From RB
MORE INFO FROM EISQ 2/14/00
I spoke with Firoz Jinnah today at EISQ and received valuable information about EISQ's
technology and the company's relationship with HWP, BLSW, and Oracle. I also received
additonal information about the smart card implementation plan.
Firoz stressed that the Middle Eastern countries are affluent and have the money to implement
the smart card usage described below. They also have many incentives to use the smart card.
Firoz stated that EISQ has patented a state-of-the-art means to compress information. Whether
it is a photograph of the individual, a finger print or other data, EISQ's smart card has the
capability to compress a tremendous amount of data on an 8 kilobit chip. A smart card does not
need to be swiped; rather, it is read.
As I mentioned in my previous information statement, the Mid East has a tremendous need for
the smart card for security purposes. Paper visas can be readily forged, where as the smart
card is essentially fraud-proof. Firoz described the outside of the smart card as a blank card
with the name of the individual or of an institution on it.
The smart card reader compares visual, finger print and other information provided by the
individual at the time the smart card is being read against the data stored on the smart card.
This process is at least 98% accurate.
The Middle Eastern countries view smart card usage as a means to save time and money when
individuals enter and leave Arabian countries. The Middle East is striving to develop a
community similar to the European Common Market where it is possible to travel between
countries without much protocol. However, security remains a priority. The use of the smart card
will permit travelers to quickly enter and leave countries, without line ups or delays. Its usage can
permit immediate determination if the person's entrance should be permitted or denied.
Such smart card usage will provide a better record of who enters and leaves the country.
Saudi Arabia has an average of 7 million immigrant workers. In the past, many have
disappeared when visas must be reneewed or used forged visas. Because the smart card is
difficult to defraud, immigrants will be unable to tamper with it . When "visa" renewal is needed,
it is simply a matter of providing a new date using special equipment. An immigrant with an
expired smart card will be unable to use banks, hospitals, or other governmental institutions –
they will be cut off from services.
Saudi Arabia and other Middle Eastern countries view the cost of the smart card reader as
nominal when compared with the $80 to $100 cost for each visa renewal ever year or two.
Furthermore, there is the cost of tracking down the illegal immigrant and the cost of illegal
benefit usage.
Additionally, there is an increased need for one smart card to have multiple usage. Bluestone's
software will enable this multiple usage, allowing integration of functions. One smart card, for
example, could be used for medical purposes, banks, and personal identification.
EISQ has been trying to secure contracts in the Middle East for one to one-and-a-half years.
Terri Kirby is instrumental in having unique Middle East contacts and is principally responsible
for bringing these contracts to fruition in the near future. In the past, working with individual Saudi
countries has been slow, but Terri is now working with the UAE (United Arab Emerits) which is
more westernized in its approach, resulting in negotiations and specific arrangements
proceeding with greatly enhanced speed. Firoz also stated, as did Dicicco, that other Arabian
countries are expected to follow smart card usage in quick succession. In fact, discussion is
currently occurring. Again, once the first contract begins implementation, the dike will not be
able to hold back the water, and the onrush is expected to be tremendous.
The first contracts will be used with the penal system and the hakj, the annual pilgrimage that
draws 5 million people each year.
HWP is instrumental in the integration of these endeavors. They will provide the boxes,
computers, engineers who will program the drivers. EISQ has the technology, but to work in
such a large arena, the HWP drivers are essential.
HWP, with its smart card office in Grenoble, France, will be the beneficiary of subcontracts.
They will match each dollar spent by EISQ on personnel, hardware, travel costs, and so on,
which are tremendous costs for a small company such as EISQ. The reasons HWP will do this
is because they have little involvement in the Middle East, nor means to develop contacts. HWP
views EISQs projects as an opportunity for HP labeled equipment and services to become
visible and used in the Middle East.
Additionally, HWP will work with EISQ to help EISQ engineers improve their product. In the next
few weeks, EISQ personnel will be flying to Grenoble to determine what parts of HWP
technology can be included with the EISQ smart cards. This will enable EISQ to further improve
their smart card and produce it for less money.
EISQ will not give up any proprietary rights to HWP. The customers and the technology "stay"
with EISQ. HWP is a huge company and recognizes that this teaming with EISQ will give them
an outlet to create a market for their own goods and services in the Middle East. For HWP, the
cost is negligible when compared to gains through exposure of their product. As such, the
teaming effort between HWP and EISQ is, in the true sense, a win-win situation.
EISQ will also subcontract Oracle for data base management. For both Bluestone and Oracle, it
is anticipated that there will be a cost sharing arrangement during the initial stages of teaming.
EISQ is understood to be the primary contractor and HWP, Oracle, Bluestone are
subcontractors.
It can be expected that in approximately 2 weeks, EISQ will file with the SEC. Application for
NASDAQ can be expected soon after sales begin. All of this will occur swiftly in the next few
months. |
