Wireless Argentina/Spain

Digital Courier Technologies, Inc.,a provider of end-to-end, fully integrated e-payment solutions, announced that ACI Worldwide has signed on Banco Bilbao Vizcaya Argentaria SA and Telefonica Moviles SA of Spain for wireless payment processing services, using technology licensed from DCTI. BBVA and Telefonica Moviles will power their joint venture, MovilPago, with ACI’s enterprise mobile payments solution.

MovilPago is an innovative payment system that allows consumers to conduct m-commerce, enabling payments over wireless communications systems. MovilPago will deploy the system in 30 countries over the next two years, with an anticipated 100 million consumers using the system and 5 million merchants accepting payments. MovilPago’s m-commerce allows payments to be made from any existing Global System for Mobile Communications (GSM) or other digital handset with no modification required to the handset or SIM card.

According to Strategy Analytics, m-commerce purchases worth $200 billion will be conducted around the world by 2004, which translates into 130 million customers and 14 billion transactions a year.

“By integrating our technology with ACI’s BASE24, DCTI and ACI are able to provide cutting edge technology to the Internet payment marketplace,” said DCTI President Don Marshall.

The e24 product suite is designed to help financial institutions, retailers and emerging e-commerce businesses extend their existing payments infrastructures into the rapidly growing world of business-to-consumer electronic commerce. e24 commerce solutions handle all aspects of web-initiated payments and include value-added features to enhance customer service, merchant reporting and management, and web-centric fraud detection and management. ACI Worldwide’s e24-portal and e24-risk commerce products are powered by DCTI.

About DCTI:

DCTI is an emerging e-payment market leader providing an advanced, fully integrated e-payment service for merchants and financial institutions. The DCTI services feature a unique fraud protection and risk management system. DCTI has a growing list of over 600 merchant customers, representing more than $70 million in transactions processed monthly and spanning every e-commerce market segment. DCTI has greatly expanded its sales and marketing reach through reseller relationships and strategic partnerships with ACI Worldwide, the global leader in ATM services; Equifax; Innuity; NDC e-Commerce; Visa International; and others. DCTI is headquartered in Park City, Utah, with offices in San Francisco, California, Clearwater, Florida and in West Sussex, England. For more information, visit DCTI on the Web at [http://www.DCTI.com][1].

About ACI Worldwide:

ACI Worldwide is helping customers change the way the world works with solutions designed to improve the way we live, work and shop. Every minute of every day, financial institutions, retailers and networking industries rely on ACI solutions and services to smoothly move money and information. As a leading international provider of solutions for e-payments, ACI maintains operations in the Americas, Europe/Middle East/Africa and Asia/Pacific. More than 2,300 customers in 79 countries use ACI distributed solutions. Visit ACI Worldwide on the Internet at [http://www.aciworldwide.com][2].

About BBVA:

BBVA is the largest financial group in Spain both in terms of profit and market capitalization and is the second largest within the Euro zone. In 1999 group profits reached 1.75 billion euros and assets totaled 238 billion euros. BBVA Group is present in 37 countries, mainly in Europe and Latin America, through a network of more than 9,300 branches, and employs 130,000 people.

The group has 35 million clients and 1.5 million shareholders. Its stock is quoted on nine stock exchanges around the world. BBVA employs advanced technology in distribution channels, manages one of the largest industrial portfolios in Spain, and shows an extraordinary strong balance sheet.

About Telefonica Moviles:

Telefonica Moviles is the mobile telephone communications subsidiary of the Telefonica Group, which is one of the world’s five largest telecom companies. It has more than 20 million clients throughout Spain (11.5 million clients), Latin America (Argentina, Brazil, Chile, Peru, El Salvador, Guatemala and Puerto Rico) and Morocco. The company is a true leader in the Spanish and Latin American markets, not only in terms of number of clients but also in terms of innovation and deployment of the latest technologies for the development of new services.

