Hypercom Previews the Next Generation of Network Technology

CARTES & IDentification 2010 -- Hypercom Corporation (NYSE: HYC) today previewed the IntelliNAC, a high-density, multi-function point-of-sale network access controller that speeds transactions for financial institutions, retailers, service providers and other high traffic transaction-oriented entities. IntelliNAC builds on Hypercom’s industry-leading networking technology that is considered the platinum standard for modern, high performance transaction networks globally and routes billions of transactions daily for hundreds of financial institutions around the world.

"Our world-class, state-of-the-art network products are the most technologically advanced on the market and this next generation product packs more power and more security to scale with our customers’ escalating demand for securely transmitting significant volumes of vital financial and business data over global payment networks,” said Philippe Tartavull, Chief Executive Officer and President, Hypercom Corporation. "And for the first time, network owners can manage the transaction security from end-to-end. The advanced technology in the IntelliNAC is expected to create new levels of convenience, revenues and profits for businesses and service providers, while giving them the ability to own their security model.”

The unique design of the new IntelliNAC delivers unprecedented performance, speed, security, reporting capabilities and data capacity to network operators who need to move millions of transactions quickly, securely and accurately. The system’s expandable platform design protects customers’ investments against future growth in transaction volumes at significant scale.

The IntelliNAC enables network owners to control end-to-end transaction transport on their own, thus eliminating the need to employ multiple third party vendors. The IntelliNAC’s standards-based design provides easy migration from legacy systems to IP, and rapid adoption of emerging technologies such as VoIP carrier systems. Additionally, mobile to cellular gateway support is planned. The state-of-the-art system authenticates transactions via Public Key Infrastructure standards required for PCI-DSS compliance, and is compliant with the European Union’s Restriction of Hazardous Substances requirements.

"Retailers face significant increases in data payloads at the point-of-transaction: EMV, gift and stored value cards, electronic benefits transfer, age verification and pre-paid to check conversion, electronic signature capture, and advertising, financial institutions. The IntelliNAC will empower network operators as never before to conduct transactions quickly and accurately, with an array of telecommunications capabilities integrated into a secure, high-density unit specifically designed for point-of-sale dial and IP access communications," said T.K. Cheung, Vice President, Global Quality and Security, Hypercom Corporation.

Futureproof Integration for the Most Demanding Network Environments

Hypercom's IntelliNAC concentrator utilizes an advanced, high-density Digital Signal Processor network interface module that supports a full family of analog boards supporting PSTN connection or T1, E1 boards supporting CAS and ISDN PRI trunks on a single card. As a result, a single 19-inch wide chassis can support up to 16 digital trunk lines totaling 480 multi-speed, multi-protocol modem or data ports. The chassis also supports TCP/IP network interface cards, allowing a user to mix-and-match dial and IP transactions within a single, common platform designed for flexibility.

Fault tolerant, multi-function IntelliNAC devices can be interconnected to form high-performance intelligent networks. These networks can support a wide variety of access modes and protocols, including all varieties of async and sync dial, ISDN V.110, direct digital data connections and TCP/IP in the most demanding environments. The IntelliNAC supports all modem modes up to V.92, including the Hypercom FastPOS®, the 9600bps fast train modem technology that allows high speed transaction processing, software downloads and batch uploads.

In addition to the network access interfaces, the IntelliNAC system uses Secure Socket Layer to encrypt and transmit transactions virtually instantaneously. The high-density, multi-function network access controller supports an array of host connection options such as X.25, SNA or TCP/IP, plus Wide Area Network interfaces supporting use of IP VPN.

Other features include hot-swappable port processors and dual AC or DC power supplies, dynamic multi-protocol dial access software, powerful transaction routing and load balancing functions, and protocol conversion. For IP networking users, the IntelliNAC can directly connect to the Internet and provide firewall function to protect a corporate LAN. The IntelliNAC also can connect to Hypercom's IN-tact® IP Gateway Converter to provide TCP/IP consolidation.

The feature-rich IntelliView network management server system and associated applications for the IntelliNAC provide all of the tools needed to manage high-volume point-of-sale/point-of-transaction networks in a true client/server architecture. Specifically designed for transaction networks, these systems provide features for status monitoring and detailed reporting, configuration management, activity and performance statistics, alerts and alarms, transaction statistics and analysis, remote downloads and upgrades.

Hypercom’s IntelliNAC with IntelliView is scheduled for customer pilots in summer 2011.

About Hypercom

Global payment technology leader Hypercom Corporation delivers a full suite of high security, end-to-end electronic payment products, software solutions and services. The Company's solutions address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, petroleum, healthcare, prepaid, self-service and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits. Hypercom is a founding member of the Secure POS Vendor Alliance (SPVA) and is the second largest provider of electronic payment solutions and services in Western Europe and third largest provider globally.

Hypercom, Hypercom FastPOS and IN-tact are registered trademarks of Hypercom Corporation. All other products or services mentioned in this document are trademarks, service marks, registered trademarks or registered service marks of their respective owners.

This press release includes statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding market acceptance of new products, product capability and performance, product competitiveness, product sales, revenues and profits and market share. These forward-looking statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, factors that could cause actual results to differ materially from those in forward-looking statements include: industry, competitive and technological changes; the loss of, and failure to replace any significant customers; the composition, timing and size of orders from and shipments to major customers; inventory obsolescence; market acceptance of new products and services; compliance with industry standards, certifications and government regulations; the performance of suppliers, contract manufacturers and subcontractors; risks associated with international operations and foreign currency fluctuations, the state of the U.S. and global economies in general, risks associated with the Company being merged with and into VeriFone Systems, Inc. as contemplated by a definitive merger agreement between the two companies, and other risks detailed in our filings with the Securities and Exchange Commission, including the Company's most recent 10-K and subsequent 10-Qs and 8-Ks. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements. HYCP