very interesting reading

FRIDAY, SEPTEMBER 25, 2009, 8:30AM
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information provided or for any errors or omissions contained therein. 1

OZEQUITIES NEWSLETTER
FEATURE
Week's Special
ICP: MAIDEN PROFIT FOR STATE OF THE ART ATM COMPANY ON MASSIVE GROWTH PATH IN AUSTRALIA, KOREA AND CHINA
By Jenny Prabhu and Gerald Stanley
iCash Payment Systems Limited is a specialist hardware and software ATM (Automatic Teller Machines)
manufacturer/provider with established operations in Australia, Korea and China. In Korea, it has links
with global industrial and financial institutions, and recently announced a $30 million contract with Lotte
Group, a Korean top 10 listed Company. In China it secured a relationship with Yunnan Nantian
Electronics Information Company Limited (Nantian) Nantian is China’s largest business banking
machine manufacturer and distributer listed on China’s main exchange Business plans and first orders
were announced late last year.
iCash is headquartered in Australia and is one of two listed ATM companies, alongside its larger rival
Customers.
iCash Payments - the subject of this report
iCash Payment Systems Limited is an R&D based ATM hardware and software manufacturer/provider
with innovative products making great strides in the marketplace. Among recent milestones:
During 2009 ICP introduced the cashPod ATM designed for Australia with a built in harm minimisation
program known as iREP (Responsible Entertainment Pack) which was developed in consultation with
gaming industry stakeholders. It is already smartcard enabled. It requires only a phone call from iCash to
activate the technology, whereas more significant hardware and software upgrades could be required on
some competitor machines.
*ICP developed the world's first PCI compliant PINpads for ATMs.
*ICP's cashPod Go is being installed on buses in Korea.
*It launched the ReMoCon, the Remote/Mobile Connectivity solution which resulted in Cruise liner
deployment via satellite communication.
In Australia ICP has about 900 installations. The group has installed over 10,000 devices worldwide.
ICP is headed by executive chairman James Manny, a merchant banker, a director since 2005. Although
ATM deployment in Australia could perhaps be doubled before reaching saturation point , ICP has
already well established links in the South East Asian area with its vast opportunities and has already a
proven track records of success , particularly in Korea which will serve as the model for China expansion
ICP made a maiden profit this year, it has very low debt levels and trading at just 6c due mainly to market
unfamiliarity with the group, it provides a remarkable opportunity well worth considering.

ICASH PAYMENTS - A SNAPSHOT
iCash Payment Systems Limited, a name change for International Concert Attractions Limited in
September 11 2007, is a conglomerate of ATM companies with operations and sales in the US, Korea and
China, put together by International Concert Attractions when it decided to change direction in 2006.
The first acquisition International Concert Attractions made was ATMONE Pty Ltd in Australia, acquired
in July 2006 for scrip - ATMONE was an ATM products and services company that had been founded in
1995.
Then in February 2007 ICP acquired the Transact Group from vendor Sonic Communications Pty Ltd.
The Transact Group at that time operated around 650 ATMs across Australia using Pulse International
Pty Ltd technology.
This was followed soon after by the purchase of 60% of Neo Technology Inc, a Korean ATM
manufacturer with existing sales and contracts in China. In May 2007 ICP sold 8% of its 60% stake in
NeoTech to LG N-Sys a banking machine and solutions company within the LG group, LG N-Sys later
increased its stake in NeoTech to 16%. Neotech later changed its name to NeoICP to reflect the iCash
group branding.
In September 2007 it made an investment in an ATM and banking security software provider in China,
Beijing Yinkatong Technology Co Ltd.
So that from inception the company had sales, R&D and manufacturing operations in three countries.
Milestones
*During 2009 ICP introduced the cashPod ATM designed for Australia with a built in harm
minimisation program known as iREP (Responsible Entertainment Pack) which contemplates future
changes to gaming regulations . It will require no significant additional spend to enable it to comply with
any new operational standards. It was designed by iCash in Australia and engineered and built by its
majority owned ATM manufacturer Neo ICP Korea Inc. It is already smartcard enabled. It requires only a
phone call from iCash to activate the technology, whereas more significant hardware and software
upgrades could be required on some competitor machines.
Also iCash clients can request specific modifications to device operation and utility.
The CashPod ATM has received approval to be added to the CECS approved device list with no
conditions.
*ICP's cashPod Go is being installed on buses in Korea.
*In May this year it announced through it subsidiary NeolCP Inc Korea it had been awarded a KRW 28.6
billion (approximately $A30.6 million) contract to supply a range of high functionality cash deposit and
cash dispensing ATMs to LotteCo Ltd, one of the largest industrial groups in Korea. This will be
supported by NeolCP's Back Office automated cash handling and accounts settlement system. Roll out
commenced in August.
*ICP launched the ReMoCon, the Remote/Mobile Connectivity solution being trialled by a major cruise
liner group.
*In July iCash Payment Systems entered into an agreement with Optus to deploy the Symstream wireless
communications technology for use on its ATM fleet in Australia. Using either the Optus GSM or 3G
networks, Symstream's wireless connectivity simplifies the installation process, is 2 or 3 times faster than
General Packet Radio Service channels and supports remote operation.
It is particularly important in countries where land line services are scarce but cellular service is widely
available and affordable.
*In April iCash Payment Systems through its subsidiary NeoICP Inc in Korea acquired the ATM assets
and business of Taenam AMC Co Ltd, that had been established in May 2000 and is based in Seoul. The
cost of the transaction was $A700,000, its sales for the year ended June 30 2009 was $A3.1 million.
Its assets were vended into a new company WIZ Mechatronics Inc, 51% owned by NeoICP Korea Inc and
49% owned by existing shareholders, ex Taenam management and staff.

