New Solution Simplifies Benefit Deductions by Automatically Consolidating and Deducting Contributions from an Employee's Paycheck

Blue Bell, PA, September 25, 2002: E-Duction unveiled today Payroll Exchange, the first end-to-end benefit payment delivery management solution with an insurance carrier integration option. Payroll Exchange vastly reduces the cost of introducing, deploying and reconciling employee benefits, while providing employers and benefits brokers the ability to offer a wider range of benefits to employees. Payroll Exchange allows employers to automatically calculate and record payroll deductions for employees, determine future deductions and communicate the changes to both employee and employer.

By automating the process, Payroll Exchange eliminates the need for manual administration of payroll deductions and creates either a single payroll slot or a user-defined number of payroll slots for the aggregation and delivery of all core and voluntary benefit deductions, saving time and money for the corporation.

"We view Payroll Exchange to be a major opportunity for benefits brokers and consultants as well as the employers facing administrative challenges with whom they consult," says Kirk Watkins, Chairman and CEO of E-Duction.

For benefits brokers and consultants, Payroll Exchange allows for increased sales without increased overhead, thus opening a new channel for introducing a wider range of core and voluntary products. For employers, Payroll Exchange allows Human Resource professionals to reduce costs while unlocking new sources of business value. For overburdened payroll managers, Payroll Exchange saves time and expense by automatically accounting for deductions across the organization and among multiple vendors and providers. This in turn eliminates repetitive, paper-based administration and replaces it with a more accurate and automated system that allows for easy updating of eligibility, premium deductions, improved record keeping and reconciliation.

Companies also can choose to include Clear, E-Duction's payroll deduction card, as part of the Payroll Exchange solution. Clear allows employees to "take the power of Payroll Exchange everywhere they go" and make interest-free purchases at more than 28 million MasterCard acceptance locations worldwide and then pay for them through payroll deductions administered via Payroll Exchange.

About E-Duction

E-Duction was launched to capitalize on a growing trend that has emerged in payment technology - payroll deduction. In July of 2002, E-Duction introduced the first payroll deduction card, Clear, that gives employees interest-free purchasing power, 365 days per year. Clear is an innovative voluntary benefit that allows employees to make purchases at over 28 million MasterCard acceptance locations worldwide and spread payments out over future paychecks.

E-Duction also offers Payroll Exchange, which allows employees to initiate payroll deductions at the point-of-purchase also can convert an unlimited number of transactions from any source into a user-defined number of payroll deductions. Payroll Exchange is a new channel for delivering employee benefits that enables benefits brokers, consultants and carriers to offer more products because it eliminates operational roadblocks. E-Duction has teamed with some of the world's largest consumer financial services companies including MasterCard International.