[1]: http://www.dcti.com/
[2]: http://www.aciworldwide.com/

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TSYS Gift Cards

Total System Services, Inc. announced an agreement with pointpathbank, a full-service Internet bank owned by Synovus Financial Corp to support its stored value programs, beginning with a Visa-branded prepaid gift card. The gift card will be processed on TSYS’ new stored value platform and marks TSYS’ entry into the association-branded gift card market. Sold via pointpath’s Web site, the purchaser can select a pre-designed, customizable greeting card to be mailed with the gift card.

pointpath will offer the gift card along with a full suite of banking products to include mortgages, loans, credit and debit cards. The TSYS Stored Value Platform will provide pointpath with the ability to offer any prepaid card product including teen, allowance, loyalty, employment, insurance and Web.

pointpath President and CEO Lisa L. White said, “We are excited about extending our partnership with TSYS beyond credit and debit into the stored value card market. Adding the Visa brand to our gift card allows our customers to give a gift that is redeemable throughout the world and convenient to use whether shopping online or at a physical merchant location. Our ability to offer personalized greetings is an added convenience to our customers.”

“Gift card is an explosive new market with positive impact for everyone,” said Scot Sasser, TSYS Director of Stored Value Products. “Issuers have another revenue channel, while merchants improve the gift certificate process, build their brand and customer loyalty by providing consumers with a very desirable product. TSYS is excited to be a key player in this market space, and we are proud to partner with pointpath as they launch this new product,” said Sasser.

How does the pointpath gift card work? Consumers go online to purchase a pointpath gift card in any dollar denomination from $20 to $500 at pointpathbank’s Web site, [http://www.pointpathbank.com][1]. The prepaid cards may be purchased by anyone and used at any merchant where Visa is accepted. The icon for the personalized greeting appears simultaneously on the gift card request screen, allowing customers to purchase a card electronically and craft a personal message. The request is processed by TSYS, then sent to the recipient loaded and activated for purchases via the Internet or at a brick-and-mortar merchant location.

About pointpathbank

pointpathbank, N.A. ([http://www.pointpathbank.com][2]) is the innovative Internet banking community for all online consumers, especially married and engaged couples, who are planning their financial lives. pointpath, based in Columbus, Ga., is the 39th bank and the first Internet only National bank in the Synovus family. It will offer a complete array of financial services designed to educate, advise and guide clients on the path toward financial independence from marriage to retirement and every milestone in between.

About TSYS

TSYS provides global commerce solutions. With more than 181 million accounts on file, TSYS facilitates the payment exchange between buyers and sellers. TSYS and its family of companies offer a full range of business services from credit application to collections and bankruptcy services for credit, debit, commercial, stored-value and retail accounts. Based in Columbus, Ga., TSYS ([http://www.totalsystem.com][3]) is an 80.8 percent-owned subsidiary of Synovus Financial Corp. ([http://www.synovus.com][4]), No. 5 on FORTUNE magazine’s list of “The 100 Best Companies To Work For” in 2000. For more information, contact news@totalsystem.com .

[1]: http://www.pointpathbank.com/
[2]: http://www.pointpathbank.com/
[3]: http://www.totalsystem.com/
[4]: http://www.synovus.com/

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Eire Consumers

Eire consumer attitudes are changing towards plastic payment cards. A new study of consumers in the Republic of Ireland concludes that even though Eire consumers, overall, are relatively conservative, they do respond to direct mail, especially to attractively-priced offers for balance transfers. According to the PSI Global study, Eire continues to be a cash and cheque-dominated payments market. Sixty-five percent of Eire adults own a payment card of some type. Sixty percent have “Immediate Payment Cards” (IP), which include ATM/cash cards and debit cards. Just 27% of consumers have “End of Month Cards” (EOM), which include revolving credit cards, deferred debit cards, charge cards and store/retail or private label cards. Plastic cardholders in Eire currently make an average of 11 transactions per month, eight cash withdrawals and three purchases. According to PSI Global, 94% of all cash withdrawals made with cards are via IP cards, and 71% of all card purchases are made with EOM cards.

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DHL MARS System

First Ecom.com, a global provider of electronic payment processing solutions, and DHL Worldwide Express, the world’s leading air express service, announced they have signed an agreement to jointly develop integrated services for electronic commerce applications in Asia.

