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 PITTSBURGH, Aug. 2 /PRNewswire/ -- Mellon Bank Corporation (NYSE: MEL) announced today that it has entered into a definitive agreement to sell two of its information services businesses, known as Financial Institution Outsourcing (FIO) and Data-Link Systems, Inc., to Milwaukee-based FIserv, Inc. (NASDAQ: FISV) for $70 million.
 This action follows Mellon's announcement earlier this year that it was seeking a buyer for these businesses.
 The corporation expects to realize an after-tax gain of approximately $15 million in connection with the transaction, completion of which is anticipated by the fourth quarter of this year.
 The businesses being sold by Mellon together generate annual revenues of approximately $70 million, and provide data processing and management information services to approximately 200 banks, thrifts and mortgage companies across the United States.
 As part of the agreement, FIserv will hire all FIO and Data-Link employees, representing approximately 470 people in Pittsburgh, approximately 160 in South Bend, Ind., and approximately 80 at other locations.
 Also included in the sale is Mellon's Philadelphia data processing operation, which employs approximately 85 people. FIserv indicated that the operation will remain in Philadelphia and eventually transition into a new, full-service FIserv data center.
 "We are delighted that we were able to structure this transaction in such a way as to provide ongoing employment for our people," said Mellon Vice Chairman W. Keith Smith. "Our client base will be served by one of the best companies in the business, our FIO and Data-Link associates are being offered full employment in their own cities, and Mellon is receiving a fair return from the sale. FIserv, like Mellon, has an excellent reputation for providing data processing and information management products and services to the financial industry. We believe our customers will be well served by FIserv, which has a long-term commitment to the outsourcing business."
 Mellon announced its intention to sell FIO and Data-Link in March, indicating that it had re-assessed its provision of outsourcing services to financial institutions in light of changes in its strategic priorities.
 "We remain highly committed to technology-based businesses and, with our acquisition of The Boston Company, financial institution outsourcing no longer is central to our strategy," Smith said. "For us, returns are potentially higher in other businesses."
 With assets of approximately $36 billion, Mellon Bank Corporation is a major superregional bank holding company. Through its subsidiaries, it provides wholesale, middle market and retail banking, as well as numerous service products, including trust and investment, cash management and mortgage banking.
 An independent, publicly held company headquartered in Milwaukee, FIserv, Inc. is an independent provider of data processing outsourcing capabilities and related products and services for financial institutions. It is traded on the NASDAQ over-the-counter market system with the symbol FISV.
 -0- 8/2/93
 /EDITORS: Descriptions of the businesses Mellon is selling to FIserv follow.
 Mellon is selling the following businesses to FIserv:
 -- Financial Institution Outsourcing (also known as Datacenter),
 which provides a full array of data processing and management
 information services -- including loan processing, deposit
 processing, customer information file maintenance and management
 information services -- to other financial institutions in
 service bureau and facilities management arrangements. FIO is
 located in Pittsburgh.
 -- Data-Link Systems, Inc., which provides a full range of mortgage
 banking data processing services in service bureau or software
 licensing arrangements. Data-Link is located in South
 Bend., Ind./
 /CONTACT: Thomas W. Butch, 412-234-6436, or Margaret K. Cohen, 412-234-0850, media, or Charles M. Johnston, analysts, 412-234-5601, of Mellon Bank Corporation/

CO: Mellon Bank Corporation; Financial Institution Outsourcing; Data
 Link Systems, Inc.; FIserv, Inc. ST: Pennsylvania, Wisconsin IN: FIN SU:

CD -- PG002 -- 8195 08/02/93 09:04 EDT
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Publication:PR Newswire
Date:Aug 2, 1993

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