Jack Henry & Associates Acquires Sys-Tech, Inc.

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Jun 02, 2000

Jack Henry & Associates Acquires Sys-Tech, Inc.

Jack Henry & Associates Acquires Sys-Tech, Inc. June 02, 2000. Jack Henry & Associates (Nasdaq: JKHY) today announced it has purchased Sys-Tech, Inc., providers of uninterruptible power supply (UPS) systems and specialists in building and maintaining computer facilities. Sys-Tech has provided services to JKHY and its customers since 1989 and has been a JKHY Business Partner since 1991. The $16 million stock transaction will be accounted for as a pooling of interests.

Headquartered in Shawnee, Kansas, privately held Sys-Tech posted revenues of $10 million in 1999 and generated attractive profit margins before payment of owner bonuses. As a Jack Henry Business Partner, Sys-Tech has provided over 700 of JKHY's community bank customers with mission critical products and services that support their computer systems and facilities. Sys-Tech's UPS systems ensure computer system reliability and stability in the event of power failure. In addition, Sys-Tech provides its customers with design and project management services of computer facilities, data center facility management and systems monitoring.

"Over the past 10 years, we have relied on Sys-Tech to supply our customers with the products and services that ensure dependable 'uptime' for our real-time banking applications. Sys-Tech's UPS capabilities, as well as their experience in designing and building computer facilities, provide the foundation for reliable and efficient systems for our customers and for Jack Henry. Sys-Tech built our first computer room in Monett in 1986. Over the past 14 years, they have provided exceptional technical expertise and quality customer service for all our facilities," said Michael E. Henry, Chairman and CEO of Jack Henry. "With this acquisition, we will enhance our ability to support the technical needs of the banking marketplace by offering a more complete solution for their processing needs."

"We are very excited to join the Jack Henry & Associates family," stated Roger Ramsey, President of Sys-Tech, Inc. "We've worked as an integral part of Jack Henry's activities and see this transition as a natural progression for our company. Jack Henry & Associates provides a national presence and resources for expanding our business, primarily in the financial services sector, but also to a wide variety of public and private organizations that require reliable support for their high-tech facilities."

"Sys-Tech has proven its ability to provide mission critical facilities services from the beginning of a project through its entire life," commented Michael R. Wallace, Jack Henry's President. "We are very pleased to bring their services in-house for our benefit and for our customers, and expect this transaction to be accretive to earnings in our next fiscal year." Sys-Tech currently employs 16 people and will continue to operate out of its Shawnee, Kansas location, as a division of Jack Henry & Associates.

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 serving millions of customers nationwide. Following the closing of the Symitar Systems, Inc. transaction, Jack Henry will have over 2,850 financial institution clients. 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.