Skokie, IL, January 15, 2002 -- Today PayNet, Inc. announces that Thomas R. Butler, former President and COO of Discover Financial Corporation, Morgan Stanley Dean Witter’s general purpose credit card arm, has joined PayNet as CEO, effective immediately. Butler was chosen as CEO for his many years of senior management experience that includes developing Discover from a start-up to its current position as a leader in the consumer credit market. Butler continues as a Director on the PayNet Board and an investor.

"We are thrilled to have Tom’s services as a full-time member of our management team," said PayNet’s President Bill Phelan. "His experience solving business problems is a major benefit for our customers, partners, employees and investors."

"PayNet offers a terrific opportunity to share my management experience with a growing business," said Butler. "PayNet’s offerings are positioned to play a major role in the way credit is granted to business borrowers. The benefits of this type of information service are similar to what I experienced in the consumer market at Discover in the early 1990’s -- lower costs, increased approvals and improved credit quality."

Butler helped establish the Discover Card in 1985, where he served as head of operations until 1986 and then served as president and COO until 1998. Tom also serves as chair of the Northwestern Library Board of Governors and as a board member of INROADS/Chicago, an organization dedicated to placing minority students in business and engineering careers.