For Immediate Release
Monday, July 30, 2001

Contact: Stacy Miles
V-Tek Systems Corporation
909-396-5355; smiles@v-tek.com

V-Tek Systems Corporation, a software development and system integration company, today announced plans to make AppWorks, its student loan origination system, available to lenders and secondary markets in a service bureau configuration (ASP). The service bureau approach will give users all of the processing features available in the licensed version of AppWorks, but at a fraction of the cost of the standard license fee. Cheri DeBlasio, V-Tek Executive Vice President, says the move "allows AppWorks ASP users to share the cost of the system with others, while they maintain control of the critical customer service component of their business. We will offer the service under a 'fee per application' pricing structure."

Service bureau users of AppWorks will perform the customer service and application processing functions required to originate and disburse student loans, while V-Tek handles the computer operations (application, Web and report servers), data interchange with guarantee agencies, disbursing agents and servicers and report production. V-Tek will also provide software maintenance and custom programming services. According to Bernard Abrams V-Tek President and CEO, in the current technology environment, service bureaus are experiencing a renaissance. "It is widely publicized that the cost of hardware drops every day. What isn't well understood is the cost of software development, state-of-the art development tools and the third party licenses fees for industrial strength database and reporting software have increased exponentially. Fortunately, the Internet has made remote access to systems extremely fast and efficient, which makes specialized service bureau offerings very cost effective. The turnabout is interesting. In the 60's hardware costs drove the demand for service bureau products, today its software."

AppWorks is a newly developed student loan origination system designed to provide superior operating efficiencies and offer its processing users a strategic marketing advantage by incorporating unique and flexible functionality desired by schools. System modules include workflow processing, real-time credit scoring, Web status access and transaction processing, school-selected disbursement flows (hold & release and date driven), electronic data interchange with schools, guarantors, disbursing agents and ELM Resources and document imaging/tracking. The system supports Stafford, PLUS and Alternative loans and is fully CommonLine and CAM compliant.

Bank of America and AFSA Data Corporation will be the first student loan organizations to use AppWorks. Both companies will operate the software on hardware located at their respective processing facilities under V-Tek's traditional license and maintenance agreement. V-Tek's service bureau student loan origination system is available now for the 2002 processing season.

V-Tek Systems Corporation, headquartered in Diamond Bar, CA, is a software development, system integration and hosting services company with extensive expertise in Web-based business applications, Internet communications, client/server technology, UNIX & NT operating systems and Oracle database software. V-Tek provides software solutions and services to many of the nation's financial institutions and colleges and universities.