E-Duction Receives $6 Million Investment from PA Early Stage, Keystone Venture Capital, and Eastern Technology Fund

05/08/00

Blue Bell, PA -- May 8, 2000 – MarketMembers.com, a developer of innovative payment processing solutions, announced the closing of a $6 million first round venture capital funding through Pennsylvania Early Stage Partners (PA Early Stage), a Safeguard Scientifics affiliated private equity fund; Keystone Venture Capital; and Eastern Technology Fund.

Since its founding in 1997, MarketMembers has focused on developing E-Duction, the company's patent-pending payment technology that allows for payment of goods and services, interest free, through a series of direct deductions from the consumer's payroll. Payroll processors offer the technology as a distinct service to employers, who in turn offer it as a benefit to employees. Employees pay for purchases, interest free, over a series of future paychecks.

The funding will enable MarketMembers to begin deploying its proprietary technology among key merchants, employer and payroll processor partners. "Our relationship with some of the region's top venture funds allows us to introduce our model to a broader and deeper marketplace," said Kirk Watkins, MarketMembers' CEO. "Their commitment demonstrates confidence in our ability to develop a stand-alone service and distribution model that Internet, catalog, and bricks and mortar retailers are actively seeking to competitively build their brands."
For further information on Market Members' E-Duction solution, contact Tom McCormick at tmccormick@E-Duction.com.

About PA Early Stage - PA Early Stage is a Safeguard Scientifics (NYSE: SFE) affiliated private equity fund, focused on start-up and early stage investment opportunities in companies based primarily in Pennsylvania. The primary areas of interest are information technology companies focused on software, services, communications and Internet infrastructure. The fund also considers technology companies in microelectronics, life sciences, environment, manufacturing and materials. The fund can be reached on the Internet at www.paearlystage.com.

About Keystone Venture Capital - Founded in 1982, Keystone Venture Capital focuses on early and expansion stage companies in high-growth technology sectors. Targeted markets include internet-enabling applications, telecom and wireless communications, and business-to-business and business-to-consumer electronic commerce. Keystone is headquartered in Philadelphia, PA with satellite offices in Chicago, IL and Alexandria, VA. Keystone can be reached at (215) 241-1200 and on the web at www.keystonevc.com.

About Eastern Technology Fund - The Eastern Technology Fund is a venture fund that provides funding targeted to zero-stage Internet and technology companies primarily located in the Eastern United States. The fund is a feeder fund to Safeguard Scientifics (NYSE: SFE) and PA Early Stage. Its strategic partners also include Ben Franklin Technology Partners of Southeastern Pennsylvania and Omicron. The fund can be reached on the Internet at www.easterntechnologyfund.com.

For further information on E-Duction, Inc., contact:
Tom McCormick
Fax: 215.542.7090
E-mail: tmccormick@E-Duction.com

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