Bankers' Bank Selects Community Banking Systems to Lead Development of Check 21 Solutions; Bank-Owned Bank Utilizes Check Imaging to Provide Market-Leading Services to Customers.

DALLAS -- Community Banking Systems (CBS), a provider of check imaging products and services for community financial institutions, has been selected by Madison, Wis.-based Bankers' Bank to provide the second phase of its industry leading Check 21 solution. The first phase of the bank's solution enabled respondent banks to send image cash letters to Bankers' Bank for clearing with the Federal Reserve.

Phase two began in response to the immense amount of image files provided daily by 52 Bankers' Bank customers that amounted to 1.5 million items per month. Bankers' Bank selected Community Banking Systems because of its previous check imaging experience with the Federal Reserve and its flexibility in building an image exchange solution in a timely and cost effective manner.

According to Bankers' Bank officials, CBS' licensing of Data Treasury technology patents was also a deciding factor in the selection process.

"After our due diligence period, we know that our decision to work with CBS and the solution we are creating will be truly unique to the marketplace," said Ron Slater, president and CEO of Bankers' Bank. "Our success to date with Check 21 can be matched by few and our imaging advancements further demonstrate our commitment to excellence."

Phase two is known as OWN.IT (On-We Network for Image Transfer), and will enable Bankers' Bank to offer its customers a cost effective image clearing solution. CBS is developing and operating an image exchange that clears Bankers' Bank customers' checks through sources available at any point in time.

"Our experience with banks across the country, the flexibility of our check imaging solutions and the licensing agreement with DataTreasury made us the best and safest option for Bankers' Bank," said Sean Pennock, president of Community Banking Systems. "We provide a solution specifically catered to community banks, and since Bankers' Bank works strictly with community banks, we are providing them the easiest and most cost effective check imaging solution. Our licensing agreement with DataTreasury protects Bankers' Bank from any legal implications of utilizing check imaging technology."

Portions of check imaging technology are protected by U.S. Patent Nos. 5,910,988 and 6,032,137, held by DataTreasury Corporation (DTC). DTC patents were issued in 1999 and 2000 for image capture, centralized processing and electronic storage of document and check information. Currently, it is the subject of a series of high-profile patent-infringement lawsuits DataTreasury has filed against a number of banks and financial-services companies. Through Community Banking System's patent license agreement with DataTreasury, CBS' bank and credit union customers do not have to worry about legal implications associated with the patent. For more information on the DataTreasury patents, visit www.datatreasury.com.

About Bankers' Bank

Bankers' Bank is a bank-owned bank that provides services only to financial institutions. Open since 1981, Bankers' Bank main office is located in Madison, Wisconsin with sales offices in Eau Claire, Wisconsin and Des Moines, Iowa. Bankers' Bank is the third largest bankers' bank in the U.S.

As an independent source of non-competing financial services, the Bank serves a market of over 650 financial institutions located in the Midwest. They do not serve the general public and, therefore, do not compete with their clients. Bankers' Bank services strictly support their customers, providing them with effective tools to be competitive.

Daily, Bankers' Bank manages more than one billion dollars in assets and over seven billion dollars of custodial securities. They offer mass purchasing power and greater scale economies to community banks of all sizes. This allows community banks the ability to offer larger loans, tax-exempt debt underwriting, and consolidated processing for proven cost effectiveness.

About Community Banking Systems

Dallas-based Community Banking Systems (CBS) employs the most advanced back office imaging technology built solely and specifically for community banks. With a unique combination of technology and process improvement expertise, CBS helps banks improve their customer service and reduce costs by streamlining their imaging operations. Commitment to the independent bank is reflected in the quality of customer care, the industry experience of the CBS team, the design of CBS software products and the implementation of CBS services.

For more information, visit www.combanksys.com.