For Immediate Release
Monday, December 12, 1998

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

Diamond Bar, California --- V-Tek Systems Corporation announced today that Bank of America, one of the nation’s largest educational lenders, has awarded the company the contract to develop a comprehensive student loan management system. According to Bernard Abrams, V-Tek CEO, the system will consist of two major subsystems, student loan origination processing and student loan portfolio management. “The loan origination application will be built around AppWorks, our new student loan origination system,” says Abrams. “The student loan portfolio management application is a data warehouse system with extensive financial modeling and reporting capabilities.”

Bank of America envisions the system will reduce operating expenses, enhance productivity and give them much more financial control over their $4 billion student loan portfolio. Kathy Cannon, Senior Vice President of Student Lending, adds that the system will also give Bank of America a significant edge over other lenders in the area of delivering services to colleges and their students. “Both systems will take advantage of Web self-service capabilities, including transaction processing, on-line application/promissory notes, laser printing and Web Channel delivery of reports and data files,” she said. “The new strategic thinking is to give schools not only financial products, but also the processing tools to administer their loan programs. This new system does just that.”

Lenders participating in the student loan industry are facing tremendous pressures because of the government’s Direct Lending program, lower regulated margins on federally insured loans and the entry of non-traditional financing organizations into the market. To be competitive, lenders need to have a flexible, customer-focused technology infrastructure. One of Bank of America’s tactics is to rely on V-Tek’s understanding of the complexities of student loan processing and the information needs of schools and students, as well as, their proven capability to deliver innovative IT solutions.

"V-Tek has made a real impact in the education finance arena in just a few short years,” says Doug Hawks, CEO of Seneca Technologies, a financial services technology consulting firm. "The company’s record of industry firsts is impressive. They developed the Federal Family Education Loan Program’s (FFELP) 1st ATM-scale data switch for ELM Resources, the industry’s 1st Web-based loan management software, FFELP’s 1st multi-lender data warehouse with Web services and the nation’s 1st educational grant status server. It’s no surprise that they decided to apply their technological savvy to the student loan origination and information processing business.”

The new system will be implemented in a phased fashion beginning July 2000 and proceeding through 2001. The student loan portfolio management subsystem will be first, followed by the student loan origination subsystem. The system will feature the Windows NT operating system, Oracle’s 8.0 data base, Microsoft Visual Basic and Web browser user interfaces, Microsoft IIS Web server technology and Actuate report server for report production and delivery.

V-Tek Systems Corporation, headquartered in Diamond Bar, CA, is a software development and system integration company with extensive expertise in client/server technology, UNIX and NT operating systems, Oracle data base software and Internet communications. V-Tek provides software solutions and services to many of the nation’s largest financial institutions and colleges and universities.