![][1] Through this agreement, DHL and First Ecom will enable automatic settlement, or payment, of e-commerce transactions upon shipment of goods by online merchants that are using First Ecom Enabled banks. An interface will be created between First Ecom’s online Merchant Accounting and Reporting System (MARS) and DHL’s tracking system so that the shipment of authorized merchandise will automatically generate the request for settlement.

All First Ecom Enabled banks will have immediate access to this solution, saving them time and money since only one integration is needed. In addition, banks and customers benefit from the independent third party verification that the goods have been shipped, providing increased security and reducing the costs associated with fraud and chargebacks.

The system is designed to be convenient, secure, reliable, and require limited human intervention, making it efficient for banks, merchants, and customers.

“Our agreement with DHL further illustrates First Ecom’s dedication to provide the most secure and reliable e-payment solutions available,” said Harold Hutton, president and CEO of First Ecom. “This new solution expands the number of services offered to First Ecom Enabled banks and demonstrates our ability to integrate our payment gateway with leading companies in all areas of the e-commerce arena. We are excited to be partnering with DHL to provide a more complete e-commerce solution in Asia.”

“This payment settlement solution enhances our commitment to facilitate the growth of e-commerce in Asia by offering the most advanced services possible to our customers,” said Barry Lai, Director of Sales and Marketing of DHL International (Hong Kong) Limited. “We are continually looking for world-class technologies and are pleased to be working with First Ecom to provide this settlement solution.”

About DHL

DHL Worldwide Express is the world’s leading air express service, linking more than 85,000 destinations in 228 countries and territories. DHL has a fleet of over 260 aircraft. In Asia-Pacific / Middle East, DHL serves 51 countries and territories, operates about 1,300 stations, employs more than 18,000 personnel and owns about 3,900 transport vehicles. DHL Worldwide Express has a 40% market share of international express traffic as reported by the Air Cargo Management Group, Washington, USA.

In 1998, DHL Worldwide Express was named the “World’s Most Global Company” by Global Finance magazine for its excellence in global reach, vision and management strategies. DHL has been named “Best Express Service” for the past fourteen consecutive years at the Asian Freight Industry Awards and for the past six years has been voted as one of Asia’s Leading Companies in Far Eastern Economic Review’s Review 200 survey.

The DHL Worldwide Express network is composed of DHL International Limited, its subsidiaries and affiliates, which serve all locations outside the US and its territories; and DHL Airways, Inc., its subsidiaries and affiliates which serve all locations in the US and its territories.

Visit DHL on-line at .

About First Ecom.com

As a global provider of electronic payment processing, First Ecom.com provides secure, easy-to-implement and low-cost online payment processing services to banks and their merchants worldwide. Through strategic partnerships with banks, ISPs, e-commerce product suppliers, system integrators and storefront solution providers, First Ecom.com will process credit card transactions made over the Internet in multiple currencies, either domestically or offshore in a tax-neutral jurisdiction.

[1]: /graphic/dhl/dhl.gif

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Platinum Shell

The largest co-branded gasoline credit card program is going platinum. Chase Manhattan and Shell confirmed Tuesday they are gearing up to launch the ‘Shell Platinum Credit Card from Chase’. Under the program, cardholders will receive a 5% rebate on Shell gasoline purchases and a 1% rebate on all other purchases, with no cap on the amount of free gasoline that can be earned. Chase will offer a six-month 5.99% APR for purchases and balance transfers. There will be no annual fee for the first year. The fee is waived each year thereafter with nine Shell purchases. Chase said this morning that more than $450 million in Shell gasoline rebates have been earned by cardholders since the card’s launch in 1993.

CHASE CARD PORTFOLIO SNAPSHOT (as of June 30, 2000)
Receivables: $31,900,000,000 Active Accounts: 12,300,000
YTD Volume: $27,300,000,000 Gross Accounts: 19,900,000
Source: CardData (www.carddata.com)

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Cashing-In Chips

San Francisco-based InnoVentry Corp. announced this morning it is selling its Entertainment Division to casino king Global Cash Access. Under the terms of the agreement, GCA will acquire the ‘Atreva Express’, ‘Atreva Credit Card Access’ and ‘Cash Center’ lines of products and services at more than 60 gaming establishments throughout the U.S. InnoVentry say it is selling the division to focus research and development, sales, and marketing efforts on the retail division of the business, which includes the ‘RPM’ check-cashing machines. The ‘RPM’ machines offer secure check cashing, utilizing advanced facial recognition technology to identify the customer. Over the past three years, more than two million checks have been cashed at InnoVentry’s ‘RPM’s nationwide for $450 million in cash dispensed volume. GCA is a joint venture of Bank of America, First Data and USA Processing and provides cash services at more than 1,200 casinos nationwide. InnoVentry is jointly owned by Wells Fargo and Cash America International.

