CAPITAL Corporate News

ViPR^SM Provides Clarity to Clients on Card Profitability
March 6, 2006

SIOUX FALLS, SD, March 6, 2006 - CAPITAL Card Services, Inc. (CAPITAL), a leader in portfolio management and card outsourcing solutions, today announced the launch of its new automated card product profitability system.

CAPITAL adds yet another improvement to its servicing capabilities with its Vintage Profitability model, ViPR^SM. With ViPR, clients have the ability to drill-down to any sub-segment within their card portfolio and evaluate the return on their investment.

"ViPR speeds up a client’s ability to assess whether their card initiatives are producing favorable financial returns,” adds Jeff Aegerter, CAPITAL’s President and CEO. "This tool clarifies which card products and marketing strategies are working effectively."

CAPITAL has been developing ViPR and its enhancements for well over two years. The tool has been used a number of times to assist clients in making informed decisions about product pricing, marketing plans, and ongoing investment strategies. Many of CAPITAL’s current clients are growing their card portfolios because they have greater confidence in their overall investment approach, as a result of using ViPR.

“It is not uncommon for card issuers to attempt to manage their portfolios at a macro level, mostly because card data platforms are not designed to produce empirical profitability reporting that allows you to see core economic results by segment,” says Chuck Hendrickson, Chief Financial Officer for CAPITAL. “In credit cards, there are too many moving parts to try to manage them solely with macro GAAP financials. With ViPR, you can drill down to see true segment financial performance knowing that when you add the segments together they comprise your GAAP financials. As a result, you can understand your benchmarks, the impact they have on one another, and begin to make better marketing and product decisions.”

CAPITAL recently showcased the product in a proof-of-concept mode for a prospective prime card-issuing client whose primary strategy was portfolio acquisitions. ViPR provided new insight into how the portfolio was performing in addition to clarifying and benchmarking segments.