E-Debt Financial Services Inc. and Outsourcing Solutions Inc. Form Strategic Alliance To Provide Unmatched On-line Debt Placement Service

Business Wire, May 9, 2001

Business Editors & High Tech Writers

AKRON, Ohio & ST. LOUIS--(BUSINESS WIRE)--May 9, 2001

E-Debt Financial Services Inc. (E-Debt), the premier on-line marketplace for buying and selling debt portfolios, and Outsourcing Solutions Inc. (OSI), one of the nation's leading strategic receivables management firm, today announced an alliance that will create a one-of-a-kind on- line debt placement service at www.e-debt.com.

The combined offering will help creditors better manage the placement of accounts with collection agencies - a process that is expected to result in higher returns for creditors. The companies will leverage their existing infrastructures to immediately begin creating and piloting the new on-line placement service. As part of the agreement, OSI has made a significant debt sales commitment to and a financial investment in E-Debt.

The new on-line service calls for OSI to apply its portfolio management experience and well-established network of more than 20 agencies to power the placement functionality behind E-Debt's proven on-line debt buying, selling and negotiating capabilities. Founded in August 1999, E-Debt began trading debt at www.e-debt.com in March 2000. Transactor(TM) E-Debt's interactive, private on-line bidding and negotiating engine has set it apart from competitors. With more than 1,000 registered members and over $4 billion in portfolio postings, E- Debt's comprehensive approach also has raised the standards of fairness and competitive pricing for the credit and collections industry and created a more efficient and faster sales process.

"While E-Debt has been extremely selective in developing partnerships and growing beyond our core debt sales business, we see tremendous potential in our alliance with OSI," said Michael Zoldan, E-Debt president and chief executive officer. "E-Debt and OSI bring together the best Internet technology with the best placement analytics and portfolio management to provide a high-quality on-line service that is singular in the industry. Our new on-line placement service will give more control to creditors and offer more business opportunities to collection agencies - all in a secure environment that is supported by outstanding customer service and, more importantly, includes an interactive negotiation mechanism not available elsewhere."

As part of the alliance, Bryan Faliero, president, OSI Portfolio Services, will join E-Debt's Board of Directors. Faliero sees clear competitive advantages in the partnership: "E-Debt provides OSI with the right opportunity to take one of our core competencies on-line, filling a unique marketplace niche that has the potential to change the industry's playing field. The new placement service will add a real-time element to the recovery process that makes it more efficient, more accurate and more profitable."

The service will over time include on-line analytics - such as the scoring and segmentation of debt portfolios - that identify agencies with the best track record for collecting debts with specific account characteristics.

OSI Senior Vice President Geoffrey Rigabar, who is responsible for the company's e-commerce strategy, said the E-Debt alliance provides a strong foundation for OSI's e-business initiatives. "Our thorough and deliberate study of the marketplace produced a powerful result: the partnership of two leading companies that can extend their existing infrastructures to quickly build an unparalleled on-line service with immediate and longer-term benefits."

About E-Debt

E-Debt Financial Services, Inc. is the premier solution to the credit and collections industry for efficiently buying and selling debt portfolios. E-Debt leverages its market-proven technology, advanced security and personalized world-class customer service to enable banks, financial institutions, law firms and collection agencies to effectively manage their receivables. More information about E-Debt, based in Akron, Ohio, can be found by visiting www.e-debt.com.

About OSI

OSI is a leading provider of strategic receivables management services, enhancing the financial performance of America's leading companies. With industry-specific strategies and services, OSI delivers results that improve the bottom line through accelerated cash flow, lower operating costs, reduced bad debt expense and improved customer retention. OSI provides outsourcing, collection and portfolio services to a blue chip roster of Fortune 500 clients. Headquartered in St. Louis, OSI has approximately 8,300 employees in 70 locations across 25 states plus Canada, Mexico and Puerto Rico. More information can be found at www.osi.to.

SOURCE: Outsourcing Solutions Inc.