CKFR Checkfree Corp (MM)

-- CheckFree PEP+(R) Debit Return Monitor Expands ACH Software Suite -- ATLANTA, Oct. 10 /PRNewswire-FirstCall/ -- CheckFree Corporation (NASDAQ:CKFR) today announced the launch of its CheckFree PEP+(R) Debit Return Monitor. The new module will expand the capabilities of the PEP+ automated clearinghouse (ACH) platform, enabling financial institutions to automate the monitoring and management of debit origination and returns. Banks can utilize the CheckFree PEP+ Debit Return Monitor to improve operational control and mitigate risk within their ACH operations, and on behalf of their treasury management clients, for increased competitive advantage. According to an April 2005 press release from NACHA -- The Electronic Payments Association, ACH volume grew 20 percent from 2003 to 2004 to reach 12 billion annual transactions. The introduction of new ACH transaction processing types, including Accounts Receivable Conversion (ARC), Telephone (TEL) and Web (WEB), have been successful, with ARC and WEB fueling most of the overall growth in the ACH network over the past few years. NACHA reported that annual ARC volume grew by more than 1 billion payments, and accounted for 54 percent of all ACH transaction growth in 2004, and the number of Internet- initiated ACH payments, known as WEB, grew over 40 percent from 2003 to 2004. Consumers and businesses have been embracing these transactions. In addition, new regulations, such as Check 21 and Re-Presented Check Entries (RCK), have encouraged financial institutions to continue their move away from manual, paper-intensive processes in favor of electronic payment processes. While electronic processes significantly improve operating efficiency and reduce costs, they also increase the number of debit originations through the ACH. With the increase in debit originations comes a corresponding increase in the number of debit returns due to NSF, incorrect routing information and other factors. These returns can add incremental cost back into ACH operations due to handling required and potentially increase the bank's risk exposure. CheckFree PEP+(R) Debit Return Monitor allows banks to automate the management of debit returns, improve intelligence on account-specific risk profiles and enhance item exception processing. Banks will be able to analyze and track returns by customer and file to identify high-risk accounts. With this information, an originating institution can set specific customer or originator holds on funds to mitigate exposure and potentially reduce write- offs. Banks can also establish customer-specific hold percentages and amounts as well as hold periods. "CheckFree continues to lead innovation in the ACH market with product expansions that address evolving customer needs," said Esther Pigg, vice president of Global Product Management, CheckFree Software. "As the regulatory environment changes and ACH transaction types expand, financial institutions face new business and operational challenges accompanied by corresponding risk. CheckFree will continue to support its customers by delivering targeted technology solutions to address industry issues." About CheckFree (http://www.checkfreecorp.com/) Founded in 1981, CheckFree Corporation (NASDAQ:CKFR) provides financial electronic commerce services and products to organizations around the world. CheckFree Electronic Commerce solutions enable thousands of financial services providers and billers to offer their customers the convenience of receiving and paying their household bills online or in person through retail outlets. CheckFree Investment Services provides a broad range of investment management solutions and outsourced services to thousands of financial services organizations, which manage more than $1 trillion in assets. CheckFree Software develops, markets and supports software applications that are used by financial institutions to process more than two thirds of the 12 billion Automated Clearing House transactions in the United States. The division also provides operational risk management, financial messaging, corporate actions, and regulatory compliance software to more than 1,500 organizations across the globe. Certain of CheckFree's statements in this press release are not purely historical, and as such are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding management's intentions, plans, beliefs, expectations or projections of the future. Forward-looking statements involve risks and uncertainties, including without limitation, the various risks inherent in CheckFree's business, and other risks and uncertainties detailed from time to time in CheckFree's periodic reports filed with the Securities and Exchange Commission, including CheckFree's Annual Report on Form 10-K for the year ended June 30, 2005 (filed September 2, 2005). One or more of these factors have affected, and could in the future affect CheckFree's business and financial results in future periods, and could cause actual results to differ materially from plans and projections. There can be no assurance that the forward-looking statements made in this press release will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by CheckFree, or any other person, that the objectives and plans of CheckFree will be achieved. All forward-looking statements made in this press release are based on information presently available to management, and CheckFree assumes no obligation to update any forward-looking statements. DATASOURCE: CheckFree Corporation CONTACT: Media, Judy DeRango Wicks, +1-678-375-1595, or , or Investors, Tina Moore, +1-678-375-1278, or , both of CheckFree Corporation Web site: http://www.checkfreecorp.com/

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