Jack Henry & Associates To Acquire Bancdata Solutions, Inc.

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Mar 31, 2000

Jack Henry & Associates To Acquire Bancdata Solutions, Inc.

Jack Henry & Associates To Acquire Bancdata Solutions, Inc. Monett, Mo and Lancaster, CA -- March 31, 2000. Jack Henry & Associates (Nasdaq:JKHY) today announced it has signed a definitive agreement to purchase BancData Solutions, Inc. (BDS), a co-operative data center providing core data processing and item capture for 22 community banks in Southern California. The transaction will be effective as of April 1, 2000 with final settlement of approximately $5 million in cash disbursed on the following business day.

Headquartered in Lancaster, California, just north of Los Angeles, BancData Solutions is co-operatively owned by Los Robles Bank, First Mountain Bank, Redlands Centennial Bank and Mojave Desert Bank, N.A. BDS generated revenues in the past twelve months of approximately $5.3 million and its assets were approximately $2.1 million at March 31, 2000.

"This acquisition gives us a very strong presence on the west coast for the first time and provides a great opportunity to build more relationships with California's growing community bank market," said Michael E. Henry, Chairman and CEO of Jack Henry. Currently, California is home to more than 330 banks.

"We have an outstanding relationship with Jack Henry, and have relied on their CIF 20/20 and Liberty data processing systems for the past 4 years to service our customers," said Jose Nieves, President of BancData. "All of our customers currently operate on Jack Henry products, and as a result, we expect the transition to be seamless and trouble-free. We also know their dedication to providing stellar service and are confident this alliance will enhance our services to customers and strengthen our growth potential."

part from their headquarters in Lancaster, BancData operates an item processing center in Burbank, California. "We plan to expand the Burbank location so that it includes a disaster recovery site as well as training facilities to support our western customers," said Michael R. Wallace, Jack Henry's President. "As we continually grow our customer base and upgrade our product line, we are expanding our customer education offerings. With the expanded facility in Burbank, Jack Henry can continue to provide superior service and educational opportunities to our community bank customers, regardless of whether they choose to outsource their data processing or manage their data systems in-house."

Jack Henry & Associates, Inc. provides integrated computer systems and ATM networking products for banks and credit unions. Jack Henry markets and supports its systems throughout the United States and has over 2,600 financial institution clients serving millions of banking customers nationwide. For additional information on Jack Henry, visit the company's web site at www.jackhenry.com.

Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward looking information. Additional information on these and other factors which could affect the Company's financial results are included in its Securities and Exchange Commission (SEC) filings on Form 10-K, and these statements should be reviewed by potential investors. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information.