CUShopper Announces '0 Percent Interest' on Computer Purchase.

Business Editors

GLENDALE, Calif.--(BUSINESS WIRE)--Oct. 25, 2000

Credit Union Members Benefit from No Finance Charges

In its ongoing effort to provide credit unions and their members with attractive financing and affordable purchases, California-based CUShopper, Inc., a leading provider of direct and online shopping to credit union members, announced a "0% Interest" financing offer to credit unions and their members on the purchase of a specially-packaged Internet/computer bundle.

CUShopper designed this rate buy-down program to help credit unions increase loan volumes with lower risk while also providing a benefit to credit union members. According to Mason Wiley, CUShopper vice president of Marketing, "We continue to look for ways that CUShopper can help credit unions better serve their members. Not only does this offer help build the credit union's loan volumes, it helps members join the computer age for often less than $39.00 per month with no interest charges. That's a powerful offer."

CUShopper's experience with the more than 120 credit unions participating in this special promotion proves its appeal among credit union members. The 0% Interest offer generated an average response of 1 percent, more than three times the .2 percent to .3 percent considered to be the benchmark for untargeted statement insert offers.

CUShopper negotiated special bundled rates with one of its leading merchant partners. All orders for this promotional offer are at 0 percent over 36 months. CUShopper has agreed to pre-pay a flat 12 percent of the loan amount (less shipping and applicable taxes) for all loans funded through this special offer to participating credit union partners. "CUShopper pays the credit union its interest from the loan up front," Wiley continued, "instead of over a 36 month period. We were able to negotiate an excellent value for this offer, and we wanted to pass the benefit along to our partners and their members."

Additionally, each participating credit union's CUShopper.com site will reflect the 0% offer, and CUShopper will provide a promotional brochure for statement distribution. Members can shop for offers like this either online or by phone. CUShopper's Loan Services Department provides turnkey loan processing.

Earlier this year, CUShopper piloted this program with Los Angeles-based credit unions, generating record response. According to a CUShopper member survey conducted with area credit unions and their members, the number one factor in placing their orders was low monthly payments. More than 60 percent of the members who ordered reported it was the first loan they ever applied for with the credit union.

About CUShopper, Inc.

CUShopper creates the opportunity for about half the U.S. adult population to take advantage of credit unions' core value proposition--low rate, non-profit financing--for their most important purchases. CUShopper's "Better Buying Through Membership" shopping network provides credit unions with a value-added member service by offering high-demand brand name goods and services to members along with credit union financing. Credit unions gain a point-of-sale opportunity that can help drive increased loan volume.

Products and services are offered and distributed via a multi-channel marketing program, which incorporates co-branded on-line shopping sites, direct marketing and point-of-purchase collateral so members can choose how they wish to shop. CUShopper provides each credit union's financing with product orders.

CUShopper.com sites employ patent-pending technology to dynamically render each participating credit union's brand, financing terms and rates, providing a customized on-line shopping and e-commerce environment appropriate to each membership group. CUShopper was ranked #66 in the 2000 Inc. 500 list. For more information, contact CUShopper, Inc. at [phone], write 811 Sonora Ave, Glendale, CA 91201, email to [e-mail], or visit www.CUShopper.com.