MasterCard International to Use Global Presence to Expand Microcredit Movement.

PURCHASE, N.Y.--(BUSINESS WIRE)--Jan. 30, 1997--

Sponsorship of 1997 Microcredit Summit Part of Commitment to

Expanding Microcredit Concept, in Partnership with MasterCard

Financial Institutions Worldwide

Global companies that offer microcredit initiatives can play "an increasingly important role in combating poverty, one of the most devastating ills of humanity," according to Richard N. Child, president of MasterCard's Latin America and Caribbean Region. Child is a keynote speaker at the 1997 Microcredit Summit, which opens Sunday in Washington, D.C. MasterCard, the global payments association, is one of four lead sponsors of the three-day Summit, which will launch a campaign to ensure that 100 million of the world's poorest families - especially the women of these families - are receiving credit for self employment and other financial and business services by 2005.

"Our commitment is to raise awareness through our expansive network as a means to ignite the commitment of others," says Child in remarks to be delivered to the Summit delegates on February 3. "MasterCard's commitment goes well beyond financial support. Given our structure and influence on commerce worldwide, we fully expect to become a global catalyst for microcredit among our 23,000 member financial institutions around the world."

The microcredit movement, which to date has helped eight million poor people worldwide, loans small amounts of money - sometimes as little as $25 to $50 - to low-income families, who in turn typically use the money for self-employment ventures. The return on investment to date has been significant, with the majority of recipients working themselves out of poverty, thus strengthening their communities.

According to Child, the concept of microcredit contributes significantly to solving poverty, while donor aid programs often fail to reach the world's poorest 20 percent. Microcredit not only allows the poor to take care of their immediate needs, he says, but also helps pave the way to independence by empowering them to generate their own incomes.

"We must continuously strive to combat the terrible tragedy of poverty, particularly among children," says Child. "MasterCard will do its part by creating awareness about the concept of microcredit among our member financial institutions, highlighting the enormous benefits that such a program delivers in poverty-stricken communities."

In his remarks, Child also cites the work of an ongoing MasterCard program, which builds on an affinity card relationship with between Banco Popular Dominicano and Asociacin para el Desarrollo de Mircoempresas, Inc. (ADEMI), a micro- and small-scale lender in the Dominican Republic. ADEMI has drawn 15,000 owners of microenterprises, most of them too small to attract banks due to their lack of profit potential, into the formal financial system. About 3,000 of these previously "unbankable" entrepreneurs are now using MasterCard-ADEMI-Banco Popular Dominicano credit cards at purchasing outlets, to withdraw cash and to pay light, cable, telephone and other bills, thus building their stature in the local business community.

MasterCard supports a number of charitable organizations, including the 1997 Microcredit Summit, under the banner of its worldwide philanthropic program "Future of Youth."

The other lead sponsors of this year's Microcredit Summit are CitiCorp Foundation, Charles Stewart Mott Foundation and the Monsanto Fund.

MasterCard International, a payments company with one of the world's most recognized brands, is dedicated to helping more than 22,000 financial institutions around the world offer consumers a variety of payment options. MasterCard remains focused on helping shape the future of money by expanding acceptance of its global brands (MasterCard(r), Maestro(r) and Cirrus(r), the world's largest ATM network) and maintaining reliable, secure networks facilitating global value exchange. MasterCard has nearly 370 million credit and debit cards that are accepted at more than 13 million acceptance locations worldwide. In 1995, gross dollar volume generated was almost $500 billion. MasterCard can be reached through its World Wide Web site at http://www.mastercard.com.

CONTACT: Sean Healy, 914-249-4606

Matt Hutchison, 202-383-9590