City National Bank of West Virginia Implements eDesk Return Software; Bank leverages Check 21 To Implement Electronic Returns Procedures and Save Labor Costs.

LAS VEGAS -- VSoft Corporation, a global information and technology provider of banking solutions announced at the 2004 BAI Retail Delivery Conference and Expo that City National Bank of West Virginia, a $2.2 billion asset size bank located in Charleston, WV, has implemented VSoft's Check 21 Returns solution. eDesk Returns leverages the benefits of Check 21 by streamlining the entire process of returning checks originally presented on paper. Ensuring a position in front of bank technology trends, City National Bank has employed VSoft's Returns solution to eliminate work hours incurred by physical exception item pull.

Before implementing eDesk Returns, City National processed approximately 200,000 items per day in order to find an average of 1,000 returns per day. Since the eDesk implementation, the bank's returns process is virtually instant. Day-two exception item pull is eliminated by capturing images on day one, and then printing the identified returns as substitute checks.

"Investing in Check 21 technology is not only important for compliance, but the VSoft solution also provides substantial cost savings and improves our daily check processing functions," said Chris Martin, vice president, City National Bank of West Virginia. "With each new technology, we eliminate operational redundancies and labor-intensive processes, thus creating a continual return on investment for the bank."

Before VSoft's implementation, City National Bank manually identified, sorted, and processed return checks drawn on insufficient funds, closed accounts, checks without signatures, or stop-payment checks. Hard copy checks were manually sorted as outgoing returns and sent through the Federal Reserve. Following the VSoft implementation, eDesk Returns automatically identifies the bank of first deposit for each item and presents the matched information to an operator, along with images, for confirmation, eliminating a significant amount of man-hours.

"The manual exception item process used to sort out returns is made a virtual process with eDesk Returns. The VSoft conversion is one of the smoothest I've ever seen," said Chris Martin, vice president, City National Bank.

The system can also present the images for signature verification, even displaying the image of the signature card, if applicable, for high-dollar items. With the eDesk Returns system, check images from day one capture are archived. Return items are identified, printed, and sent as substitute checks to the bank of first deposit.

"As new banking legislation, compliance, and technology standards evolve within the financial industry, VSoft continues to meet challenges with solutions that create optimum back office efficiencies and deliver tangible results to banks' bottom lines," said Murthy Veeraghanta, president, VSoft Corporation. "eDesk Returns provides a direct electronic path to substitute checks as a check-clearing channel. It allows institutions to clear return items exponentially quicker, with reduced risk, and earlier notification to receiving institutions and their customers. Overall, eDesk Returns provides a seamless process between day-one and day-two operations."

About City National Bank

City Holding Company (the "Company"), a West Virginia corporation headquartered in Charleston, West Virginia, is a multi-bank holding company that provides diversified financial products and services to consumers and local businesses. Through its banking offices in West Virginia and Ohio, the Company provides credit, deposit, investment advisory and insurance products and services to its customers. City Holding Company is the parent company of City National Bank of West Virginia. City National Bank also operates City Insurance Professionals, an insurance agency offering a full range of insurance products and services.

About VSoft Corporation

A global information and technology provider of financial solutions, Atlanta-based VSoft Corporation has been offering scalable, flexible solutions since its inception in 1996. Led by industry experts with a proven track record in excellence, VSoft Corporation is proud of its ability to provide technology designed for easy implementation and migration from the proprietary banking systems of the past. VSoft's experienced systems integration teams ensure that every customer is met with VSoft Advantage. VSoft Corporation has multiple products, services and support that cover back office, operations, lockbox processing, Check 21 legislation, and retail functions. These solutions are designed to maximize core efficiencies while reducing operational costs. More information about the company can be found at www.vsoftcorp.com.