BI-LO to Stop Fraud and Enhance Customer Service with Biometric Identification System

BioPay's Paycheck Secure in BI-LO's 26 Charlotte, NC Stores

Herndon, VA — July 28, 2003

Biometric payments leader BioPay, LLC said today it has installed its Paycheck Secure biometric identification system in BI-LO supermarket locations throughout the Charlotte, North Carolina area. The 26-store deployment is part of a six-month pilot program that began in June. During the pilot program, BioPay expects to dramatically reduce BI-LO's losses from fraudulent check cashing and enhance customer service, as it has with all other BioPay merchants.

"We offer check cashing as part of our commitment of meeting the needs of our good customers," said James Wiles, BI-LO's Loss Prevention Director. "Unfortunately, fraud has become a costly issue that can’t be ignored. We believe Paycheck Secure will be a welcomed benefit to both BI-LO and our customers."

"BioPay merchants have proven that check cashing can be a valuable customer service if you subtract the fraud element," said Tim Robinson, president of BioPay. "We are confident that BI-LO will come to the same conclusion at the end of this pilot."

About Paycheck Secure

Paycheck Secure uses biometric technology to electronically capture a customer's finger image, store a template of the image, and then record check transactions associated with that person.

Easy Enrollment

When a customer cashes a check for the first time, the person gives the BI-LO clerk his/her driver's license for inputting into the BioPay database. At the same time, the customer's two index fingers are scanned and an electronic photo is taken of the customer. All information is stored within the BioPay system. A repeat customer need only use their finger image to complete future transactions.

Verifying a Check with Paycheck Secure

When a subsequent check is presented, the customer places their finger on the biometric reader. Paycheck Secure then searches for a match, identifies the customer and then delivers to the BI-LO clerk a history of transactions associated with that person. If the person has any negative transactions with any other BioPay merchant in the country, advanced alert mechanisms warn the clerk, enabling the transaction to be declined before it is processed, saving BI-LO money it may have otherwise lost. A customer with a history of positive transactions allows BI-LO to cash the check with confidence.

To date, more than three million transactions totaling nearly $1 billion have been completed using BioPay's Paycheck Secure. BioPay also has the nation's largest commercial electronic biometric database in the country.

About BI-LO

BI-LO, with headquarters in Mauldin, SC, operates 300 supermarkets and 140 Golden Gallon convenience stores in the Carolinas, Georgia and Tennessee, and employs 27,000 associates. BI-LO believes in offering safe, wholesome, high-quality foods in clean, modern and attractive stores is the foundation for consumer confidence.

About BioPay, LLC

Since 1999, BioPay has been providing smart, secure methods for processing financial transactions. Its Paycheck Secure systems help businesses substantially reduce fraud and give consumers a convenient method for cashing checks. BioPay's payment service offers merchants a low-cost form of customer payment and gives consumers a secure, fast and convenient way to pay for purchases. BioPay's patent-pending systems for merchants, banks and financial service organizations have been implemented across the nation. BioPay's value to consumers and merchants has created the nation's largest commercial electronic biometric database. For more information on BioPay and its market-leading products please visit www.biopay.com.