Postilion Showcases New Customer Administration Portal at Africa's Premier Banking Technologies Conference

16 Feb 2009 13:00 Africa/Lagos

Postilion Showcases New Customer Administration Portal at Africa's Premier Banking Technologies Conference

Postilion co-sponsors East Africa 2009 Banking & Payment Technologies Conference

JOHANNESBURG and NAIROBI, Kenya, Feb. 16 /PRNewswire-FirstCall/ -- Postilion, a leading provider of software solutions for self-service banking and payments and a division of S1 Corporation (NASDAQ:SONE) , today announced that they will be participating at the annual AITEC event in Nairobi from 17 to 19 February. This year's event will focus on the customer's experience of technology implementation and services, challenging suppliers and bankers alike to evaluate their systems in light of customer needs and preferences.


The latest enhancements to Postilion's market leading payments solutions, a new customer administration portal, will be on show at stand E1. Payments experts will be on hand to demonstrate the Postilion Portal, which gives a unified view of customers, accounts, transactions, and activity across various payments channels via a web browser.


Four speakers will showcase Postilion's customer-centric payments solutions at the conference:


* Case Study: The Umoja Switch in Tanzania, by Paul Nilsen, GM of
Business Connexion, a Postilion client based in Tanzania (Session 3)
* Innovating for EFT Success, by Andre Niemand, Sales Manager, Postilion
Africa (Session 3)
* Point of Sale Value-Added Services, by Ophias Sherewa, MD of Transaction
Payment Systems, a Postilion reseller in Africa (Session 6)
* Facilitating Prepaid with Electronic Voucher Distribution, Jim Baird, MD
of ATM Africa, a Postilion reseller in Africa (Session 7)



More than 90 organizations in Africa now use Postilion to enhance their customers' experience of electronic payments. Internationally, more than 300 clients have successfully implemented various Postilion solutions. Postilion drives major transaction switches and processors in numerous African countries, including the continent's largest economies: South Africa, Nigeria, and Kenya. Smaller regional switches, such as those in Tanzania, Zambia, Zimbabwe and Uganda, also run on Postilion platforms. Africa's top three banks and top three retailers use Postilion to drive their electronic payments. Postilion has a presence in 15 countries across the African continent.


About Postilion


Postilion, a division of S1 Corporation (NASDAQ:SONE) , is a leading provider of integrated solutions for self-service banking and payment processing. Our offices, on five continents, serve over 1,500 customers in more than 50 countries. Postilion solutions drive self-service financial transactions and payments, including advanced transactions such as prepay, through Internet access points, ATMs, POS terminals, and phones.


More than 100,000 ATMs and 500,000 POS terminals worldwide run on Postilion solutions. In the United States, over 1,250 credit unions and community financial institutions use Postilion solutions. Built on open systems, Postilion solutions provide consolidated management information, card management, 3DES and EMV enablement, and loyalty management. At the forefront of compliance with new regulations and security enhancements, such as the Payment Card Industry Data Security Standard (PCI DSS) and Visa's Payment Application Best Practices (PABP), Postilion can help customers achieve compliance with the latest data security standards developed by the payment card industry. More information is available at www.postilion.com.


About S1 Corporation


S1 Corporation (NASDAQ:SONE) delivers customer interaction software for financial and payment services and offers unique solution sets for financial institutions, retailers, and processors under three brand names: Postilion, S1 Enterprise and FSB Solutions. Additional information about S1 solutions is available at www.s1.com, www.postilion.com, www.S1enterprise.com, and www.fsb-solutions.com.


Forward-Looking Statements


This press release contains forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act. These statements include statements with respect to our financial condition, results of operations and business. The words "believes," "expects," "may," "will," "should," "projects," "contemplates," "anticipates," "forecasts," "intends" or similar terminology identify forward-looking statements. These statements are based on our beliefs as well as assumptions made using information currently available to us. Because these statements reflect our current views concerning future events, they involve risks, uncertainties and assumptions. Therefore, actual results may differ significantly from the results discussed in the forward-looking statements. The risk factors included in our reports filed with the Securities and Exchange Commission (and available on our web site at www.s1.com or the SEC's web site at www.sec.gov) provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Except as provided by law, we undertake no obligation to update any forward-looking statement.


Source: S1 Corporation

CONTACT: Eduan Swanepoel, + 27 21 525 5000,
eduan.swanepoel@postilion.com


Web site: http://www.s1.com/
http://www.postilion.com/


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KBB.Com Names the Best 2009 New Family Cars

KBB.COM NAMES 2009 BEST NEW FAMILY CARS

Editors Focus on Top 10 Fuel-Friendly Family Haulers, Feature Wide Variety of Vehicle Segments

IRVINE, Calif., February 17, 2009 /PRNewswire/ — - Kelley Blue Book www.kbb.com, the leading provider of new- and used-car information, today announces its picks for the honor of being named one of 2009's Best New Family Vehicles. The American family has never had so many choices when it comes to safe, roomy and affordable family cars. While a sea of vehicles is ultimately a good thing, it can also make it more difficult for families to pick a winner. To help consumers determine which new cars should be on their family's consideration list, the editors of Kelley Blue Book's kbb.com compiled a list of the top 10 Best New Family Vehicles, evaluating an ever-lengthening list of eligible vehicles on such factors as resale value, fuel efficiency, capability and kid-friendliness.

This year, the kbb.com editors chose to put extra emphasis fuel economy when choosing their list of the top 10 best cars for families. Gas prices have dropped sharply from their record highs, but the sluggish economy is now dictating smart spending with a focus on overall value. Comprising a wide range of vehicles that includes a compact sedan, a full-size SUV, hybrids, non-hybrids and a clean diesel, kbb.com's list of the 10 Best New Family Vehicles for 2009 features something for everyone.

