FLS Partners with BankServ for Web-Enabled Electronic Payroll Tax Payments

Alliance Gives Corporate America a Secure, Real-Time Process for ACH Transactions

DALLAS, TEXAS - 9/10/01 - Federal Liaison Services, Inc. (FLS) and BankServ today announced a new partnership to provide web-enabled automated clearing house (ACH) payment capabilities to the nation's employers.

U.S. employers make payroll tax payments to more than 10,000 federal, state and local taxing agencies. Large businesses that operate in multiple cities and states may make thousands of such payments during a year.

The partnership will allow U.S. businesses to make efficient and secure payroll tax payments directly to government agencies through the BankServ ACH network, headquartered in San Francisco. Once a customer initiates a funds transfer, the account information is encrypted and routed to a BankServ data center, where it is checked against proprietary databases for real-time authorization of the transaction. After verification, authorization, and authentication are confirmed, the transaction is processed.

The BankServ ACH network allows for rapid account funding and payment verification. Customers can receive online confirmation of the transaction instantly, with an ACH trace number available immediately via the Internet. FLS ultimately plans to offer electronic child support payment options to employers via the network.

"This partnership provides employers with a new level of comfort in making their payroll tax payments," said Fran Bartlett, President and CEO of FLS. "Historically, an employer might wait hours or even days for confirmation that an agency received a payment - all the while concerned about fees and interest if the payment was late. Now businesses have the capability to verify and prove instantly that payments made through BankServ are accurate and on time."

"The partnership between BankServ and FLS will undoubtedly improve the efficiency and security of moving money between employers and government agencies," said David F. Kvederis, President & CEO of BankServ. "This is another example of BankServ's expertise and capability in providing efficient payment processing for anyone involved in governmental transactions at virtually any level."

About BankServ

BankServ, founded in 1996, is one of the leading U.S. providers of payment solutions for financial services companies, retailers and online businesses. The company processes nearly $3 billion a day in wire transfers on behalf of more than 100 U.S. financial institutions. BankServ's suite of payment services includes Internet checks, ACH funds transfers, Internet global wire transfers, online credit card processing, and numerous authentication and security capabilities. With these solutions, BankServ also provides direct, secure, online account opening and funding solutions for Internet-based banks and brokerage firms. BankServ, headquartered in San Francisco, maintains sales offices throughout the U.S. Visit BankServ online at www.bankserv.com.

About Federal Liaison Services, Inc. (FLS)

FLS is the leading provider of software solutions and services to employers for government reporting and compliance. FLS solutions automate payroll tax payments and filings, wage garnishment processing, and year-end W-2 and 1099 processing. Applications are web- and client/server-based, and are scalable to enterprises of all sizes. FLS clients include more than 400 of the Fortune 1000, as well as major government agencies.

Visit FLS online at www.flsinc.com or call 972/239-8881; fax 972/239-9540. The company's headquarters are located at 12001 N. Central Expressway, Suite 700, Dallas, TX 75243-3715.