Affinity Technology Announces Extension of Redmond Due Diligence Period and Nasdaq Notification of Noncompliance with Minimum Price Requirement

Business Wire, Oct 4, 2000

Business Editors

COLUMBIA, S.C.--(BUSINESS WIRE)--Oct. 4, 2000

Affinity Technology Group, Inc. (Nasdaq: AFFI) today announced that it has agreed to give Redmond Fund, Inc. an additional 60 days to complete its due diligence review of the company under the Common Stock Purchase Agreement between Affinity and Redmond, which was executed effective as of June 2, 2000. Redmond was originally required to complete its due diligence investigation of the company during a 90-day period that expired in the first week of September 2000, and that period was previously extended by an additional 30 days until the first week of October. Redmond now has until the first week in December 2000 to complete its due diligence review. Any additional investment by Redmond in Affinity is subject to Redmond's satisfactory completion of its due diligence review of the company.

The company also announced that it has been notified by the Nasdaq Stock Market that it is not in compliance with Nasdaq's listing standards that require the company's stock to maintain a minimum bid price of $1.00 or more. The company has been given until December 28, 2000 to regain compliance with the rule. To regain compliance with the Nasdaq listing standards, the company's common stock must close at a price of at least $1.00 for a minimum of 10 consecutive trading days.

About Affinity Technology Group, Inc.

Affinity's technology enables financial institutions to link their branches, call centers, Internet customers, and indirect agents electronically to their credit departments, providing fully automated lending - and, if necessary, connectivity to a loan officer - through every channel. For financial institutions, Affinity's solutions expedite loan decisioning and processing and increase productivity and capacity of branch personnel, call center agents, loan officers, and indirect agents, while improving the overall customer experience. Affinity is located on the World Wide Web at www.affi.net.

Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these statements involve several risks and uncertainties that may cause actual results to differ materially from those projected. With the exception of Redmond Fund, Inc.'s initial $500,000 investment in the company in June 2000, Redmond Fund is not obligated to make any additional investment in the company, and no assurances can be given that Redmond will make any additional investment in the company. In addition, the company is unable to provide assurance that the company's Common Stock will not be delisted from the Nasdaq SmallCap Market or that the company will be able to regain or maintain compliance with the Nasdaq listing standards in the future.