PMT Services Signs Definitive Agreement to Acquire MBN National,
With Merchant Portfolio of 8,000 Accounts and Annualized Charge
Volume of $400 Million
MBN Sales Force Currently Averages 300 New Accounts Per Month
NASHVILLE, Tenn.--(BUSINESS WIRE)--May 18, 1998-- Richardson M. Roberts, Chairman and Chief Executive
Officer of PMT Services, Inc. (Nasdaq/NM: PMTS - news), today announced the signing of a definitive agreement for its
ninth portfolio purchase or business acquisition thus far during fiscal 1998. In the latest transaction, PMT has agreed to acquire
MBN National, Inc. (''MBN'') an independent service organization headquartered in the Los Angeles area. MBN will bring a
merchant portfolio of approximately 8,000 accounts, producing annualized charge volume of approximately $400 million, to
PMT. In addition, PMT will gain a seasoned sales force through the transaction, which is currently generating approximately
300 accounts per month. Consummation of the transaction, which is subject to customary closing conditions, is expected by
the end of May 1998.
Mr. Roberts remarked, ''The acquisition of MBN will mark another successful step in PMT's dual growth strategies, which
are designed to strengthen its internal account generation capabilities even as it continues to consolidate the small merchant
segment of the electronic transaction processing industry. Two years ago, we launched a new program to acquire veteran sales
forces and entrepreneurial managerial talent along with merchant account portfolios. MBN represents the tenth acquisition of
an operating business completed since then that accomplishes all three of these objectives. As a result, this latest transaction
will increase our internal account generation capability to approximately 4,000 merchant accounts per month from as few as
300 accounts two years ago. Additionally, PMT's lower costs through national contractual vendor relationships for processing,
communication, leasing, equipment and supplies have historically increased its sales organization's internal sales post transaction
and we anticipate that MBN will follow suit.
''MBN and the other eight transactions already completed during the first 10 months of fiscal 1998 are clear examples of the
potential PMT has in the ongoing consolidation of the industry,'' concluded Mr. Roberts. ''With the completion of the MBN
acquisition, these transactions will have added over $4.4 billion in aggregate annualized charge volume to PMT's base of
approximately $12 billion in annualized charge volume at the beginning of the fiscal year. We remain engaged in numerous
conversations regarding other portfolio purchase transactions or acquisitions of operating businesses. We are confident PMT
has the systems, people and financial resources to integrate these transactions and, thereby, produce additional profitable
growth.''
PMT Services, Inc. is an independent service organization which markets and services electronic credit card authorization and
payment systems to small retail and professional businesses located throughout the United States. PMT's merchant portfolio
has grown through the internal development of accounts using telemarketing and a field sales force as well as through the
purchase of merchant portfolios and acquisitions of operating businesses. PMT is one of the largest independent service
organizations in the country.
Investors are cautioned that this release contains forward-looking statements, such as those relating to PMT's ability to
produce continued profitable growth and the continued consolidation of the electronic transaction processing industry, that are
based upon current expectations and involve a number of risks and uncertainties. Actual operations and results may differ
materially from those expressed in the forward-looking statements made by the Company. The factors that could cause actual
results to vary include PMT's ability to retain and expand its field sales force; the ongoing performance of the field sales and
telemarketing personnel; the actual production of new accounts by alliance partners; the Company's ability to integrate
acquisitions successfully with its processing systems and products and to account for acquisitions as poolings of interests; the
availability of attractive acquisition targets; the availability of capital; attrition of merchants from acquired portfolios; and other
trends or uncertainties as noted in PMT's periodic filings with the SEC.
Contact:
PMT Services Inc., Nashville
Clay Whitson, 615/743-3800 ext.3200
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