PHOENIX INTERNATIONAL FORMS ALLIANCE WITH SERVERS ON-LINE; PHOENIX BANKING SYSTEM NOW AVAILABLE TO COMMUNITY BANKS THROUGH SERVICE BUREAU.

ORLANDO, Fla.--(BUSINESS WIRE)--Nov. 21, 1997--Phoenix International Ltd., Inc., (Nasdaq/NM:PHXX), a world leader in client/server retail banking management solutions, today announced that the Phoenix Banking System will now be available to banks via a service bureau arrangement with Servers On-Line, Inc., a new information processing data center located in Holbrook, New York. Through this strategic alliance, Servers On-Line will offer financial institutions an alternative delivery channel to the Phoenix client/server based core banking product, which until now, was only available on an in-house basis.

According to officials at both companies, Servers On-Line's new northeastern service bureau has been designed to overcome the weaknesses inherent in the traditional service bureau environment, namely, antiquated mainframe technology and a lack of personalized service. Servers On-Line specifically chose the Phoenix Banking System for its client/server-based technology, which will allow each bank to have its own dedicated hardware configuration rather than compete for processing resources with other clients. The intended result will be significant operational efficiencies and cost savings for every subscriber.

"For years, we have seen organizations using traditional legacy systems attempting to address current banking issues. These systems, with their old technology and dated architecture, cannot help banks compete effectively in today's marketplace. Furthermore, the concept of utilizing a mainframe and attempting to realize a profit by taking advantage of economies of scale and sharing system resources is diametrically opposed to providing customized services for each bank," said Kenneth J. Sole, president of Servers On-Line, Inc.

Sole explained that under the traditional scenario, as the data center comes closer to achieving its own objective--100 percent utilization of the computing resources--the less successful the clients on the service bureau will be in attaining their individual objectives.

Sole continued, "With the Phoenix client/server system, we at long last have a scalable platform that will mitigate these issues and provide the opportunities to meet the challenges that banks face regarding alternative delivery strategies and open architectures. This will allow us to deliver significant competitive advantages."

The alliance will offer banks the same depth and breadth of applications delivered to Phoenix in-house customers including customer relationship management, teller, ATM, deposits, retirement processing, mortgage lending, line of credit, commercial lending and an executive information system. Servers On-Line also plans to deliver key strategic and technology-based applications such as Internet banking, telephone banking, document imaging, cash management solutions, card services, and item processing. A full range of professional services, from network development, installation and management, to intranet site development, education, training, and consulting, will also be available to every client.

According to Bahram Yusefzadeh, chief executive officer of Phoenix International, "The development of this unique service bureau provides a critical solution to small to mid-size community banks who must compete effectively or lose market share. Phoenix is now able to support those banks who demand state-of-the-art technology but prefer to operate through an outsourcing arrangement. This strategic alliance allows community banks to use the Phoenix Banking System's client/server technology to more effectively manage their organizations, achieve their business objectives, and compete on a level playing field with other major financial institutions."

Based in Holbrook, New York, Servers On-Line is an organization that offers outsourced data processing and related services to the community banking market. The methods and systems used in delivering these services are key in differentiating Servers On-Line from competitor service bureaus. By utilizing state-of-the-art client/server-based systems and architectures, Servers On-Line delivers improved operational efficiencies and personalized services to each user.

Through an alliance with Phoenix International, Servers On-Line uses the Phoenix Banking System as its information processing system. A dedicated hardware platform is configured and specifically designed for each financial institution. Servers On-Line delivers a wide array of core banking applications including relationship management, teller, ATM, deposits, retirement processing, mortgage lending, line of credit, commercial lending, and an executive information system tailored to meet each clients' requirements. Servers On-Line provides a turnkey solution by delivering key strategic and technology-based applications such as Internet banking, telephone banking, document imaging, cash management solutions, card services, network installation and management, and consulting services designed to meet the competitive and evolving demands of the community banking marketplace. For more information, contact Servers On-Line at 516/738-2959, or visit the web site at www.serversonline.com .

Based in Orlando, Florida, Phoenix International is a world leader in installed client/server banking solutions and services for the financial industry. Clients range from community banks to multi-national and international financial organizations.

The company provides the Phoenix Banking System, a fully integrated core banking solution that manages all facets of a bank's retail and wholesale information processing operations entirely in an open-system, client/server environment. Developed to help bankers focus on strategic issues, the system was designed with key management applications as its core including customer relationship information management, on-line customer profitability analysis, financial reporting, an executive information management system and fully integrated teller, phone, ATM, and Internet banking modules.

As a full service provider, Phoenix offers clients a full complement of professional and systems integration services including installation, conversion, implementation, training, custom programming, networking solutions, intranet and World Wide Web site development services. For more information, call Phoenix International at 407/548-5100, or visit the Phoenix web site at www.phoenixint.com .

CONTACT: Phoenix International Ltd. Inc., Orlando

Ralph Reichard, 407/548-5100

or

Servers On-Line Inc., Holbrook

Kenneth J. Sole, 516/737-5200