U.S. Bancorp Completes Successful Conversion of Card Services and Consumer Loan Systems

Business Wire, Oct 31, 2001

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 31, 2001

U.S. Bancorp (NYSE:USB) recently completed two major milestones as it integrates U.S. Bank and Firstar Bank. The first conversion combined the card services divisions of U.S. Bank and Firstar Bank into one system and the second conversion merged the two bank's consumer loan systems into one operating platform, both of which were seamless and successful. The flawless integration of these two systems involved nearly three million accounts.

Daniel Yohannes, vice chairman of U.S. Bancorp, who is overseeing the integration process between the two banks commented, "I am very pleased with the success of our integration efforts and the outstanding job our employees are doing. The completion of the card services and consumer loan systems conversions represents a significant milestone in our integration process, and our employees accomplished this task in a flawless manner."

The card services conversion involved nearly two million bank-branded credit card accounts. The conversion process was totally transparent to the customer and was completed ahead of schedule. As a result, card services customers from both U.S. Bank and Firstar Bank will operate on the Integrated Card Systems (ICS) platform. The ICS system also will be used in part to process payments and cash advances for the organization's ATMs, online banking and other channels. In a move to create an efficient single operating platform, ICS will also be used for other services, such as co-branded credit cards, as the integration process continues.

The consumer loan conversion involved nearly one million consumer loan accounts, which will now use the state-of-the-art Advanced Loan System platform. The conversion was seamless and the only noticeable change is that about 100,000 consumer line of credit customers will now receive new and improved statements. The conversion also included 4,254 auto dealers that will now utilize the more efficient consumer loan system.

Richard Davis, vice chairman of consumer banking and payment services for U.S. Bancorp noted, "As we stated at the onset of the merger of U.S. Bancorp and Firstar, the integration process would be one of our highest priorities and involve hands-on senior management involvement. The success of these two recent conversions showcase the tremendous amount of hard work and the commitment at all levels of the organization involving this merger. While the successful completion of the conversion is the ultimate goal, it could not be accomplished without months of planning, testing and countless hours of preparation. I am impressed with the teamwork and `can do' attitudes of our people."

Minneapolis-based U.S. Bancorp, with assets in excess of $168 billion, is the 8th largest financial services holding company in the United States. The company operates 2,186 banking offices and 4,937 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp is home of the Five Star Service Guarantee which assures customers of certain key banking benefits and services or customers will be paid for their inconvenience. U.S. Bancorp is the parent company of Firstar Banks and U.S. Bank. Visit U.S. Bancorp on the web at usbank.com and Firstar Bank at firstar.com.