was followed by mc2 card programs by Dao Heng Bank in Hong Kong, Bank Internasional Indonesia, E. Sun Bank and Far Eastern International Bank in Taiwan and RHB Bank Berhad in Malaysia. - First chip combo card in Taiwan – MasterCard’s success in 2003 has continued into 2004 with the launch of Taiwan’s first chip combo card with Land Bank and Taiwan Cooperative Bank in January. These cards contain MasterCard’s M/ChipÔ payment application and combine the functions of an ATM card, credit card, debit card, Cirrus, and Mondex store value function all within one payment card. These multi-application smart cards contain a 32K chip and are based on MULTOS, the only operating system for smart cards with the ITSEC level E6 security rating -- the highest security protection available. MasterCard M/ChipTM Program Adoption of MasterCard’s M/ChipTM continues to gather momentum in 2003. To date, there are 30 acquirers and numerous terminals certified for M/ChipTM in Asia/Pacific. The acquirers that have been certified for M/ChipTM in 2003 include Public Bank and UOB in Malaysia and HSBC in Taiwan. MasterCard M/ChipTM enables financial institutions to issue globally interoperable chip-based MasterCard, Maestro, and Cirrus branded cards fully compliant with the EMV standard. MasterCard M/ChipTM version 4, is a new highly flexible smart card application for credit and debit cards, M/ChipTM version 4 contains a range of features designed to tackle many of the industry’s most pressing needs and takes full advantage of the benefits brought by EMV 2000. Globally, MasterCard continued to enhance its successful OneSMART MasterCard program with new smart card applications and exciting new card designs. OneSMART MasterCard is a comprehensive, global support program covering every aspect necessary to successfully launch smart cards. With OneSMART MasterCard, all of MasterCard’s global smart card solutions, technical expertise, and marketing support were consolidated under a single banner.