Great Lakes Educational Loan Services Implements Fair Isaac Analytics to Prevent Student Loan Delinquency

Business Wire, Oct 16, 2003

Business Editors/High-Tech Writers

SAN RAFAEL, Calif.--(BUSINESS WIRE)--Oct. 16, 2003

Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision technology, announced today that it has developed custom decisioning models for Great Lakes Higher Education Guaranty Corporation, one of the nation's largest providers of student loan services. The models allow Great Lakes to identify more effective strategies to help delinquent borrowers avoid defaulting on their student loans.

Reducing default rates is one of the primary objectives for managing student loan portfolios. The Fair Isaac models, which provide a numerical indication of the likelihood the borrower's delinquency will be resolved, are utilized by Great Lakes to maximize the efficiency and effectiveness of its call center activities. They indicate whether a high, medium, or low call campaign intensity is appropriate for each account. Fair Isaac continually updates the models based on the results of Great Lakes' default aversion activities.

"We are very pleased to be working with a national leader in the student loan industry to bring the benefits of Fair Isaac's unique analytic approach to their default aversion efforts," said Bernhard Nann, vice president of Collections and Recovery Solutions at Fair Isaac. "Applying the right level of effort to each account in the student loan delinquency portfolio will maximize the efficiency of Great Lakes' call center and is expected to result in higher cure rates."

"Our implementation of Fair Isaac's treatment decisioning model is a prime example of the innovation allowed under the Voluntary Flexible Agreement with the U.S. Department of Education," said Richard D. George, Great Lakes' President and Chief Executive Officer. "It represents Great Lakes' guaranty operations' newest tool in its focus on borrower benefit -- outreach, delinquency prevention, default aversion, and post-default rehabilitation."

The Voluntary Flexible Agreement enables guaranty agencies to develop programs and techniques to help borrowers avoid the negative consequences associated with student-loan default.

About Great Lakes

Great Lakes Higher Education Guaranty Corporation is the designated guarantor for Minnesota, Ohio, Wisconsin, Puerto Rico, and the U.S. Virgin Islands. Its affiliated group of companies is one of the nation's largest providers of student loan services. The affiliated group currently interacts with some 2,600 schools and 1,200 lenders in all fifty states, Puerto Rico and the U.S. Virgin Islands. The group holds guarantees on more than $18 billion in FFELP loans and services student loans with an aggregate outstanding balance of more than $14.6 billion for approximately 1,272,835 borrowers. Great Lakes is headquartered in Madison, Wisconsin, and has operating centers in Columbus, Ohio and St. Paul, Minnesota and customer service and development sites in Eau Claire and Boscobel, Wisconsin and Oak Brook, Illinois. Great Lakes' mission is assurance of cost-effective enablement of educational access. For additional information, visit www.mygreatlakes.com.

About Fair Isaac

Fair Isaac Corporation (NYSE:FIC) is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company's predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power more than 25 billion mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations and government agencies. Through the www.myfico.com Web site, consumers use the company's FICO(R) scores, the standard measure of credit risk, to manage their financial health. For more information, visit www.fairisaac.com.

Statement Concerning Forward-Looking Information

Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac, including statements regarding its custom models, and the benefits to be derived from this offering, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including any unforeseen technical difficulties related to the implementation use and functionality of the offering, the risks that customers will not perceive material benefits from the offering, failure of the product to deliver the expected results, the possibility of errors or defects in the offering, the company's ability to recruit and retain key technical and managerial personnel, the maintenance of its existing relationships with key alliance partners, regulatory changes applicable to the use of consumer credit and other data, and other risks described from time to time in Fair Isaac's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2002, and Form 10-Q for the period ended June 30, 2003. Forward-looking statements should be considered with caution. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Fair Isaac's results could differ materially from Fair Isaac's expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements.