United Financial Technologies Attracts Banks
to its Network of Preferred Vendors

Banks Benefit through Letter of Credit Issuance

CHICAGO [June 27, 2006] – United Financial Technologies ("UFT"), designer and developer of the Collateralized Variable Rate Demand Note ("CVRDN"), is building its network of preferred commercial banks and financial institutions to act as Principal Letter of Credit Issuers and Interest Letter of Credit Issuers on behalf of UFT’s credit-worthy Licensees.

These banks will become a part of a larger network of UFT’s preferred vendors, which have been assembled in order to better enable the efficient issuance of the CVRDN by UFT’s Licensees. All of UFT's Preferred Vendors have been practically trained or educated in the specific application of the CVRDN technology and are employed as a sophisticated support system to approved Licensees. UFT recognizes that to assure proper use of the CVRDN instrument, each Licensee must have access to key professionals to assist in implementation at every turn. It is vital that UFT's Preferred Vendor Network continue to grow in depth and capacity, especially with regard to its listing of qualified commercial banks and financial institutions, in order to keep pace with the expansion of the CVRDN Licensee and user base.

“As the trend toward bank mergers and consolidations continues, we are entering a time in financial history in which there eventually may be only two core groups of banks in the market; the “mega banks” that touch every state in the Union and enjoy a strong international presence and the local more regional bank. Each of these groups have their clear strengths in servicing their customers, but in the commercial lending game, the mega bank oftentimes enjoys superior debt pricing and therefore a distinct market advantage over the more regional or local bank when it comes to servicing larger commercial borrowers,” comments Joanne Marlowe, CEO, United Financial Technologies.

“With the entrance of the CVRDN into the marketplace, there is finally a turn-key credit tool available that better levels the playing field within the banking community by enabling a bank customer – with the bank’s support – to independently source low-cost debt easily and efficiently directly from the institutional capital markets,” continues Joanne Marlowe. The use of a CVRDN, in lieu of the establishment of conventional bank loans or lines of credit, generates high-quality fee income for the participating bank. In many cases, the value of fee income compares very closely to the interest spread income margins that are generated through the establishment of conventional loan or credit structures, while simultaneously helping their customer to borrow at the best rates possible. This new-found credit strength, flexibility and pricing is expected to increase customer retention significantly since commercially successful bank customers will not be forced to abandon their grass-roots bank relationships due to outgrowing the local/regional bank’s credit or pricing capability,” adds Joanne Marlowe.

The CVRDN represents a new generation of out-sourced bank credit facilities that will potentially enhance a bank’s performance and commercial lending reach as the full spectrum of CVRDN benefits become better understood by participating banks. With the adoption of the CVRDN practices and methodology, a qualifying commercial bank can sign-on as a Preferred Vendor of UFT which will benefit the bank in a variety of ways.

Specifically, each Preferred Vendor Bank may enjoy:

• New commercial customer and credit referrals drawn from the base of pre-qualified UFT licensees;
• The establishment of new cash depository and collateral accounts with the bank;
• Increases in annualized fee-based income;
• Expansion of commercial lending opportunities while still engaging in tried-and-true credit underwriting processes;
• Enhanced financial performance due to the sharing of the bank’s credit versus the lending of the banks’ own cash;
• The ability to more readily refinance existing credit customers by outsourcing cash borrowing into the institutional capital markets without losing the customer’s business;
• A variety of additional benefits and revenue opportunities that may arise as a result of the implementation of the CVRDN in coordination with the bank.

In order to bring the CVRDN forward to the banking community, UFT has just expanded its Executive Officer staff to embrace its newest professional, Mr. Howard DeWitt, as Vice-President in charge of Institutional Relations. DeWitt, supported by a small team of banking specialists, will be holding private and public training courses designed to educate commercial bank and financial institutions how the adoption of a CVRDN program by a bank can bring with it a new source of revenue, a fresh approach to more substantial credit structures, and an alternative model for debt restructuring in cooperation with existing bank customers. Particularly, DeWitt will be recruiting qualified banks to become part of the UFT network of Preferred Vendors for the purposes of credit enhancing either CVRDN interest or principal streams on behalf of credit-worthy projects and companies.

For a personal presentation on the CVRDN and what it has to offer to participating banks, contact Howard DeWitt at hqdewitt@unitedft.com or just click on “Contact Us” on our website and tell us a little about your institution. One of our qualified representatives will be pleased to get in touch with you.

Visit www.unitedft.com to learn more about the CVRDN and the role of commercial banks and financial institutions in its growth.

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The CVRDN financial solution appeals to credit-worthy companies with capital-intensive business models that consistently utilize debt financing. It is an interest-only financial instrument, which increases cash flow and allows debt capital to be pooled prior to allocation into the commercial operation of the CVRDN Issuer as borrower. The CVRDN build upon the best of the traditional Variable Rate Demand Note ("VRDN") by qualifying for short-term/weekly interest rates that are woven over long-term finance commitments through the use of a “put” coordinated with a remarketing function. The CVRDN represents a cornerstone improvement on traditional VRDNs by doing away with a one-off or granular approach to raising capital markets driven finance opportunities.

United Financial Technologies' business model includes the creation and implementation of a standardized approach to accessing capital from the institutional capital marketplace for all types of users. For example, the CVRDN is a natural fit for companies in the following industries: Auto; Equipment Financing & Leasing; Real Estate Development; Real Estate Investment; Manufacturing; Construction; Maritime; Hospitality; Entertainment; Trade Finance; and Land Banking.

United Financial Technologies, a designer and developer of financial instruments and solutions, is a privately held company headquartered in Lake Forest, Illinois. Learn more about UFT at www.unitedft.com.

FOR MORE INFORMATION CONTACT:

Ken Swoyer
kswoyer@unitedft.com 
847-604-8055