FOR IMMEDIATE RELEASE

Sale of $7 Million
Charged-Off Consumer Loans/Credit Cards
Nationwide

October 15, 1999 -- LoanTrade Inc. is pleased to announce its participation in the acquisition of a large charged-off credit card portfolio on behalf of its client. The Seller is one of the best know purchasers of charged-off accounts. The Buyer is also a purchaser of charged-off portfolios and the nation's leading converter of bad debt.   LoanTrade represented the acquiring institution.

"This transaction was structured primarily as a joint venture.  The Buyer typically acquires older, small balance accounts and then offers the debtors the opportunity to convert their indebtedness to a new Visa or MasterCard.  The Seller had purchased these charge-offs years ago and had exhausted its recovery efforts" said Tim Kirkpatrick, LoanTrade Inc's President.  

According to Kirkpatrick, "The Seller contributed the accounts and the Buyer performs the debt conversion processing.  They both share equally in the net cash flow resulting from the Buyer's debt conversion process.  That means the Seller receives cash flow from non-card settlements, non-card payment plans, performing credit card payments, and the sale proceeds from the ultimate sale of the performing credit card."  Kirkpatrick adds, "If the cash flow projections are correct, the Seller will very likely receive substantially more cash flow as a result of this arrangement, than if it had either sold the accounts outright for cash, or simply held on to them."