For Immediate Release
Monday, February 16, 1998

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

Diamond Bar, California --- V-Tek Systems Corporation, a software development and system integration company, today announced plans to build a student loan origination and interim servicing system. The new system - which will support both Internet and intranet communications - will rely on leading-edge technologies to deliver a truly flexible, modern architecture. Components include Windows NT, Oracle, JAVA, SET & SSL security protocol, AV-Image, Staffware workflow, Microsoft Internet Server and MSOffice.

According to Bernard Abrams, CEO of V-Tek, "A state-of-the-art loan origination system is long overdue in the education finance industry. Over the past several years, both commercial and in-house developed systems have been retrofit or front-ended, but the basic technology is outdated. The simple reality of today’s financial aid environment is the demands of the schools and students for information support, data base access and funds delivery have far surpassed the capabilities of any existing software."

V-Tek’s interest in developing a student loan origination system has evolved over the past three years. During that period the company created, and now manages, the student loan industry’s first large-scale data switch for ELM Resources, an alliance of educational lenders. V-Tek developed the software schools and lenders use to interface to ELM’s data base services, which is entirely built around Internet browser technology. This software was one of the nation’s first transactional business applications to run on the Web. V-Tek also implemented the financial aid industry’s first Web status service for student loans for ELM Resources and the first Web status service for grants for Illinois Student Assistance Corporation (ISAC). In addition, several large lenders use V-Tek developed data servers for sending and receiving student loan data files.

"Given all of the experience we’ve had building student loan delivery and data base products, it’s a natural progression to get involved with originations," says Abrams. "The work over the last few years has given us a unique insight into the needs of schools and lenders relative to student loan processing. We plan to put all we’ve learned into the new system." System modules will include imaging/workflow, credit bureau interface, pre-approval processing, Web status access, Web transaction processing and school-selected disbursement flows (funds request, netting and date driven). The system will support Stafford, PLUS and Alternative loans.

Related to the loan origination development project, V-Tek also announced the engagement of Seneca Technologies, Inc., a Long Beach, California based consulting firm, to develop the user requirements for the system and perform the project managment function.

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.