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Mark Twain Bank Launches Ecash

---------------------------PRESS RELEASE------------------------

Release date:                  Contact DigiCash New York:
Monday, October 23, 1995       Mr. Daniel M. Eldridge
Amsterdam, The Netherlands     Tel: +1 212 909 2955 (direct)
                                    +1 212 909 4092 (main)
                               Fax: +1 212 318 1222
                               email: [email protected]

Contact DigiCash Amsterdam:    Contact Mark Twain Bank St. Louis:
Mr. Paul Dinnissen             Mr. Frank O. Trotter, III
Tel: +31 20 665 2611           Tel: +1 314 997 9213
Fax: +31 20 668 5486           Fax: +1 314 569 4906
email: [email protected]      email: [email protected]
http://www.digicash.com/       http://www.marktwain.com/

                Mark Twain Bank Launches Ecash

      Mark Twain Bank begins operating DigiCash's ecash(TM)
               on the Internet with U.S. Dollars

     Mark Twain Bank of St. Louis Missouri starts accepting
applications Monday October 23, 1995 for accounts that can be
used to withdraw and deposit ecash over the Internet.
DigiCash(TM) bv, of Amsterdam, the Netherlands, developer of
ecash, is supplying the technology to Mark Twain Bank under
non-exclusive license. The technology has been tested with a
'monopoly(TM) money' currency called CyberBucks(TM), but this U.S.
dollar denominated system is the first time electronic cash is
actually being offered using real currency.

     "This launch marks the beginning of a new era, one in
which the digital equivalent of paper money and coins will
become even more important than their physical precursors are
today," according to Dr. David Chaum, Managing Director of
DigiCash bv and inventor of electronic cash. "It will catalyze
enormous growth in electronic commerce on the Internet, and
prove of enduring value through its improved protection of
consumers and society at large."

     Sweden Post, another ecash licensee, owns the retail bank
that is responsible for more than 50% of value transfers in
Sweden and has direct access to accounts of over 75% of Swedish
households. Sweden Post has not yet announced its launch date.

How does it work
     Using ecash is like using a virtual ATM (Automatic Teller
Machine). When connecting to it over the Internet, you
authenticate ownership of your account and request the amount of
ecash you want to withdraw, much like in person. But instead of
putting paper cash in your wallet, your software stores the
digital cash it obtains onto the hard disk of your PC.

     When you are asked to make a payment on the net, you
confirm the amount, purpose and payee and then your ecash
software transfers the correct value in coins from your disk.
Sellers, ranging from casual participants in the global Internet
bazaar to mega-retailers, deposit the digital coins they receive
into their accounts.

     Behind the user interface, your computer actually chooses
the serial numbers of the electronic coins based on a random
seed. Then it hides them in special encryption envelopes,
provides them to the virtual ATM for signing, and removes the
envelopes from what is returned--leaving the bank's validating
digital signature on the serial numbers. This way, when the
bank receives from the shop the coins you spend, it cannot
recognize them as coming from any particular withdrawal,
because they were hidden in envelopes during withdrawal. And
thus the bank cannot know when or where you shop or what you

     The serial number of each signed coin is unique, allowing
the bank to be sure it never accepts the same coin twice. In
case you wish to identify the recipient of any of your
payments, you can also reveal the serial number and prove that
you formed it. And, in case your computer were ever to break
down, if you had written down the secret random seed number you
chose initially when opening your account, future versions
would let you use it to re-create the coins in envelopes and
thereby obtain a free re-issue of the signed coins that were

How safe is it
     Security is fundamental to electronic cash. The
cryptographic coding protecting every 5 cent ecash payment is
the same as that routinely relied upon for authenticating
requests to move huge sums between banks and even for national
security. But in principle ecash goes beyond such
communications security to achieve true multiparty security: no
one (buyer, seller, bank) can cheat anyone else, no matter how
they might modify their own software; even if two parties
collude, they cannot cheat the third.

     Replacing paper and coins with ecash would make life much
harder for criminals. Because the payer's computer chooses the
serial numbers of the coins, he or she can later irrefutably
identify blackmarketeers, extortionists, and acceptors of
bribes--were they to take ecash. Paper notes, briefcases full of
which can be received without leaving any record, allow money
laundering and tax evasion today. With ecash, however, all the
amounts each person receives are known to their bank.
Significant criminal activity could thus be thwarted by
completely replacing paper money; moreover, the privacy of ecash
would be essential to widespread acceptance of any electronic
payment system that in effect becomes mandatory.

