Press Release

BankServ Plows New Ground, Serves Credit Unions for the First Time

April 16, 2002 - SAN FRANCISCO, CA — A whole new electronic payments processing market has opened up for San Francisco-based BankServ with installation of its Global Funds Exchange Network (GFXN), an outsourced real-time Fedwire transfer system, in one of the largest credit unions in the nation.

North Island Financial Credit Union (NIFCU), a 120,000-member organization with more than $1.0 billion in assets, began using the electronic money transfer system last month. NIFCU ranks 49th among the nation's 12,000 credit unions in total asset size. It is headquartered in Chula Vista, Calif.

NIFCU is the only financial institution ever to have won the prestigious Eureka Award for Performance Excellence™. This honor is awarded by the California Council for Quality and Service, and is based on the same criteria as the Malcolm Baldrige National Quality Award. NIFCU has won this distinctive award for four years running, including the Gold level, which is the highest level awarded. "By using GFXN, NIFCU can continue its commitment of providing the highest quality services in the industry" said Jerry Hicks, Senior Vice President & Controller, of NIFCU.

"The newly installed GFXN gives NIFCU access to an extremely sophisticated money transfer system that, heretofore, was available only in the nation's largest commercial banks," said Hicks. He added, "By using GFXN in a service bureau environment, NIFCU gains all of the benefits of a large bank wire transfer system at a fraction of the cost. The previous system of transferring money electronically via the Federal Reserve Fedline terminal required many more manual operations, which now have been eliminated."

Among those functions which have been automated through GFXN are:

· Automated real-time funds availability checks, accounting entry generation, and billing for checking and general ledger (GL) accounts;
· Archiving and reporting of wire transaction information as required under the Bank Secrecy Act (BSA);
· Screening of wire parties as required by the Office of Foreign Asset Control (OFAC) to detect money launderers;
· Notification of wire transactions to credit union members (customers).

"The potential of the credit union market is staggering," says David F. Kvederis, president and CEO of privately held BankServ. "This is our first GFXN installation in a credit union, and we can expect many more. When you consider that there are 70 million people in the United States who use credit unions - and require electronic funds transfers - that can add up to a lot of manual operations currently required to move money around.

"We make it possible to do those transfers automatically in the blink of an eye efficiently and cost-effectively," Kvederis says, "while also providing improved regulatory compliance and the ability to 'grow' the business without straining operational resources."