Defense Credit Union Council and Financial Service Centers Cooperative, Inc. Announce Partnership.

Business Editors

SAN DIMAS, Calif.--(BUSINESS WIRE)--April 28, 2003

Financial Service Centers Cooperative, Inc. (FSCC), an international credit union shared service center network, and the Defense Credit Union Council (DCUC), a trade association for defense industry credit unions, have signed an agreement to promote shared branching services.

"Serving the troops and their families is a priority for our credit unions," says Arty Arteaga, President/CEO of DCUC. "Whether peace or war, our military members and their spouses need to have access to their accounts and conduct business whenever, wherever. Our partnership with FSCC will help facilitate such a relationship and will ensure our troops receive the highest level of support."

Although everyone is keenly aware that shared branching can help credit unions serve the troops as they are deployed and/or away from home, Mr. Arteaga points out that spouses need help too: "In many cases, the spouses may move back home to be with their families. This could present a challenge for spouses, especially if they need to perform a function that cannot be conducted via the Internet. Shared branching will help fill that void."

Shared branching can also add value during times of increased security or threat conditions (THREATCON). As noted by Mr. Arteaga, "When the THREATCON level is at its highest, access to military installations is restricted to only 'essential personnel.' By participating in FSCC's shared branching network, our members will be able to provide continued support to their individual members (including military retirees) without regard to the THREATCON level."

"We are especially proud of our relationship with DCUC," says Carl Stewart, Chairman of FSCC. "DCUC's work in supporting defense credit unions helps millions of Americans as they serve our country, and with shared branching, they can support them even more."

"Shared branching will give the troops and their families the convenience of over 970 branches worldwide," adds Sarah Canepa Bang, FSCC CEO. "It may not be a huge issue, but it is one less thing they have to worry about in difficult times. We are honored to be a part of it."

FSCC's growth and support were factors in DCUC's decision to partner with the 12-year-old company. In 2002, the FSCC shared branch network grew by over 30 percent in the number of branches and more than 13 percent in transactions. The FSCC network has credit unions and branches in 21 states and six countries. This is up from a presence in just six states in 2000.

Currently FSCC has 97 new branches in process of implementation with another 75 anticipated in 2003. The network has over 700 branches in the pipeline for the next two and a half years.

FSCC support includes staff on both coasts, extended calling hours, demographic mapping services, marketing support and a business-to-business web page allowing participating CUs to download rules, policies, transactions counts and more. In 2002, FSCC conducted over 30 free user groups and training sessions around the country and has over 68 planned for 2003.

"Shared branching requires training and communication," says CEO Bang. "Next to deploying branches, support and training are our highest priorities." This focus was not lost on DCUC officials who also boast a robust training and communication schedule for member credit unions.

Based in Washington, D.C., the Defense Credit Union Council, Inc., is an organization of approximately 275 credit unions. Membership in the Council is restricted to those credit unions whose field of membership includes a well-defined segment of military and/or civilian personnel of the U.S. Defense Establishment. Individual member growth is over 13 million, assets are over $84 billion. Twenty-five of the top 100 and 13 of the top 50 credit unions are members of DCUC. DCUC is the only cohesive liaison with the Department of Defense and the National Credit Union Administration on problems unique to defense credit unions. It is the eyes, ears and voice of all defense credit unions at the Pentagon and welcomes that role.

Based in San Dimas, California, FSCC has more than 400 branches within its network and offers access to over 970 branches in the United States and internationally in Guam, Japan, Italy, Puerto Rico and South Korea. The FSCC network serves over 200 credit unions representing nearly $80 billion in assets and over 8 million members. In total, credit unions involved in shared branching in the U.S. represent 16 million members and nearly $100 billion in assets. The smallest credit union using shared branching is approximately $2 million in assets and the largest is over $3.5 billion in assets. Financial Service Centers Cooperative, Inc. (FSCC) is owned and controlled by credit unions.

For more information visit www.fscc.com or call 888/372-2669, ext. 689.