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MoneyGram Philippines

MoneyGram has added AMA Bank as an agent in the Philippines, effectively doubling the number of company locations for sending and receiving money transfers in the country.

The company said its newest network expansion increased agents from 279 to 500 with the addition of AMA Bank’s branches and affiliates at educational institutions and video shops.

The AMA Bank locations add to the existing MoneyGram locations at Equitable PCI Bank, the country’s second largest bank. Equitable PCI Bank has been a MoneyGram agent for five years.

According to Tony Samour of MoneyGram, the network expansion works to reach more customers.

“Now we are more accessible to Filipinos in the outer islands and more remote areas of the country,” he said. “And there is increased convenience to our customers because we now have agents in hundreds of retail locations as well.”

Samour said the video shops are open longer hours than the typical financial institution or bank branch. The students and overseas workers studying at AMA’s computer schools are also expected to be heavy users of the popular money transfer services.

MoneyGram Payment Systems, Inc., a subsidiary of Travelers Express Company, is a leading money transfer services company with more than 30,000 locations in more than 135 countries around the world. Travelers Express is a subsidiary of Viad Corp (NYSE:VVI), and provides payment services in the financial, retail and money transfer areas.

To find a MoneyGram agent, go to [www.moneygram.com][1]. For more information on Travelers Express go to [www.travelersexpress.com][2], for Viad Corp, [www.viad.com][3].

[1]: http://www.moneygram.com/
[2]: http://www.travelersexpress.com/
[3]: http://www.viad.com/

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PayBase Web Series

Bottomline Technologies the premier provider of Web-enabled billing, payment and electronic banking solutions announced general availability of PayBase Web Series. Web Series is a landmark step in the evolution of Bottomline’s PayBase software and provides a secure Internet-based system for organizations to manage their payment process via a Web browser.

The new Web Series brings together Bottomline’s ten years of experience in payment automation and system integration into a single easy to maintain, but powerful payment engine. Web Series provides organizations with the capability to process very high transaction volume while interfacing with numerous users in various geographic locations.

“We are thrilled that our core payments business with the PayBase product continues to be a strong source of revenues as we add on incremental business opportunities with the new NetTransact and BankQuest product lines,” said Dan McGurl, president and CEO of Bottomline Technologies. “PayBase Web Series allows us to target large new customers and expand functionality for our over 2,500 existing corporate and government customers. It continues our long-standing heritage of providing premier enterprise solutions for all payment processing needs.”

Web Series can provide a much lower total cost of operation for companies by providing access via the Web to multiple locations rather than server-based software which requires dedicated resources. The new product will also incorporate advanced financial management and reporting capabilities previously unavailable.

Among its additional functions, Web Series allows aggregation of account information from multiple banks into customized reports. This provides financial managers with visibility to cash positions across all corporate bank accounts via a secure Web browser. This can be a powerful financial decision tool for an organization striving for optimal cash positions.

“This product reaffirms Bottomline’s commitment to our current users and prospective customers by providing a clear path to the Web for payment processing,” said Phil Grannan, vice president of product management for Bottomline’s e-Payments product offerings. “Web Series can be quickly installed for new customers to help them realize the benefits of automating payments. It also provides our current corporate customers with the ability to upgrade the capacity and functionality of their existing technology.”

PayBase Web Series is ideal for organizations with multiple physical locations such as insurance companies, banks, brokerage firms, temporary agencies, leasing companies and franchisers. It can also improve business processes for organizations with widespread operations such as state and local governments, oil companies and retail organizations.

Dairy Farmers of America (DFA) is a Bottomline customer that is leveraging the benefits of the new Web Series in its operations. DFA works with nearly 20,000 dairy producers nationwide and processes over 100,000 payments per month on behalf of its members. Bottomline’s Web Series will help DFA to automate these payments across multiple sites into a central processing system at the company’s headquarters.

