Press Release

FOR IMMEDIATE RELEASE
December 19, 2003

PAY RENT, BUILD CREDIT^sm BECOMES THE FIRST CREDIT BUREAU TO ALLOW CONSUMERS AND BUSINESSES TO BUILD CREDIT SCORES WITH RENTAL PAYMENTS, AS HOMEOWNERS DO WITH MORTGAGE PAYMENTS

Annapolis, Maryland - Pay Rent, Build Credit, Inc. (PRBC), a new credit bureau headquartered here, announced today that it launched a web-based self-help service on December 10, 2003, that enables consumers and small business owners to build their credit scores through timely rent, mortgage, and other recurring bill payments.

The PRBC Data Network enables users to build an historical credit file using multiple payment accounts such as rent, mortgage, mobile home, utilities, student loan, auto, insurance, phone, self-storage, etc. In addition, PRBC partners with financial institutions to enable users to build an accurate credit file with rent and other bill payments in real time when made online, by phone, credit or debit card, ACH (automated clearing house), or by other means that can send a date-stamped electronic "receipt" to PRBC.

PRBC users can build historical credit files based on up to three years of prior payment records that can be manually verified by independent sources, like banks, Realtors^®, accountants, and credit counselors. But most importantly, for future payments, the PRBC Data Network enables consumers and small business owners to build an accurate credit file automatically.

The results for consumers can be staggering. Without going into debt, a renter can prove they are ready, willing, and able to handle a big financial obligation, like repaying a mortgage. The PRBC Data Network will provide a greater number of loan applicants with an equal opportunity to access prime rate mortgages, auto loans, and other financial products, thus building wealth and opening financial opportunities. This is a significant development for borrowers and lenders alike because until now, credit reporting and scoring technologies have not been able to account for the timeliness of most rental, sub-prime loan, utilities, and other household or business-related bill payments as a measure of credit worthiness.

The PRBC Data Network empowers users interested in establishing and building good credit, with a financially sound methodology and secure infrastructure to demonstrate their credit-worthiness, and there is no charge to them. In addition to accepting direct consumer enrollment, PRBC will accept rental and other bill payment input from landlords, mortgage lenders, and other creditors who want to use the PRBC Data Network to report timely, as well as late payments, to reward their customers who pay on time, not just penalizing those who are late.

The PRBC Data Network provides a single point of contact for users to fill in any "blanks" they see in their other credit bureau or Dun & Bradstreet reports that could potentially raise their credit score for no charge, while at the same time protecting users from unauthorized solicitors and identity theft.

Authorized PRBC Data Network Subscribers may only view PRBC data for "permissible purposes" as defined by the Fair Credit Reporting Act (FCRA) when a consumer or business owner grants permission. This typically occurs when applying for an apartment, retail, office, or commercial space, mortgage, car loan, credit card, insurance, or employment. When authorized by a consumer or business owner, qualified Subscribers, including other credit bureaus, will have access to the applicant's payment records maintained in the PRBC Data Network.

The process of building the PRBC Data Network from a worthy "concept" to a functioning web-enabled service has been a complex one. This is why PRBC selected IBM to build its secure, reliable, and user-friendly Data Network. Utilizing IBM's Business Consulting and Application Innovation Services, its Centers for e-Business Innovation, and its Security and Privacy Practice, IBM worked with PRBC to design and develop a proprietary solution based on open industry standards utilizing the WebSphere software platform and DB2 database technologies. The PRBC Data Network employs a flexible and scaleable data architecture with advanced systems security and identity theft prevention measures. IBM hosts the PRBC service in a secure location, using "on demand" services that will scale to meet PRBC's future growth needs.

"PRBC is building a unique on demand business model that has the potential to transform the way consumers build credit and the way lenders analyze an applicant's credit worthiness," said Phil Walton, Partner, IBM Business Consulting Services. "To build such a transformational capability, PRBC has worked with IBM Business Consulting Services to develop an integrated, autonomic data system that can provide easy, automatic participation for consumers, and real-time payment and credit-scoring information to lenders."

