3. What performance results have been achieved?

Financial models are available from Paymentflex Technologies, LLC to quickly help the issuer understand the key drivers
and outcomes of using Paymentflex^®. [See Pricing/Risk/Marketing/Financials FAQ #'s 20-26]
Financial institutions that have worked with Paymentflex^® have reported:
• Published KeyBank USA actual in-market results:
   - KeyBank promoted the Paymentflex^® methodology (KeySmart) exclusively as their only credit card product for 4 years.
   - They publicly communicated results in their annual report and the press as follows:
     • Direct Mail Response Rates 3 times higher than industry average
     • 20% higher revolve rate
     • 20% higher balances
     • Better credit quality
     • Source: The New York Times, October 13, 1996, Pay Bills Early? Now It Can Pay
   - Credit Industry Marketing Award - 1st Place - Direct Mail (1997)
   - Sale of Credit Card Receivable at record premium of 26%.
     • Source: The New York Times, December 29, 1999 Company News; Associates First is Buying Keycorp's Credit Card Unit

• The interest yield with Paymentflex^® may be slightly lower dependent on an issuer's pricing and payment strategy. Lower yield from customers stretching to reach the higher payments and interest charge savings benefits are partially offset with an increase in the overall revolve rate. In general, the normalization of the payment choices occurs quickly as the balances build resulting in a drift of the payments toward the lowest tier. Overall balances generally increase.

• The response, activation and revolve rates in general are higher for acquisition and activation/retention programs.

• Credit quality improves since Paymentflex^® attracts higher-quality revolvers. This is the converse of adverse selection.

• Results depend on excellence in execution:
   - The degree of success achieved with Paymentflex^® is directly proportionate to:
     • the logic of the targeted portfolios
     • segments or customer group targeted
     • quality of the communication in each medium
     • the appropriateness of the message to the channel selected
     • the degree of commitment to Paymentflex^® overall
   - Paymentflex Technologies, LLC is available to provide non-confidential knowledge, experience and examples of
     successful deployments across all media alternatives and channels.
   - Paymentflex Technologies, LLC assistance can significantly reduce the time required to familiarize all functionally involved
     areas in the successful deployment of this methodology/technology.