“Payment automation is absolutely necessary for us to be an effective solution and enhance our relationships with our members,” said Dwight Ingalsbe, Data Center Manager for DFA. “After evaluating all of the products on the market, we are convinced that Bottomline has the most comprehensive solution and we are excited to have them as a business partner.”

Within the United States, Web Series supports Laserchecks, wire payments and all National Automated Clearing House Association (NACHA) standards. For international commerce, Web Series supports S.W.I.F.T. international payments and cross border payments.

PayBase Web Series will also support new NACHA entry classes that will be effective in September. The new standards include point of purchase (POP) – an entry class that allows an organization to receive a paper check from a consumer and turn it into an ACH debit for quick and inexpensive collection through the ACH network. The product also supports re-presented check entries (RCK) – an entry class that enables an organization to significantly improve the collection rate on paper checks returned for insufficient funds.

About Bottomline Technologies

Bottomline Technologies(R) (NASDAQ: EPAY) is the leading provider of Web-enabled billing, payment, and electronic banking solutions for the business-to-business market. Bottomline’s three integrated e-business offerings enable corporations and financial institutions worldwide to integrate, automate, and streamline the entire financial supply chain. PayBase(R) provides a pathway from traditional paper checks to electronic payments, as well as sophisticated messaging, remittance, and anti-fraud tools. NetTransact(TM), the Company’s business-to-business bill presentment and payment suite, enables enterprise billers and their trading partners to electronically present, adjudicate, and pay bills on-line. Bottomline’s BankQuest(TM) is a corporate and institutional browser-based electronic banking platform that provides information reporting and transactional services for cash management, trade finance, and securities processing. Today, Bottomline’s offerings are utilized by over 2,500 organizations representing every major industry sector. Founded in 1989, Bottomline maintains its headquarters in Portsmouth, NH and has satellite offices located in most major cities. For more information, dial (800) 243-2528 or visit Bottomline on the web at [www.bottomline.com][1]

[1]: http://www.bottomline.com/

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Teen Technology

NY-based Solspark Inc., formerly netgen inc., announced Tuesday the availability of a turn-key teen payment platform that allows banks to access the teen market by issuing stored value payment mechanisms. The Solspark payment platform enables parents to place specific merchant category and spending controls on the teen account. The payment platform is part of Solspark’s proprietary permissions-based payment technology that integrates with all existing payment platforms. Solspark also announced yesterday the formation of its Senior Advisory Board which includes the following participants, among others: Pete Hart, former CEO of MasterCard and Advanta; Jeffrey Chittenden, formerly EVP at First USA Bank, and Bill Stewart, former CEO of eVISA and former EVP at VISA.

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2Q Card Data

[][1] While First Union continues to shop its portfolio on the market, second quarter results gathered by CardData show a $170 million drop in receivables and a reduction in active accounts by nearly 200,000. Wells Fargo Card Services’ portfolio was essentially flat for 2Q/00. Meanwhile Wachovia continues to digest its purchase of the Partners First portfolio showing a $400 million decrease in receivables between 1Q/00 and 2Q/00.

First Union Wells Fargo Wachovia
RECV: $5,630,654,051 $5,527,535,308 $7,787,803,270
Q VOL: $1,813,978,866 $2,162,003,878 $2,396,976,113
ACCTS: 3,279,000 4,568,998 7,769,274
ACTIVES: 1,767,559 2,832,425 2,763,510
CARDS: 3,840,876 6,000,074 10,377,321
ND- not disclosed

Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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Bank Plus to Unload

Bank Plus Corporation and its subsidiaries, which include Fidelity Federal Bank, FSB reported earnings from continuing operations of $6.0 million, or $0.31 per diluted share, for the second quarter of 2000 and $26.7 million, or $1.37 per diluted share, for the six months ended June 30, 2000. Excluding net gains on sales of branches of $4.7 million for the second quarter and $24.3 million for the six month period, net income from continuing operations was $1.3 million for the second quarter of 2000 and $2.4 million for the six months ended June 30, 2000. Net income from continuing operations was $10.8 million, or $0.54 per diluted share, for the second quarter of 1999, and $16.1 million, or $0.81 per diluted share, for the six months ended June 30, 1999.