Early, competing, and future systems
     Customers of Mark Twain Bank will have to fill out an
application form that is available over the Internet, mail or
fax it in, and receive a password by mail. The bank's unique
multi-currency facilities will allow use from many countries. In
the future, the ability to withdraw funds from ordinary checking
accounts will be as ubiquitous as making withdrawals at physical
ATMs today. Frequent visits to digital branches will give banks
the opportunity to offer a full range of financial services to
their customers.

     The over 60,000 people who registered for the CyberBucks
experiment--more than all the other cyber-payment schemes
combined--suggests a high level of support and interest in
ecash. DigiCash plans to keep the experiment going for those
who wish to continue using it.

     After CyberBucks went live almost exactly one year ago,
and became the first cryptographically protected Internet
payment scheme, a plethora of "me-too" schemes have been
announced. Most are simply account-based, accepting requests
from users to move money from their account to a specified
other account, thereby revealing to the central system exactly
when, how much, and to whom they pay, and putting users at the
mercy of system errors that may result in loss of money or
unexpected lock out. Only ecash works with digital coins,
empowering people with full control over their side of
financial transactions and full control over when and to whom
identifying information is released.

     Ecash is currently software only: once you've opened an
account you just download the software over the net and you're
ready to run. DigiCash is developing chip cards and simple
readers which will give provide even more security and
portability of ecash between machines.

     DigiCash does not aim to operate ecash systems itself, but
rather to continue developing new versions and licensing to
financial institutions.

(The following are trademarks and should always be referred to
as such: CyberBucks, DigiCash, ecash, Mark Twain Bank and

*  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *

                  DigiCash Backgrounder

History and Mission
     Since beginning operation in April 1990, DigiCash's mission
and primary activity has been: to develop and license payment
technology products--chip card, software only, and hybrid--that
both show the true capability of technology to protect the
interests of all participants and are competitive in the market.

     Dr. David Chaum, managing director of DigiCash, received
his Ph.D. in Computer Science from the University of California
at Berkeley, then taught at New York University Graduate School
of Business Administration and at the University of California,
and headed the Cryptography Group at CWI, the Dutch nationally
funded center for research in mathematics and computer science,
before taking his current position. He has published over 45
original technical articles on cryptography and also founded the
International Association for Cryptologic Research.

DigiCash Products
Blue: smart card technology for EMV & prepaid with dynamic public key
  Conforms to joint Europay, MasterCard, Visa specifications;
  multiple applications including loyalty and closed systems;
  superior data integrity in case of malicious/accidental
  interference/interruption; requires only the smallest and most
  proven chips, e.g. SC-24 or ST601; mask technology licensing.

CAFE: smart card and card-accepting electronic wallet project
  Consortium of 12 other members founded and chaired by
  Dr. Chaum of DigiCash; simulation, mask and first readers
  developed by DigiCash; trial in November 1995 at the European
  Commission headquarters building; technology trial in
  participation with related open special interest group and
  partially funded by the EC.

DyniCash: highway-speed road-toll collection system using smart cards
  Chip card inserts into battery-powered dashboard unit;
  reflected backscatter microwave technology by industry leader
  Amtech; prepaid mode has user privacy; open and/or closed
  pricing schemes; tested extensively in Japan; non-exclusive
  licensing of the payment technology.

Ecash(TM): software only electronic cash system for internet/email
  Users download software that can make and receive payments;
  protects users' money like travellers checks and privacy like
  coins; world-wide experiment with tens of thousands of users;
  Macintosh, MS-Windows and X-Windows; any WWW browser; user
  software free with issuer licensing.

Facility Card: complete facility management smart-card/reader system
  Cash replacement, access control, and time/attendance system;
  now in schools, hospitals, industry, offices, recreation;
  interfaces to vending, point-of-sale, access control, copiers,
  phones, gaming; downloadable & upgradeable readers work on-line
  and/or off-line; sold through VAR's.

