CU Direct Acquires Indirect Services, Inc.; Aggregation Gives Credit Unions a Stronger Presence in Auto Financing Marketplace

RANCHO CUCAMONGA, Calif.--Oct. 2, 20040, 2004--California-based CU Direct Corporation (CU Direct), the largest point-of-sale network for credit unions in the country and administrator of the Credit Union Direct Lending (CUDL) program, today announced that it has purchased Indirect Services, Inc. (ISI), a Salt Lake City-based management software consulting company dedicated to developing alliances between auto dealerships and financial organizations. ISI, the country's second-largest point-of-sale network for credit unions, administers the DecisionApp system. The terms of the transaction were not disclosed.

Combined operations will result in monthly activity of 50,000 funded loans and $900 million in financing.

The acquisition increases the number of states in which CU Direct does business, from 17 to 32. It will also bring the number of dealers in the CUDL system from 3,000 to more than 5,700. The combined company will have approximately 160 employees.

In the short term, customers will see no impact on day-to-day operations. For all, it will be business as usual, with one new visual element -- the presence of a CUDL brand -- when DecisionApp users access the system. An immediate benefit to current DecisionApp users will be the ability to take advantage of CUDL's many other services, including education and training, risk management, marketing and continued dealer relationship development. Early next year, CUDL staff will work with ISI staff to help build and enhance a combined system that offers best-of-breed technology and services to benefit all customers.

ISI President John Arens, Vice President Brit Barker and all of the employees will become part of the CU Direct team. The larger, combined organization will continue to support CU Direct's goal of creating a national auto lending network for credit unions that will:

1. increase credit union auto loan market share;

2. improve credit union loan and dealer processing efficiency;

3. improve member satisfaction;

4. help dealers sell more cars; and

5. develop related products that are of value to credit unions, dealers and members.

"Participating credit unions will see real benefits from our combined organization," said Tony Boutelle, president and CEO of CU Direct. "They will strengthen their competitive position through the combined resources and expertise of the total organization. We welcome ISI into the CU Direct family and anticipate developing a strong working relationship with all of their credit unions and dealers," Boutelle said.

"CU Direct will create new opportunities for the credit unions and dealers in our program," said John Arens, president of ISI. "Being part of a larger whole means expanded access to markets, a stronger presence at the dealership and the benefits of economies of scale. We think our client base will be very happy with this new view of their future," Arens said.

About CU Direct

Based in Rancho Cucamonga, California, CU Direct Corporation (CU Direct) is the leader in indirect lending services for the credit union industry. As a result of its recent acquisition of Indirect Services, Inc., CU Direct administers both the Credit Union Direct Lending (CUDL) and DecisionApp programs, which allow members to receive credit union financing at the auto dealership through an automated decisioning system. As a Credit Union-owned Service Organization, CU Direct develops custom applications, training and marketing programs to help credit unions achieve their indirect lending goals. Participants include approximately 5,700 dealerships and approximately 430 credit unions in 32 states across the country. For more information on CU Direct, visit www.cudirect.net. Credit union members can find all the latest auto buying and research tools at: www.cudirect.com.