Kbb.com's 2009 Best New Family Vehicles

Chevy Malibu Honda Odyssey
Chevy Tahoe Hybrid Toyota Camry Hybrid
Chevy Traverse Toyota Highlander Hybrid
Ford Escape Hybrid Toyota RAV4
Honda Civic VW Jetta SportWagen TDI

Vehicles above listed in alphabetical order by brand

"Given the current state of the economy, parents want to get even greater value for their money while buying a new vehicle that will also accommodate their family's lifestyle and needs," said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. "Fuel-friendly family cars come in so many shapes and forms these days that, no matter the segment or powertrain, there is an efficient – both economically and environmentally – choice out there to suit everyone's needs."

Kbb.com Editorial Comments on the 2009 Best New Family Vehicles
(Vehicles below listed in order of overall passenger/cargo roominess)

2009 Honda Civic
29 mpg (25 city, 36 highway)
For families that pride themselves on thinking small, the Honda Civic is a perennial all-star. Combining impressive fuel economy, unrivaled reliability and class-leading resale values, the winner of our 2009 Small Sedan Comparison is one of those special vehicles by which all its competitors are measured.

2009 Toyota Camry Hybrid
34 mpg (33 city, 34 highway)
The hybrid version of the best-selling car in the country delivers an average of 135 more miles from a 15-gallon fill-up than its gas-only counterpart. On long family road trips, you'll have even less of a chance of making it through a full tank between restroom breaks.

2009 Chevy Malibu
26 mpg (22 city, 33 highway)
As a fuel-friendly family sedan, the newest Chevy Malibu has some seriously strong credentials. Not only does it offer class-leading fuel economy topping out at an impressive 33 highway miles per gallon, it also edged out the Honda Accord to win our 2008 Family Sedan Comparison Test.

2009 VW Jetta SportWagen TDI
34 mpg (30 city, 41 highway)
Thanks to the new technology and new clean diesel fuel that make it emissions-legal in all 50 states, the Jetta TDI's cult-like following is at risk of being absorbed by the mainstream. For some, the Jetta SportWagen TDI is the gold standard of responsible family transportation.

2009 Ford Escape Hybrid
32 mpg (34 city, 31 highway)
After undergoing a major overhaul for the 2008 model year, the Ford Escape Hybrid is improved again for 2009 with a more powerful and more efficient gas-electric powertrain. Its city fuel-economy rating of 34 miles per gallon is one better, even, than that of the Toyota Camry Hybrid's.

2009 Toyota RAV4
24 mpg (22 city, 28 highway)
In addition to class-leading fuel economy, the Toyota RAV4 offers one especially family-friendly feature uncommon in the category: a third row of seats. It's a tight squeeze back there for some, but we ran into a family who shuttled seven people from Northern Utah to Southern California – and back – in a RAV4.

2009 Toyota Highlander Hybrid
26 mpg (27 city, 25 highway)
The three-row crossover continues to fortify its recently acquired status as the quintessential family car. This gas-electric version of Toyota's Camry-based crossover has the distinct advantage of being the most fuel-efficient three-row vehicle on the road.

2009 Chevy Tahoe Hybrid
21 mpg (21 city, 22 highway)
Car-based crossovers continue to displace traditional SUVs in suburban driveways, but for big families with big passenger/cargo/towing needs, the full-size SUV remains indispensible. The Chevy Tahoe Hybrid is as green as it gets in this arena, and still offers towing capacity of up to 6,200 pounds.

2009 Chevy Traverse
19 mpg (17 city, 24 highway)
Boasting more cargo volume than even its Chevy Tahoe stablemate, the Traverse is the biggest crossover on the road — yet it beats the fuel economy of many smaller three-row vehicles. We like all the Traverse's siblings – Buick Enclave, GMC Acadia, Saturn Outlook – but the Chevrolet has the lowest starting price, which makes it our family pick.

2009 Honda Odyssey
20 mpg (17 city, 25 highway)
20 mpg (17 city, 25 highway) We've always thought an Acura badge would look right at home on the sharply styled, thoroughly refined Honda Odyssey. The most premium-like minivan on the market is also the most fuel efficient, thanks in part to its (optional) ability to cruise on three of six cylinders.

Family Vehicle Research Tools Available on Kelley Blue Book's kbb.com
Full expert car reviews of 2009 model year vehicles, including written and video reviews
2009 model-year car safety information
Crash test data
Rollover ratings
Air bag information
Specifications and information on optional features, including:
Child door locks
Rear entertainment systems
Cup-holders
Optional third-row seating
Perfect Car Finder® Tool
Side-by-Side Car Comparison Tool
Consumer car reviews
Car incentives and rebates information
New car pricing, including MSRP, dealer invoice price, New Car Blue Book® Values and projected resale value information
Used car values, including trade-in, retail and private party values
Environmental information on KBB® Green
For more information about the 2009 Best New Family Vehicles, visit www.kbb.com/family09.

About Kelley Blue Book (www.kbb.com)
Since 1926, Kelley Blue Book, The Trusted Resource®, has provided vehicle buyers and sellers with the new and used vehicle information they need to accomplish their goals with confidence. The company's top-rated Web site, www.kbb.com, provides the most up-to-date pricing and values, including the New Car Blue Book® Value, which reveals what people actually are paying for new cars. The company also reports vehicle pricing and values via products and services, including software products and the famous Blue Book® Official Guide. According to the C.A. Walker Research Solutions, Inc. – 2008 Spring Automotive Web Site Usefulness Study, kbb.com is the most useful automotive information Web site among new and used vehicle shoppers, and half of online vehicle shoppers visit kbb.com. kbb.com is a leading provider of new car prices, car reviews and news, used car blue book values, auto classifieds and car dealer locations. No other medium reaches more in-market vehicle shoppers than kbb.com.

Media Contacts:
Robyn Eckard
949-268-3049
reckard@kbb.com
Joanna McNally
949-268-3079
jmcnally@kbb.com
Brenna Robinson
949-267-4781
berobinson@kbb.com

'The More Things Change, the More They Remain the Same'

'The more things change, the more they remain the same':

Ajayi Crowther on the Challenge of Education in the Niger Delta



"On these days [holidays] every one appeared in his or her best dress, the males in long shirts like nightshirts, but made of the best Manchester goods they could obtain, such as rich silks, silk velvets, damasks, etc., their under wrappings being of the same materials. The head coverings are black or straw hats or caps, decorated with coral beads of the best quality obtainable. The females appeared in the same rich drapery, but their dresses are cut into lengths of cloths about the size of a moderate table cover. Many such are passed round in layers on the waists and bent in the front until they become a large pile of goods, which make their gait awkward. In addition to all this rich drapery, strings of large, expensive, real coral beads are suspended on the necks of both males and females, at the lowest rate to the amount of ₤50 or ₤60 on the body of an individual. The necks of some females are quite weighed down with them. These coral beads are of very large grains, which are much preferred to small grains, mostly long pipe, round, or drum shape. During the late amusements a new ornament has been introduced in addition to corals as jewels, viz. coins. Gold sovereigns, silver dollars, florins, shillings, and sixpenny pieces are bored through and strung up with coral beads for the neck, wrists, or ankles to the amount of as many pounds as each one was able to purchase. These are exhibitions of greatness and the test of superiority in riches. In consequence of this English gold sovereigns and silver coins have become articles of great demand in the palm oil trade, for ornamental dresses as above stated. One of the native chiefs at New Calabar was said to have purchased coins for his own ornaments, wives', and children's to the amount of ₤500, paid for in palm oil. It was estimated by gentlemen competent to judge that the hat of another chief was valued at forty puncheons of palm oil, which at ₤12 per puncheon, as oil was rated in the river, was equal to the value of ₤480, of coral beads, gold and silver coins, with which the hat was decorated.

This being one of the chief objects of their emulation, one may guess how eager each one much be to make as much by trade as possible, and even to increase their accumulated stores by enormous overcharges on their native produce or materials, and how wasteful it must appear to some of these ignorant people to pay ₤2 a year school fee for the education of a child, because education is not a visible appendage for exhibition as an ornament, as two sovereigns, twenty florins, forty shillings, or eighty sixpenny pieces would have been on their persons."

Ajayi Crowther, quoted in "The Black Bishop" by Jesse Page, 1908


--
It's the Bicentenary - 200th birthyear- of Samuel Ajayi Crowther! Let's celebrate the life and work of the legendary African educator, pioneer linguist and visionary leader in books, comics, films and other media to benefit generations yet unborn.
For details, check out http://apps.facebook.com/causes/177074?m=3124eff7

Continental Airlines Offers Support to Colgan Air in Providing Assistance to Families of Flight 3407 Passengers and Crew

13 Feb 2009 08:18 Africa/Lagos

Continental Airlines Offers Support to Colgan Air in Providing Assistance to Families of Flight 3407 Passengers and Crew

HOUSTON, Feb. 13 /PRNewswire-FirstCall/ -- Continental Airlines (NYSE:CAL) this morning expressed its profound sadness concerning the accident involving flight 3407, operated by Colgan Air, that occurred Thursday night near Buffalo .


"Continental extends its deepest sympathy to the family members and loved ones of those involved in this accident," said Larry Kellner, chairman and CEO of Continental Airlines. "We are providing our full assistance to Colgan Air so that together we can provide as much support as possible for all concerned."


Continental representatives are traveling to Buffalo to provide assistance to Colgan in its response to the accident. A family assistance center is being established in the area.


"Our thoughts and prayers are with all of the family members and loved ones of those involved in the flight 3407 tragedy," Kellner added.


Family members of flight 3407 passengers and crew should contact the airline at 1-800-621-3263.


Source: Continental Airlines

CONTACT: Corporate Communications, +1-713-324-5080, corpcomm@coair.com


Web site: http://www.continental.com/

Breaking News: Theodore Orji Wins At the Court of Appeal

Theodore Orji

Appeal Court in Port Harcourt has declared Theodore Orji of the Progressive Peoples Alliance (PPA) as the bona fide Governor of Abia State.

The court dismissed the petitions filed by Onyema Ugochukwu, of the People's Democratic Party (PDP) and other contenders who challenged the inauguration of Orji on May 29, 2007, because of the cases of electoral fraud reported during the gubernatorial elections of April 14, 2007.

Orji who returned to Umuahia on Tuesday after a three-day working visit to Abuja said he knew that he would win the court case. Most people in Abia State hailed the verdict.

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Tsvangirai becomes Zimbabwe's PM
Zimbabwe's opposition leader Morgan Tsvangirai is sworn in as prime minister by his bitter political rival President Mugabe.

Virtualization Saves Microsoft Customers Nearly a Half-Million Dollars Per Year

Virtualization Saves Microsoft Customers Nearly a Half-Million Dollars Per Year

Businesses gain value via server consolidation, integrated management tools and application management.

REDMOND, Wash. - Feb. 9, 2009 /PRNewswire/ — Microsoft Corp. today announced that some business customers around the world have saved on average $470,000 (U.S.) per year through IT projects using Microsoft virtualization software. Microsoft's business customers have been able to use virtualization to help reduce operations and capital expenses via reduced electrical power consumption and cooling within datacenters, reduced hardware acquisition costs, automation of desktop and server management, and centralized application deployment.

The cost of running IT systems has increased as electrical power, cooling and physical space has become constrained. In his 2008 refereed journal article, "Worldwide electricity used in data centers," Jonathan Koomey, Ph.D., of Lawrence Berkeley National Laboratory and Stanford University concluded that total datacenter power was about 1.5 percent of all U.S. electricity use in 2005, with 80 percent of that amount going toward powering and cooling servers.

A separate report, by Gartner Inc., stated that "the effective use of virtualization can reduce server energy consumption by up to 82 percent and floor space by 85 percent" (Gartner: "Energy Savings via Virtualization: Green IT on a Budget"; Nov. 12, 2008).

"Businesses are looking to reduce and manage computing costs in datacenters and across server and client computing devices," said David Greschler, director of integrated virtualization at Microsoft. "Virtualization software allows businesses to pool computing resources to drive down IT costs, increase IT efficiency and be more responsive to business needs. Customers are getting a better bang for their buck with the Microsoft platform and virtualization solutions because virtualization is in both the operating system and in the holistic management tools. Customers can manage IT services and a broad set of applications across the datacenter and desktops. There is less of a learning curve for customers, and it eases interoperability with existing systems."

Savings Through Available Built-In Virtualization and Management Automation
Microsoft's approach to virtualization, which incorporates server and presentation virtualization into Windows Server 2008 and unlimited virtual machine management with Microsoft System Center suite license, is helping break down barriers to broad virtualization adoption.

"The VMware ESX solution would have cost $30,000 (U.S.) for four servers. With Microsoft, we have a service provider agreement that allows for monthly payments with no capital costs — costing us less than $1,000 over the life of the contract," said David Straede, president and chief operating officer for Santa Barbara Web Hosting. "Windows Server 2008 Hyper-V has the core features businesses need. It's the Windows people know, is installed just like other Windows-based applications, and works in a management console that IT staff are already using. The ESX feature set simply doesn't justify its additional expense."

If making it easy for customers to implement virtualization is important, making it easy to manage the environment is just as critical for saving time and money. With Microsoft System Center, customers have a single solution for managing the entire IT life cycle, from deployment and provisioning to monitoring and backup. Equally important, customers can manage both server and desktop resources, both virtual and physical assets, and both Microsoft and VMware hypervisors, all with the same platform.

These capabilities helped Banverket ICT choose Microsoft for its virtualization strategy. "We knew we wanted to build a compatible virtualization platform that would encompass server consolidation, Terminal Services and application virtualization that we could manage with a single set of tools," said Pontus Blomkvist, service design manager, Banverket ICT. "With Microsoft Application Virtualization for Terminal Services, we have been able to reduce the number of terminal servers because we can run many applications on any server at any time, without worrying about conflicts. With Hyper-V, we are now running 50 virtual machines in production, with a utilization rate of 80 percent for some of the servers as opposed to 15 percent before we deployed Hyper-V."

Savings Through Consolidation, Reductions in Power
By running multiple virtual machines on fewer physical servers, Microsoft customers are drastically cutting hardware requirements and easing server management. For example, Indiana University's Auxiliary IT Department went from 152 to just 32 servers, which it expects will save $85,000 (U.S.) annually. Saxo Bank had an average physical server utilization of just 20 percent and was deploying nearly 200 new servers per year before using server virtualization. Windows Server 2008 Hyper-V allowed the bank to reduce the number of servers needed by 36 percent and realize savings equivalent to $1 million (U.S.), because of lower server hardware costs and associated reductions in space, power and cooling costs.

Many customers have realized similarly dramatic electrical savings as a result of server consolidation, which is a particularly important benefit in today's climate of volatile power prices. TALX expects to save approximately 50 percent in annual power and cooling costs by consolidating its server environment with Hyper-V. HotSchedules, which noted that its No. 1 cost in the datacenter is power, spent about $11,000 (U.S.) a month on datacenter power costs, but with Hyper-V it anticipates that this monthly figure will go down to $2,500. Santa Barbara Web Hosting uses Hyper-V to reduce its power consumption costs by $5,220 (U.S.) per month, helping the company provide more cost-effective services to its customers. And Slough Borough Council took advantage of the savings from eliminating 10 physical servers to preserve the electrical power needed to turn on a new storage area network.

"I wouldn't be surprised to see us virtualize 60 servers once our physical-to-virtual analysis is complete, which represents nearly half our server holdings," said Chris Wintermute, technical infrastructure manager for Slough Borough Council. "We've achieved hardware savings of $148,000 (U.S.), and we expect to reduce server deployment costs by $23,700 (U.S.) annually, based on rolling out 20 servers a year."

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft's corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.
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2009 Kia Optima #1 on Forbes.com 'Best Vehicles for Carpooling List'

2009 KIA OPTIMA #1 ON FORBES.COM "BEST VEHICLES FOR CARPOOLING LIST"

Kia Motors' Midsize Sedan Noted for Safety, Roominess and Fuel Efficiency
Vehicles ranked based on safety ratings, interior volume and fuel efficiency
A recipient of a five-star crash safety rating from NHTSA, Optima earns yet another accolade

IRVINE, Calif. Feb. 9, 2009 /PRNewswire/— - Recently named a "Best Bet" by The Car Book 2009, Kia Motors America (KMA) today announced that the Optima sedan also has topped the recently released "Best Vehicles for Carpooling" list by Forbes, available on Forbes.com. Refreshed for the 2009 model year, Optima was lauded for combining excellent class-leading safety features, a spacious interior and impressive fuel efficiency - all for excellent value, starting at less than $18,000.

"It's great to see our vehicles winning more and more industry accolades, and it's an honor for Kia Motors to sit atop the Forbes 'Best Vehicles for Carpooling' list," said Michael Sprague, vice president, marketing of KMA. "The 2009 Optima demonstrates the brand's commitment to offering consumers dynamic vehicles designed with an emphasis on quality, safety, comfort and affordability."

Using data from Kelley Blue Book, Forbes considered only 2009 vehicles that have received five out of five stars on all crash tests and at least four out of five stars on rollover results. The group was then pared down by awarding each vehicle points based on seating capacity, fuel efficiency, amount of front and rear headroom and legroom, and the presence of standard or optional navigation and entertainment systems.

The 2009 Optima is the recipient of a five-star crash safety rating from the National Highway Traffic Safety Administration (NHTSA)1. As with the rest of the Kia line-up, Optima is equipped with many standard safety features, including six airbags (dual advanced front and front-seat mounted side as well as full-length side curtain), front active headrests, side-impact door beams, height-adjustable front seatbelts with pre-tensioners and force limiters, three-point seatbelts for all seating positions, Lower Anchors and Tethers for Children (LATCH) and a tire pressure monitoring system (TPMS). Electronic stability control (ESC), a traction control system (TCS), brake assist system (BAS) and four-wheel antilock brakes (ABS) also are standard.

2009 Product Line
Kia Motors America offers a dynamic and diverse product line of 11 vehicles to meet the needs of all lifestyles. The 2009 vehicle line features the functional Rondo CUV and award-winning Sedona minivan along with a wide variety of popular passenger cars, including the refined Amanti full-size sedan, purposeful Optima midsize sedan, versatile and compact Spectra and Spectra5, and sporty yet fuel-efficient Rio and Rio5 subcompacts. The vehicle line also features the affordably luxurious Borrego, rugged Sorento and value-packed Sportage SUVs. The 2010 Soul will further complement the lineup when it arrives in dealerships this spring.

About Kia Motors America
Kia Motors America (KMA) is the sales, marketing and distribution arm of Kia Motors Corporation based in Seoul, South Korea. KMA offers a complete line of vehicles through more than 640 dealers throughout the United States. For 2008, KMA recorded its 14th consecutive year of increased U.S. market share. Kia Motors subscribes to a philosophy of building high value, high quality, safe and dynamic vehicles. Kia Motors prides itself on producing vehicles that are exciting and enabling and evoke the Kia tagline "The Power to Surprise."

Kia Motors America is the "Official Automotive Partner of the NBA." Information about Kia Motors America and its full vehicle line-up is available at its Web site, www.kia.com. For media information, including photography, visit www.kiamedia.com.

1 Government star ratings are part of the National Highway Traffic Safety Administration's (NHTSA's) New Car Assessment Program (www.safercar.gov).


Contact Information
Alex Fedorak
Kia Motors America
(949) 468-4813
AFedorak@Kiausa.com
Shelby Hunt
Zeno Group for Kia Motors America
310.566.3985
Shelby.hunt@zenogroup.com

The Workable Bailout Option for the Nigerian Capital Market

The Workable Bailout Option for the Nigerian Capital Market



By A.G. Olisaemeka

It goes without resentment that only physical injection of funds, which will shore up prices, can lift the capital market from its present very low depth. Responding to the financial meltdown afflicting every facet of business in Nigeria, the Presidential Steering Committee on the Global Economic Meltdown has proposed short, medium and long term palliative measures to address these concerns. The committee recently observed:

"What is being worked out is a package of incentives that will ginger production, increase the purchasing power of the ordinary man on the street, and help generate employment opportunities"
"In the medium and long term strategies, aside infrastructural development, the government is looking in the direction of agriculture, through commercial farming clusters and value chain, not only for food security, but for employment generation."

While specific actions were to be taken in the areas of power and oil, it also noted that:

"While the economic outcome does not look promising given the price of oil, the President remains optimistic that Nigeria can seize the moment to redirect our economy and begin on the road to prosperity."

It has warned that the palliative measures will not include a salary increase. The issue for determination at this juncture is whether these short, medium and long term palliative measures are sufficient to uplift the Nigerian capital market. One has no difficulty in coming to a conclusion of an emphatic "No!"
It is clearly understandable that the focal point of the committee is on the general economy encompassing power, oil and gas, agriculture, the money and capital markets and the emphasis is on increased production, employment generation, higher purchasing power, infrastructural development and food security.

It is one's repeated conviction that although these measures are noble and promising, they do not provide urgent answers to the question of the Nigerian capital market meltdown. The answers they provide are both indirect and tangential to the needs of the capital market.

Only a direct government intervention, characterized by physical funds injection can salvage the descent of the Nigerian capital market.

This can be achieved through any of the following ways:

1. Government Bailout of Banks, Stockbrokers and Investors

Investors in the Nigerian capital market as at end of January have lost more than N9 trillion. Much of these funds came from banks that lent heavily to investors and stock broking firms. This has increased banks non-performing assets on one hand and has foisted the hangman's noose on investors and stock broking firms who have now become "slaves" of banks. The Federal Government can intervene by acquiring these toxic assets at cost, paying off the banks. This will stem the tide of possible bank failures arising from their present capital market over-exposure. It will also relieve the investors and stock broking firms of high debt burden in which they are entrapped and made incapable of making further investments. The government can gradually dispose off these acquired shares in the distant future in a way that will not overheat the market.
This position will align with the statement credited to the Minister of State for Finance, Mr. Remi Babalola:

"…but if for instance, the regulator of the banking system came out to say this is the make up for each of the banks and this is the exposure they have, then we can agree. It is not only in the capital market, there is significant exposure in the downstream. There are so many areas that people might have recorded significant downside. What we need to do is to quantify all these and try to see how we can take it out and give them fresh air to continue their business."

(The Punch, February 5, 2009. Page 15)



Indeed this fresh air, this relief, for banks, stock broking firms and investors is all we need to revive the capital market.



2. Direct Purchase of Shares by the Government on the Nigerian Stock Exchange



The Federal Government may also wish to utilize a Special Purpose Vehicle (SPV) or use the Ministry of Finance Incorporated to commence buying of shares on the Nigerian Stock Exchange (NSE). When these shares are purchased, they will serve twin purposes – being investment for the government which it can hold, earn returns and later resell on one hand and increase the demand segment of the capital market leading to market recovery, on the other hand, it is estimated that the sum of N800 billion will suffice as the chain effect will trigger other purchase mandates as investors confidence heightens, following the upward movement of both the market capitalization and the ALL-Share-Index.



Finally, the market seems to be gaining some points in both the index and capitalization, following the government announcement of palliative measures highlighted above. It is one's opinion that this appearance of market recovery is only the natural reaction of investors to new information which cannot be sustained.

On 4th February, 2009, the All-Share-Index gained 2.2% to close at 22, 838.32 points and on the 5th February, 2009, it again gained 2.26% to close at 23, 356.03 points. The market capitalization also gained the same percentage movement to close at N5.108 trillion and N5.2 trillion respectively. This is a far cry of all-time high figures of about 66000 points for the Index and about N13.5 trillion for the capitalization less than a year ago.



The euphoria of this announcement of palliative measures that triggered the current bullish trend in the market is not expected to last for the next five working days unless physical capital injection of funds is articulated and implemented. The government should be in a hurry to do this if it wishes to save the capital market.



President Umaru Yar'Adua has directed the the CBN and Finance Ministry to liaise with other agencies and do more work on some short-term palliative measures being proposed so that they could be implemented soon.

Let physical injection of funds into the capital market be part of these measures if they must succeed in changing the direction of the capital market for good, otherwise the Nigerian Capital Market is still sitting on a keg of gunpowder.



By A.G. Olisaemeka

~ A.G. Olisaemeka is a chartered stock broker and consultant on financial matters on doing business in Nigeria. He is the Author/Editor of Scientists Discover Hell: As Astronauts Find Heaven distributed by Amazon.

Photo: PR Newswire and Publish2 Join Forces to Help Journalists Access and Share News Online

Andrew Hartman, Director, Online Services, PR Newswire, announces partnership with Publish2 that will enable members of PR Newswire for Journalists and Publish2 to utilize the services that each organization offers to the media community. (PRNewsFoto/PR Newswire) NEW YORK, NY AND RESTON, VA UNITED STATES 02/04/2009

5 Feb 2009 15:35 Africa/Lagos


Photo: PR Newswire and Publish2 Join Forces to Help Journalists Access and Share News Online

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The Meltdown of the Nigerian Capital Market: Causes and Consequences

The Nigerian Stock Exchange

The Meltdown of the Nigerian Capital Market: Causes and Consequences

By A.G. Olisaemeka

The current crash of the Nigerian Capital Market as been
unprecedented in its historic evolution since 1960 to date. Its market capitalization has nose-dived from an all time high of N13.5 trillion in March 2008 to less than N4.6 trillion by the second week of January 2009. Besides, the All-Share Index (a measure of the magnitude and direction of general price movement) has also plummeted from about 66000 basis points to less than 22000 points in the same period. The stock prices have experienced a free-for-all downward movement regime with more than 60% of slightly above 300 quoted securities on constant
offer (supply exceeding demand) on a continuous basis. Consequently many of the quoted stocks lack liquidity as their holders are trapped, not being able to convert them to cash to meet their domestic and other investment needs. On the other hand, fresh investors are cautious of jumping into a vehicle that does not seem to have a brake should they wish to disembark.




A number of factors have been blamed for this sorry state of affairs and they include:

1. A Global Phenomenon
The present seeming collapse of the world economy has not excused that of Nigeria. Many stock markets of countries, from USA to Britain, from China to Japan, Russia, France and others are in serious trouble. The world is indeed a global village and the interrelatedness of world economies is very evident that any development in any part of the world affects other parts as well. Consequently, the Nigerian capital
market is not insulated from this global malignant cancer.

2. Pull-Out of Various Foreign Investors
This is another factor believed to have contributed to the continuous fall of the Nigerian stock market. Many foreign investors that already have troubles in their home economies have pulled out of the Nigerian stock market leading to dumping of shares beyond the ability of domestic investors to contain. Supply of equities has, in consequence of this, overwhelmed demand, leading to price fall. According to the Director-General of the Nigerian Stock Exchange, Prof. Ndi Okereke-Onyiuke, "…available statistics shows purchase by foreign investors during 2008 to be in excess of N150.135 billion representing 6.3% of the aggregate turnover. This is a decline when compared with the N256 billion recorded in 2007. Concurrently, total sales during the year were in excess of N556.93 billion, culminating in a net outflow of about N406.8 billion."

3. Lack of Infrastructure and High Production Costs

The cost of doing business is high in Nigeria. Basic infrastructures like good roads, power supply are lacking, leading to high cost of doing business. Many quoted and unquoted companies like Dunlop Nigeria Plc and Michelin Nigeria have closed down shops. Most of the textile industries have also stopped production, leading to the crash of their share prices. The shares of Dunlop Nigeria Plc that sold above N6 per
share a few months ago now trade below N0.6 per share. Evidently, high production costs reduce profitability or increase loses which also impact negatively on the share prices.


4. Impact of Commercial Banks
Following the forced capitalization of banks to a minimum of N25 billion, almost all banks utilized and accessed the capital market to raise funds. Within two years plus, many of the banks besieged the capital market more than once, falling over one another in raising funds through mega offers in a single tranche. The banks competed to suck every liquidity from the Nigerian financial system, thus overheating it. Through enticing marketing strategies, the banks succeeded in their various offers, but left the capital market place bleeding and gasping for breath. The primary market seemed to experience a boom while the secondary market was sucked dry as many investors dumped their shares in the secondary market, in favour of
the primary market offers achieved through bewitching marketing efforts of banks. A total of N2.2 trillion was raised through various public offers dominated by the banks in 2008. Much of this came through disposal of shares in the secondary market.


5. Avalanche of Private Placement Offers

A number of private companies did private placement of their shares at lower prices while they sought or intended to seek quotation of their shares at higher values on the Nigerian Stock Exchange, thus making such private placements very attractive. This lured investors to dispose or dump their shares in the secondary market, purchase the private placements and dispose of same immediately after their listing
on the Stock Exchange at higher prices. The Nigerian capital market thus became a battleground as private companies were falling on each other through avalanche of offers. The regulating bodies were impotent as the Investment and Securities Act, 2007, does not place private companies under their control. A number of companies that did private placements to suck liquidity from the Nigerian capital market,
include: Investment and Allied Plc, Globe Reinsurance Plc, Multiverse Ltd, Swap Technologies Ltd, Starcomms Ltd, Equity Assurance Plc, Oasis Assurance Plc, IHS Ltd, Indomie Nigeria Ltd, Tetrazzini Ltd, Food Concepts Ltd, Geolfluids Ltd, Goldlink Insurance Ltd, Universal Insurance Ltd, Chams Plc, Fidson Health Care Plc, Reltel Wireless Ltd, MTN Ltd, etc. Thus so much liquidity was sucked from the Nigerian
capital market in favour of private placements of private companies, many of which remain unquoted till date, leading to the crash of the Nigerian capital market.

The Director-General of the Nigerian Stock Exchange, Prof. Ndi Okereke-Onyiuke admitted this fact in her review of the performance of the Nigerian capital market when she observed inter alia "…a significant portion of funds that left the stock market for private placement market are still locked-in as many of the issues have not applied to the Nigerian Stock Exchange for listing…."


6. Banks Short-Term Orientation Imposed on Long-Term Capital Market

At a time, banks were financing about 65% of the Nigerian capital market through margin facilities granted to investors and stock broking firms. Many banks abandoned or sidelined their core operation of providing credit to the real sector in favour of "playing" the capital market for short-term speculative activities that seemed to pay off up to March 2008 before the cancer that afflicted the market set in. It is estimated that the total exposure of banks to the capital market in terms of trapped funds is in excess of N1 trillion. Thus, the capital market place became overheated with so much speculative activities of banks that by the time the market caved in,
it became difficult for them to exit through the narrow door as there were no mega investors to "check them out". The Nigerian capital market was no longer seen as a market for long-term funds, but that of a short one. The banks embarked on unguarded short term treasure hunting spree from the capital market as their speculative activities soon overheated the capital market.


7. Inability of the Federal Government to Plot a Bailout Option

There were blunt statements from the Federal Government that it will not intervene directly in the capital market which it sees as a purely private affair. The government lacked the wisdom to examine the socio-economic implications and chain effects of a failed capital market. It therefore became impotent of hatching a bailout plan for its beleaguered capital market unlike the governments of USA, Britain, France and so on, playing politics with such a sensitive issue that borders on "life and death". Thus the government outright refusal to intervene directly in the crashing stock market has depleted any hope of a possible market rebound leading to further loss of confidence among investors. This has sparked off supply of shares by desperate investors who, having seen no hope in the horizon, wish to cut their losses short by rushing to sell at any price.

8. Structural Deficiencies of the Nigerian Stock Market

There appears to be some inadequacies of the Nigerian capital market, especially the absence of market makers. As at third week of January 2009, the Nigerian Securities and Exchange Commission (SEC) has licensed five market makers, but the Nigerian Stock Exchange was yet to also license them due to avoidable administrative bottlenecks. Thus, there are no functional market makers that can provide exit windows for investors who wish to check out.


9. Regulating Inconsistencies and Pronouncements

The apex regulator of the Nigerian stock market, the Securities and Exchange Commission, prior to the crash of the market had alleged publicly that stock market prices were being manipulated and it announced that it was probing some quoted companies, such as Dunlop Nig. Plc, Eternal Oil Plc, Capital Oil Plc, and so on. Following the publication, investors became afraid that such statements coming from
the principal regulator evidenced the existence of unrealistic prices of all stocks, thus provoking panic selling of stocks among investors. This contributed to the crash of the market. Unfortunately till date, not much has been heard of the outcome of the SEC investigation that transmitted shockwaves down the spines of investors.

Opportunities of the Capital Market Meltdown

The current meltdown of the Nigerian capital market has provided excellent opportunities for both local and foreign investors to grab the shares at rock-bottom prices with the greed of a hungry lion. There appears to be no better time to buy the shares in the Nigerian capital market than now. The fundamentals of the Nigerian capital market are still very strong- high earnings per share, high dividends per share, high earning yields, high dividend yields, good bonuses and low price earning ratios. With the complete internationalization of the Nigerian capital market, foreign investors can acquire up to 100% of Nigerian companies and exercise full control. It is believed that the acquisition opportunities offered by the current capital market meltdown in Nigeria can only come, but once-now! Corporate hawks
should be on the prowl now.

