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ATM Rewards

May 8, 2001

It's another reason to come back to the same ATM. Somewhat like earning frequent flyer miles, ATMRewards allows consumers to earn points for products and services with repeated use of participating ATMs. In addition to using an ATM, consumers can also earn points by shopping online at the ATMRewards Web site.

ATMRewards is a software-based advertising, content and e-commerce application. TEKchand LLC, a Chicago-based technology developer and Application Service Provider, developed the application. TEKchand's technology serves as a remote application, tapping into an ATM's existing network to provide a hardware-free Internet link. ATM owners don't have to worry about hardware updates or field visits to cash machines. TEKchand has developed a technology platform to inexpensively deliver the promise of m-commerce to legacy ATMs with no change in ATM hardware.

More than 70 percent of ATMs are OS/2 machines that run on 386/486 processors. TEKchand enables these machines to provide users with text-based, real-time, targeted Internet-based content. Given that TEKchand speaks the native language of the ATM (NDC+ and Diebold 910, 911 and 912), no software changes are required at the ATM.

Platform value

The true value of the platform will be recognized through the developed applications. The first set of applications, information-based consumer services, require ATM users to input their demographic and personal information at eaccesscard.com when they register. This information is apparent at the ATM in the form of content, advertising, horoscopes, fortune cookies, stock portfolios, CRM (customer relationship management) tools and other services based on the demographic information and preferences input at the Web site.

The second set of applications, transaction services, allow ATM users to execute AT/M-commerce transactions and capitalize on the ATMRewards™ Affinity Program at the ATM. Hotel operators interested in offering their guests access to movie tickets may now do so via the ATM. TEKchand's agreement with Limousine.com allows hotel guests to easily book limousines to airports and taxis at the grocery stores. ATM users in grocery stores may also have recipe ingredients printed on their receipts, potentially resulting in purchases at the store. This strategy compliments the goals of the ATM owner and the environments in which the technology is housed. The key point is that the program can be tailored to meet the unique needs of merchants served by the ATMRewards Software. The applications will greatly enhance the value users derive from the ATM.

Revenue

According to TEKchand founder, Mr. Bahri, ATM owners and affiliate partners can earn revenue through screen coupons, e-commerce, market research and convenience fees. TEKchand markets the ATMRewards program to ATM processing companies, which in turn market to ATM owners. ATM owners can also purchase access to the ATM Rewards Software to place their own ads, if there's not an interest in participating in the full program. TEKchand offers free installation to clients who agree to a three-year contract. According to Bahri, 25 to 30 percent of the revenue is shared directly.

Kiosk or ATM?

TEKchand is not creating Internet kiosks. The company has added specific functions that may be quickly accessed by ATM users. This does not interfere with the rapid disbursement of cash at the ATM.

TEKchand conducted numerous focus groups in Chicago and Atlanta to determine exactly how ATM users felt about additional functionality at the ATM. ATM users overwhelmingly agreed that the value added outweighed the prospect of slightly lengthier transaction times.

Many of the information-based consumer services can be set to print on the ATM receipt, thereby alleviating the need for ATM users to view them at the ATM. Applications may be configured to include one or multiple applications. ATM users loved the idea of getting something back from the ATM in the form of ATMRewards. The fact that the value of these rewards can be realized on the Internet at www.eaccesscard.com and at the ATM is icing on the cake.

Finally, slightly longer lines at the ATM represent an opportunity for ATM owners to deploy additional ATMs, leading to more ATM clusters and chances for higher margin transactions.

ATMRewards™ Affinity program

The ATMRewards™ Affinity Program is the first customer loyalty program to bridge the Internet and the ATM. The ATMRewards™ Affinity Program is the glue that binds ATM users to the ATM and will, hopefully, move those who execute point-of-sale (POS) transactions back to the ATM. The ATMRewards™ Software platform allows ATM owners to differentiate their ATMs in the marketplace, enhance the viability of their ATM networks through greater revenue generation, mitigate the negative feelings associated with ATM fees and fully maximize the value of the real estate investment the ATM represents. Banks, advertisers and other customers sponsor the ATMRewards™ Affinity Program by purchasing ATMRewards. Clients, after purchasing the ATMRewards, decide how to integrate this unique customer loyalty program into their overall customer acquisition strategy.

Earning ATMRewards

ATM owners and advertisers can give ATMRewards to ATM users for conducting transactions at the ATM. In addition, ATM users may earn ATMRewards by answering quick surveys or by opting-in to receive e-mails from advertisers that are a part of the ATMRewards Network. The important point is that TEKchand's technology bridges the Internet with the ATM and allows ATM owners and advertisers to conduct efficient CRM with ATM users and induces ATM users to participate in this process through the ATMRewards™ Affinity Program. ATM users may also independently earn ATMRewards by shopping for goods and services ateaccesscard.com.  

ATMRewards may be redeemed on the Web site or in "real-time" at the ATM. Imagine being able to redeem ATMRewards for activated, prepaid calling cards at the ATM or walking across the street from the ATM for a free cup of Starbucks coffee. ATM users will love it! TEKchand brings the Internet to life through real-time redemptions in retail space!

Advertising with the TEKad Wizard

The TEKad Wizard allows advertisers to establish their accounts on the Internet, monitor their campaigns, alter their messages as campaigns evolve and pay for their campaigns on the Internet. Advertisers can use the TEKad Wizard to check the availability of advertising space and secure marketing reports and other feedback measurement analytics from the TEKad Wizard. In addition, advertisers can target regions, states, cities and neighborhoods within cities using the TEKad Wizard. Advertisers can elect to issue coupons to targeted users, solicit ATM users to receive opt-in e-mails, display quick survey questions and post classifieds at great rates. In summary, the TEKad Wizard completely automates and facilitates the process of establishing, monitoring, altering and paying for an advertising campaign.

Launch plans

TEKchand plans to roll out its ATMRewards program on 250 ATMs in Raleigh-Durham, N.C. and other areas of the Midwest and Southeast by July 2001. The company expects to have ATMRewards on 2,000 ATMs in the Midwest and Southeast by the end of the year. TEKchand is targeting areas such as Chicago, Cleveland, Cincinnati and Florida.

TEKchand invites ATM owners who want the opportunity to make more money through their legacy ATMs to call. Founder, Mr. Bahri and his colleagues are confident that the ATMRewards Software platform can help deliver the promise of M-commerce to their ATMs!

The company name

TEKchand was the name of company founder Mr. Bahri's grandfather. Mr. Bahri is not sure what the name actually means, but says his grandfather was a doctor in India, who spent most of his life serving people who could not afford medical care. The company founder chose the name for good luck, and because TEKchand intends to indiscriminately deliver, like Mr. Bahri's grandfather, the tremendous capabilities of the Internet to a wide audience. Mr. Bahri started TEKchand on the premise that the ATM is the only portable device that you do not have to carry. Mr. Bahri says ATMs are ubiquitous with large screens, are highly reliable and unaffected by spotty coverage and different standards. ATMs do not discriminate and are one of the few technological devices that bridge the digital divide, according to Mr. Bahri.

Mr. Bahri founded TEKchand in October 1999. Headquarters are located in Chicago, Ill., with four full-time employees as of June 2000. TEKchand has technology teams in San Jose, Boston and Lahore, Pakistan. The company has multiple patents filed, with more than 29 unique claims. TEKchand is a privately held company, with funding from BIL Internet Investments Ltd., a Channel Islands investment partnership.

Contact Information

Michael Lucas TEKchand, LLC Telephone: 312.664.9041 Facsimile: 312.664.9218 E-mail: mlucas500@att.net

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