American Express Launches S2S(SM), a Suite of Automated "Source-to-Settle" Purchasing Solutions.

Company to Acquire Harbor Payments, a Technology Leader in Electronic Invoice & Payment Services

Strategy Broadens American Express' Payment Services to Corporate Clients, Building on its Leadership in Commercial Cards

NEW YORK -- Combining the strength of its industry-leading commercial card business and its procurement capabilities, American Express announced today that it is launching a suite of innovative source-to-settle electronic solutions named S2S(SM) designed to help companies drive greater levels of cost savings while improving control and compliance requirements.

To support this business expansion, American Express has signed an agreement to acquire Harbor Payments, an Atlanta-based technology provider that delivers industry-leading e-invoice and e-payment capabilities. The product functionality provided by Harbor Payments will help companies eliminate paper processing and make their supply chain more efficient. The acquisition, subject to regulatory approval, is targeted for completion by year end. Terms have not been disclosed.

American Express will market these solutions to corporations in the United States beginning in January 2007, with plans to expand on a global basis. In offering these new electronic payment services, American Express will significantly broaden its expense management services available to corporate clients and gain new opportunities for growing its Corporate Services business.

The strategy in launching these capabilities is grounded in extensive research of client needs and emerging technologies. While large companies have made good progress in implementing e-procurement systems, their overall source-to-settle process is still fragmented with multiple manual, paper-based steps, particularly for invoicing and payment. According to the Aberdeen Group's 2006 Invoice Reconciliation and Payment Benchmark Report, more than 80% of companies' invoices are still received in paper format, and 66% of payments are made via check. The report also notes that companies that have adopted the full scope of automated purchasing and payment can process invoices, on average, seven times faster -- at one-tenth of the cost.

"Our clients have been asking American Express to play a broader role in helping them manage expenses and reduce costs across a broad array of purchasing categories. Simply put, we can help clients do more with less," said Gordon Smith, President of American Express Global Commercial Card. "The goal is to help companies automate and seamlessly integrate the multiple steps in the source-to-settle process."

Founded in 2000, Harbor Payments has approximately 200 clients. In the emerging industry of Electronic Invoice Presentment & Payment (EIPP), Harbor Payments has become a recognized leader and has a robust network of suppliers equipped to handle the electronic invoice transaction process.

"Harbor Payments is the right strategic partner for American Express because they have a proven and highly-respected technology platform, a robust supplier network and a talented team to help us build solutions that are easy to implement and easy to use," said Smith.

Ashish Bahl, CEO of Harbor Payments, said: "With its experience as the leading commercial card provider and its ability to provide world class customer service, American Express is the logical player to help its clients drive savings through electronic invoice and payment capabilities. Together, we can help companies make the right choices in streamlining invoice and payment processing."

About Harbor Payments

Harbor Payments is a leading provider of outsourced electronic invoicing, billing and disbursement solutions for the Global 1000. The company's products, services and insight enable organizations to manage cash flow more effectively by efficiently sending and receiving invoices, making and collecting payments, and managing all associated internal workflows. While transforming and streamlining the client organization's operational and financial processes, Harbor Payments' products and services adapt to and complement each client's existing information systems and accounting applications. Harbor Payments' solutions are marketed under the brands of Invoice Harbor, Billing Harbor and Payment Harbor. For more information, please visit the company's web site at http://www.harborpayments.com.

About American Express Global Commercial Card

Through its Global Commercial Card group, American Express provides the Corporate Card[TM], Corporate Purchasing Solutions[TM] and other expense management services to mid-sized, large and global companies worldwide. In the US, it is the leading issuer of commercial cards, serving more than 50% of the Fortune 500 as well as tens of thousands of mid-sized companies. American Express issues local-currency commercial cards in 36 countries, and International Dollar Corporate Cards in an additional 85 countries. More information can be found at http://www.americanexpress.com/corporateservices.

The American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, insurance and international banking.