Record Image Penetration

18% OF COCC'S DOCUMENT PROCESSING CLIENTS EXCHANGE IMAGES

AVON, Conn. May 11, 2006 — COCC, a leading provider of next generation technology services for financial institutions, today announced that 18 of its 99 document processing clients are exchanging images using the Federal Reserve’s FedForward product. Commitments to image exchange will raise the percentage of production clients to 31% by year end.

“Image is the next big thing in banking,” said Joseph D. Lockwood, COCC’s Chief Technology Officer. “Over the next two years, financial institutions will observe a sea change in check processing operations. The question is - are the financial institutions going to watch from the sidelines or jump in the stream? From our experience, the long term winners will start swimming now.”

COCC began exchanging images on behalf of the Savings Institute Bank & Trust one year ago and has steadily increased its client base since then. In March, COCC transmitted nearly 500,000 check images to the Federal Reserve in lieu of transporting paper checks. Clients have saved money by cutting courier costs, reducing “holdover,” and intercepting fraudulent items more rapidly as a result of image exchange.

“As more and more financial institutions accept image cash letters for payment, our clients will continue to increase their cost savings,” said Lockwood.

COCC’s success with image exchange is part of an accelerating industry-wide shift in check processing. The Federal Reserve recently reported 20 financial institutions per week changing their check processing operations over to image. The total number of institutions in production with the Fed’s image services is approaching 900 institutions nationwide.

"The industry's move toward check electronification is irrevocable,” said Bob Meara, senior analyst at Celent, “How volumes trend among the various image exchange alternatives may be uncertain, but the end-game is not."

The primary product used by COCC’s image-enabled financial institutions has been the Federal Reserve’s FedForward. Last month, COCC began its first production runs of FedReceipt and FedReceipt Plus, and completed its first successful test of FedReturn. COCC is also prepared to exchange check images with Endpoint Exchange.

Image exchange has also opened new markets to COCC. According to Lockwood, more than half of the company’s image exchange clients are new. “We have picked up clients in Ohio, Illinois, and northern New York that never would have considered us for check processing without image exchange,” he said. “The cost savings and dramatic improvements in service clearly won them over.”

Of the 31 COCC clients implemented or committed for implementation by year end, 22 will be new check processing clients.

This trend has also extended to other COCC’s image enabled processes, such as e-Statements. In April, COCC reported that 17% of its clients had already committed to installing the company’s e-Statement system.

“The breadth and depth of our image exchange implementations point to the growing importance of this solution to community banks and credit unions,” said Lockwood. “These state-of-the-art image processing solutions position our clients to increase efficiency while growing market share.”