Ontario-Based Company Wins Outsourcing Contract from Canada's Eighth Largest Credit Union

April 25, 2002 - Mississauga, Ontario -- Threshold Electronics Limited has announced a 5-year agreement with Ottawa-based Civil Service Co-operative Credit Society Limited (CS CO-OP) to supply financial transaction switching and ABM (Automated Banking Machine) management services. Threshold partnered with Moneris Solutions on the initiative and competed successfully against Canada's largest industry providers.

The agreement includes providing transaction switching services for CS CO-OP's 147,000 strong membership - including both issuer and acquirer traffic - as well as driving and managing the institution's 107-unit ABM network. CS CO-OP's network will soon be replaced with 5th generation web-enabled technology provided by NCR Canada Limited. Total transaction volumes involved are expected to exceed 15 million per year.

"This is a tremendous contract for Threshold, clearly demonstrating to the marketplace our technically superior service offering" reported Threshold President Matthew McIver. Threshold operates one of the most advanced switching platforms in Canada today, offering financial institutions the opportunity to break away from legacy systems and benefit from a significantly more efficient platform - and, at the same time, have the ability to drive state-of-the-art ABM technology.

"Threshold is a natural business partner for CS CO-OP," stated Cassandra Harris, the credit union's Manager e-Commerce. "The company offers a comprehensive suite of services, backed up by a highly competent team of industry professionals."

"Financial institutions are re-evaluating their ABM networks and the role they play as a delivery channel to members. As a cash dispenser, an ABM's value is limited, but as a multi-function self-service kiosk, they represent a tremendously valuable customer touchpoint," said McIver. Harris echoed McIver's comments: "The ABM channel is a key service delivery channel, particularly in markets not served by a physical branch."

About CS CO-OP

CS CO-OP was established over 94 years ago as a credit union offering low interest loans and financial services to the many civil servants of the National Capital Region. By the mid-1960s, CS CO-OP had grown to become Ontario's largest credit union, and in 1998 membership was extended to all Ontario residents.

Today, CS CO-OP has over 147,000 members across the country and offers its personal and commercial financial services in communities throughout Ontario. CS CO-OP introduced commercial services in 1999 and currently has approximately 1,000 commercial accounts, the majority of which are home-based and small enterprises.


About CS CO-OP

In October 2000, CS CO-OP established a federally chartered bank as a wholly owned subsidiary - CS Alterna Bank, offering services nationally. The bank is focusing initially on the Ottawa and Quebec markets, with plans to extend its reach through electronic channels and a physical presence in select markets.

CS Alterna Bank is the first bank to be established by an Ontario credit union, and the first created by a Canadian credit union to offer a branch "bricks and mortar" structure. Recognizing the value of personalized service and face-to-face interaction, CS Alterna Bank now serves approximately 2,500 clients. They plan to grow the client base exponentially in future years.