Press Release

Kvederis Elected to Serve on National Check Organization Committee

September 10, 1999 - SAN FRANCISCO — David F. Kvederis, president and CEO of BankServ, the nation's largest independent processor of electronic check conversion transactions at the point-of-sale, has been elected to serve a two-year term as a member-at-large on the Steering Committee of the Electronic Check Council (ECC). ECC is part of the National Automated Clearing House Association (NACHA), headquartered in Herndon, Va., which develops operating rules for the nation's ACH Network.

The Electronic Check Council provides the forum for building a framework used throughout the U.S. for the conversion of checks into electronic payments. The Council's 90 members include financial institutions, retailers and other businesses, transaction processors, technology vendors and associations.

More merchants across the nation, from grocery store operators to municipal governments, are turning to electronic conversion of paper checks written by consumers as a way to save money and speed receipt of payment. After the consumer authorizes electronic conversion, data from a paper check is captured and turned into an electronic funds transfer (EFT), thereby eliminating the multi-step handling of a paper check in the traditional check payment process. Electronic conversion renders the paper check no longer necessary, so it is returned on the spot to the consumer.

The EFT for that check is then coupled with other payments made to the merchant and is processed through an Automated Clearing House (ACH). Electronic submission through an ACH is fast and efficient. The merchant who uses electronic check conversion benefits by reducing costly check handling and associated bank fees.

The Electronic Check Council supports research and development to address risk and liability issues associated with electronic check conversion, as well as systems, consumer, legal and regulatory issues. It also develops rules and standards, promote the development and use of electronic check applications, and supports market testing of electronic check applications through pilot programs.

Kvederis co-founded BankServ in 1996. Prior to that, he was a senior vice president at Wells Fargo Bank in San Francisco where he headed the National Division in the Corporate Banking Group. In that role, he managed the bank's loan and cash management business aimed at key corporate clients. He joined Wells Fargo in 1982. Prior to that, he served six years with Mellon Bank in Pittsburgh and six years with Continental Illinois Bank in Chicago.

Kvederis served as NACHA's chairman from 1989-91. He has served on its Executive Committee since 1986 and is also past-president of the CalWestern Automated Clearing House Association (CACHA).

About NACHA

NACHA represents more than 13,000 financial institutions through its 34 regional Automated Clearing House (ACH) associations, six councils and corporate Affiliate program. A leader in the payments industry, NACHA develops operating rules for the ACH Network and for emerging electronic payment solutions in the areas of Internet commerce, bill payment and presentment, financial electronic data interchange, cross-border transactions, electronic checks, and benefits transfer. More information about NACHA can be found at www.nacha.org.