April 25, 2000
| Media Contact: | Mr. Thong Yeung Sum Michael Director |
| Voice: | (852) 2726 5565 |
| E-mail: | heraldhk@netvigator.com |
Hong Kong - The Herald Group (Herald Holdings Ltd., stock 114), a HK$873 million dollar manufacturer, today announced its selection of UTM Systems as the recipient of its first strategic e-commerce investment in the United States. UTM Systems is a Bellevue, Washington-based developer of online security solutions.
The investment is comprised of a US$2.5 million funding package of cash and credit from the Herald Group. In turn, UTM has selected a Herald Group subsidiary, Herald Datanetics Ltd., as its primary source for magnetic heads and related components.
"The investment in UTM Systems demonstrates our support for their hardware-based solution to enable a truly secure Internet transaction," stated George Bloch, chairman of Herald Holdings Limited. "This is a global opportunity that fits well with our new strategy to invest in technology that promotes and protects electronic commerce."
"We are particularly pleased to establish this relationship with the Herald Group of companies," said Robert Lee, founder and CEO of UTM Systems. "They share our vision and commitment to creating the preeminent Internet transaction security solution. Our collaborative efforts have already resulted in the successful production of the world's smallest magnetic stripe card reading device. This is an exciting development because it moves us incrementally and strategically closer to launching the UTM Systems product later this summer."
UTM Systems flagship product is the UTMmachineTM, first introduced in late 1999 as a combined hardware-software solution to the growing security concerns associated with electronic commerce and other Internet-based transactions. The company's technology allows ATM, debit and credit cardholders to buy merchandise or conduct other transactions on the Internet without concern of theft of their account information or personal identification numbers. The product combines a magnetic-stripe card reader with the security of a smart chip, all within a device the size of a 3½-inch floppy disk.
Similar to an ATM or point-of-sale transaction, cardholders swipe their card in the device when they are ready to purchase items from an Internet merchant. By entering a special code into the card reader, then placing the reader into an internet-connected PC, the user connects to their financial institution and the Internet merchant through UTM-enabled secure server. The system enables mutual authentication of the parties in a transaction and allows users to digitally sign transactions within the security of the card reader's smart chip.
The UTMmachineTM is currently being tested as part of the Internet Secure ATM Payments Pilot sponsored by NACHA (National Automated Clearing House Association). Others participating in the test include eFunds Corporation, STAR Systems and Citigroup.
UTM Systems Corp (http://www.utmsystems.com/) is a Bellevue-based developer of e-commerce security solutions. The mission of the company is to bring the security and convenience of the ATM experience to e-commerce. Robert Lee founded the company in 1998.
The Herald Group (Herald Holdings Ltd.) is a global enterprise with annual sales in excess of HK$873 million. Their operations include computer head, toy, cookware and timepiece manufacturing operations in Hong Kong and China. Herald Datanetics Ltd manufactures magnetic tape heads for computer storage drives and is a major supplier of magnetic recording tape heads. Herald Metal and Plastic Works Ltd. was established in 1969 and is a leading toy producer with factories in Hong Kong, Shenzhen and Dongguan. In the 1980's, the company diversified through acquisition of two other businesses. Herald Houseware Ltd makes premium quality and protective-coated aluminum cookware. Herald Electronics Ltd. manufactures a wide range of watches and specialty clocks. In 1994, the Herald Group acquired Zeon Ltd, one of England's largest importers and distributors of timepieces and an important distributor of consumer electronics.
More information about UTM Systems may be found at www.utmsystems.com. More information about the Herald Group may be found at www.irasia.com/listco/hk/herald/.
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