PSCU Financial Services On Track to Achieve Best Financial Performance in Its History

Cooperative is Waiving Some Fees, Plans to Issue Record Annual Dividend

St. Petersburg, FL, Oct. 23, 2006 – Based on the impressive portfolio growth achieved by its members, PSCU Financial Services announced that it will return some of the year’s financial gains immediately to its members by waiving credit/debit card transaction fees and reducing subscriber payments for its PayLynx online bill payment service in October and November.

The nation’s largest credit union service organization (CUSO) will also increase the 2006 cash dividend paid to member-owners in March 2007 and will pay off vintage revolving funds certificates in December, four months ahead of schedule.

“We owe this year’s exceptional financial performance to the financial growth and success of our member-owners, and our efforts at the cooperative level to tightly control vendor expenses and implement cost-saving workflow improvements,” said David J. Serlo, President, PSCU Financial Services. “We must also give some credit to an unexpectedly robust economy.”

Serlo expects the cooperative to issue the highest annual patronage dividend in its history. The $23 million patronage dividend declared in 2005 was the cooperative’s greatest return to date. PSCU Financial Services has paid out more than $130 million in patronage dividends since it became a cooperative in 1994.

PSCU Financial Services is also returning value to its members by delivering industry-leading security processing and fraud management, which includes providing live agents to monitor suspicious transactions 24/7 at no additional cost and establishing a virtual private network (VPN) to ensure the highest security possible for information exchange. As part of its new VPN, PSCU Financial Services is supplying and installing required hardware at each member credit union at no cost. The VPN prevents unauthorized use of information, since only users at its member credit union facilities can access the network.

About PSCU Financial Services

As a non-profit cooperative, PSCU Financial Services is owned by more than 500 member credit unions representing over 10 million cardholder accounts and more than 390,000 online bill payment subscribers. Its Contact Center services more than 10 million inquiries a year.

PSCU Financial Services maintains its headquarters and Eastern operations center in St. Petersburg, Florida. The company is also supported by a West Coast operations center based in Phoenix, Arizona. PSCU Financial Services is the nation's largest Credit Union Service Organization (CUSO).

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