BA Merchant Services Inc. Registers for IPO.

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 11, 1996--BankAmerica Corporation announced today the filing of a registration statement with the Securities and Exchange Commission relating to a proposed initial public offering of Class A common stock by its newly formed subsidiary, BA Merchant Services, Inc. ("BAMSI").

BAMSI will provide an array of payment processing and related information products and services to merchants who accept credit, charge and debit cards as payment for goods and services throughout the United States. BankAmerica intends to contribute to BAMSI substantially all of the merchant services operations presently conducted by Bank of America NT&SA and Bank of America NW, N.A. upon receipt of the requisite regulatory approvals, expected later this year. BankAmerica also plans to include certain of its merchant card processing businesses in Asia in the newly formed company at a later date, subject to approval by local regulatory authorities.

Goldman, Sachs & Co. will serve as lead underwriter for the proposed offering. The amount and the price of the shares to be offered to the public have not yet been determined. Immediately following the offering, BankAmerica, as owner of 100 percent of BAMSI's Class B common stock, will retain a majority of both the economic and voting interests of the company. -0-

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

CONTACT: Bank of America

Peter Magnani, 415/953-2418