SimpliCD Market Penetration Soars –
Nearly 2,500 Credit Unions Now Investing Through CD Program

10/1/2004

COLUMBUS, IN – The new 100% corporate-owned and operated structure of Primary Financial is working even better than expected according to recent second quarter financial figures. At the end of June 2004, the number of credit unions investing in SimpliCD through Primary Financial has increased to almost 2,500, which is more than 26% of all credit unions nationwide. That translates into an increase of nearly 44% in the number of credit unions using SimpliCD since the ownership change that occurred in August 2003.

The SimpliCD program invests credit union funds in federally insured CDs from nationwide issuers, monitoring all transactions and paying one monthly interest distribution for the entire portfolio. The key attraction for credit unions is convenience – SimpliCD monitors each account in the portfolio, providing comprehensive reports of all holdings, settlement dates, rates, and monthly interest. SimpliCD also helps credit unions generate funds through CD issuance. Currently, SimpliCD outstandings are approximately $3.4 billion.

“When Primary Financial was acquired by Corporate Exchange, we expected substantial growth, but what we’ve seen has well exceeded our expectations,” said Greg Moore, chairman of Primary Financial and president/CEO of Georgia Central Credit Union. “At the middle of the year, we were already significantly ahead of the goals we’d set to achieve by the end of 2004 – proving that expanding the ownership structure was right on the mark strategically.”

“This is what we envisioned from the beginning,” said Lee Butke, president and CEO of Corporate One Federal Credit Union and board member for Primary Financial. “The goal is to offer SimpliCD to as many credit unions as possible. Credit unions know their corporates are looking out for their best interests, and it’s that trusted partner relationship, along with great rates and service that has contributed to the ongoing success of the SimpliCD program,” he added.

“We’ve been offering the SimpliCD program to members for more than two years now. We continue to add new members because of SimpliCD’s competitive rates and ease of use,” said Bill Walby, CEO of Central Corporate Credit Union. “Most members use SimpliCD for investment purposes, but we have had one member that has used it to obtain term deposits.”

Primary Financial, based in Columbus, Indiana, is a credit union service organization (CUSO) owned by twenty-nine corporate credit unions and U.S. Central. Primary Financial has been in business since 1996 and currently serves almost 2,500 credit unions throughout the United States through the SimpliCD certificate placement service, with more than $3.4 billion in credit union investments outstanding.

For more information, please contact Paul Hixon at 800/282-2560 ext. 9313 or Amy Fuller at 800/768-4228 ext. 361.