As a further incentive to financial institutions to use the PRBC Data Network, its data collection and reporting methodology is qualified as an innovative and responsive community development service under the Community Reinvestment Act by the Office of the Comptroller of the Currency, FDIC, Federal Reserve Board, Office of Thrift Supervision, and by the State of New York Banking Department.

CitiMortgage is the first financial institution to publicly announce that it has signed a Data Subscriber agreement with PRBC and serves on PRBC's Technical Steering Committee. CitiMortgage says it will use the PRBC Data Network to give loan applicants the credit they deserve for paying their rent and other bills on time. "CitiMortgage supports the Pay Rent, Build Credit Data Network as a means of enhancing our programs to bring affordable shelter financing to first time and/or disadvantaged future homeowners. This service is of particular interest to the Credit Risk Management Department as we seek new ways to model credit behavior to an evolving borrower target market, and to support the design of loan programs to meet their needs and more accurately measure risk," explained Citi's Chief Credit Officer, Jefferey Polkinghorne.

PRBC also announced today that it has been awarded a $50,000 planning grant from the Ford Foundation. The award comes because of PRBC's mission to build a national data infrastructure to incorporate rental payments into credit scoring to benefit consumers. Ford Foundation Program Officer for Economic Development, Dr. George McCarthy points out, "Recent research from the Harvard Joint Center for Housing Studies indicates that the mortgage terms used to purchase a home are one of the main determinants in the rate at which homeowners build equity. The Foundation's interest in homeownership hinges on the ability of low-income home buyers to build assets. PRBC helps to address our concern by increasing the chances that renters are able to get mortgages on better terms."

The PRBC Data Network business model is patent-pending and was created to support fair and accurate automated underwriting and risk based credit pricing decisions. To assure data accuracy, mitigate the chances of disputed information, and to enhance consumer protections, the PRBC Data Network enables banks and other payment and receivables service providers to report customer-designated bill payments and deposit receipts to a credit bureau.

"Most experts agree that paying your bills on time is a good way to build a favorable credit history." says Mr. Nathans, PRBC's Founder, Chairman and CEO. "It is a smart move to build credit when you pay your rent, mortgage, utilities, and other bills through your bank online, by phone, or by other electronic means. This automatically and reliably records the date that your payments were sent and the exact amount. It is a best practice for evidencing credit worthiness. If you don't have an insured bank or credit union account or access to the Internet, and you want to participate in this important service, PRBC and its community-based partners can help you to get connected."

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About Pay Rent, Build Credit

Pay Rent, Build Credit, Inc. is a credit bureau with a community economic development mission and a secure, innovative, and responsive credit data collection and reporting system that operates in cooperation with financial institutions and community-based partners to leave no consumer or small business owner behind. The PRBC Data Network is powered, hosted, and secured by IBM. For more information, visit www.PayRentBuildCredit.com

About CitiMortgage

CitiMortgage, Inc. specializes in nationwide residential lending through retail, wholesale, and correspondent loan origination channels. CitiMortgage is an Equal Housing Lender. For more information, visit www.citimortgage.com

About IBM

IBM is the world's largest information technology company with more than 300,000 employees worldwide. With consultants and professional staff in more than 160 countries globally, IBM Business Consulting Services is the world's largest consulting services organization. IBM Business Consulting Services provides clients with business process and industry expertise, and the ability to translate that expertise into integrated, flexible, on demand business solutions and services that deliver bottom-line business
value. For more information, visit www.ibm.com

About The Ford Foundation

The Ford Foundation works to strengthen democratic values, reduce poverty and injustice, promote international cooperation, and advance human achievement. This year The Ford Foundation is making about $500 million in grants in the United States and, though 13 overseas offices, in scores of countries around the globe. For more information, visit www.fordfound.org

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