Hypercom's Optimum Terminals Add Plug-and-Play Connectivity to IBM ACE Cash Registers with SurePOS ACE 5.0 Certification; Action Significantly Broadens Market for Hypercom

SAN DIEGO--(BUSINESS WIRE)--Jan. 30, 2006--FMI Marketechnics -- Hypercom Corp. (NYSE: HYC) today announced that its 32-bit Optimum multi-lane payment terminals have been tested for compatibility with IBM SurePOS(TM) Application Client Server Environment (ACE) Version 5.0, the newest point-of-sale application for IBM cash register systems. This ensures plug-and-play connectivity between Hypercom's Optimum payment terminals and IBM solutions used by many of the major supermarkets, chain drugstores and other mass retailers in the United States, significantly broadening the market for Hypercom's Optimum devices.

Hypercom's Optimum L4100 full-color terminals are now compatible with all IBM ACE cash register systems shipped with or upgraded to the new ACE Version 5.0 of IBM's software. Hypercom's new PCI PED approved L4200 and L4250 multi-lane terminals are currently undergoing compatibility testing on ACE Version 5.0.

“IBM's ACE-based cash register systems have a very large footprint among multi-lane retailers, so this positions us to penetrate important new accounts that previously were not able to consider our Optimum offerings”

This announcement marks the first IBM SurePOS ACE compatibility guarantee for Hypercom terminals. Previously, Hypercom hardware could be connected to IBM cash register systems through custom integration efforts. Now compatibility is assured with an out-of-the box solution.

"IBM's ACE-based cash register systems have a very large footprint among multi-lane retailers, so this positions us to penetrate important new accounts that previously were not able to consider our Optimum offerings," said O.B. Rawls IV, senior vice president, North American Sales, Hypercom Corp. "With drop-in compatibility now assured, any retailer with IBM SurePOS ACE Version 5.0 software can deploy our Optimum terminals quickly and easily."

Advanced Terminal Technology

All terminals in Hypercom's Optimum series are high-speed, state-of-the-art devices built around a 200Mhz 32-bit Intel(R) XScale(R) processor that delivers industry-leading speeds for both basic and multi-function transactions. All models offer a computing power of 250 MIPS (millions of instructions per second) compared to the 1.6 MIPS of competitive products.

The top-of-the-line Optimum L4100 is a full-color signature capture terminal with a 64K color 5.7" 1/4 VGA screen enabling exact reproduction of corporate logos, advertising and promotional messages at the point-of-sale. It includes an advanced screen protection and replacement system, an exclusive bi-directional dual-sided magnetic stripe reader that allows cards to be swiped in any direction, VISA PED certification, optional EMV-approved smart card reader, and optional contactless RF reader that supports cards and key fobs from ExpressPay from American Express(R), MasterCard(R) PayPass(R) and Visa(R) Contactless payment programs.

The new Optimum L4200 and L4250 terminals are the first PCI PED approved multi-lane payment products to supply out-of-the-box, plug-and-play connectivity with no need for add-on components. The Optimum L4200 has a 160x80 pixel monochrome LCD graphical display that is particularly suited to multi-lane supermarkets, drugstores and similar high-traffic environments. The Optimum L4250 is a high-performance signature capture payment device with a 220x80 pixel 16-greyscale touch screen LCD for applications requiring high-resolution graphics at the point-of-sale.

Both units include a recessed 13-key ADA keypad that meets California Financial Code for Visually Disabled requirements. Both are also equipped with Hypercom's bi-directional, dual-sided magnetic stripe reader and offer integrated ISO 14443-compliant RF payment reader or EMV 4.1 approved smart card reader.

About Hypercom (www.hypercom.com)

Global payment technology leader Hypercom Corp. delivers a full suite of high security, end-to-end electronic payment products 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, healthcare, prepaid, unattended and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits.

Hypercom is a registered trademark of Hypercom Corp. Optimum and Design is a trademark of Hypercom Corp. 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 performance, product sales, revenues and profits. 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; the performance of suppliers and subcontractors; risks associated with international operations and foreign currency fluctuations; the state of the U.S. and global economies in general 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. 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