TYME Joins Forces with PULSE, Offering Enhanced Electronic Funds Transfer Benefits to Financial Institutions and Cardholders.

Business Editors

HOUSTON--(BUSINESS WIRE)--June 7, 2001

Two of the country's best known ATM and point-of-sale (POS) networks -- Houston, Texas-based PULSE(R) EFT Association and Brown Deer, Wisconsin-based TYME(R) Corporation -- announced today that a letter of intent has been signed to merge TYME into the PULSE network, while continuing to maintain TYME's strong brand identity.

The combined system will establish PULSE as one of the largest financial institution-owned networks in the United States.

"We are extremely pleased to announce the combination of our two networks," PULSE President & CEO Stan Paur and TYME President Jim Martin said in a joint statement. "The consolidation of the networks is a natural because we share a similar ownership structure and the same operating philosophy. In addition, this combination will ensure that a strong industry-owned network will exist that is dedicated to providing the highest quality of switching services at the lowest possible price, regardless of the size or type of institution. We fully expect that this combination will appeal to a broad base of institutions and will fuel the growth of our program in the future."

The consolidation creates an EFT system that will serve more than 3,300 banks, credit unions and savings institutions from the Canadian border to the Gulf of Mexico.

Three TYME directors will serve on the PULSE board, and Martin is expected to remain as head of Wisconsin operations and be based in Brown Deer. The closing of the merger is subject to standard conditions, including the completion of due diligence, execution of definitive agreements and the approval by shareholders of TYME, and is expected to be completed before the end of 2001. Financial terms of the transaction were not disclosed.

Martin sees important strategic benefits to TYME members and Wisconsin consumers in the merger.

"In today's environment of rapid change and consolidation, particularly in the electronic funds transfer (EFT) industry, we felt it was important to our members and to cardholders that TYME be aligned with an organization owned and operated by the financial industry," he said. "PULSE not only embodies that principle, but is widely recognized as one of the prime examples of an outstanding financial institution-driven organization. We have worked with the people at PULSE for years on common issues, and feel very comfortable in joining forces with them for the future."

Paur echoed Martin's sentiments.

"This is a logical combination of two financial industry-controlled associations that embrace similar philosophies regarding quality, governance, and strategic objectives," he said. "The consolidated organization will leverage our complementary resources not only to deliver EFT services but also to commit resources to value added services such as research, educational programs and lobbying support."

Fred Spratlin, chairman of PULSE EFT Association and senior vice president of First Tennessee Bank in Memphis, also spoke positively of the merger:

"PULSE is taking another big step forward in becoming the network of choice in the United States through its relationship with TYME," he said. "TYME blazed the EFT trail for the rest of us and we are pleased to be associated with a network of its caliber."

"By combining with PULSE, we are giving new and much broader meaning to the statement that stands for TYME, Take Your Money Everywhere," added Michael Crowley, TYME chairman and president & CEO of Mutual Savings Bank in Milwaukee. "This merger means only good things in both the short and long term for Wisconsin financial institutions and their cardholders."

Paur noted that TYME, organized in 1975, was the nation's first shared, regional EFT system, and that PULSE, founded in 1981, was patterned after TYME, the industry pioneer.

"TYME has been synonymous with ATM throughout its market area for years -- the name has become part of the Wisconsin culture," Paur said, "and we are proud to continue the brand."

TYME is a full-service provider of EFT-related services, using state-of-the-art technology to provide participants with low cost, high quality service. More than 500 financial institutions belong to TYME, which processes nearly 100 million transactions annually. The TYME network includes more than 4,400 ATMs and 157,000 POS terminals.

PULSE is a financial industry-owned, not-for-profit EFT network, linking an estimated 60 million cardholders with more than 76,500 ATMs and 300,000 POS merchant locations throughout the United States, processing 700 million transactions annually. Its members include more than 2,700 banks, credit unions, and savings and loans in a 22-state service area blanketing the central, south, midwest, and southwest regions of the United States. PULSE has become well known in recent years as a valued resource for consumer research related to EFT services, and an effective national public policy voice on issues of importance to the financial industry.

The TYME transaction represents the second expansion for PULSE within the last six months. It acquired the Ohio-based Money Station network on Jan. 31, 2001.

Company logos and photos of Jim Martin and Stan Paur are available electronically upon request. Please email [e-mail] for the electronic versions.