CAPITAL Corporate News

CAPITAL Creates New Marketing Subsidiary
January 17, 2007

SIOUX FALLS, SD, January 17, 2007 - CAPITAL Card Services, Inc., (CAPITAL), a leader in portfolio management and card outsourcing solutions, today announced the creation of a new subsidiary, Capital Enhancement Services, LLC. (CES), which marks a significant entry of a service provider subsidiary into the consumer fee-based products and services market.

"We have been incubating this concept and proving it out for a number of years with our existing card-servicing relationships," states Jeff Aegerter, President and Chief Executive Officer for CAPITAL. "It's now time to spin this concept off to give it its own two legs, allowing it to reach the broader U.S. market."

CES will offer consumers products and services such as credit life insurance, card protection services, car rental and hotel discounts, gift services, roadside assistance, and identity theft solutions, just to name a few.

"The products and services we have developed add value to consumers in their everyday lives," adds Sandy Silverberg, recently appointed President of CES. Mr. Silverberg was instrumental in developing the business plan and expanding the product offerings for the national market launch. "CES provides an avenue to reach even more of the overall market. We now have a way to give other banks and financial institutions an after-market offer that adds value and builds loyalty at very low cost. It's another step in our evolution."

CES will grow its consumer-direct business by way of Internet promotion, corporate alliances and direct mail channels. CES is a wholly owned subsidiary of CAPITAL and will maintain its corporate office in Sioux Falls, SD.

About Capital Enhancement Services, LLC.
CES is an after-market seller of consumer-based products and services provided through a national network of marketing alliances and via the Internet.  CES is headquartered in Sioux Falls, South Dakota.  For more information, go to www.capitalenhancementservices.com.