$40 Million Gay Internet Bank Deal Proves Wall Street Ready to Back gCommerce; Progressive Insurance Leads Funding Group; Investment Bank Stephens Acts as Placement Agent.

Business Editors

PENSACOLA, Fla.--(BUSINESS WIRE)--April 24, 2000

G & L Internet Bank (www.glbank.com) the world's only gay and lesbian Internet bank, today announced it has raised $40 million in capital. Of this amount, Stephens, Inc arranged $37.5 million and officials of the bank raised the balance.

This level of institutional support for an openly gay-oriented business venture is unprecedented and demonstrates an evolution in attitudes by mainstream American financial organizations as more and more corporations seek ways to reach and influence the lucrative gay and lesbian markets with advertising and promotional solicitations that are increasingly direct in their approach.

"I call this entire process `gFinance' and `gCommerce'," said G&L Internet Bank founder Steven Dunlap, "because the marketplace is now willing to openly acknowledge the value and importance of gay and lesbian purchasing power. In such an environment, the concept of `gay banking' begins to make a tremendous amount of sense."

G & L Internet Bank opened for business in October 1999 and provides a comprehensive array of consumer banking services in a pure Internet environment. The bank prides itself on providing services that are friendly, efficient, competent, economical, and confidential.

The Progressive Corporation is a Cleveland-based insurance holding company. Its subsidiaries offer personal automobile and specialty property-casualty insurance and related services throughout the United States. Founded in 1937, Progressive got its start filling the needs of underserved market segments.

Founded in 1933, Stephens is a privately owned Investment Bank headquartered in Little Rock, Ark. Stephens serves a broad client base of institutional and individual investors through its offices located in key markets throughout the United States and London.

Managing Director and Senior Internet Research Analyst Brad Eichler said: "We are excited about the prospects for the G&L Bank. We see the bank fulfilling a need in the gay and lesbian community, which historically has been underserved by financial services businesses. We continue to see rapid adaptation of the Internet by the gay and lesbian community and are impressed with the bank's focus on growth and profitability."

G & L Bank CEO Kay Griffith said, "we are extremely pleased to close this round because it constitutes a very strong vote of confidence in our business model and our execution of that model by one of America's premiere investment banking organizations."

In the five months since opening for business, G & L Bank has met or exceeded all planned milestones for marketplace penetration and business growth. The bank's strategic plans for this new round of capital include an expanded marketing campaign to enroll new consumer customers and further efforts to brand the bank as the nation's leading provider of "extreme banking services."

The bank provides a full array of consumer and business banking products including free basic and interest checking accounts, overdraft protection, electronic bill payments, free ATM access any where, any time, and any place at more than 485,000 locations, MasterMoney check cards, regular and money-market savings, CDs, IRAs, traveler's and cashier's checks, auto loans, home equity loans, mortgages for same sex couples and non-married heterosexuals, consumer loans and business loans - all on a non-discriminatory basis to the target affinity group and other customers.

G&L Bank allows customers to open accounts online instantly and approve online credit applications within seconds.

"The idea for the bank," said founder Steven Dunlap, "sprang from an experience I had several years ago while trying to negotiate a business loan with a traditional bank. I presented a well-prepared and highly bankable deal that was rejected solely because the planned business was designed to market to gays and lesbians. I decided right then to create a new kind of bank that would look at all customers -- gay, straight or whatever -- as real people and not bundles of negative stereotypes and silly misconceptions."

Steven Dunlap, 42, is the Founder and past Chairman of the Board of G&L Holding Group and G&L Bank and the Director of Marketing of G&L Bank. For the past six years, he has devoted his time to research and development of the Bank. Most recently, he was Founder and Chairman of the Dunlap Companies, a group of international consumer products manufacturing and distribution companies that launched several products and consumer novelty items which cumulatively generated more than $350 million in retail sales. He is an active member of HRC (Human Rights Campaign), Nashville Cares, Friends for Life, Feed the Need, the LAMBDA Legal Defense and Education Fund and the Gulf Coast (Florida) community where he resides.

G. Kay Griffith, 54, is Chairwoman, President, CEO and Director of G&L Bank and the G&L Group. Griffith has been an executive in the commercial banking industry for more than 20 years. Since 1998, she has served as Executive Vice President of G&L Holding Group to organize the Bank and secure its charter. Previously, she founded Corporate Growth Consultants, Inc., which provided financial management and strategic planning assistance to insured depository institutions. Prior executive positions include President and Chairman of Admiralty Bank, Palm Beach Gardens, Florida, and Senior Vice President/Florida Regional Executive at NationsBank, NA. She is a recipient of the American Free Enterprise Medal and Women in Business Industry Award and is currently on the Board of Directors of Sound Advice, Inc.

Keith E. Cotham, 35, is Co-Founder and Secretary of G&L Holding Group and Director of Human Resources and Training of G&L Bank. For the past nine years he held senior positions with National Bank of Commerce, Memphis, Tennessee, most recently as a Senior Vice President and Director of Training for National Commerce Bank Services, Inc. He also served as consultant and training coordinator to improve bank clients' in-store banking programs.

G&L Bank management team consists of experienced bankers with an average of 18 years of experience in the banking industry.

About the Placement Agent:

Stephens Inc. seeks to become a trusted advisor to their clients in the areas of corporate finance, public finance, institutional and individual clients in all aspects of their business and personal investments, particularly as they interact with the financial markets, consider capital formation and preservation, and analyze strategic alternatives.