JPMORGAN AND REGULUS ANNOUNCE COMPREHENSIVE ACCOUNTS RECEIVABLE CONVERSION SOLUTION

Clients Benefit from Faster, More Secure, Cost-Effective Check Conversion Transactions

NEW YORK, November 2, 2003 - JPMorgan Treasury Services, a unit of JPMorgan Chase and a leader in global payment, trade finance and treasury management, today announced the development of an end-to-end Accounts Receivables Conversion (ARC) solution with Regulus, the nation’s premier independent document and remittance processing company. This solution draws upon JPMorgan’s market-leading ACH services and Regulus’ experience and expertise in lockbox services and transaction processing, offering clients a comprehensive solution to handle ARC processing quickly, cost-effectively, and with reduced risk.

"With today’s organizations under increasing pressure to lower costs associated with managing a paper receivables process, JPMorgan and Regulus are offering a comprehensive ARC solution which combines the best of our expertise in receipt management, conversion, processing, and returns – all under one umbrella," explained Alan Koenigsberg, vice president and senior product manager for JPMorgan Global ACH. "Our solution allows clients to decrease the volume of administrative returns by providing a better exclusions process on the front end, and a corrections process on the back end. Accelerating the returns and collection process improves risk assessment, which is particularly important if credit or services have already been extended."

JPMorgan and Regulus’ comprehensive ARC solution offers clients up-front consulting services to support and train staff during the transition to the ARC process and on-site project management during implementation. Image access is also available via i-VAULT!, JPMorgan’s Internet-based image archive service, for customer and administrative return research needs. i-VAULT! has also been enhanced to include indicators of ACH versus cash letter transactions.

The process begins with the payment processing entry of items at a Regulus lockbox location. Checks are reviewed using the solution’s industry-leading exclusion capability for assessing the conversion eligibility of items with all eligible items being processed quickly through the ACH networks. In the event items are returned for administrative reasons, the solution provides a return processing function to facilitate the posting of items either as paper drafts or as a corrected file as soon as possible, keeping processing time for these items to a minimum.
The software developed for the ARC solution includes unique features, such as:

- Enhanced MICR capture and parsing capabilities
- Highly customizable customer ARC exclusion rules for item sorting purposes
- Conversion of eligible items to ARC and transmission to ACH network
- Management of ineligible items through automatic cash letter processing and/or reversion to Pre-Authorized Check (PAC) items

"Regulus is extremely pleased to bring enhanced value to our clients through the combination of our remittance processing capabilities and JPMorgan’s ACH leadership," stated Kathy Hamburger, president, Regulus. "This partnership extends our long history of cooperation with JPMorgan in the retail lockbox arena. High volumes of ARC transactions are already migrating to the process we have developed with JPMorgan and we expect to continue that success over the next 12 months."

While this new solution is suited for any organization wanting to further automate its receivables workflow, companies that have high volumes of consumer payments, need to improve their processing of returned items, desire to reduce loan losses, or who want to reduce their administrative back office expenses will benefit most.

Press Contacts:
John Johmann
JPMorgan Treasury Services
(212) 552-9377
Flavie Lemarchand
PainePR
(212) 613-4922

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