Palm Desert, California, October 23, 2000 -- Today PayNet, Inc. announces the first public demonstration of its flagship service, the PayNet Alliance - a network of commercial finance companies contributing their lease payment history on applicants to an online database - at the ELA Convention being held this week in Palm Desert, California. In exchange, companies participating in the Alliance gain access to PayNet’ proprietary information services. Several major lessors have signed letters of intent.

"We provide clients with a complete integrated solution for the credit operation," says Bill Phelan, President of PayNet, Northbrook, Illinois. "Most leasing companies could improve their credit processes, which keeps them from profiting as they should. Participating in the PayNet Alliance gives lessors access to a broad universe of relevant credit information."

Several major commercial equipment finance companies have signed letters of intent. A partial list includes: Navistar Leasing Company (Rolling Meadows, Illinois) Volvo Commercial Finance LLC (Greensboro, North Carolina); Textron Financial Corp. (Providence); Key Equipment Finance Group (Superior, Colorado); De Lage Landen Financial Services, Inc. (Berwyn, Pennsylvania); Firstar Equipment Finance (St. Louis Park, Minnesota); GreatAmerica Leasing Corp. (Cedar Rapids, Iowa); Farm Credit Leasing Services Corp. (Minneapolis); Pitney Bowes Financial Services (Shelton, Connecticut); and Irwin Business Finance Corp. (Bellevue, Washington).

Leasing companies participating in the PayNet Alliance will provide a monthly download of their customers’ lease payment experiences to PayNet. A one-time technological set-up is required, but thereafter the monthly downloads will be handled automatically ensuring that minimal staff time and technological resources are required. PayNet subscribers may access the pooled data and pull Payment History Reports online for a low fee per report. Downloads directly into lessors’ credit scoring systems also are available.

For confidentiality reasons, names of leasing companies will not be associated with published credit data. Also, PayNet data will not be sold for marketing purposes.

Ultimately, subscribers to PayNet can:

• Have access to data that supports more informed credit decisions, increased approvals, lower delinquencies and write-offs;
• Obtain data that is more relevant to their credit decisions than traditional sources of credit history;
• Receive accurate, quality information due to PayNet’ data filtering process;
• Enjoy a streamlined credit process; and
• Eliminate the credit process of checking references with competitors, therefore tipping off the competition to pending deals.

"Low market valuations in the leasing industry highlight the need for PayNet, which will ultimately help the viability of the industry through more informed decision-making," says PayNet’ Chairman Dan Michalek. "Ultimately, PayNet turns credit uncertainty into credit clarity, and inefficiencies into profitability."

PayNet is working with The Revere Group, as well as Northern Consulting, CEO Associates, and major accounting and software providers to ensure that PayNet technology is user friendly and compatible with existing lease accounting systems.