E-Duction Receives $6 Million in Additional Funding
RRE Ventures Leads Round to Take Advantage of Growing Trend of Payroll Deduction

4/1/03

BLUE BELL, PA, April 1, 2003 — E-Duction, Inc., the provider of CLEAR, a financial program that improves the work•life balance of America’s employees, today announced that it has received approximately $6 million in additional funding from multiple investors. The investment was led by a global payment services leader and RRE Ventures, a private venture capital firm co-founded by James D. Robinson, III, former CEO of American Express. E-Duction will utilize the proceeds to expand its client base of Fortune 1000 employers seeking to strengthen relationships with their employees. E-Duction has raised more than $32 million in funding since its inception in 1998.

“Our investors constantly are looking to invest in innovative payment technologies, and E-Duction’s platform is cutting edge as it allows employees to make purchases and pay for them via payroll deduction interest-free,” states Kirk Watkins, CEO of E-Duction. “We believe now more than ever, employees look to their employers to make a real impact on their work•life balance. With E-Duction’s CLEAR program, employers offer employees an easy way to better manage their finances.”

E-Duction offers companies an innovative financial program that allows employees to make interest-free purchases over a two-month period through automatic payroll deduction. E-Duction represents the future of consumer electronic payments—one that began when checks replaced cash, continued with the advent of credit cards, and expanded with the adoption of debit and check cards. CLEAR streamlines the process even further, reducing time spent paying bills and managing personal finances.

“E-Duction occupies a unique position in the marketplace when it comes to employee benefits. It enables employers to offer more options for no/low cost voluntary benefits to employees,” states James D. Robinson III, general partner and co-founder of RRE Ventures and a member E-Duction’s Board of Directors.

“The continued support from our institutional investors speaks volumes about the market potential of E-Duction, as well as our continued innovation in the field of payroll deduction,” continues Watkins. “E-Duction helps employers with a variety of their human resources objectives, such as assisting employees with personal finance issues. Today, more than ever, employers have identified a need to address the financial stress on their employees.”

About E-Duction
E-Duction was launched to capitalize on a growing trend that has emerged in payment technology - payroll deduction. In July of 2002, E-Duction introduced the first payroll deduction card, CLEAR, that gives employees interest-free purchasing power, 365 days per year. CLEAR is an innovative employee program that allows employees to make purchases at over 29 million MasterCard acceptance locations worldwide and spread payments out over future paychecks. E-Duction has teamed with some of the world’s largest consumer financial services companies including MasterCard International.

For more information about E-Duction, please contact Theresa Wabler at Gregory FCA Communications at 610-642-8253 or theresa@gregoryfca.com or Susan Jefferson at
E-Duction at 215-371-5167 or sjefferson@e-duction.com.

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