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To: Jeffrey L. Henken who wrote (114)	8/24/1998 11:06:00 AM
From: Jeffrey L. Henken	Respond to of 120

CLCK is acquiring FiScrip in order to reap the full benefits of EBT: biz.yahoo.com FiScrip designs, programs and tests the software that is reloaded into ATM's and debit card point-of-sale machines. FiScrip is one of four companies certified by Deluxe Payment Systems, an unaffiliated third party, to process EBT transactions. EBT is a new process and method of distributing federal entitlements, initially including food stamps, welfare and social security payments to beneficiaries. In place of printing and issuing checks and other financial instruments, some beneficiaries of government entitlement programs receive a debit style card (a "QUEST Card") which operates in the same manner as an ATM or debit card. The beneficiary of the entitlement program uses this federally issued card to purchase items utilizing the EBT system. The federal government may eventually establish individual accounts which will be debited when a beneficiary makes a withdrawal or purchase. However, no assurance can be given as to when the federal government will establish this process. It is expected by FiScrip that there will be substantial competition in the provision of the service offered by FiScrip. No assurance can be given that FiScrip will be successful in competing for this business; thus, the Company may not receive the processing business anticipated by management of the Company to be derived from EBT transactions. The transactions based on this medium of exchange through FiScrip and the Company are estimated to produce a gross transaction fee of between $0.06 to $0.09, of which the Company will be paid a per transaction fee of $0.02 and a fee of $3.50 per monthly statement generated by the Company. The transaction fee is in addition to the merchant application and statement fees. However, no assurance can be given as to the volume of transactions that will be processed or rates at which such processing will take place. FiScrip is newly in operation in connection with the EBT business, with no more than 5,000 transactions in February, 1998 and 7,000 transactions in March, 1998. FiScrip anticipates a significant increase in the number of transaction, but no assurance to this effect can be given. According to federal government surveys, it is anticipated that by the year 2000, 60% of the population of the United States will be receiving monthly income issued electronically and accessible through the use of a QUEST Card. However, no assurance to this effect can be given. The total dollar value of EBT transactions (food stamps, aid to families with dependent children and welfare) in 1998 is estimated by FiScrip to be $60 billion, with an average transaction size of approximately $23.00, or approximately 450 million transactions per year. FiScrip's target market share of total dollar volume of EBT transactions is estimated to be $6 billion or 65 million transactions per year) by January 1, 2000. However, no assurance can be given that there will be this volume of transactions or that FiScrip will service such a volume of transactions. The Social Security System will begin distributing benefits using EBT beginning on January 1, 1999 and expects to have completed full implementation of the distribution system for benefit distribution using EBT by January 2, 2002. The dollar value for all EBT transactions by the Social Security System is expected to reach $470 billion annually. However, no assurance to this effect can be given. CLCK is at 4 9/16's this morning. Looking strong! Check out the URL above for more information on the expected rapid growth for EBT. Regards, Jeff