VeriFone Systems Approved for Rollout of NYC Taxi Customer Controlled Payment

VeriFone Holdings, Inc. (NYSE:PAY) announced today that its payment systems are the first to be approved for full-scale rollout in the New York City Taxi & Limousine Commission’s (TLC) effort to upgrade all of the city’s 13,000 medallion yellow taxicabs with customer-oriented payment and information systems.

The TLC has mandated that beginning in October 1, 2007, upon their next scheduled inspection, all New York taxis will have implemented technology-based customer service improvements that will include an interactive electronic passenger map and information screen, and credit/debit card acceptance. Systems implemented by VeriFone Transportation Systems are the first to obtain a formal Notice to Proceed from the TLC, authorizing installation and use in any of the 13,000 licensed cabs in the city.

“We are pleased to be first to meet the standards set by the TLC in its efforts to enhance customer service and revolutionize the taxi industry in New York City,” said Douglas G. Bergeron, chairman and CEO of VeriFone. “These systems provide the most dynamic, reliable and durable solution for owners and operators of taxis and limousines, and we look forward to working with them to make this new system a win-win for everyone.”

The VeriFone-based solution utilizes wireless technology to provide integrated payment in the passenger cab, including a card swipe and contactless payment for credit and debit payment of fares, in an easy-to-use ATM style interface. Riders have the option to select a preset tip from a list of choices, or input their own amount.

The riding experience is further enhanced with the Passenger Information Monitor, a 10.4-inch touch-screen monitor that provides exclusive news and content for passengers through an exclusive partnership with market-leading WABC-TV New York. Content selections include news and weather from WABC; sport from ESPN; and information on restaurants, night life, hotels and attractions from Zagat Survey. Near-term enhancements will include traffic, movie previews and local event information at the touch of a button.

A smaller model utilizes the VeriFone MX870, which supports secure credit card transactions and PIN-based debit card transactions with contactless payment and electronic signature capture, as well as advertising and content delivery. The smaller option will provide an ideal solution for the integration of potentially smaller hybrid vehicles.

The unique interactive systems, which also include onboard global positioning systems (GPS), were designed under guidelines from the TLC as part of a service improvement system designed to enhance fleet management and improve customer service.

“The TLC is setting the standard for the industry by initiating this ground-breaking improvement to one of New York’s most-beloved icons, the yellow cab,” said Amos Tamam, president and CEO of VeriFone Transportation Systems. “In addition to providing customers with payment choices, owners benefit from improved fleet management and the potential for enhanced revenue through advertising. Drivers also now have improved access to real-time traffic information and the ability better serve customers who leave items in their cabs, an added benefit to both residents and visitors to New York.”

VeriFone Transportation Systems will begin providing the integrated solution immediately, providing training and 24/7 service to operators. WABC is serving as the primary sales agent for advertising, which includes a variety of video and interactive messages, reaching hundreds of thousands of taxi riders in a unique environment.