CDS Electronic Check Presentment Suite Allows The Houston Chronicle to Reduce Bank Fees, Speed Access to Returns.

DES MOINES, Iowa -- Communications Data Services, Inc. (CDS), a subsidiary of The Hearst Corporation, today announced that The Houston Chronicle is utilizing the CDS Electronic Check Presentment (ECP) Suite to reap the rewards of the Check Clearing for the 21st Century legislation (commonly referred to as "Check 21"). The CDS ECP Suite is fundamental to supporting The Houston Chronicle's receivables processing goals.

Check 21 promises to improve the way businesses bank. The legislation facilitates check truncation, fosters innovation in the check collection system, and improves the overall efficiency of the nation's payments systems. The Houston Chronicle, which has the second highest daily and Sunday readership penetration in the nation (among top markets), and a monthly lockbox volume of over 50,000 transactions, also is leading the way as one of the first corporate billers to take advantage of Check 21. The newspaper is doing so through a partnership with its lockbox provider, CDS Data Capture Services.

Using ECP, CDS Data Capture Services transmits an electronic file with check images and related data to The Houston Chronicle's depository institution, Wells Fargo. CDS no longer has to prepare and transport paper-based cash letter transactions to the bank, which in turn, allows The Houston Chronicle to accelerate funds availability, lower its bank charges, streamline return items handling, and improve service - all without negatively impacting its operations. This process also enables Wells Fargo to determine the most cost effective and efficient means for clearing payments - electronic deposit, image exchange, automated clearinghouse (ACH), or substitute check (or image replacement documents). Additionally, ECP eliminates the issues associated with paper cash letters.

Soon, The Houston Chronicle's eligible checks will be converted to ACH transactions - driving even greater improvements in funds availability and return items processing.

"On our end, things work exactly as they did before the conversion. But return items now are available more quickly," stated Jay L. Rosenthal, assistant controller at The Houston Chronicle, which has been a CDS Data Capture Services customer since 2001. "Ultimately, it comes down to saving money, and our bank fees are lower using ECP. We are very pleased with the results of the program."

"The success that we've had with The Houston Chronicle clearly illustrates how Check 21 complements our strategy to invest in advanced imaging technology," stated Marc Haskelson, vice president, general manager, CDS Business Solutions. "As part of our ongoing commitment to facilitating seamless and efficient receivables management, CDS will continue to expand its ECP program to include more depository institutions."

CDS, which is depository independent, has made a significant commitment to ECP, and it is generating growing interest from corporate billers and depository institutions alike. CDS will offer a common ECP interface to transmit deposits to any depository institution.

About Communications Data Services, Inc.

In the business of providing outsourced services since 1972, CDS has earned a reputation for service and value in the industry. Backed by the stability and experience of The Hearst Corporation, CDS provides a complete outsourced solution for clients to manage and execute all of the critical business processes that impact their customers - from order and information capture, and data imaging and management, to letter shop, printing, mailing and product fulfillment. CDS counts among its customers an elite group of the world's leading magazine publishers, direct marketing firms, financial institutions and corporate billers. CDS brings the right mix of people, processes, technology and tools to every job we do, making CDS a trusted partner for complex, mission-critical applications. CDS is headquartered in Des Moines, IA, with facilities in Arizona, New York, Pennsylvania, Canada and England. Learn more at www.cdsfulfillment.com.