California Department of Transportation Selects Enghouse Transit

Software solution will enable migration to open-loop fare payments

MARKHAM, ON, March 2, 2022 /PRNewswire/ -- Enghouse Systems (TSX: ENGH) today announced its Enghouse Transportation unit has been selected by the California Department of Transportation (Caltrans) to participate in the California Integrated Travel Project (Cal-ITP), marking the firm's foray into the U.S. Automated Fare Collection market.

Enghouse Transportation, an established provider of transit software solutions in North America, is expanding its offering with the mobile ticketing/fare collection solution. The software is already well positioned in this space within the Netherlands, Central Europe, and Eastern Europe.

"Enghouse Transportation brings clear advantages to the table," said Toofan Otaredian, Managing Director, Enghouse Transportation. "We have the agility to host multiple fare plans and business rules associated with public transit agencies and operators, while our software solution is hardware independent and can seamlessly integrate with other systems. In addition, we offer a short time-to-market implementation to get open-loop payment solutions up and running in a cost-effective manner."

The California Department of General Services issued a Notice of Intent to Award to Enghouse Transportation to provide software to enable California transit users to pay fares using an open-loop system. The architecture facilitates the use of bank cards and mobile wallets, reducing and eventually eliminating the need for fare cards.

Enghouse Transportation is one of four firms chosen to provide the back-office solution in the Cal-ITP, which will allow more than 300 transit agencies to procure software solutions through its Mobility Marketplace, which offers transit operators links to a suite of pre-negotiated, code-compliant products. This simplified and coordinated procurement process makes it easier for transit agencies to adopt open-loop technologies.

The objectives of Cal-ITP include the following:

• An improved rider experience – Research has shown that riders with access to real-time data can shave minutes off their wait times and perceived wait times by as much as 30 percent. Contactless payments make riding transit easier, particularly for out-of-town riders and other users unfamiliar with the transit system.
• More ridership – In London, the Underground saw a four to five percent increase in ridership with the introduction of open-loop payments and real-time arrival data. In Chicago and New York, ridership increased two percent.
• Cost savings for transit providers – In Washington, D.C., the transit operator spends ten cents per dollar on cash-based fare collections compared to only four cents per dollar on credit/debit card collections.

Through its European subsidiary Telexis Solutions, Enghouse Transportation recently rolled out a contactless Eurocard, Mastercard and Visa (EMV) payment solution in a launch for its customer Transdev to replace the Dutch card-based payment scheme, the so-called OV-Chipkaart. As a result of this launch, Telexis Solutions has been extending its EMV solutions across the major part of the Dutch transit vertical, i.e. to the entire Transdev operations as well as that of multiple other transit operators. Transdev is a major transit provider in the Netherlands, providing 400,000 trips per day. Globally, Transdev operates 42,000 vehicles in 17 countries and employs 83,000 people.

About Enghouse

Enghouse is a Canadian publicly traded company (TSX:ENGH) that provides enterprise software solutions focusing on contact centers, video communications, remote work, communications for next generation software defined networks, public safety and the transit market. The Company's two-pronged growth strategy focuses on internal growth and acquisitions, which, to date, have been funded through operating cash flows. The Company has no external debt financing and is organized around two business segments: the Interactive Management Group and the Asset Management Group. Further information about Enghouse may be obtained from the Company's website at www.enghouse.com.

About Enghouse Transportation

Enghouse Transportation is an innovative provider of end-to-end electronic ticketing technologies. The unit also provides transit agencies and operators with improved passenger experiences and cost-cutting hardware and software solutions. Customized for the needs of each client, Enghouse Transportation delivers expert solutions in automated fare collection (AFC), sales and service, and back-office systems. For more information visit www.enghousetransportation.com

CONTACT : Sam Anidjar, Vice President, Corporate Development, 905-946-3200, investor@enghouse.com