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Press Release - June 2000
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Motorola News

Motorola Wins Contract to Provide Smart Card Automatic Fare Collection System in Lanzhou, China 
Company’s third AFC system contract in China supports China’s Western Development Strategy

Lanzhou, China (May 2, 2000) – Motorola (NYSE:MOT), through its Huamin Beijing Smartcard System Joint Venture, has been awarded the design and implementation of an automatic fare collection (AFC) system in China and the first AFC contract in Northern China from Lanzhou Public Transit Co., Ltd in Lanzhou, China, a city of three million people. The contract provides for the implementation of a contactless smart card AFC system for the company’s 800 buses.

contemporary The Motorola AFC project is a part of China’s North Western Development strategy, a significant initiative of the China State Council aimed at the modernization and economic development of the 10 provinces of the region. The strategy emphasizes investments in infrastructure for transit, electrical power and irrigation that may help improve the quality of life for the 260 million people there, and may ultimately help to increase the GDP of the region.

Motorola will design the smart card AFC solution for Lanzhou’s bus system, with first phase implementation expected by October 2000. Approximately 120,000 monthly pass holders will receive Motorola M-Smart Mercury™ high-speed contactless fare cards and 500 buses will be equipped with the new fare system by then. Motorola will provide a global smart card transit solution that includes cards, hardware and back office software as well as system integration and management.

Commuters in Lanzhou will use advanced M-Smart Mercury™ contactless smart card technology from Motorola. Simply waving these cards near a reader built into the bus entrance will take off the correct fare. In many cases cards can stay in a wallet or purse. The result is convenience, simplicity and faster bus entry for commuters. At the core of the AFC system is the back-office software platform that manages payment and the other information that can allow for improved service and more efficient utilization of assets by Lanzhou Transit.

This announcement builds on a series of major projects awarded to Motorola and the ERG Motorola Alliance in the past year, which will be used by over 10 million people worldwide.

More information on Motorola’s Worldwide Smartcard Solutions Division can be found at (www.motorola.com/smartcard)


Motorola’s 2G Dual Interface Smart Card Unites Transit and Proton Stored Value

CARDTECH/SECURTECH, MIAMI, FL. (May 2, 2000) – Motorola (NYSE:MOT) announced today its second-generation dual interface (contacted/contactless) multi-application smart card. Known as the Motorola M-Smart Venus™ MV5000, the card integrates a hardware cryptographic engine and other enhancements to cut contactless transaction time in half compared with currently available cards. A second version of the card, the MV5100, also supports the Proton 3 Electronic Purse and Proton Easy Entry banking applications from the contacted interface making the card an ideal multi-application platform in regions supporting both contactless automatic fare collection (AFC) and the Proton stored value system.

In AFC applications for transit systems, the M-Smart Venus MV5000 delivers several important advances over the current generation cards. Transactions are up to twice as fast and security is enhanced. The MV5100 version of the card is ideal for regions that want to share AFC with Proton branded open stored value solutions.

A consortium of major smart card players created Proton World to develop applications for the Proton technology and to promote common international smart card and electronic purse standards. Proton is one of the world’s most widely used smart card technologies, chosen by 20 countries to date and with more than 152 million e-purse transactions. It also has one of the world’s largest acceptance bases, with more than 277,000 terminals installed worldwide.

The multi-application capabilities of the MV5000 are ideal for intelligent access control applications that combine physical access with network security and other user defined applications like asset management, cardholder identification or biometrics. The state of the art security architecture of the MV5000 and MV5100 enables any of these applications to coexist with the AFC transit application and the Proton 3 and Easy Entry electronic purse and banking applications.

As part of its total solutions strategy, Motorola also provides readers that enable transit operators or access control systems to add the MV5000 or MV5100 to their current system. The new Motorola multi-application smart card system supports both of these new cards and all of the Motorola smart-card platforms seamlessly through its common Application Programming Interface (API).

The MV5000 and MV5100 smart cards follow industry standards – the proposed ISO 14443 Type B for contactless, ISO 7816 for contacted and they are EMV 3.1.1 compliant.

Both the MV5000 and the MV5100 are planned for general availability in the 3rd quarter of 2000, and the MV5100 is undergoing certification by Proton World.


Motorola Introduces Versatile New Contactless Card Acceptance Device

CARDTECH/SECURTECH, MIAMI, FL, (May 2, 2000) – Motorola (NYSE:MOT) today announced the availability of the Motorola MCAD+ contactless card acceptance device (CAD) that supports the emerging ISO 14443 type A and B standards. These standards provide support for a broad range of contactless smart cards and are built for compatibility with multiple vendors’ terminals.

The Motorola MCAD+ is a compact controller/antenna board pair designed to serve as the data communication link between customer smart cards and machines that require a contactless smart card interface such as advanced fare collection terminals, access control terminals, or value loading machines. By adding contactless smart cards to transit or other systems, integrators offer cardholders the convenience of faster throughput, shorter transaction times and multi-application possibilities. A major advantage over current CAD products is that MCAD+ will virtually eliminate frequency and RSSI adjustments, helping to reduce manufacturing and service costs and relieving customers of the responsibility to make such adjustments.

The new MCAD+, which will be sold directly to OEMs and terminal manufacturers, is designed to enable seamless interoperability of both ISO type A and type B cards, including MiFare cards. It also supports the new M-Smart Venus™ MV5000 and MV5100 smart cards, the next generation dual interface contacted and contactless technology that unites Automated Fare Collection (AFC) and the Proton stored value application on the same card. Many clients will find it convenient to continue supporting their existing card population, while adding new cards to the mix like the MV5000. This capability may play an essential role in new forms of alliances such as between financial services providers and transit operators, or universities and transit operators like the Motorola project at the Technical University of Berlin.

