Keybank Signs Definitive Agreement to Acquire Tuition Management Systems, Inc.

CLEVELAND, Aug. 3 /PRNewswire-FirstCall/ -- KeyBank N.A., a subsidiary of KeyCorp , today announced the signing of a definitive agreement to acquire Tuition Management Systems, Inc. (TMS), a leading provider of outsourced tuition planning, billing, counseling, payment and related technology services for colleges, universities, and elementary and secondary educational institutions.

Terms of the transaction, which is expected to close in the third quarter of 2007, were not disclosed.

Headquartered in Warwick, RI, TMS is an industry leader and innovator in the four-year higher education and K-12 markets. TMS will operate as a division of Key Education Resources (KER), a KeyBank business unit, which provides education financing products to undergraduates, graduate students and parents nationwide. KER is a unit of Key's National Finance organization, which comprises Key's national consumer and corporate banking business units.

"Combining TMS's best-in-class payment plan systems and technology with Key's array of education loan products will create one of the largest, most robust payment plan offerings in the nation," said Paul A. Larkins, Key National Finance president and chief executive officer. "Our objective is to deliver to our clients the best possible grouping of finance products and services, and the acquisition of TMS is certain to help us achieve this goal."

"From day one, our company's mission has been to provide options that make education more affordable for families across the country," said Steven Dodd, TMS's chief executive officer. "Key shares that mission, and by joining forces, we will now be able to offer our clients the complete array of products, services and resources of one of the largest, most reputable financial organizations in the nation."

Combined, KER and TMS will help more than 750,000 families pay approximately $5 billion annually in K-12, and college and university expenses at both the undergraduate and graduate levels. The combination will enable KER to continue with its open architecture platform, which provides independent choices for families to identify affordable financing alternatives in the rapidly changing educational finance industry.

"TMS's two decades of experience have enabled it to develop best-in-class processes that utilize both on- and off-campus resources to make education more affordable by minimizing debt," said Rick Vonk, KER president. "The addition of this industry-leading payment program effectively complements the Key suite of products. We're excited to be able to provide even more options to our clients looking for a smart way to finance education expenses."

About Tuition Management Systems

Tuition Management Systems, Inc. is one of the nation's largest providers of outsourced tuition planning, billing, counseling, payment and related technology services. Based in Warwick, RI, Tuition Management Systems' mission is to help families make education more affordable. It exclusively serves more than 700 colleges, universities, elementary and secondary educational institutions. In 2006, nearly 400,000 customers at these schools paid over $2 billion through Tuition Management Systems. For more information, visit http://www.afford.com/.

About Key Education Resources

Key Education Resources, a unit of Key's National Finance organization, and the education financing arm of KeyBank is one of the largest education loan providers in the U.S. In business for more than 50 years, Key Education Resources provides federal education loans, private loans, monthly payment plans and education consolidation loans for students and families in K-12, undergraduate, graduate and professional education institutions. For more information, visit http://www.key.com/educate.

About Key National Finance

Key National Finance includes the Equipment Finance and Consumer Finance businesses of KeyCorp. Equipment Finance professionals meet the equipment leasing and financing needs of businesses of all sizes and provide global equipment manufacturers, distributors and resellers with financing options for their clients. Consumer Finance provides federal and private education loans and payment plans for students and their parents; makes marine loans through multiple channels; finances dealer inventories of automobiles, recreation vehicles and watercraft; makes home improvement loans through dealers; and provides payroll solutions for businesses of all sizes. Key National Finance's five businesses total more than $29 billion in managed assets and nearly 1,700 employees in 26 countries. For more information on Key National Finance, visit http://www.knfonline.com/

About KeyCorp

Cleveland-based KeyCorp is one of the nation's largest bank-based financial services companies, with assets of approximately $94 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. Find out more information at https://www.key.com/.