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 that Key Educational Resources will be the first Federal Family Educational Loan Program (FFELP) lender to use the AppWorks student loan origination software in an ASP service bureau configuration.

As a remote user of AppWorks, Key Bank will perform the customer service and application processing functions required to originate and disburse student loans, while V-Tek will manage 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 Randy Behm, Key Bank's Senior Vice President in charge of the Educational Lending Group, the ASP solution for originations makes both economic and practical sense. "On the one hand we can bring on this new technology without a huge capital investment, while on the other we don't have the human resource expense of operating and managing it," says Behm. "Our goal over the next couple of years is to use AppWorks for all of our student loan origination processing."

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 compliant.

As part of this new arrangement between V-Tek and Key, V-Tek customized the disbursement workflows to meet Key's internal business requirements. V-Tek also integrated the AppWorks product with several of Key's financial systems through data file interchange processes. "V-Tek was very responsive to our need for information flow to and from AppWorks to our internal systems in Cleveland," said Mr. Behm.

The data communications between the AppWorks system in Diamond Bar, California, the Key Education Resources customer service operations in Boston and the Key financial system in Cleveland is accomplished over a high-speed, secure frame relay network. Key client schools will connect to AppWorks Web servers in California via the Internet. Schools and their borrowers will be able to use Key, V-Tek and/or their own portals to reach the system to take advantage of the many Web functions AppWorks offers.

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.