Fidelity Selling Credit Card Portfolio to MBNA

Business Wire, Sept 4, 1997

SALT LAKE CITY--(BUSINESS WIRE)--Sept. 4, 1997-- Fidelity Trust Company, a Fidelity Investments company, and MBNA America Bank, N.A., have signed an agreement under which Fidelity will sell its consumer credit card portfolio to MBNA, the nation's second largest credit card lender.

The sale of the credit card portfolio, which has about 300,000 accounts and $450 million in assets, is expected to close in September with transfer of accounts to be completed in October. The terms were not disclosed.

The agreement also includes a five-year affinity endorsement under which Fidelity's existing cardholders will be issued new MBNA Visa or MasterCard credit cards with an image of the Fidelity Investments logo. MBNA, the leader in affinity credit cards, will issue and service the cards, as well as acquire new accounts from Fidelity's retail account base, while Fidelity will sponsor the program.

"Fidelity is very proud to have developed this business from an entrepreneurial venture into an attractive, well-managed credit card operation - but now is the right time to realize the value of our investment," said Paul Hondros, president of Fidelity Investments Retail Group. "We are pleased to reach this agreement with MBNA, one of the leading credit card companies. As a large card issuer, MBNA has the scale, flexibility and skill to offer superior products and services. Our customers will be pleased with this new relationship."

"We are very pleased to be acquiring this attractive portfolio from a high quality organization like Fidelity," said Susan D. Morrison, senior executive vice president for portfolio acquisitions at MBNA. "The loan quality of the portfolio is consistent with the superior quality of MBNA's existing loans. We look forward to providing products and services that exceed the expectations of customers of both MBNA and Fidelity."

The credit card portfolio is part of Salt Lake City-based Fidelity Trust Company, which offers consumer credit cards, check cards and bill-paying services. Founded in 1990, Fidelity Trust Company is a state-chartered, FDIC-insured industrial loan corporation owned by Fidelity Investments. After the sale, which is subject to certain regulatory approvals, Fidelity Trust Company will retain its check card and bill paying services.

MBNA Corporation, a bank holding company and parent of MBNA America Bank, N.A., a national bank, has $45 billion in managed loans. MBNA, based in Wilmington, Del., also provides retail deposit, consumer loan, insurance and card acceptance services.

Fidelity Investments is the nation's largest mutual fund company and one of the leading providers of financial services. Fidelity offers investment management , retirement, brokerage and shareholder services directly to individuals and institutions, and through financial intermediaries. The firm also is the No. 1 provider of 401(k) retirement savings plans, the second largest discount brokerage firm and the third largest provider of 403(b) retirement plans for not-for-profit institutions in the United States. At July 31, 1997, Fidelity had total managed assets of $585.9 billion.

CONTACT: Andy Trincia, Fidelity

617-563-5800

or

Peter Frank, MBNA

302-432-1353