Banksys and Element join forces on 3D secure

Element integrates the Banksys DEP Host Security Module with the Element 3-D Secure Product Family

Increased security for online credit card transactions
The 3-D Secure protocol was developed by Visa as a successor to SET, the previous standard for secure Internet transactions. SET proved to be too complex for widespread commercial success. With the 3-D protocol however, the process is much simpler and much more secure. When customers communicate their credit card number to an online merchant, they are redirected to their bank for authentication before the actual payment transaction can take place. The new 3-D Secure protocol has also been adopted by MasterCard and is expected to become the industry standard for secure Internet transactions.

Evolutionary synergy = revolutionary product
Banksys and Element joined forces to accelerate the security evolution of online card transactions. A whole new level of secure transactions has been achieved by integrating the Banksys Data Encryption Peripheral (DEP) into the Element 3-D Secure product family.

The Element Merchant Plug In (MPI) is the 3-D Secure component used at the Merchant side of the transaction. It checks with the Directory Server to verify that the credit card is enrolled in 3-D Secure. The Directory Server then verifies the registration of the cardholder for 3-D Secure and queries the Element Access Control Server (ACS). This server is on the Issuer side and contains all information needed to authenticate the cardholders status. This process is significantly faster while at the same time reducing fraud and creating a trusted environment for online transactions.

Banksys provides encryption modules
The Banksys Data Encryption Peripheral (DEP) is a hardware module containing a broad set of security components. Designed as a security encryption server to a host computer, it performs all encryption and key functions internally. This protects security processes from potential hacking via the network environment. It also offers high levels of physical security since the components handling the cryptographic process are located in a tamper-resistant area. All events and alarms are recorded, can also be viewed live, and are compiled into useful statistical reports.

Flexible implementation with total security
Integrating the Banksys DEP within the Element MPI and Element ACS products provides total security and benefits at every level. Supported by Visa, MasterCard, and Maestro, this secure end-to-end solution is ready to be rolled out on a worldwide scale. The combination of flexible implementation, secure transmission of sensitive information, and the reduction of disputes offers major advantages to all parties involved in online transactions.

Quote Vincent Roland, Banksys: With more than 25 years of experience in Host Security Modules, Banksys leads the way in the area of cryptography. Our renowned DEP range of products was adapted to suit the specific needs of 3-D Secure. The resulting Banksys/Element solution provides unmatched security for all parties involved."

Quote Ronny Leplae, Element NV: The integration of the Banksys DEP with the Element 3-D Secure Family is a perfect fit with Visas 'Verified by VISA as well as MasterCard and Maestros SecureCode. This is the first European hardware security-based, end-to-end solution. It definitely puts Element and Banksys in pole position to capture a large part of the international market."

About Banksys
Banksys is the world leader in end-to-end secure payment systems. Founded in Belgium in 1978, Banksys set up the entire Belgian national debit card system dealing with everything from terminal design and manufacture to the overall management of the secure IP network and back-end operations.
Banksys also developed Proton, the world standard in Electronic Purse technology, and has rolled out the service across the globe.
Banksys continues to drive the market with high-end products, providing new levels of convenience, security, and reliability to users across the globe. Banksys earned its prime mover reputation through revolutionary solutions ensuring totally secure payment transactions over the Internet.
Banksys makes financial transactions more convenient and secure. Its Host Security Modules such as the DEP and the next-generation DEP/PCI are key contributors to that. The company systematically follows the highest standards when it comes to product specifications and security. Banksys' security technology is recognized sector-wide and lies at the heart of each of its products and services.

For further information about Banksys, please contact:
Marina De Moerlooze
Manager Corporate Communications,
Banksys
Tel: +32 2 727 68 22
e-mail: marina.demoerlooze@banksys.be
website: http://www.banksys.com

About Element:
Element NV is a leading European IT company offering security solutions including a variety of products, services, and consulting. Although Element initially established its reputation within the realm of secure payments, its activities now extend to adapting concepts, techniques and skills for securing payments to any online business or environment. Founded in 1998 and headquartered in Gits, Belgium, Element reached a turnover of 2 million Euro in 2001.

For more information about Element, please contact:
Tom Espeel
Marketing and Communication Officer,
Element NV
Tel: + 32 51 24 87 42
Fax: + 32 51 24 67 63
e-mail: tom.espeel@element.be
Website : www.element.be

This press release contains forward-looking information that involves risks and uncertainties, including information about Elements plans, objectives, expectations, and intentions. Investors are cautioned that all forward-looking statements include known and unknown risks, including, among others, uncertainty of new product development, the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated, early state of development of the authentication markets and in particular the market for biometric enabled solutions, the ability of Elements customers to successfully integrate and commercialize Elements technology, the companys ability to successfully integrate the operations and technology of its various divisions, anticipated revenues and fluctuations in quarterly results, technology risks, including dependence on core technology, rapid technological and market change, management of growth, dependence on key personnel, rapid expansion, financial risk management, future growth subject to risks, and the dependence on intellectual property rights. Any and each of these factors might cause actual results to differ materially from those anticipated herein. The forward- looking statements contained herein speak only as of the date of this press release.