Umpqua Bank Selects Nova Information Systems as Merchant Card Processing Partner

Umpqua Bank Selects Nova Information Systems as Merchant Card Processing Partner

Umpqua Sells Existing Payment Processing Portfolio to Industry Leader

PORTLAND, Ore., Dec. 23 /PRNewswire-FirstCall/ -- Umpqua Bank, subsidiary of Umpqua Holdings Corporation (NASDAQ:UMPQ), has evaluated its strategic alternatives in payment processing systems and has chosen NOVA Information Systems (NOVA) as its provider of integrated payment processing for its commercial customers. Through this alliance with NOVA, Umpqua continues to maintain industry leadership by presenting to its customers state-of-the-art product offerings. Umpqua Bank selected NOVA based on its superior technology and customer satisfaction achievements.

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As part of this agreement, Umpqua Bank sold its existing payment processing portfolio for an approximate $5.7 million gain, net of transaction costs. The net gain on sale of this portfolio will be reported in the current quarter and will be accounted for as a discontinued operation. The transaction closed December 21.

NOVA will provide processing services, customer service and support operations to the bank's 1,500 merchants. New merchant services referrals will be marketed through Umpqua Bank's 92 stores located throughout Oregon, Southwest Washington and Northern California. The credit and debit card processing volume from this agreement is expected to reach $215 million annually.

"Umpqua Bank is pleased to have selected NOVA as its new merchant processor based on NOVA's commitment to outstanding customer service and its record of effectively executing marketing partnerships with some of the nation's premier banks," said Dan Sullivan, chief financial officer for Umpqua Bank.

"NOVA continues to prove the value of its powerful outsourcing model by forming alliances with financial institutions," said Pamela Joseph, president, chairman and chief executive officer, NOVA Information Systems. "This model has proven to be beneficial both here and abroad for NOVA, its partners and their merchants. NOVA is a true partner that can quickly and seamlessly manage the transition of a merchant processing portfolio."

About Umpqua Bank

Umpqua Bank, headquartered in Roseburg, Ore., is a subsidiary of Umpqua Holdings Corporation and has 92 locations between Sacramento, Calif. and Vancouver, Wash., along the Oregon and Northern California Coast and in Central Oregon. Umpqua Bank was named #1 on "The 100 Best Companies to Work for in Oregon" large companies list for 2004 by Oregon Business Magazine. Umpqua Holdings also owns retail brokerage subsidiary Strand, Atkinson, Williams & York, Inc., which has 15 locations throughout Oregon and Southwest Washington and offers brokerage services within Umpqua Bank stores. Umpqua Bank's Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. For more information, visit www.umpquabank.com.

About NOVA

NOVA Information Systems, a leader in the payment processing industry, is a wholly owned subsidiary of U.S. Bancorp (NYSE:USB). NOVA partners with financial institutions, independent sales organizations, associations, government agencies and community banks to offer integrated payment processing services to their merchants and retailers. NOVA's products include credit and debit card processing services, software applications, electronic check conversion, gift card solutions and other value-added services to more than 750,000 merchant locations in the United States, Canada and Europe. For more information visit www.novainfo.com.

This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes is a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to certain risk factors, including those set forth from time to time in Umpqua's filings with the SEC. You should not place undue reliance on forward-looking statements and Umpqua undertakes no obligation to update any such statements. Specific risks in this press release include projected processing volume and estimated accounting treatment of the sale.

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AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com
Source: Umpqua Bank

CONTACT: Dan Sullivan, CFO of Umpqua Holdings Corp., +1-503-546-2492

Web site: http://www.novainfo.com/

Web site: http://www.umpquaholdingscorp.com/


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