Collegiate Funding Services Acquires SunTech Inc.; Student Loan Servicing Company Becomes Wholly-Owned Subsidiary Of CFS

Business Wire, April 22, 2003

Business Editors

FREDERICKSBURG, Va.--(BUSINESS WIRE)--April 22, 2003

Collegiate Funding Services, LLC (CFS) announced today that it has acquired SunTech Inc., the nation's seventh largest student loan servicer, which manages nearly $7 billion in loans.

The acquisition provides CFS with additional services and staff to further expand its educational financing programs. Through the addition of SunTech's operations, CFS can now provide servicing for its own customers, as well as a number of other private lenders of student loans which are currently served by SunTech. The new entity, CFS-SunTech Servicing, LLC, is located in Ridgeland, Miss., and is a wholly-owned subsidiary of CFS.

"CFS had done business with SunTech as an independent entity for many years," said J. Barry Morrow, chief executive officer of CFS. "We now look forward to combining and leveraging the individual strengths and resources of both companies to deliver fully-integrated, comprehensive services to our clients and customers throughout the life of their loans."

"CFS has been an important and innovative partner. The combination of these two industry leaders will ensure that we are well-positioned for future growth," added Malcom Lightsey, former chairman of SunTech. Mr. Lightsey will be continuing on as a consultant to CFS.

About CFS

Collegiate Funding Services is a leading nationwide provider of products and services that address a full-range of education finance and debt management needs. CFS has helped over a quarter million customers create and customize student loan repayment plans that suit their budget and financial goals. All lenders in the CFS Consolidation Loan Program are Equal Opportunity Lenders. Headquartered in Fredericksburg, Va., and with satellite operations in Pinellas Park, Fla., CFS now employs nearly 1,000 individuals.

CFS is owned by an investor group led by Lightyear Capital, a New York-based private equity investment firm that manages approximately $2 billion in assets, including The Lightyear Fund, a $750 million private equity fund. The Lightyear Fund was formed to invest in leveraged buyout, recapitalization and growth capital opportunities in financial services and other select industries.

For additional information, visit www.cfsloans.com or call 1-888-423-7562.