BACS and CheckFree Form Joint Venture

The new company will combine the commercial application of BACS trusted position in the UK payments industry with CheckFrees electronic billing experience and global market leadership in electronic billing software, with its CheckFree i-Series solution already widely used in 23 countries globally by nationwide electronic billing service providers and high-volume billers. The joint venture will link billers and banks together to deliver electronic bills and statements to consumers throughout the UK. The new company will offer consumers, billers and banks a complete, end- to-end experience for electronic bill payment processing. Benefits to Participants The electronic delivery and payment of bills will provide a range of benefits as consumers change the way they manage their finances: - UK consumers will have the ability to both view and pay their bills at their banks web site. - Banks will be able to offer new levels of service and convenience to consumers, who cite the ability to view and pay bills at a single site as an increasingly critical component of their online banking experience. - Significant cost reductions for banks and billers will be secured as reliance on paper bills decreases and automation of manual tasks occur. - The frequency of bank-site visits will increase as consumers log-on while automated access, time savings and availability offer the individual greater control. - Billing organizations will be able to strengthen customer relationships via visibility at bank sites, targeting interactive marketing messages through the electronic bill, and by offering the convenience of remote access to bills and statements. - Tight integration between billing operations, accounts receivable and customer care systems within their operational environment will deliver substantial cost savings.