Checkfree Corp (MM) (NASDAQ:CKFR)
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CheckFree Announces Bank of America Alliance Agreement Amendment
ATLANTA, Dec. 4 /PRNewswire-FirstCall/ -- CheckFree Corporation , the leading
provider of financial electronic commerce services and products, announced today
that its Electronic Commerce division has amended its agreement with Bank of
America , the nation's largest retail bank, to update the terms originally
announced in April 2000. The agreement was updated to reflect the rapid growth
in consumer adoption of electronic billing and payment at
http://www.bankofamerica.com/ and future, growth- rate projections ahead of
those contemplated in the original contract, as well as the economies of scale,
and operational efficiencies that CheckFree has achieved.
"Bank of America has taken the lead in electronic billing and payment, as
evidenced by our dramatic growth in active online users, e-bill volumes and by
the receipt of top honors in numerous industry rankings," said Sanjay Gupta,
consumer and small business e-Commerce executive with Bank of America. "As a
strategic partner, CheckFree has been instrumental in that success and we look
forward to our continued partnership."
The terms of the agreement are intended to expand the relationship for the
duration of the original ten-year contract, which runs through 2010. Specific
terms of the agreement were not disclosed, however primary revisions relate to:
- commitments to further mainstream consumer adoption, including e-bill
delivery and adoption;
- adjustments to long-term service pricing. New transaction-based pricing
allows CheckFree and the bank to take advantage of economies of scale
CheckFree has realized with rapid consumer adoption;
- enhancements to CheckFree's industry-leading service level agreements
for systems availability and e-mail response times, which bring ever-
increasing quality efficiencies to the customer experience; and,
- Bank of America relinquishing its rights to five million of the
original 10 million warrants outlined in the April 2000 agreement. The
bank's minimum annual revenue commitments remain in place at $50
million per year.
"Bank of America has assumed a leadership role in educating consumers about the
benefits of receiving and paying bills online, offering the service for free to
their customers, and sharing their findings regarding the positive correlation
between online relationships and long-term profitability," said Steve Olsen,
executive vice president and general manager of CheckFree's Electronic Commerce
division. "Both CheckFree and Bank of America share a commitment to Six Sigma
quality and productivity processes, which continue to deliver positive results,
not the least of which have been millions of consumers who have embraced this
convenient way to manage their personal finances. CheckFree believes that a
dynamic, interactive online relationship will eventually overtake paper as the
primary channel for sharing financial information, especially bills and
statements; and together with Bank of America we have made an aggressive
commitment toward that goal."
CheckFree also reported that there are no changes to its previously announced
financial expectations for its current fiscal year, which ends June 30, 2004, or
for the second quarter, which ends December 31, 2003.
About Bank of America
Bank of America is a leading provider of online financial services. Bank of
America was named the best consumer Internet bank site in the world by Global
Finance magazine for two years in a row; No. 1 in customer experience by
Vividence; among the Best of the Web by Forbes and Top Financial Web site by
Nielsen NetRatings, based on traffic and the length of time customers spend on
the site. comScore Networks, Inc. called Bank of America "the clear leader" in
the rate of adoption of online bill payment and the leader of the industry based
on overall number of active online customers. Bank of America stock (ticker:
BAC) is listed on the New York, Pacific and London stock exchanges.
About CheckFree ( http://www.checkfreecorp.com/ )
CheckFree (NASDAQ:CKFR) is the leading provider of financial electronic commerce
services and products. Founded in 1981 and celebrating its 23rd year in
e-commerce, CheckFree is comprised of three divisions: Electronic Commerce,
Software, and Investment Services. CheckFree launched the first fully integrated
electronic billing and payment solution in 1997. In the quarter ended September
30, 2003, more than 11 million consumers initiated online payments through
services offered by CheckFree's Electronic Commerce division. Electronic billing
and payment is available through more than a thousand financial services
organizations, including banks, brokerage firms, Internet portals and personal
financial management (PFM) software. At these sites, consumers are able to
electronically receive and pay about 300 bills, representing the bills most
common to a U.S. household. CheckFree delivers nearly 15 million e-bills each
quarter. CheckFree Investment Services provides a broad range of investment
management services to thousands of financial institutions nationwide. The
division's clients manage more than 1.3 million portfolios totaling more than
$700 billion in assets.
CheckFree's Software division provides solutions through three operating units:
CheckFree ACH Solutions, CheckFree Financial and Compliance Solutions (CFACS),
and CheckFree i-Solutions. CheckFree ACH Solutions provides software and
services that are used to process more than two-thirds of the nation's nine
billion Automated Clearing House payments, while CFACS provides reconciliation
and compliance software and services to more than 500 organizations in the
banking, brokerage, utility, retail, insurance and credit card industries, among
others. CheckFree i-Solutions is the leading provider of e-billing and
e-statement software and services for both business-to- consumer and
business-to-business applications, with more billers as clients than all of its
competitors have combined.
Certain of CheckFree's statements in this press release are not purely
historical, and as such are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These include statements
regarding management's intentions, plans, beliefs, expectations or projections
of the future. Forward-looking statements involve risks and uncertainties,
including without limitation, the various risks inherent in CheckFree's
business, and other risks and uncertainties detailed from time to time in
CheckFree's periodic reports filed with the Securities and Exchange Commission,
including CheckFree's Annual Report on Form 10-K for the year ended June 30,
2003 (filed September 15, 2003), and Quarterly Report on Form 10-Q for the
quarter ended September 30, 2003 (filed November 13, 2003). One or more of these
factors have affected, and could in the future affect CheckFree's business and
financial results in future periods, and could cause actual results to differ
materially from plans and projections. There can be no assurance that the
forward-looking statements made in this press release will prove to be accurate,
and issuance of such forward-looking statements should not be regarded as a
representation by CheckFree, or any other person, that the objectives and plans
of CheckFree will be achieved. All forward- looking statements made in this
press release are based on information presently available to management, and
CheckFree assumes no obligation to update any forward-looking statements.
DATASOURCE: CheckFree Corporation
CONTACT: Judy DeRango Wicks, Media relations contact, +1-678-375-1595, or
, or Tina Moore, Investor relations contact,
+1-678-375-1278, both of CheckFree Corporation
Web site: http://www.checkfreecorp.com/
http://www.bankofamerica.com/
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