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Technology

 July 18, 2000
Motorola And MasterCard Form Alliance To Promote M-Commerce

 MasterCard International and Motorola, Inc. believe that mobile commerce (m-commerce) - the ability to manage purchases and financial transactions on-the-go using wireless Internet devices -represents the future of e-commerce.

In support of this, the two companies announced today that each will commit resources in a joint effort to make m-commerce a reality for consumers worldwide.

Motorola and MasterCard will collaborate on continuing research and development projects to assure interoperability between MasterCard's electronic payment systems and Motorola's wireless Internet devices and platforms. The two companies plan to develop next-generation m-commerce technologies that support the initiatives of the newly formed Global Mobile Commerce Interoperability Group (GMCIG), of which both companies are key members. The alliance also includes cooperation on a number of key initiatives to promote the benefits of m-commerce to consumers through joint marketing activities.

"This collaboration is a critical step that will speed the delivery of e-commerce capabilities to the mobile consumer, thereby enabling m-commerce, and ensuring that the experience is superb," said Janiece Webb, senior vice president and general manager of Motorola's Personal Networks Group. "Imagine being on a business trip and receiving notification via your mobile phone that your flight has been cancelled. With m-commerce, you will be able to find another flight and charge a new airline ticket all via your mobile phone, which is now also a mobile Internet device. This is one of endless possibilities with m-commerce."

The agreement between MasterCard and Motorola includes Europay International, MasterCard's European affiliate, for the promotion of m-commerce throughout Europe. The companies also plan to work together to adapt existing, intelligent payment systems for the mobile environment. These systems include MasterCard M/Chip(tm), its chip-based integrated credit/debit system, and Mondex(tm), MasterCard's chip-based electronic cash payment system.

"MasterCard is moving at web speed to work with Motorola and its other alliances to develop secure methods for payment to service the growing mobile electronic commerce sector," said Chris Jarman, senior vice president, Mobile Commerce, MasterCard International. "MasterCard's partnership with leading IT companies will provide our member financial institution's customers the most advanced mobile technologies available now and in the future."

Motorola's alliance with MasterCard will enable Motorola to work closely with MasterCard's 22,000 member financial institutions. As a result, Motorola expects to realize continued improvements in the capabilities and functionality of its existing wireless Internet devices and platforms.

Both companies also will benefit from the respective experience, leadership and brand recognition of the other - Motorola with its reputation as a global communications leader and pioneer of the wireless Internet, and MasterCard as the most widely-accepted electronic payment brand in the world and a catalyst for the development of m-commerce solutions.

The Global Mobile Commerce Interoperability Group (GMCIG) was formed in June 2000 as an evolution of MasterCard's and Europay's early contributions in the area of wireless payment models. The GMCIG offers participants a global and open organization to develop and promote secure wireless payment standards. The organization seeks contributions from all players in the marketplace including network operators, device manufacturers, mobile technology and content providers, financial institutions, and other global payment associations.