One Million Financial Transactions Verified with Biometrics

Significant Milestone Confirms Biometrics Are Useful in Reducing Fraud and Driving Revenue

Herndon, VA — August 13, 2002

Biometric identification leader BioPay, LLC has verified one million financial transactions with its market-leading Paycheck Secure biometric identification system. BioPay has successfully penetrated the retail market by substantially reducing fraud and helping to drive business for grocery, convenience and check cashing stores. Paycheck Secure is the most widely used biometric identification system for initiating financial transactions in the United States.

"We've stuck to a solid business plan and that has positioned us to become a leader in the biometric identification market focusing on financial transactions," said Tim Robinson, president of BioPay. "We believe — and have proven — that consumers value the convenience and security of using biometrics, and businesses are taking note. With Paycheck Secure, we have successfully laid the foundation to propel us from leading in the check cashing market to leading in the biometric payments market by the end of the year."

BioPay reached a significant milestone by verifying its one millionth transaction using Paycheck Secure on August 4, 2002. The transaction was completed at Duthler Family Food in Grand Rapids, Michigan.

"It doesn't surprise me that we're the business that helped BioPay reach the one million mark," said Tom Duthler, owner of the Duthler Family Food supermarket chain. "We rely heavily on the system and, since implementing Paycheck Secure a year ago, our check cashing business has really grown. We're now cashing more checks than ever and that's great for business."

Check cashing services are a profitable business for merchants. The Federal Reserve Bank of Chicago estimates that over 180 million checks, totaling $55 billion, flow annually through the check cashing industry. However, check fraud is increasing 2.5% annually. Paycheck Secure is a powerful tool to eliminate the risk of check fraud.

Paycheck Secure uses biometric technology to electronically scan a customer's finger, store a template of the image, and then record check transactions associated with that person. Merchants can obtain real-time, negative check transaction information from BioPay's biometric database. Meaning, a BioPay merchant at one location will be immediately alerted to a fraudulent check from any other BioPay merchant in the country. And, merchants have access to the nation's largest commercial electronic biometric database to help identify fraud artists and check bouncers.

BioPay systems have been rolled out in 22 states, at more than 200 merchants, with one or more lanes or locations. BioPay's bCheck service will be available soon, allowing current and future BioPay merchants the ability to accept a biometric for customer payments.

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.