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07/02/2007

AccountNow Secures $12.75 Million in Round C Venture Capital Funding

 

AccountNow, Inc., a leading marketer of MasterCard and Visa� branded prepaid cards for the estimated 40 million strong under-banked consumer market, recently announced the closing of $12.75 million in a third round of venture funding and the addition of two new board members.

“The new, significant investment by Trident Capital strengthens our position in the marketplace by enabling us to more rapidly introduce new, exciting services and gain additional share of the un-banked consumer market. This is clearly a highly-attractive market segment, and one where we are already recognized as the leader,” said Tim Coltrell, CEO of AccountNow.

Trident Capital led the round and all current investors and board investors participated. Investors include INVESCO Private Capital, Oak Hill Investment, VSP Capital, Grayhawk Venture Partners, Granite Hill Capital Ventures and CEO Tim Coltrell.  AccountNow will use these funds to significantly expand its service offerings and reinforce its position as the most trusted brand for the un-banked and under-banked.

AccountNow will also add to its highly-experienced board of directors. Stephen B. Galasso, Strategic Advisor, and Christopher P. (Woody) Marshall, Managing Director, both from Trident Capital have joined AccountNow’s board, while all other board members will continue to serve.

“AccountNow’s solution represents a highly-differentiated product offering that effectively replaces the traditional checking account and includes all essential services such as direct deposit, bill paying services, branded prepaid cards and credit builder,” Mr. Galasso said. “I look forward to working with AccountNow to help ensure its continued success.”

“Our new directors give us an unparalleled depth of market knowledge as we enter a new phase of growth,” added Mr. Coltrell. “Messrs. Galasso and Marshall join such industry veterans as Shailesh Mehta, currently president of Granite Hill Capital Ventures, former Chairman and CEO of Providian Financial; former general partner of INVESCO Private Capital,  and Sequoia India Capital. Esfandiar Lohrasbpour, heads INVESCO’s Private Capital Office in Palo Alto previously Corporate Development Director at AT&T and Jamie Hale, Partner of Oak Hill Investment Management.”

Mr. Marshall joined Trident Capital in 1996 and currently is a director at several successful companies, including Merchant eSolutions and Advanced Payment Solutions, the leading prepaid card issuer in the U.K.

“Un-banked and under-banked consumers in the U.S. represent all geographic and socio-economic areas of our economy, and the number of these consumers continues to grow,” noted Mr. Marshall. “AccountNow provides an increasing range of high-quality, low-cost services to give these consumers the banking solutions they need. I am eager to lend my expertise and skills to assist the current management team in expanding the company.”

AccountNow, headquartered in San Ramon, California, is a leading provider of financial solutions for the 40 million US consumers who do not have established credit or traditional banking relationships.  AccountNow’s money saving offers give consumers an alternative to traditional checking accounts by providing access to financial products and payment systems, including MasterCard and Visa prepaid cards, Pay Anyone Bill Payment, and FDIC-insured deposits. AccountNow’s prepaid MasterCard cards are issued by MetaBank and AccountNow’s Prepaid Visa Cards are issued by Palm Desert National Bank.

For more information, please visit www.accountnow.net