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                    Early Adopter Companies

AdOne Classified Network (Steve Brotman, +1 212 431 5842,

BizNet Technologies (Doug Mauer, +1 540 231 7715,

Consensus Development Corporation (Christopher Allen, +1 510
559 1500, http://www.consensus.com/)

Delorie Software (http://www.delorie.com/)

Global-X-Change Communications (Elliot Burdett, +1 613 235 6865,

PULVER.COM (Jeff Pulver, +1 917 336 8240, http://www.pulver.com/)

Sun Microsystems (Humphrey Polanen, +1 415 336 0022,

The Electronic Frontier Foundation (EFF) (Stanton McCandlish,
+1 415 668 7171, http://www.eff.org/)

The Electronic Privacy Information Center (EPIC) (Marc
Rotenberg, +1 202 546 6520, http://www.epic.org/)

The New Sun Newspaper (Lese Dunton, +1 212 799 7402,

The Well (Bruce Katz, +1 415 332 4335, http://www.well.com/)

Walter Shelby Group (John Buckman,

These companies offering their clients ecash(TM)
Husky Labs (David Levine, +1 410 889 3409,

  (Clients: National Public Radio, The National Geographic
  Society, PoliticsUSA, Penguin Books, E-Z Communications,
  Pentagon Cds and Tapes, AfroAmerican Newpapers, Ellicott
  Machine Corp., The Greater Baltimore Committee Technology
  Council, National Petroleum Council, Netv, Review.Net, Robert
  Rytter & Associates, and United States Holocaust Memorial

Organic Online (Brian Behlendorf, +1 415 284 6888,

  (Clients: Advertising Age, Saturn Cars, Rubin Postaer Agency,
  Sybase, Inc., Volvo Cars of North America, Xircom,
  1-800-Collect, Conari Press Books, Great Amercian Music Hall,
  City of Tribes Communications, Octel, Montgomery Securities,

Poppe Tyson Advertising (Fergus O'Daly, +1 212 727 5600,

  (Clients: American Express Travel Agency, PSINet Inc.,
  Intercon Systems Corp., Fordham University, New York Cruise
  Lines Inc., Osram Sylvania, Pfizer, Food Service Group,
  Ridgewood Savings Bank, Warner Lambert, Drew, EUA COGENEX, New
  Jersey Travel and Tourism, AT&T, American Isuzu Motors,
  DataProducts, Magellan, Toshiba America, Computer Systems
  Division, Toshiba Computer Systems, Toshiba Disk Products,
  Applied Medical Informatics, Cascade Design Automation,
  Chrysler Corp. Cirrus Logic, Cypress Semiconductor, Escalade,
  Hewlett-Packard, Hyundai Electronics America, Intel Corp.,
  International Network Services, Internet Profiles Corp.,
  LANNET, Logic Modeling, Measurex, MIPS Tchnologies, Netscape
  Communications Corporation, Network Equipment Technologies,
  Network General, Nokia, North Mountain Software, Premisys
  Radiomail, Red Herring Magazine, Robert Half International,
  Sony Electronics Inc., Broadcast Product Group, Sync Research,
  Synopsys, Synopsys Logic Modeling Group, Touche, Valvoline)

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                   Further Documents Available

1. "The Ease of Using ecash",
   tutorial, October 1995, 10 pages. (Text with diagrams.)

2. Congressional Testimony:

   text of testimony delivered by Dr. David Chaum to Committee
   Hearing of the U.S. House of Representatives:"The Future of
   Money", Subcommittee on Domestic and International Monetary
   Policy; Committee on Banking and Financial Services, July
   1995, 3 pages. (Text only.)

3. "Achieving Electronic Privacy",
   by Dr. David Chaum, Scientific American, August 1992, 6 pages.
   (Text with diagrams.)

4. European Union - Project CAFE:
   Conditional Access For Europe, brochure, 1994, 2 pages.
   (Text only online, diagrams and text only by post.)

How to obtain documents
Items 1-4 are available on our World Wide Web Server at:

1) http://www.digicash.com/publish/ecash_intro/ecash_intro.html
2) http://www.digicash.com/publish/testimony.html
3) http://www.digicash.com/publish/sciam.html
4) http://www.digicash.com/products/projects/cafe.html

Please let us know, if you would like to receive any of
Items 1-4 in one of the following other formats:

a) via electronic mail in plain text (ascii) format,
(Item 1 and 4 unavailable)
b) via facsimile
c) via post

---------------------------PRESS RELEASE------------------------