*In November 2008 ICP was awarded a contract for ATM system development and operation by Yunnan
Nantian Electronics Information Company Ltd, China's largest business banking machine provider for an
initial order of 6000 units to be deployed in mainland China. iCash has established a branch in Beijing.
*Also last year NAB selected iCash as its Referral Partner to provide white label ATMs and ATM
solutions to NAB customers.
Other R&D advances
The company has designed and delivered technical solutions with real world applications in driving down
management and maintenance costs whilst maximising device uptime and therefore revenues for clients.
These include:
*Remote and self diagnostic functions for ATMs that provide managers with a graphic display of device
service issues and repair procedures, ensuring maximum uptime and minimum service call outs.
*iCash through its subsidiary NeoICP has developed a range of machines that in some cases have no
known competitors.
For example the NeoICP Back Office which is a secure automated cash sorting and settlement device
designed for organisations with large numbers of cashiers or tellers.
This device frees up the workload of 3 employees and recovers its investment cost in around 3 months. It
also provides sales income and recurring service agreement revenues.
Its product range, designed and manufactured by ICash includes ATMs, multi function kiosks, automated
cash sorting devices, complete public transport ATM solutions and integrated settlement and back office
automation systems. Its payments infrastructure includes transaction processing, switching, interchange
systems and software/middleware solutions.
Manufacturing Capacity
iCash through its subsidiary NeoICP maintains two manufacturing and assembly lines capable of
producing up to 1000 machines per month. This meets all current and immediate future manufacturing
demands. Management however, anticipate that as the China strategy gains traction, the economic case to
migrate some or all of its manufacturing capacity to China may be compelling. Plans are already well
advanced to exploit Nantian's manufacturing infrastructure should this plan be implemented.
Technical personnel and the sales force
Technical heads include Kim Stewart, CEO Australian Operations and Mr Steave Ham.
ICP has restructured its sales force and has some of the most qualified and respected personnel in the
industry.
The Competition
In an industry where the barrier to entry is fairly low, R&D based innovation as well as marketing is of
prime importance.
Indue is one of Australia's leading providers of white labeled and tailored co-branded banking and
transactional products, providing low cost back end services to organisations for more than 40 years. It
specialises in deploying dial up, lobby style ATMs, and can own, manage and operate ATMs at any
location with the customer's own branding.
Cashcard Australia in 2002 acquired Electronic Banking Solutions (EBS), the largest deployer of
merchant ATMs in Australia with Cashcard Australia the third largest deployer.
Listed Customers Ltd (market cap $420 mln) has some 5,500 ATMs. It formed a j/v with Bendigo Bank
and MasterCard to establish Strategic Payment Services (SPS) which will have over 100 million
transactions each year.

iCASH PAYMENTS LTD FINANCIALS
Last Traded price 5.9 cents
Shares Issued 720 mln
Market Cap $42.5 mln
Directors:
James Andrew Manny, Executive Chairman.
Mr. Manny's career in the banking and financial services industry spans over 25 years in Australia and
overseas at top levels of management and directorship of major organisations. His experience includes
treasury operations, IPO project management and capital raising. From1996 to 2006James was Managing
Director of the Credit New Holland Group Limited. He currently holds a non executive director role at
Credit New Holland Group Limited.
He has been the Executive Chairman of iCash Payment Systems Limited since August 22, 2006 and a
Director since September 28, 2005.
Sin Pyng Teng executive director and company secretary.
Mr Teng has held senior accounting and management positions with substantial companies across a range
of industries. Since 1990 he has been a consultant involved with Merger and Acquisitions and
Restructuring also having a crucial role in capital raising. Mr Teng is a CPA, Fellow of Australian
Institute of Company Directors and an Associate Fellow of the Australian Institute of Management.
Kim Adrian Stewart, executive director, CEO Australian Operations .
Mr Stewart has held senior marketing and management positions with substantial local and international
companies across a variety of industries. He has been involved in the electronic transaction industry for
over 20 years primarily in Australia, Asia and Europe