IBM Selects Hypercom for Self-Checkout Rollout in Germany

Hypercom Corporation (NYSE: HYC) today announced that one of Germany’s leading retailers, with more than 10,000 retail outlets, is successfully using Hypercom’s Artema Modular as part of IBM’s self checkout system in five test sales outlets in Bavaria. The first phase comprises 20 self checkout systems. Following the pilot, IBM’s self checkout system with Artema Modular will be rolled out to several of the retailer’s larger stores in Southern Bavaria. IBM Germany Gmbh selected the Artema Modular in competition with other global payment providers.

"IBM’s selection of Hypercom speaks to the operational efficiency, flexibility and security of our technology, and reinforces the leadership level we have established in Europe’s fast-growing unattended card payment sector,” said Christian Jürs, Vice President of Sales, Hypercom Germany. "This deployment is a major step forward in support of Germany’s retail sector, bringing new levels of speed and convenience to shoppers who want to pay for their purchases quickly and move on to other things.”

Heiko Rösel, self checkout consultant at IBM, added "This terminal’s modular and flexible components and interfaces make it ideal for our requirements. That is why we selected Hypercom Artema Modular as a key component of our self-checkout system.”

The Artema Modular, Hypercom’s best-in-class unattended card payment solution, was first introduced at the end of 2005, and can now be found in self-service machines deployed in Europe, the Middle East, Asia Pacific and North America. For more information, please visit http://www.hypercom.com/products/ArtemaModular.asp.

About Hypercom (www.hypercom.com)

Global payment technology leader Hypercom Corporation 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, petroleum, healthcare, prepaid, unattended and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits. Hypercom is a founding member of the Secure POS Vendor Alliance (SPVA), and is the second largest provider of electronic payment solutions and services in Western Europe, and third largest provider globally.

Hypercom and Artema are registered trademarks of Hypercom Corporation. All other products or services mentioned in this document are trademarks, service marks, registered trademarks or registered service marks of their respective owners. This press release includes statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding market acceptance of new products, product capability and performance, product competitiveness, product sales, revenues and profits, market share, and expected acquisition results and benefits. These forward-looking statements are based on management’s current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, factors that could cause actual results to differ materially from those in forward-looking statements include: industry, competitive and technological changes; the loss of, and failure to replace any significant customers; the composition, timing and size of orders from and shipments to major customers; inventory obsolescence; market acceptance of new products and services; compliance with industry standards, certifications and government regulations; the performance of suppliers, contract manufacturers and subcontractors; the ability to successfully integrate the technologies, operations and personnel of acquired businesses in a timely manner; the ability to obtain the expected strategic and financial benefits from acquisitions; risks associated with international operations and foreign currency fluctuations, the state of the U.S. and global economies in general and other risks detailed in our filings with the Securities and Exchange Commission, including the Company's most recent 10-K and subsequent 10-Qs and 8-Ks. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements. HYCP