The Company also reported that the Board of Directors has adopted a plan to dispose of its remaining credit card operations. As a result, the carrying values of the remaining credit card portfolios have been reduced to their estimated sales values and the credit card operations are now reported as discontinued operations in the Company’s financial statements. Income from discontinued operations was $0.1 million in the second quarter of 2000 and loss from discontinued operations was $7.3 million for first six months of 2000, as compared to losses of $26.4 million and $29.7 million for the corresponding periods in the prior year. Loss on disposal of discontinued operations was $27.9 million for the second quarter of 2000 and $60.3 million for the six months ended June 30, 2000.

The Company reported overall losses of $21.8 million or $1.12 per diluted share for the second quarter of 2000 and $41.0 million, or $2.11 per diluted share, for the six months ended June 30, 2000.

Mark K. Mason, President and Chief Executive Officer, said: “I am pleased to report that in the first half of the year we have implemented all of the strategic elements of our 2000 business plan, including the completion of our planned deposit sales, the adoption and execution of a plan of disposal of the credit card operations, and the resolution of the ADC cardholder litigation. As a result of these actions the Company anticipates a return to overall profitability in the second half of this year and is positioned to consider the feasibility of a sale in the near term.”

SECOND QUARTER 2000 RESULTS

Continuing Operations

Primarily as a result of deposit sales, repayments of borrowings and correspondingly lower levels of interest earning assets, net interest income decreased to $14.5 million in the second quarter of 2000 as compared to $16.4 million in the first quarter of 2000 and $18.5 million in the second quarter of 1999. The impact of the reduction in interest earnings assets was partially offset by improvements in the interest margin. While increases in market interest rates have caused the Bank’s deposit costs to increase since the 1999 second quarter, increases in the yield on assets and decreases in borrowings, which have higher costs than deposits, have resulted in an increase in the net yield on interest earning assets. The increased yield on assets was the result of the repricing of the Bank’s primarily adjustable rate mortgage portfolio and improvements in the yield on its investment portfolio due to lower prepayments.

Despite increasing deposit costs, the Company’s overall costs of funds have risen more slowly than the Federal Home Loan Bank (“FHLB”) Eleventh District Cost of Funds Index (“COFI”) to which the majority of the Company’s mortgage loan portfolio is indexed. The Bank’s overall cost of funds was 4.84% for the month of June 2000 and 4.58% for the month June 1999, while COFI was 5.36% and 4.50% for the corresponding periods.

The negative provision for loan losses in the second quarter of 2000 and the first two quarters of 1999 represents reduced estimates of future loan losses and net recoveries of specific valuation reserves resulting from improvements in the asset quality of the Bank’s mortgage loan portfolio.

Excluding net gains on sales of branches, net noninterest income was $3.4 million for the second quarter of 2000 as compared to $3.6 million for the first quarter of 2000 and $3.0 million for the second quarter of 1999. In the second quarter of 1999, noninterest income was negatively impacted by $0.4 million of fees incurred in the prepayment of certain FHLB advances. Increased sales of higher margin products resulted in a 4% increase in fee income from the sale of investment products in the second quarter of 2000 as compared to the second quarter of 1999 in spite of an 18% decrease in the number of branches. On a per branch basis, fee income from the sale of investment products increased 27% in the second quarter of 2000 as compared to the second quarter of 1999.

Operating expenses for the second quarter of 2000 were $1.6 million or 9.5% higher than the second quarter of 1999. This increase is due primarily to increased compensation costs, costs of the Major Loan Division which began operations in the fourth quarter of 1999, and higher FDIC insurance costs offset by lower information systems expenses. Increased compensation costs are primarily due to compensation increases to retain quality personnel in a highly competitive employment market. The Company’s core information systems were converted to a new service bureau based system in the second quarter resulting in a significant decrease in data processing costs.

