IA Systems Announces Strong Second Quarter; Company Experiences Continued Sales Growth, Names New President, Adds New Customers.

ALBANY, N.Y. -- IA Systems, a provider of lending software and services for credit unions, banks and other financial institutions, completed another successful quarter and announced several important milestones. The company realized record sales growth, named Chris Cazer president, continued to sign new contracts and successfully implemented its new loan origination system, StreamLend Velocity. The company also expects to host its largest Annual Client Conference to date in October.

IA Systems reported an increase in sales of 64 percent over the same period in 2005. Several new clients have already signed up for StreamLend Velocity, including the $1.7 billion Texans Credit Union, which will use IA's new loan origination system to replace the credit union's current custom-built, in-house system. The company also reported that the $780 million Educators Credit Union in Wisconsin went live on StreamLend Velocity, processing 200 loans on the first day of operations and funding 50 loans in 48 hours.

Chris Cazer, who joined IA Systems in 2004, was promoted to president, providing a clear succession path for when CEO Deborah Ryan retires at the end of the year. Ryan, CEO since 2001, has elected to step down to pursue personal goals. During her tenure at IA Systems, the company more than tripled its revenue and doubled its client base. Ryan also led the development and launch of StreamLend Velocity.

"Our new Velocity platform positions us to address every aspect of the lending landscape - either today or in the immediate future. That all-encompassing vision of providing tools for the entire 'lendscape' has helped drive our successful second quarter," said Chris Cazer, president of IA Systems. "Our dramatic sales growth and proven results solidify IA Systems as a major player in the market. The staff and technology investments made to date provide a substantial foundation on which to support our future growth and goals."

In June, Educators Credit Union completed its conversion from StreamLend to StreamLend Velocity and is already reaping the benefits. "Working with IA Systems is not like working with a vendor, but a partner. StreamLend Velocity makes our entire lending process even faster and more efficient, and we are able to better serve our members' needs while increasing our total loan volume," said Linda Hoover, senior vice president of lending at Educators Credit Union.

In addition to Texans Credit Union and other new clients that selected StreamLend Velocity in the second quarter, three more of IA Systems current clients chose to migrate to the enhanced solution from their current StreamLend system.

IA Systems also expanded its management team with the addition of Lisa Santy as director of Product Management. In this position, Santy heads the product management group and drives product strategy and marketing. She is responsible for ensuring that IA Systems creates the most current and reliable products for its clients through comparative analysis and an understanding of market requirements, needs and trends.

The company will host its 5th Annual Users Conference at The Sagamore Resort in Bolton Landing, N.Y. (Lake George) October 22-25, 2006. With the release and launch of StreamLend Velocity in January, and a quarter of the company's client base already signed on to convert, this year's conference promises to be the largest and most educational to date. The theme of the conference is Lendscape 2006: The Story of Lending. For more information visit: http://www.iasystems.com/Conference/home.asp.

"We are committed to meeting our growth objectives while staying focused on customer service," Cazer said. "To support IA Systems' growing client base, we will continue to add experienced client-focused team members and make technology investments. Our expectations for the remainder of 2006 will reflect even more growth for our company as we continue to expand our presence within the financial services marketplace."

StreamLend Velocity is a customizable, paperless, Web-based loan origination system designed to automate and streamline the entire lending process. Using the solution, financial institutions can simplify and accelerate all lending areas from processing and underwriting to funding and closing loans. StreamLend Velocity, built on an open standards .NET and XML architecture, offers seamless integration with all major core processors and third-party vendors.

About IA Systems

Since 1991, IA Systems has developed technology to streamline business operations for credit unions, banks, and other financial institutions.

In 2000, St. Paul, Minn.-based Securian Financial Group, with assets of more than $26 billion, purchased IA Systems, providing IA with a national sales force and the financial backing of one of the nation's largest independent distributors of insurance protection services for financial institutions.

IA Systems' flagship product, StreamLend Velocity, is a paperless, web-based loan origination system that simplifies, automates, and accelerates the lending process using industry-leading tools such as a user-centric browser interface, configurable workflow, and modular, open-standards software design. The powerful and flexible web-based tools of StreamLend Velocity automate workflow, speed credit and loan decisioning, integrate sales channels, and manage risk for financial institutions, while decreasing operational costs and increasing loan processing efficiencies.

For more information about IA Systems and its products and services, visit the company's Web site at www.IASystems.com, write 500 New Karner Road, Albany, N.Y. 12205, or call 800.803.7554 ext. 279.