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E-Duction Receives More Than $12 Million in Third
Round of Funding
Company to launch new payroll deduction product as 'The Ultimate
Way to Pay'
12/17/01
Blue Bell, PA (December 17, 2001) – E-Duction,
Inc., the provider of a no-interest, payroll deduction credit card,
today announced that it has received $12.3 million in funding from
multiple investors, led by global payment services leader First
Data Corporation (NYSE: FDC). Additional investors include RRE Ventures,
PA Early Stage Partners and the Eastern Technology Fund. E-Duction
will utilize the proceeds to roll out its MasterCard®-branded
E-Duction payroll deduction, no-interest credit card, as well as
to increase staffing in the company's sales and marketing departments.
E-Duction has raised approximately $26 million in three rounds of
funding since its inception.
"We could not be more proud of this strong vote
of confidence from new and previous investors," said Kirk Watkins,
Chairman and CEO of E-Duction. "This funding further facilitates
the imminent launch of our product – the E-Duction MasterCard
– by enabling us to expand our sales and operational staff
and continue to extend our relationships with employers, benefits
consultants, and payroll processors."
In connection with the funding, Joe Jackson, President
of Western Union Commercial Services, an affiliate of First Data
Corporation, received a seat on E-Duction's Board of Directors.
Mr. Jackson stated, "First Data is pleased to play a part in
E-Duction's launch. This investment further underscores our commitment
to deliver new innovations to the payment card industry."
"Despite the current turbulence in our Nation's
economy, there continue to be compelling companies that are breaking
new ground," said James D. Robinson III, General Partner of
RRE Ventures and former CEO of American Express. "E-Duction
has a product that will revolutionize the payment card industry
and can ultimately redefine the way some consumers pay for products
and services. We are pleased to play an active role in its continued
growth."
About E-Duction, Inc. - E-Duction, Inc. offers
its patented financial technology to large corporations as a unique
employee benefit, enabling employees to make interest-free purchases,
365 days-per-year through direct payroll deduction. The Company
has partnered with MasterCard to create "the ultimate way to
pay." With the E-Duction MasterCard, employees can "e-Duct"
their purchases over two to six months, interest-free, at more than
22 million locations worldwide. In addition, E-Duction allows employers
to consolidate an unlimited number of post-tax payroll deductions
onto one platform. For more information about E-Duction, please
visit the Company's website at www.E-Duction.com
or call 877-663-3828.
About First Data Corporation - First Data Corporation,
with global headquarters in Denver, is a leader in electronic commerce
and payment services. First Data serves approximately 2.6 million
merchant locations, 1,400 card issuers and million of consumers,
making it easier, faster and more secure for people and businesses
to buy goods and services using virtually any form of payment. With
28,000 employees worldwide the company provides credit, debit, smart
card and stored-value card issuing and merchant transaction processing
services; Internet commerce solutions; Western Union money transfers
and money orders; and check processing and verification services.
For more information, please visit the company's Web site at www.firstdata.com.
About RRE Ventures - RRE Ventures is a venture
capital firm that invests in entrepreneurial information technology
companies. The company places special emphasis on software, communications,
Internet and related enterprises that can become industry leaders
in rapidly growing markets. RRE's limited partners include leading
international institutions, multinational corporations, institutional
investors, entrepreneurs and successful businessmen and women. RRE
can be reached on the Internet at www.rre.com.
About PA Early Stage - PA Early Stage is a
Safeguard Scientifics affiliated family of venture funds that makes
investments in seed, start-up, early stage and catalyst stage companies
based primarily in Pennsylvania and the surrounding region. The
fund focuses on technology-based companies in the software, IT services,
communications, Internet applications, healthcare and life sciences,
and financial services arena. The fund can be reached on the Internet
at www.paearlystage.com.
About Eastern Technology Fund - The Eastern
Technology Fund is a venture fund that invests in technology companies
located in the Eastern corridor of the United States. Its strategic
partners include Ben Franklin Technology Partners of Southeastern
Pennsylvania, Eastern Technology Council, Omicron, and Zer0 to 5ive.
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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