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CASH STATION, INC. AND MAGIC LINE, INC. TO FORM NEW SUPERREGIONAL NETWORK

 CHICAGO/DETROIT, Jan. 6 /PRNewswire/ -- Cash Station, Inc. and Magic Line, Inc. today announced a preliminary agreement to consolidate their automated teller machine (ATM) and point of sale debit (POS) networks to form one of the nation's largest electronic funds transfer (EFT) networks. Cash Station is the largest EFT network in Illinois. Magic Line and NBD Bancorp, Inc. (NYSE: NBD) completed the consolidation of NBD's Network One and MoneyMover EFT Networks into Magic Line previous to the agreement to merge with Cash Station. Magic Line is now the largest EFT network in the combined Michigan/Indiana market. The new company's core market -- Illinois, Michigan and Indiana -- is one of the most attractive demographic regions in the U.S., with more than 26 million people and $190 billion in retail sales.
 The new company will conduct its ATM operations under the name "Cash Station." As one of its first tasks, a comprehensive, unified POS brand strategy will be developed, including a POS tradename and mark. The merged company will provide integrated processing and network services to financial institutions in the Midwest and to their merchants and individual customers. Initially, over 1,100 financial institutions will participate in the new network, which will have over 7,000 automated teller machines and 11 million debit cards. It will process approximately 15 million transactions per month. NBD Bancorp, Inc. will initially become the processor for the new company and will build a state-of-the-art system to support the new company's products and services.
 The new network's expanded regional coverage will make it more convenient for consumers to use ATM cards to purchase goods and services. The merger should add to the momentum already established by the two networks' existing POS relationships with major retail merchants such as Amoco Oil Company, Mobil Oil Corporation, Meijers Inc., Jewel Food Stores, Independent Grocers Association (IGA), Kroger Company, and Spartan Stores, Inc.
 "This consolidation will allow us to offer customers throughout the Midwest more convenient ATM and POS services and, at the same time, permit the development of new electronic banking products for our customers," said David M. Distelrath, executive vice president of First of America Services, Kalamazoo, Mich., chairman of the board of Magic Line, Inc., and spokesperson for the new company. "This network is intended to provide its participating financial institutions with state- of-the-art products and services on a cost effective basis." Added Donald B. Gibbins, senior vice president of the First National Bank of Chicago and chairman of the board of Cash Station, Inc., "The combination of the Michigan, Illinois and Indiana ATM and POS markets makes great strategic sense and will increase economies of scale significantly."
 The new company's headquarters will be in Dearborn, Mich., the present location of Magic Line, Inc. It will also maintain offices in Illinois and Indiana. The new company will be headed by a management team consisting of Distelrath who will serve as chairman and chief executive officer and Stephen S. Cole, currently president and chief executive officer of Cash Station, Inc., who will serve as president and chief operating officer.
 The sheer size and scale of the new processing and network company will afford significant opportunities for additional economies of scale. A primary business objective is the development and successful launch of new products, with a long-term goal of being one of the leading payments processing companies in the United States.
 Cash Station is currently owned by approximately 250 stockholders, including the largest financial institutions in Illinois. Magic Line is owned by Citizens Bank Corporation, Comerica Incorporated, First of America Bank Corporation, First Federal of Michigan, Michigan Credit Union League, Michigan National Corporation, and NBD Bancorp, Inc. The parties expect to complete definitive documentation concerning this transaction by Feb. 15. Certain aspects of the transaction will be subject to approval of regulatory authorities, as well as the approval of the stockholders of Cash Station. The transaction is expected to close in July 1994. In the interim time period, Magic Line and Cash Station agreed to implement an interchange arrangement which would permit Magic Line and Cash Station participants reciprocal access to each other's network prior to closing.
 -0- 1/6/94
 /CONTACT: David M. Distelrath of Magic Line, 313-441-0510; or Stephen S. Cole of Cash Station, 312-977-1150/
 (NBD)


CO: NBD Bancorp, Inc.; Magic Line, Inc.; Cash Station, Inc. ST: Michigan, Illinois IN: FIN SU: TNM

KT-KE -- DE001 -- 9627 01/06/94 08:15 EST
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Publication:PR Newswire
Date:Jan 6, 1994
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