CWBC = Electronic Paycheck subsidiary
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Monday March 29, 9:08 am Eastern Time
Company Press Release
Community West Bancshares
Electronic Subsidiary Expands Product
Line
GOLETA, Calif.--(BUSINESS WIRE)--March 29, 1999--Lew
Stone, president & chief executive officer of Community West Bancshares, announced the
expansion of products by its subsidiary, Electronic Paycheck, LLC.
Electronic Paycheck, purchased by the company in late 1997, developed proprietary software,
known as Oktopus and based on internet protocol, which allowed employers to pay their employees
electronically by way of the Electronic Paycheck Card, even if the employees didn't have bank
accounts. In this way, employees without bank accounts could have access to their pay at ATMs
and point-of-sale terminals around the world. The card also gives people who currently do not have
banking relationships an inexpensive way to move away from the all-cash environment. The card is
currently being used to pay employees in the agricultural, manufacturing, and cruise line industries.
Stone said, ''We originally envisioned the card only as a way to address the needs of the unbanked
across the country. However, as the software has been developed, many other uses have arisen.''
In addition to payroll, the card may be used by companies as an alternative to cash travel advances,
or to pay commissions or other payments to agents in industries such as network marketing, or
companies that have representatives traveling internationally.
Check cashing stations around the country now have the option of issuing cash cards to their
customers instead of cash. Their customers who traditionally do not have bank accounts, have the
added security of not having to carry cash with them at all times. And people needing money transfer
services can obtain a second card which they can send to their family or friends to be used for
withdrawals at ATMs worldwide. These easy and secure transactions result in dramatic savings to
the card user in wire transfer fees and potential foreign exchange costs. Companies which provide
short term payday loans are now using the cards to fund loans with electronic funds rather than by
check. This saves the costs associated with paper checks.
The various card uses also allow companies to issue their own branded card. This feature is of
particular interest to larger companies which have the potential of issuing thousands of cards.
As part of the payroll card development for the cruise line industry, Electronic Paycheck has
developed a first-of-its-kind kiosk to be used on-board ships which allow onboard deposits,
integrated money transfers, and the printing of remote statements. This kiosk was recently premiered
to cruise line executives at the Sea Trade 99 Show in Miami.
The company earns revenues at the time the card is issued, as cash is added to the card, and
whenever the card is used. Stone said, ''The development of the concept has been slow, because of
the necessity of building the required security and reliability into the system. However, as evidenced
by the interest in the many card uses, we believe the potential growth in cards issued and used can
be explosive, and we are uniquely positioned to capture a significant share of the market as it
develops.''
Community West Bancshares is a financial services company with headquarters in Goleta. The
company has three subsidiaries, Goleta National Bank, Palomar Savings, and Electronic Paycheck,
LLC.
This release contains forward-looking statements which reflect management's current views of future
events and operations. These forward-looking statements are based on information currently
available to the company as of the date of this release. It is important to note that these
forward-looking statements are not guarantees of future performance and involve risks and
uncertainties, including, but not limited to, the successful marketing of the Electronic Paycheck
concept and the acceptance of its use by cardholders. In addition, as competition develops, fees
collected for issuance and usage may be less than currently expected. The company's actual results
may differ materially from those in the forward-looking statements as a result of various important
factors, including general economic conditions and ''Competition'' as described in the company's
Form 10-K for the year ended Dec. 31, 1997.
Contact:
Community West Bancshares, Goleta
Randy Shaffer, 805/692-1862
fax, 805/692-8902
communitywest.com
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Jim in CT .. |
