Citizens Bank's Innovative Receivables Management Program Gains Popularity; ``Business Manager'' Helping Companies Slash Costs, Improve Cash Flow and Streamline Operations.

Business Editors

FLINT, Mich.--(BUSINESS WIRE)--Oct. 2, 2000

An innovative receivables management program from Citizens Bank -- a wholly-owned operating subsidiary of Citizens Banking Corporation (Nasdaq:CBCF) -- is gaining widespread popularity as it continues to help businesses improve their cash flow and reduce overall costs.

The unique program -- first launched in February 2000 -- is a complete system in which Citizens Bank purchases a company's existing receivables on a discounted basis and assumes responsibilities for billing their customers. When Citizens Bank assumes a company's billing functions, businesses immediately receive money in their account for their current book of receivables. As such, they begin the program with cash covering nearly everything that is owed to them.

Staying Focused On Core Business Activities While Improving Cash Flow

Romulus Mich.-based Executive Quick-Serve, located within minutes of Detroit Metropolitan Airport, is in the business of expediting freight, not collecting accounts receivable. So, to stay focused on its core business, the company previously paid someone else to handle its billing and collections -- at a cost of nearly $20,000 a month.

Thanks to Business Manager(R), Executive Quick-Serve has cut that cost by more than fifty percent.

"We were paying significant prices to a large Chicago corporation to collect our accounts receivables," said Mike O'Donnell, president of Executive Quick-Serve. "Sure, it provided us with cash flow, but it was costing us more than $200,000 a year in service fees. Citizens Bank's Business Manager is working out really well for us. Not only do we receive cash for our invoices within 24 hours -- providing much needed cash flow -- but we're paying less than half of what we used to for that service. In addition to the tremendous cost savings, the biggest advantage is that Business Manager affords us the ability to remain focused on our core business activities."

A Financial Advantage

The advantages of Business Manager run deeper that just providing consistent cash flow, said Chris Simpson, president of The Simpson Group, Inc., a coast-to-coast trucking company based in Canton, Mich. In business more than 20 years, with high volume clients such as Ford Motor Co. and Home Depot, The Simpson Group's cash flow was more than adequate when the company first signed on with Business Manager. "We weren't in a cash crunch," Simpson said. "We wanted the financial advantages offered by Business Manager."

The lower rate charged by Business Manager means Simpson's company has more cash on hand, and greater opportunity for improved profits.

By way of example, Simpson notes that fuel is among his company's largest expense. The Simpson Group used to bill out its fuel costs monthly. With the additional capital provided by Business Manager, it now pays cash for fuel, which equals a savings of as much as 12 cents per gallon. "We've cut our annual fuel bill by almost 25 percent," Simpson said. "That savings alone pays for Business Manager many times over."

Rather than financing the purchase of big-ticket truck equipment earlier this year, Simpson said his company paid in cash - and saved nearly $40,000 in one shot. Simpson notes that by reinvesting the money his company saves through Business Manager, The Simpson Group's sales have rocketed almost 150 percent.

One of the most appealing features of Business Manager, according to Simpson, is the personal attention he gets. "I like the fact that with Business Manager, I'm dealing with Citizens Bank, my local bank. I know that I can pick up the phone, call Business Manager, and talk to someone who understands my business and how I'm trying to grow it. We have a personal relationship with the people at Business Manager and that provides us an invaluable source of financial guidance."

Ken Michalak, Vice President and Commercial Relationship Officer for Citizens Bank's Livonia Financial Center, added: "Business Manager allows companies to get out of the billing business and back to their core business. By improving cash flow and eliminating the time-consuming task of billing and collections, Business Manager enables companies to grow by focusing on what they do best."

Citizens Bank is a subsidiary of Citizens Banking Corporation, a diversified financial services company, providing a wide range of commercial, consumer, mortgage banking, trust investment and financial planning services to a broad client base. With a long standing tradition of community banking, Citizens Banking Corporation serves markets through Citizens Bank in Michigan, suburban Chicago, Illinois, and through F&M Bank in Wisconsin, Minnesota, and Iowa with 204 banking offices and 244 ATMs. Citizens has banking assets of $8.1 billion. Total trust assets are $3.55 billion. For more news and information about Citizens Bank visit www.cbClientsFirst.com.