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EDUSERV PURCHASES WACHOVIA STUDENT FINANCIAL SERVICES

 ST. PAUL, Minn., and WINSTON-SALEM, N.C., Feb. 3 /PRNewswire/ -- EduServ Technologies Inc. of St. Paul, Minn., has acquired Wachovia Student Financial Services, a Winston-Salem, N.C., based member company of Wachovia Corporation (NYSE: WB). The sale is subject to the Federal Trade Commission's approval, which is expected shortly.
 The announcement was made today by Carl O. Keil, chief executive officer of EduServ, and David L. Cotterill, executive vice president of Wachovia Corporation.
 Under terms of the agreement, Wachovia Student Financial Services will merge with and adopt the name of EduServ and serve as the third location for the company, which has student loan servicing centers in St. Paul and Salt Lake City, Utah. The revenue base of the combined companies will approximate $80 million.
 According to Keil, EduServ will expand the current space occupied in Winston-Salem to accommodate expected growth and the immediate installation of a major computer center. The computer and telecommunications facility is expected to become fully operational before mid year. Until then, Wachovia will continue to provide computer support.
 "EduServ and Wachovia Student Financial Services are similar in age, size, philosophy and services offered," Cotterill said. "While Wachovia was not seeking a purchaser for this subsidiary, a more highly regarded partner could not have been found. The emphasis EduServ places on customer service, pride in its employees, excellence in systems and service, and in-depth knowledge of student loan processing as well as the expected growth are assurances that this move will be good for the staff, the customers, the community and the student loan industry. Going forward, we are pleased that EduServ will service Wachovia's own student loan portfolio, resulting in a continuing relationship between our companies."
 "The complexity and variety of student loan programs and the constantly changing regulations that govern them require major continuing investments in systems, computer hardware and personnel training. This consolidation will enable us to leverage these investments and to provide even higher quality services on a more cost effective basis for customers of both companies," Keil said. It is expected that the Winston-Salem operation will retain its current staff and integrate the management team after the acquisition is completed.
 "The complementary nature of the two companies is most beneficial, particularly the addition of the Federal Perkins loan program which markets directly to schools and will enable us to expand our market reach," Keil said.
 EduServ Technologies Inc. has been a student loan servicer for 23 years. Services are provided to more than 300 lenders and secondary markets with loans serviced exceeding $3.8 billion. Some 650 employees staff the St. Paul and Salt Lake City centers.
 Wachovia Student Financial Services Inc. has provided student loan processing services since 1965. About 2 million active student loans are serviced for more than 900 ur?sities, colleges and financial institutions in 46 states, the District of Columbia, Puerto Rico and the Virgin Islands. The portfolio represents over $4.0 billion in outstanding loan balances. The company has approximately 550 employees.
 -0- 2/3/93
 /CONTACT: (Media) Nancy P. Lovelace of Wachovia, 919-770-5696, or Carl O. Keil of EduServ, 612-293-3814; or (Analyst) Robert S. McCoy Jr., Chief Financial Officer, 919-770-5926, or James C. Mabry, Investor Relations, 919-770-5788, both of Wachovia Corporation/
 (WB)


CO: EduServ Technologies Inc.; Wachovia Student Financial Services,
 Inc.; Wachovia Corporation ST: North Carolina, Minnesota, Utah IN: FIN SU: TNM


CM -- CH005 -- 2282 02/03/93 10:02 EST
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Publication:PR Newswire
Date:Feb 3, 1993
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