CAPITAL Corporate News

CAPITAL's New Investment Subsidiary Created to Tailor Funding Solutions
August 21, 2006

SIOUX FALLS, SD, August 21, 2006 - CAPITAL Card Services, Inc., (CAPITAL), a leader in portfolio management and card outsourcing solutions, today announced the formation of its wholly-owned investment subsidiary known as Capital Preferred Credit, LLC (CPC). The new subsidiary will assist client investors interested in funding credit card receivables and other investments.

“Perhaps the greatest role we can serve is in guiding an interested client to make the best use of their investment dollars,” states Jeff Aegerter, President and CEO of CAPITAL Card Services, Inc.

Through CPC, CAPITAL will address the needs that arise from parties who express an interest in financing or otherwise participating in funding credit card receivables but who may not have the expertise or industry understanding to fully evaluate the opportunities.

“We have the information systems and portfolio management expertise to greatly assist an interested investor,” adds Charles J. Hendrickson, President of Capital Preferred Credit. “We may even offer to participate in funding the asset pool with the investor to help them offset the risk of ‘going at it alone’.”

CPC will now be able to jointly venture into funding credit card programs with clients. CAPITAL has already worked with several investors on establishing participation agreements with its client banks. Forming CPC will allow more focus to be placed on aligning investors with the right client bank or desired risk-reward strategy.