Payment Processing: Hypercom Wins Contract To Supply PIN Entry Devices To El Corte Ingles Stores In Portugal

Hypercom Corporation (NYSE: HYC) today announced that it has been selected as a preferred provider of card payment PIN entry devices by El Corte Ingles, one of the largest retailers in Europe. The company has installed Hypercom EMV-certified Optimum P2100 PIN pads in their two department stores in Portugal in conjunction with that country's migration to EMV security standards.

The Hypercom PIN pads have been deployed at El Corte Ingles' Vilanova de Gaia, Porto store that opened in May as well as the company's Lisbon location. The company also operates over 300 department stores, hypermarkets, supermarkets and smaller convenience stores in Spain as well as travel agencies, financial services and insurance companies.

Hypercom's Optimum P2100 product was the first PIN entry device to be certified with electronic funds transfer (EFT) by SIBS (Sociedade Interbancária de Serviços) in Portugal, a specialist in payment system automation services that has helped expand the use of EFT in Portugal over the last decade. Nearly 58% of retail purchases in the country are now made with cards versus cash, with debit cards overtaking their credit counterparts three to one, according to industry sources. The installed base of point-of-sale terminals now exceeds 150,000, and that figure is expected to double within the next three years.

El Corte Ingles will integrate the Optimum P2100 with the Conexflow payment processing application and their point of sale terminals.

The contract reflects Hypercom's continued expansion in the EMEA region. Hypercom has a network of over 36 distributors and integration partners as well as nearly a dozen service locations throughout the area, plus R&D centers in Scotland, Sweden, Russia and Latvia, with ongoing software development to meet the multi-application requirements of EMEA customers. Hypercom also has more EMV approvals than any other electronic payment device vendor, giving the company a strong competitive advantage in Europe and the Middle East.

The Optimum P2100 is a high-performance countertop PIN entry device that can handle debit and credit transactions as well as gift and/or loyalty cards and other value-added capabilities. Key features include:

• Ultra-fast transactions based on a 32-bit RISC processor.
• Integrated CHIP or "swipe and park" readers for easy acceptance of both CHIP and magnetic stripe credit/debit cards.
• High-contrast graphic LED screen and large color-coded keypad with concave keys and clear internationally recognized user prompts for fast data entry/key strokes.
• Multi-application support, with 12 megabytes of memory to accommodate a variety of operations in a single unit.
• Easy connectivity to existing electronic cash register (ECR) systems with an RS-232 interface for fast installation and easy migration.
• Tight security with EMV 4.1 and Visa PED certification, integrated privacy shield and secure casing, with a PCI approval planned for 2007.

"This contract represents an important expansion of our retail footprint in the global market, and it also demonstrates the ability of our products to pass the rigorous tests required to secure country certifications like SIBS," said O.B. Rawls IV, senior vice president, International Sales, Hypercom Corporation. "As the largest retailer in the region, El Corte Ingles will raise our profile in the area and potentially bring Hypercom to the attention of other retail customers."

About El Corte Ingles (www.elcorteingles.es)
El Corte Ingles is the largest retailer in Spain with approximately 74 department stores, 34 hypermarkets, 61 supermarkets and 140 smaller convenience stores. One of the most prestigious companies, founded in 1939, the company now employs in excess of 80,000 employees and has annual revenue of EUR 16 Billion.

About Hypercom Corporation (www.hypercom.com)
Global payment technology leader Hypercom Corporation (NYSE: HYC) delivers a full suite of high security, end-to-end electronic payment products and services. The company's solutions address the high security electronic transaction needs of banks and other financial institutions, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, healthcare, prepaid, unattended and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits.