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McDONALD’S® EXPANDS CASHLESS PAYMENT OPTIONS FOR CUSTOMERS WITH MASTERCARD PAYPASS

OAK BROOK, IL, August 18, 2004 – McDonald’s® today announced an agreement to accept MasterCard® PayPass, a new "contactless" payment option utilizing radio frequency technology at select McDonald’s restaurants in the U.S. Participating McDonald’s restaurants in Dallas and the New York metropolitan area will implement MasterCard PayPass later this year, with additional locations to be added in 2005.

MasterCard PayPass cardholders can make purchases at participating McDonald’s restaurants without swiping their card through a traditional card-reader – PayPass cardholders tap or wave the card on or near a specially equipped terminal that utilizes a radio frequency (RF) chip to complete a payment transaction. McDonald’s will have Verifone Omni 7000 card-readers installed to accept the new MasterCard PayPass card. The PayPass payment option is an expansion of McDonald’s partnership with MasterCard in the U.S., announced earlier this year.

"McDonald’s is always looking for new and innovative ways to use technology to improve customer service in our restaurants," said Jim Sappington, vice president of information technology, McDonald’s U.S.A. "The convenience of MasterCard PayPass will help our customers get their Big Macs, Premium Salads and Happy Meals even faster."

McDonald’s currently accepts cashless payment options at more than 4,500 restaurants in the United States and expects to increase up to 8,000 by the end of 2004. McDonald’s has more than 13,500 restaurants in the U.S.

"In today’s fast-paced world, people count on the convenience and utility of electronic payment options. MasterCard PayPass simplifies the customer experience," said Fred P. Gore, senior vice president, North America Acceptance, MasterCard International. "We’re thrilled to be working with McDonald’s to offer a place for MasterCard cardholders to use the latest payment innovation at their favorite restaurant."

About McDonald’s
McDonald’s is the world's leading foodservice retailer with more than 30,000 local restaurants, serving nearly 47 million people each day in over 100 countries. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent, local businessmen and women.

About MasterCard International
MasterCard International is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members’ credit, deposit access, electronic cash, business-to-business and related payment programs. MasterCard International manages a family of well-known, widely accepted payment cards brands including MasterCard®, Maestro® and Cirrus® and serves financial institutions, consumers and businesses in over 210 countries and territories. The MasterCard award-winning Priceless® advertising campaign is now seen in 98 countries and in 46 languages, giving the MasterCard brand a truly global reach and scope. For more information go to www.mastercardinternational.com