Peoples Bank of Jamestown Adds Community Banking Systems' Proof of Deposit and Check 21 Modules; Bank Operational With CBS' Check Imaging Solutions in Less Than One Month

Business Wire, August 7, 2006

DALLAS -- Community Banking Systems (CBS), a provider of check imaging products and services for community financial institutions, was selected by Peoples Bank of Jamestown to implement its Check 21 and Proof of Deposit modules to its existing check imaging system. Jamestown, Mo.-based Peoples Bank of Jamestown uses CBS' check imaging system to clear transit items by image exchange through the Federal Reserve, eliminating the costs and end of day rush experienced by most banks that manually ship paper cash letters via courier.

Peoples Bank of Jamestown replaced its former imaging system with CBS' solution and has already experienced cost savings associated with maintenance and upkeep of its former proof machine. Through its use of CBS' Check 21 and Proof of Deposit modules, Peoples Bank of Jamestown has increased overall operational efficiencies through reduced sorter labor costs, maintenance and supplies.

"With CBS' Check 21 and Proof of Deposit module, we have eliminated courier fees as we now have the ability to transmit outgoing image cash letters directly to the Federal Reserve," said Angela Flippin, vice president and chief operating officer of Peoples Bank of Jamestown. "As customer service remains our primary focus, we enjoy working with CBS because, not only are they attentive and committed to any issues we may encounter, but they also provide a complimentary quality assurance program that our customers really appreciate."

"Peoples Bank of Jamestown wanted to build out its existing check imaging solution in order to increase overall operational efficiencies," said Sean Pennock, president of Community Banking Systems. "CBS is committed to helping community banks nationwide take advantage of imaging solutions to decrease costs, expand service offerings and better compete with larger institutions. Through its use of our Check 21 and Proof of Deposit modules, Peoples Bank of Jamestown has streamlined its banking operations and enhanced its focus on customer service."

Portions of check imaging technology are protected by U.S. Patent Nos. 5,910,988 and 6,032,137, held by DataTreasury Corporation (DTC). DTC patents were issued in 1999 and 2000 for image capture, centralized processing and electronic storage of document and check information. Currently, it is the subject of a series of high-profile patent-infringement lawsuits DataTreasury has filed against a number of banks and financial-services companies. Through Community Banking Systems' patent license agreement with DataTreasury, CBS' bank and credit union customers do not have to worry about legal implications associated with the patent. For more information on the DataTreasury patents, visit www.datatreasury.com.

About Peoples Bank of Jamestown

Locally owned and operated since 1941, Jamestown, Mo.-based Peoples Bank of Jamestown is committed to providing friendly and professional service, exceeding customer expectations, and meeting the financial service needs of the community while maximizing shareholder value. The bank will accomplish its mission by remaining focused on its two most important assets: customers and team members. For more information on the bank, please visit: www.pbjbank.com.

About Community Banking Systems

Dallas-based Community Banking Systems (CBS) employs the most advanced back office imaging technology built solely and specifically for community banks. With a unique combination of technology and process improvement expertise, CBS helps banks improve their customer service and reduce costs by streamlining their imaging operations. Commitment to the independent bank is reflected in the quality of customer care, the industry experience of the CBS team, the design of CBS' software products and the implementation of CBS services.

For more information, visit www.combanksys.com.