April 8, 2003
HBOS and Cyota Team to Enhance Online Payment Security to over 5 Million HBOS Cardholders
HBOS Card Services is the first UK issuer to announce a commercial 3D Secure solution in the UK

New York, NY (Tuesday, April 8, 2003) HBOS Card Services, the UK's Leading issuer of new credit cards has selected Cyota, the leading payments security company, to provide online payment security services - MasterCard SecureCode and Verified by Visa - to over 5 million credit cardholders. HBOS Card Services is the first issuer in the UK to announce a commercial service of this kind.

The service uses the self-selected password services of MasterCard SecureCode and Verified by Visa to authenticate cardholders during online transactions at participating merchants. This service requires cardholders to enter their private password in a virtual receipt before their online transaction can be approved and completed much like the familiar PIN process required for use at an ATM, or signing a receipt in a restaurant. With this extra step, cardholders can be confident that their account is protected, and HBOS Card Services and merchants gain greater assurance about the identity of the person completing the transaction.

"HBOS Card Services is proud to pioneer the British MasterCard SecureCode and Verified by Visa markets with Cyota. As always, we strive to provide our cardholders with the latest technology and highest quality of service" commented Dick Hyder, Head of Systems and Engineering. "Cyota SecureSuite is the market leading solution and we look forward to utilizing Cyota's experience with large-scale issuers like ourselves to provide our cardholders with the highest level of security while shopping online."

"We are thrilled to team with HBOS Card Services and are excited to lead the way in the UK's issuing community." said Naftali Bennett, Cyota CEO. " 3D Secure is gaining momentum in the UK, with several of the large issuers and merchants signing up. At Cyota we feel that the entire European market is really waking up and looking for solutions, and we are eager to take on a leading role. Currently 6 of the world's top 10 issuers are already initiating 3D Secure programs, 5 of which have selected Cyota as their provider. In addition, we are in the process of implementing our service with several additional issuers in the UK, Europe, Japan and US."

HBOS Card Services will host its service at Cyota's local facility in London. Cyota's UK service is specifically customized to fit the British financial industry standards and each issuer's individual needs. The service is available throughout Europe with multi-lingual support, and is in line with the different countries' unique needs. SecureSuite is either installed in-house at the issuer's data center or offered as a hosted service from global facilities located in the US, UK and Japan.

About HBOS Card Services
HBOS Card services are the number one issuer of new cards in the UK with over one million new accounts opened during 2002. Formed following the merger of the Halifax and Bank of Scotland in 2001 the company has in excess of 5 million card holders.
About Cyota
Cyota is the leading payment security provider for financial institutions. Cyota SecureSuite is the only integrated payment security platform, designed to seamlessly integrate a wide range of credit and debit card security solutions including Verified by Visa, MasterCard SecureCode, surrogate numbers and more, into a single, consistent and cost-effective solution. Cyota services multiple clients in North America, Europe and Asia-Pacific with systems currently available to over 300 million cardholders. Founded in 1999, Cyota is headquartered in New York with offices worldwide. Cyota is led by a respected management team with extensive experience in the security, Internet and banking industry. For more information please visit www.cyota.com


Contact: Lisa Bennett, lisa@cyota.com
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