MCAD+ is also compatible with multiple Motorola M-Smart card platforms including the recently announced M-Smart Mercury. The M-Smart Mercury MM4000L, which offers users a 70% increase in reading distance, is the first contactless smart card with a built-in DES processor and the first to achieve sub-100 millisecond transactions with triple DES.

Motorola is committed to providing innovative, turnkey smart card solutions that will accelerate the adoption of smart card technology. “Boarding a bus or entering a secured building can become effortless,” said Chris Ordway, product manager, Motorola’s Worldwide Smartcard Solutions Division (WSSD). “The MCAD+ is another example of Motorola making smart card technology a part of everyday life.”

Motorola MCAD+

The MCAD+ will have the capability to enable terminals to read information from contactless smart cards and write new information to them. For Card-to-CAD communications, the smart card sends encrypted radio frequency data signals to the antenna board, which are then transmitted to the CAD’s control board and sent to the terminal via a connector located on the board. For CAD-to-Card communications, the control board receives data signals from the terminal and then transmits these data signals via radio frequency to a smart card held within reading distance of the CAD’s antenna board.

By supporting both type A and B receivers, the MCAD+ facilitates easy migration from either card platform to the other. Simply replace current CAD’s with MCAD+, and you add the ability to use the full range of Motorola’s contactless card family -- from the low cost, high speed M-Smart Mercury MM4000L to the multi-application M-Smart Venus MV5000 or MV5100 cards. At the same time, operators can continue to support the existing base of cards. In addition to being compatible with RS485 and CMOS Input/Output communication interfaces, the MCAD+ will also accommodate customers who use the popular RS-232 interface.


Motorola Launches Flexible Multi-Application Smart Card System Modules provide card management, personalization, authorization, settlement and other back-office functions; speeds and implifies implementation

CARDTECH/SECURTECH, MIAMI, FL. (May 2, 2000) – Motorola (NYSE:MOT) announced today the Motorola M-Smart ™ Exchange Software Platform for smart card applications. Flexible, modular and scalable, the M-Smart system integrates application modules, intelligent network content and intelligent network edge devices to deliver card and application management, operations, help desk, secure Web server access, authorization/settlement, transaction reporting and other back-office and network functions required to implement a multi-application smart card solution. The system architecture defines Application Programming Interfaces (API’s) that enable the M-Smart system to integrate other applications, existing databases and legacy systems. The M-Smart system can speed time-to-market and reduce development complexity and cost, especially when compared to doing a custom development for a project.

The M-Smart system targets a variety of smart card applications, including intelligent access control and identification for corporate or university campuses, network security, stored value, credit/debit and loyalty programs as examples. The system supports multiple card issuers and multiple applications, and can provide a central settlement and clearing function. This enables business alliances to provide services to large populations of common customers each of which use a single smart card for all transactions.

Designed for the new Internet economy, the system can be used with other existing application servers, such as a PKI certificate authority (CA) system, through the Web server interface and secure access capabilities. Its communications and device management module can manage intelligent network edge devices typical in smart card systems, such as secure dial in servers, telecom application servers or the credit card-accepting POS terminals typically found in payment applications. The system architecture uses API’s for interfacing into legacy systems or databases, which is a common requirement when companies upgrade their operations to include smart card technology. The M-Smart System can be integrated completely as a turnkey implementation, or customized for specific requirements.

The M-Smart system adds system capabilities to a long list of recently announced industry leading new products introduced by Motorola that focus on enabling multi-application solutions. They include four new M-Smart card platforms: M-Smart Venus™ MV5000 and MV5100, second generation dual interface contacted/contactless cards that deliver 50% faster transactions and unite Proton with transit applications; M-Smart Mercury™ MM4000L, a cost-effective contactless solution offering sub-100 millisecond transactions; and M-Smart Jupiter™ MJ1000C, the first 32-bit card to support Java Card ™ 2.1 technology and Visa Open Platform 2.0. Motorola also has announced a series of impressive total solution system wins stretching from China to San Francisco.

As part of its total solutions strategy, Motorola also provides consulting, systems integration, application development, implementation, operations and maintenance services for systems. With a systems integration business of over $4 billion per year, Motorola has won smart cards systems contracts from China to Washington DC because of its total system approach and global presence. The new Motorola back office system supports the M-Smart Mercury, Venus, and Jupiter ™ families of smart cards through its common API. This interface allows all Motorola card platforms to interoperate seamlessly within the system, so system operators can offer a range of services optimized for different parts of their market.

To understand how this system would be used, say a large corporate campus with several thousand employees wanted to add internal and remote network security and cafeteria payment to their building access and identity card. They would use the M-Smart system to keep track of who had cards and what applications were on the card, such as network security. They could issue new cards and replace lost cards, making sure they cancelled the old cards. The system might also allow payment at the cafeteria, and make sure individuals were charged correctly for additions to their cafeteria “purse,” and also that the food service provider is paid correctly. All of these operations are transparent to the cardholder, but it is the M-Smart system that makes it all work together. While this example is limited in scale, the M-Smart system itself is designed to support much more complex environments where hundreds of thousands of cardholders conduct hundreds of millions of transactions annually with many service providers.

The main modules and representative functions of the Motorola M-Smart system are:

Transaction Management - payment/reload authentication and transactions; transaction records; reporting

The M-Smart system solution integrates intelligent network content and support for intelligent network edge devices. Capabilities using or delivered through networks include:

      Help Desk - stolen/lost card registration; refund process; retrieve transaction history

In addition to these functions of the M-Smart system, other applications, existing databases and legacy systems are interfaced through API’s defined in the system architecture.

More information on Motorola’s Worldwide Smartcard Solutions Division can be found at www.motorola.com/smartcard


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