Advanced Financial Solutions Reports Record Sales for 2003; Company Marks Eighth Consecutive Year of Positive Growth.

Business Editors/High-Tech Writers

OKLAHOMA CITY--(BUSINESS WIRE)--April 19, 2004

Advanced Financial Solutions (AFS), a leading developer of image-based payment, transaction and document software technologies, reported record sales today for the year-ending Dec. 31, 2003.

Sales for 2003 reached $94.5 million exceeding $90 million for the first time in the history of the privately held company founded in 1992. Sales increased eight percent over prior year and over 20 percent in the past two years. AFS posted $88 million in sales for 2002 and $75 million for 2001.

"AFS enjoyed an exceptional finish to the year, reporting record sales despite a challenging global economic climate and competitive market environment," said Gary Nelson, AFS President and CEO. "We are very pleased with the results. Our leadership position remains firm and we are optimistic about future growth opportunities for the company."

Nelson also said the results reflect the successful operational execution of several new product introductions during the year and the company's ability to gain traction in the large financial institutional and community bank markets. He said greater discipline and focus in these two markets produced favorable results as affirmed by Wachovia Bank's recent decision to partner with AFS to develop a check image exchange program around AFS' xVision technology.

AFS xVision enables large financial institutions to exchange check images with other financial institutions, despite any system and/or platform processing differences. Nelson cites AFS xVision as an example of the value AFS brings to its clients and the company's ability to deliver practical applications, which effectively differentiate AFS in the competitive environment.

The passage of landmark legislation last fall by U.S. Congress in the form of the Check 21 Act, which at the heart of the bill gives an image-produced check the same legal status as the original, spurred a movement among financial institutions of all sizes across the nation toward new image-based technology for exchanging and clearing checks electronically between institutions.

"Our long range planning for the eventual passage of Check 21 Act continues to pay dividends for us," Nelson said. "Our development teams were two years ahead of the curve, working closely with our domestic clients developing a digital electronic check exchange network using applications built on our existing AFS ImageVision architecture to deliver the expected operational efficiencies and security."

The commitment of financial institutions to the adoption of new check imaging technologies resulted in a surge in sales for AFS' ImageVision "Courier" software application, which provides an affordable interface to a national check image exchange network called Endpoint Exchange.

"The AFS ImageVision 'Courier' product launched last year was among the most successful in our company's history," Nelson reported. "More than 90 processors representing the check volume of over 4,000 financial institutions ordered the new product application by close of 2003; and the momentum has continued through early 2004 with indications pointing to a strong performance for the entire year."

Nelson continued, "The strong performance in the financial markets shows how our brand leadership and customer focus drive company results. We see substantial opportunity in 2004 to further distinguish ourselves from our competitors through superior technology and customer service."

The continued development and introduction of new product applications in addition to AFS xVision and AFS ImageVision Courier prompted Nelson to comment that AFS is in the early stages of the strongest new product cycle in the history of the company. He said the breadth and depth of the current product offering coupled with several new applications planned for introduction in 2004 position AFS well for continued success.

In addition to growth sparked by new product introductions and enhancements, the company also reported growth in its online data storage service business in 2003. Introduced in 2002, AFS' eStor and related Application Service Provider (ASP) products continue to attract customers wanting to outsource their primary or backup check image archive system.

Growth also continued in the company's Business Recovery Services. Several major financial and transaction processing firms signed long-term contracts to utilize AFS' services. Nelson reported plans are underway to expand AFS' Business Recovery Services through reciprocal alliances in other parts of the United States.

Nelson also reported continued expansion and growth in the company's international business. "We extended our reach and opportunity internationally especially in Africa, where AFS added new customers in South Africa, Namibia, and Nigeria.

He also pointed out positive growth for the company in Asia and the Caribbean with new contracts in Taiwan and Puerto Rico. The company's presence in China, Singapore as well as in parts of Europe, and South and Central America, remain strong.

The company successfully leveraged its expertise in the payment processing and transaction discipline across several industrial categories in 2003, most notably in the medical marketplace. The company's technology forms the platform for a new enterprise called MBEXX, which stands for The Medical Banking Exchange. Using payment processing and image-based technology developed by AFS, MBEXX can automate the exchange of payments and remittance data between health care providers, insurers, clearinghouses and financial institutions, in full compliance with federal HIPAA regulations.

"The outlook is positive, given the strong business momentum we started with in 2004. We will continue to focus on establishing strong direct relationships with our customers around the world and on further strengthening our position in the markets where our product and services compete. We believe our corporate assets, including a strong balance sheet, market leadership, broad and loyal customer base, experienced management team and strong new product developments, provide us with the solid foundation we need to support our continued growth," Nelson concluded.

About Advanced Financial Solutions

Founded in 1992, AFS has delivered high-quality image-based and conventional check processing solutions to the financial services industry. AFS was one of the first companies to offer image and item processing technology based on the Microsoft Windows NT operating environment. All AFS item-imaging solutions are designed from the ground up with the functionality that banks and remittance processors need for operating in a high capacity transaction-based environment. Headquartered in Oklahoma City, AFS maintains offices worldwide.