10. Pressure from Banks
Following the more than N1 trillion of banks’ funds tapped in the capital market, the banks have become violent on the borrowers of funds (investors and stock broking firms) used to acquire shares. Currently these banks have brought suicidal pressure to bear on these borrowers, compelling them to sell their shares at any price, just to have a moment of respite. This has further increased the supply of shares at ridiculous prices, leading to greater market crash.



Consequences of the Market Melt doom.

The meltdown of the Nigerian capital market characterized by the crash of the market capitalization from a record high of N13.5 million in early 2008 to less than N4.5 trillion in the corresponding period of 2009 has manifested the under listed costs and consequences.

1. Loss of confidence in the Nigeria economy, as many investors prefer to convert their naira to foreign currencies, especially the dollar and hold them through their domiciliary accounts. This has in part led to worsening exchange rate against the naira.

2. Mega losses by investors in the capital market whose total losses are not below 2/3 of their investment before the meltdown. In other words, investors now have less than one third of the value of their investments before the free-for-all fall.

3. Trillions of naira – what remains of the capitalization – tied down in unsaleable stocks. Most of the securities are on serious offer – an indication that there are no willing buyers to check out any investors who wishes to do so. Here investors not only contend with their losses to date, they also contend with a supply glut that they seem trapped with the remaining securities in their sad possession.

4. Over exposure of investors and stock broking firms to banks. Before the meltdown, banks engaged in lending frenzy through margin account. Borrowers were required to contribute 30% while the banks contributed 70% and the entire 100% was used for stock speculation. Currently the market meltdown has wiped out the investors 30% contribution, while half of the banks 70% have also been wiped out. Notwithstanding this scenario, the banks are still calculating interest on daily basis and posting to the debit of the borrowers account investors and stock broking firms, thus to sting perpetual liabilities on the borrowers which only Divine intervention can save these borrower from the hangman – the banks.

5. The market meltdown has also led to credit crunch in the economy as banks do not have enough to lend to the productive sector leading to high interest rate. Given that interest rate – cost of fund to manufacturers is a very significant component of cost of production, this translates to higher prices of goods and services, leading to inflation.

6. The meltdown has also led to the loss of confidence of banks and other lenders on shares as collateral for loan facilities. Shares which were before now readily accepted by banks as collateral are now shunned by them. The few of them that dare to touch them for this purpose only do so with a hundred meter pole, at ridiculous discounts as some of them seek up to 300% cover.

7. The market meltdown has led to loss of depositors funds with the banks. It is estimated that banks are exposed to the capital market in excess of N1 trillion through loss in the value of securities for which margin facilities were granted investors in Nigeria. This has significantly increased the quantum of banks non-performing assets – Toxic assets.

8. The market meltdown has also induced massive withdrawal of foreign investors from the Nigerian financial system, damping the remaining source of hope for possible market recovery.

9. Loss of value of pension Asset. Following the passage of the Pension Reform Act, 2004, pension assets are now privately managed. Under the Act, every employer, whether in the private or in the public sector is obligated to deduct 71/2% of every employee’s emolument, then add another 71/2% totaling 15%. This is remitted on monthly basis to a pension asset custodian under the superintendence of a pension fund administrator. The PFAs manage the pension assets by investing in a variety of instruments including equities. The PFAs also maintain retirement savings account for employees showing the monthly deductions remitted on their behalf as well as the profits or losses arising from their investments. It is estimated that more than N2 Trillion of pension assets has gone down the drain casting doubts on the ability of PFAs to repay retirees their pension and gratuities.


10. Inability of stock broking firms to settle their clients for securities sold. With the current meltdown, many stock broking firms cannot discharge their obligation to their clients. Proceed of shares sold by these stockbrokers for their clients are greedily seized by the banks to whom the stock broking firms are owing billions of naira through margin accounts. Incoming credits or debits arising from sale of securities or purchase of securities can only be settled through the appointed settlement banks. This gives the banks the opportunities to absorb any incoming credits to service huge margin facilities granted to stockbrokers. Thus many stock broking firms rejects sale orders as they know that the banks will seize the credits, leading them to contend with their clients.

11. Loss of Confidence in the regulatory bodies.
There appears to be a loss of confidence on the regulatory bodies of the Nigerian Stock Exchange as well as the Securities & Exchange Commission whose regulatory impotence has been largely blamed for the present woes of the capital market and whose principal officers appear to have exhausted all they know and all they can offer to change the fortunes of the market. Many market analysts believe that they ought to have thrown in the towel instead of trying to stay put and superintend the "funeral mass' of the market as they have nothing again to offer.

12. On a positive note, the Nigerian Capital Market meltdown has compelled investment diversification to other assets, especially real estate and government bonds. Investors now scamper for safety rather than high returns at the expense of possible huge or near total losses which equity investment symbolizes –where the investor either enjoys too much or suffers too much.

The market meltdown: The Way out

Only physical injection of funds can change the direction of the market. No amount of grammar from "this-ism" to 'that-ism" will avail. With the present liquidity crunch and investors loss of confidence, it is not reasonable to expect salvation from individual and institutional investors. A strong government bail-out as obtains in USA, Russia, Britain and Singapore, is the magic wand needed to be waived in the four corners of the market. The issues of government intervention should not be politicized. The Nigerian Capital Market is not a southern affair. Already the effect of its meltdown may give rise to the collapse of many banks whose hundreds of billions of naira are trapped unless urgent government intervention is articulated and hurriedly implemented.

© Nigerians Report 2009.All rights reserved.

~ A.G. Olisaemeka is a chartered stock broker and consultant on financial matters on doing business in Nigeria. He is the Author/Editor of Scientists Discover Hell: As Astronauts Find Heaven distributed by Amazon.