FundsXpress Raises $40 Million in Private Funding.

Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--Jan. 24, 2000

FundsXpress, Inc., a leading provider of Internet banking and other financial services, announced today the completion of a $40 million private financing round involving E.M. Warburg, Pincus &Co., The Beacon Group and Texas Growth Fund. In conjunction with the investment, David A. Coulter, former BankAmerica Corporation chairman &chief executive officer and two partners from Warburg, Pincus joined the FundsXpress board of directors.

Led by Warburg Pincus, the $40 million round will be used by FundsXpress to fund the rapid growth of the company for new product development, infrastructure expansion including strategic acquisitions and target marketing campaigns.

PaineWebber Incorporated served as the company's placement agent and advisor on this transaction.

The three new members of the FundsXpress board of directors are: David A. Coulter, partner at The Beacon Group. Coulter leads the West Coast operations of The Beacon Group and specializes in payments systems technology and strategy. Prior to joining the Beacon Group, Coulter was the chairman and CEO of the BankAmerica Corporation and Bank of America NT &SA. Previously, he headed the bank's United States and International Groups, with responsibility for large corporate, financial and government clients around the world, and prior to that, headed the bank's United States Corporate Group, managing the investment banking, trading and commercial banking businesses. Coulter also brings to FundsXpress intimate knowledge of worldwide payment systems and will assist the company in expanding its connectivity into the EFT networks.

Joseph P. Landy, partner at Warburg, Pincus, has been with Warburg, Pincus since 1985 and currently runs the firm's Internet group. Landy is a director of The Cobalt Group, Inc., Indus International, Tradiant Corporation and SynQuest, Inc., Landy is the treasurer of the New York Venture Capital Forum.

Kewsong Lee, partner at Warburg, Pincus, leads the firm's financial services efforts. r. Lee has been with Warburg, Pincus since 1992. Lee is a member of the Board of Directors of several public and private companies, many of which are in the financial services industry. Lee is a board member of Charter Financial, Inc., Ereorg.com, Inc., ExTerra Credit Recovery, Inc., Flatiron Credit, Inc., Renaissance Re Holdings Ltd., and TradeCard, Inc.

&uot;Our vision and ability to execute have been validated by the confidence displayed by our new investment partners,&uot; said FundsXpress Chairman &CEO John A. Burns. &uot;Our new product offerings in 2000 maintain our industry leadership in the Internet financial services sector. From our financial services portal, consumers at banks and credit unions will be able to buy stocks, insurance and secure loans all in one totally integrated system. It's convenient, safe and secure.&uot;

&uot;As a banker, I've watched the Internet embrace financial services products and FundsXpress is one of the leaders in the industry as it combines various offerings through a single portal to consumers at credit unions and banks,&uot; said Coulter, the Beacon Group partner. &uot;I am excited about joining the FundsXpress board and look forward to the opportunity to help guide FundsXpress into its future as we redefine the payments industry.&uot;

&uot;FundsXpress leads the industry in thought-leadership and is developing the solutions banks and their consumers are seeking. They have a seasoned management team in-place and the operational maturity of an industry leader. We are enthusiastic supporters,&uot; said Landy of Warburg, Pincus.

&uot;We are pleased to be backing FundsXpress. We've seen solid growth in their Internet banking enabling business and anticipate continued success with the additional functionality currently in development,&uot; new board member Lee said. &uot;The company is well-positioned in its industry and given its prospects will be able to capitalize on attractive opportunities in the near term.&uot;

&uot;The Southwest has been creating a number of quality companies in the technology and Internet sectors, and we believe that FundsXpress represents one of the most attractive investment opportunities available in these sectors today,&uot; said Barry Twomey, partner at TGF Management. &uot;We are excited about having the opportunity to support a local company that is a leader in its field.&uot;

Strong demand allowed FundsXpress to raise more funds than originally targeted and to select high quality investment partners, explained Len Brooks, head of the Private Capital Group at PaineWebber.

&uot;With this high quality investor group, a strong management team and solid business plan, FundsXpress is well positioned to roll out its additional products and capture market share in the coming year,&uot; Brooks added.

ABOUT WARBURG, PINCUS Warburg, Pincus is a major global private equity investment firm that has raised eight private equity funds totaling more than $11 billion over the last 30 years. The firm has invested in more than 300 companies across a broad range of industries with a history of continuous, active, and successful involvement in transactions around the globe with a consistent mix of start-ups, growth equity, and buyouts. Financial services and technology are two major areas of focus at Warburg, with past investments made in Mellon Bank, NOVA Corp, BEA Systems and Chemdex. For more information, please visit the company's Web site at http://www.warburgpincus.com.

ABOUT THE BEACON GROUP The Beacon Group is a leading strategic financial advisor, private equity investor and wealth counselor. The firm's senior professionals incorporate knowledge gained over 30 years at preeminent Wall Street firms to partner with experienced professional management to develop and maintain highly successful and productive partnerships. For more information, please visit the company at http://www.beacongrp.com.

ABOUT THE TEXAS GROWTH FUND The Texas Growth Fund, managed by TGF Management Corp., is an equity-oriented investment fund based in Austin. Backed by Texas public pensions and endowments, the $577 million fund is one of the largest and most active private equity groups in the state. TGF provides equity and subordinated debt capital for public and private companies that have operations in Texas or intend to establish operations in the state. Its capital is used for internal expansions, acquisitions, management buyouts, and recapitalizations for established companies in a wide range of industries

ABOUT FUNDSXPRESS The FundsXpress Financial Network provides secure, reliable and convenient Internet banking through a service bureau solution to banks and credit unions across the country. With endorsements from leading state and national associations, FundsXpress is the nation's premier provider of Internet banking services for financial institutions. For more information, please visit the company at http://www.fundsxpress.com

Editors: Some computer systems do not recognize the &uot;at&uot; sign. It is an important component of e-mail addresses and should be used in place of the symbol (At) in the contact information above.