COCC LAUNCHES NEXT GENERATION CASH OPTIMIZATION SOLUTIONS FROM CARREKER, NOW PART OF CHECKFREE

AVON, Conn., October 31, 2007 – COCC, a leading provider of next generation technology services for financial institutions in the northeastern United States, today announced a business relationship with Carreker, a wholly owned subsidiary of CheckFree Corporation (Nasdaq: CKFR), to market and support two of COCC’s next generation of non-earning asset management solutions, Reserve Link and iCom QE.

COCC has installed the non-earning asset solutions at two client institutions, both of which achieved outstanding results.  Joseph Greco, President and CEO, First National Bank of Litchfield, reports that the bank is on track to achieve substantial savings. “We no longer have to keep nearly as much cash on hand, freeing up those balances for investment,” he said.

Carreker’s Reserve Link solution enables financial institutions to track their demand deposit account portfolio in order to reclassify and free up non-interest earning funds while meeting Federal Reserve reserve requirements. The iCom QE solution is designed to enable a financial institution to save money by efficiently managing the cash balances required for its cash vault, branch and automated teller machines (ATMs) operations.

“We are pleased to offer these state-of-the-art technologies to help financial institutions minimize their non-interest-bearing balances maintained at the Federal Reserve and cash balances,” said Wendy DeMore, First Vice President – Product Management, COCC. “The advanced forecasting and management capabilities available through this technology, developed by COCC and CheckFree, are exactly what financial institutions need in the current tight interest margin environment.”

The Federal Reserve requires that a financial institution maintain a percentage of its demand deposit balances on deposit at the Federal Reserve Bank in a non-interest-earning account, or on hand in cash balances. Bank executives frequently satisfy these requirements by overstocking their vaults, branches and ATMs, which inflate the institution’s non-earning assets.

The Reserve Link solution delivered by COCC and Carreker minimizes an institution’s reserve position by sweeping transaction account balances into non-transaction accounts – a process known as deposit reclassification. As a result, this reduces an organization’s overall reserve requirement, while adhering to Federal Reserve policies concerning transaction account monitoring and consumer transparency. 

The cash optimization solution forecasts cash demands for branch, vault and ATM inventories by interpreting historical data, responding to changes in consumer behavior, and adjusting for known variables.

“This enables the system to determine the ideal cash order amount for branch, vault and ATMs, helping to ensure that optimal cash balances are maintained and reducing cash levels, while ensuring sufficient cash is on hand to meet customer demand,” said Ms. DeMore. “Comprehensive reconciliation and reporting capabilities further minimize risk and the cost of cash supplies.”

Following the successful pilot installations, COCC has begun to offer the non-earning asset products to its overall client base. Ms. DeMore said the company is offering webinars to its current clients to help them understand how they can reduce costs while minimizing the risk of holding large amounts of cash.

“CheckFree’s reserve and cash solutions complement each other well and are designed to generate additional investment income for COCC’s client base by enhancing the management of reserve requirements and cash levels,” said Brian Jorgenson, senior  product manager for CheckFree. “We are pleased to work closely with COCC and look forward to further collaboration with them.”