Phoenix International Acquires Two Data Centers; Company Launches Strategy to Offer the Phoenix System and Other Banking Services Through Regional ''Application Service Centers''

Business Wire, Oct 26, 1999

ORLANDO, Fla.--(BUSINESS WIRE)--Oct. 26, 1999--

Phoenix International Ltd., Inc. (Nasdaq/NM: PHXX) a world leader in installed client/server banking solutions, today announced that it has acquired the account processing operations of two companies: Servers On-Line, Inc., located in Holbrook, York, New York and ERAS JV, located in Miami, Florida. The Company estimates that the acquisitions represent a total contract value of approximately $2.5 million, which will be recognized over the relevant contract periods.

The acquisitions are part of the Company's ongoing strategy to broaden its market and deliver its client/server-based core banking system to U.S. banks that prefer to outsource their operations. Banks currently processed by the acquired centers will become Phoenix clients, and the centers will become managed and operated by Phoenix employees. As part of the integration of the acquired operations, the Company anticipates relocating the Miami-based center to Orlando in 2000.

The Company plans to establish these and other future Phoenix centers as "application service centers" -- technology hubs that deliver comprehensive financial products and services that go beyond the traditional data center offering, including various e-commerce solutions. The Company intends to make such non-traditional services available to its in-house and outsourced clients, as well as other community banks that want to utilize the centers' offerings on a per-usage basis.

"We believe these acquisitions complement our core business strategy to penetrate deeper into the U.S. community banking market by giving banks an outsourcing alternative using Phoenix's client/server solution," said Bahram Yusefzadeh, chairman and chief executive officer of Phoenix International. "Now, community banks can have access to client/server and other leading technologies in a service bureau environment, as well as the experience and resources Phoenix has in the financial services industry. In addition, the acquisitions mark the first in a series of initiatives that Phoenix intends to implement in an effort to deliver a new type of data center, including e-commerce solutions, to the U.S. financial services marketplace."

Phoenix International Ltd., Inc., headquartered in Orlando, Florida, is a leading provider of highly adaptable, enterprise-wide client/server application software to the financial services industry worldwide. The Company's products include the Phoenix System, a fully integrated client/server retail banking system that includes customer relationship information management, on-line customer profitability analysis, financial reporting, an executive information management system and fully integrated teller, telephone, ATM and Internet banking modules; Phoenix TradeWind(TM), a trade finance system; and Phoenix TradeCentre(TM), a global payments system. As a full service provider, Phoenix offers clients a full complement of professional and systems integration services including those related to the acquired operations of Servers and ERAS.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief, plans or expectations of the Company, its management and its customers with respect to, among other things: (i) the anticipated impact of certain events and circumstances including the anticipated effects of the Phoenix System on the bank's operations and prospects; (ii) trends affecting the Company's financial condition or results of operations; and (iii) the Company's growth and operating strategy. Words like "plans," "intends," "believes," "estimates," "anticipate," "will " and words of similar meaning are intended to identify forward-looking statements. Actual results may vary significantly from the results anticipated in these forward-looking statements as a result of various risks, assumptions and certain factors. Among the key risks, assumptions and factors are the unanticipated delays in implementing the Phoenix System in a service bureau or data center environment; whether the market will accept new products and services offered by Phoenix now and in the future, such as the proposed e-commerce products and services and those services and products proposed to be offered through Phoenix's data centers; the Company's reliance on significant new customers and the timing of customer contracts slipping beyond a quarter or year end; Phoenix's ability to expand and leverage its sales force, marketing alliances and other distribution channels worldwide; fluctuations in quarterly and annual results of operations of Phoenix and those of its customers and prospects; its ability to grow and manage its growth; the possible impact of negative publicity and litigation on Phoenix and its operations; Year 2000 risks and concerns; competition and other factors that are discussed in detail in Phoenix's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and the "Risk Factors" section in Phoenix's Registration Statement on Form S-1 (Registration No. 333-31415), as declared effective by the Securities and Exchange Commission on August 13, 1997.