The Company’s efficiency ratio has been adversely impacted by a number of factors related to its current turnaround status and its existing mortgage loan portfolio. These include higher FDIC insurance premiums, low capital levels, exclusive reliance on deposit funding, and a low yielding multifamily loan portfolio. Low capital levels cause the Company to borrow incrementally more to fund the assets. Deposit funding, while generally less expensive than borrowing, requires higher operating expenses. As a result of the Company’s lack of significant new loan originations since the early 1990’s, the loan portfolio today is still largely comprised of adjustable rate multifamily loans originated in the late 1980’s and early 1990’s. These loans were originated at margins that produce yields that are approximately 60 basis points below similar loans in today’s market. On a pro forma basis, adjusting for these items, the Company anticipates that its efficiency ratio will fall within the range of peer institutions in future periods.

Asset quality in the mortgage loan portfolio continues to be favorable with delinquencies at June 30, 2000 of 0.42% for the overall portfolio and 0.10% for the multifamily portfolio, compared to levels of 0.55% and 0.16%, respectively, as of March 31, 2000. Classified loans and nonperforming assets were $49.1 million and $5.3 million at June 30, 2000 as compared to $51.5 million and $7.2 million at March 31, 2000, respectively.

Discontinued Operations

The losses from discontinued operations in the first quarter of 2000 and in the first two quarters of 1999 were primarily due to high provisions for estimated loan losses.

The loss on disposal of discontinued operations represents the valuation loss recorded by the Company to reduce the carrying values of the MMG Direct, Inc. (“MMG”), American Direct Credit, Inc. (“ADC”) and First Alliance Mortgage Company (“FAMCO”) portfolios to their estimated sales values and $3.0 million of charges related to the future termination of a third party servicing contract and the completed sale of the Company’s credit card servicing center in Beaverton, Oregon. The valuation loss related to the MMG portfolio was recorded in the first quarter of 2000 while the valuation losses related to the ADC and FAMCO portfolios were recorded in the second quarter of 2000.

Until the disposal of the credit card portfolios has been completed, the Company’s overall results of operations will continue to include the results of these discontinued operations and any changes in the anticipated proceeds from the disposal of the credit card portfolios.

As of June 30, 2000 total outstanding balances in Fidelity’s credit card portfolio were $87.4 million, comprising $74.4 million in the ADC portfolio and $13.0 million in the FAMCO real estate secured portfolio. Total delinquencies in the ADC and FAMCO portfolios were 15.8% and 20.3% at June 30, 2000 compared to 15.0% and 18.8% at March 31, 2000, respectively. The buyer of the credit card servicing center and the MMG portfolio is now servicing the ADC portfolio.

REGULATORY CAPITAL

As a result of the second quarter net loss the Bank is categorized as “adequately capitalized” as of June 30, 2000 for regulatory capital purposes as compared to “well capitalized” as of March 31, 2000. The Company anticipates becoming “well capitalized” again in 2001 through earnings and balance sheet management. Common stockholders’ equity was $55.6 million at June 30, 2000 with a tangible book value per common share outstanding of $2.27.

SENIOR NOTE DEBT SERVICE

During the quarter, the Company made its scheduled interest payment on its Senior Notes. The liquidity for interest payments in the near term is expected to be provided by preferred stock dividends from the Bank and currently projected liquidity at the holding company. The Bank has been authorized by the OTS to make payment of dividends on the Bank’s preferred stock so long as the Bank remains at least adequately capitalized for regulatory purposes. This authorization from the OTS does not constrain the OTS from restricting future dividend payments based on safety and soundness considerations or future examination findings, and no assurance can therefore be given that the OTS will permit future dividend payments by Fidelity to Bank Plus. The Bank has received no indication from the OTS that it will object to the continued payment of preferred dividends.

Bank Plus Corporation is the holding company for Fidelity Federal Bank, FSB, which offers a broad range of consumer financial services, including demand and time deposits and mortgage loans. In addition, through its affiliate Gateway Investment Services, Inc., a NASD-registered broker/dealer, Fidelity provides customers of the Bank with investment products, including mutual funds, annuities and insurance. Fidelity operates through 30 full-service branches, 29 of which are located in Los Angeles and Orange counties in Southern California.

For more details on Bank Plus’ 2Q/00 results visit CardData ([www.carddata.com][1])

[1]: http://www.carddata.com

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