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PeopleFirst.com Closes $36.5 Million in Venture Capital

15 March 2000

Equity Infusion to Expand Business

    SAN DIEGO--PeopleFirst.com announced on Tuesday the completion of a $36.5 million investment led by Madison Dearborn Partners.

    Other new investors included Morgan Stanley Dean Witter Venture Partners, Richland Ventures, American Express and Mail Boxes Etc. These firms joined existing investors, JP Morgan Capital Corp., Moore Capital and Chrysalis Ventures to complete this round of financing. The funds will be used for working capital and general operating needs of the company and to fund loan growth.

    "We are excited to expand our investment relationships with this financing and to strengthen ties with some of our business partners," said Gary J. Miller, CEO and co-founder of PeopleFirst.com. "The investment group brings a host of resources and experience to our business."

    "Madison Dearborn Partners is enthusiastic about entering into this transaction with PeopleFirst.com, a leading Internet-based auto finance company. Through strong management and an innovative business model, PeopleFirst.com has established itself as the leader in the rapidly growing online auto finance industry," said Timothy Hurd, MDP's Director. "This investment is consistent with MDP's objective of investing in companies that have established themselves as the first mover within their respective vertical of the rapidly growing efinance sector. Furthermore, MDP's investment in PeopleFirst.com demonstrates our strategic commitment to the evolving financial services industry, and is consistent with our goal to grow this sector of our business."

    About PeopleFirst.com

    Founded in 1995, PeopleFirst.com is an online automotive lender, originating and servicing its consumer loans almost entirely over the Internet.

    PeopleFirst.com was the pioneer of "blank check" auto lending, an innovative finance option that gives loan recipients a no-obligation check that can be used for the purchase of a new or used vehicle at most dealerships in the country, as well as lease buyouts and refinancing of existing loans. Motorcycle loans were added in January 2000. Additionally, through an agreement with Mail Boxes Etc., PeopleFirst.com is the first company on the Internet offering loans for the purchase of vehicles from individuals.

    The company presently offers auto loans in 47 states plus the District of Columbia. To obtain more information about the company, call PeopleFirst.com at 800/689-1789.