Affinity Announces Appointment of New President and CEO.

Business & High Tech Editors

COLUMBIA, S.C.--(BUSINESS WIRE)--Jan. 10, 2000

Affinity Technology Group, Inc. (NASDAQ:AFFI) today announced the appointment of Joseph A. Boyle, 45, as its new President and Chief Executive Officer effective immediately, replacing Murray Smith, who has resigned. Mr. Smith will remain on the Company's Board of Directors and continue to assist the Company with its patent licensing program. Mr. Boyle, who previously served as Chief Financial Officer, will continue to function as the Company's principal financial officer, and will be appointed to serve on the Board of Directors, bringing the total number of Directors to six.

Affinity also announced a 47 percent reduction in its work force. Mr. Boyle stated, "Initiating this reduction in force was a very difficult decision; however, it was necessary under the circumstances. Our sales and deployment cycle has been very lengthy, which has put a significant drain on our resources. Additionally, we have been notified by Dime Savings Bank that they will not deploy our home equity product. As we recently stated, we have been working for months to identify and evaluate strategic alternatives ranging from attracting additional capital to an outright sale of the Company. That effort has not been successful. Therefore, we took the necessary step to conserve our financial resources, while maintaining the ability to provide continuing service to our customers."

Concerning Affinity's future, Mr. Boyle stated, "We will continue to provide our loan processing service for existing customers and focus on expanding this business through marketing alliances. We will continue to pursue additional licensing opportunities for our patent on fully automated lending systems and develop our Mortgage ALM product through our wholly-owned subsidiary, Surety Mortgage, Inc."

Affinity also announced that John Rogers, Senior Vice President, will become the General Manager of its outsourced loan processing services business. A veteran of the banking service bureau business, Mr. Rogers will lead the Company's initiatives to develop marketing alliances and will oversee the outsourced business operations.

Affinity's technology enables financial institutions to link their branches, call centers, internet customers, and indirect agents electronically to their credit departments, providing fully automated lending - and, if necessary, connectivity to a loan officer-through every channel. For financial institutions, Affinity's solutions expedite loan decisioning and processing and increase productivity and capacity of branch personnel, call center agents, loan officers, and indirect agents, while improving the overall customer experience. Affinity is located on the World Wide Web at www.affi.net.

Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties, including those related to general economic conditions, delays and risks associated with the development of new technologies, consumer and industry acceptance of automated delivery channels, and regulatory risks, that may cause actual results to differ materially from those projected. Further, although the U.S. Patent and Trademark office has issued patents for certain claims covered by the Company's patent applications, there can be no assurances that the patents will have any commercial or competitive value.

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