Action Significantly Broadens Market for Hypercom

SAN DIEGO, FMI Marketechnics, January 30, 2006–Hypercom Corporation (NYSE: HYC) today announced that its 32-bit Optimum multi-lane payment terminals have been tested for compatibility with IBM SurePOS™ 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 U.S., 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.

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 Corporation. “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® XScale® 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” 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®, MasterCard® PayPass® and Visa® 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 160×80 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 220×80 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 (http://www.hypercom.com)

Global payment technology leader Hypercom Corporation (NYSE: HYC) 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.