Austin Logistics Expands Optimization Suite with the LineSelect™ Optimal Initial Credit Line Assignment Solution

Card Issuers Can Now Apply Optimization Technology to Drive Account Profitability with Optimal Initial Credit Lines

AUSTIN, TX - February 10, 2005 - Austin Logistics Inc., a leading provider of analytic software and solutions that predict customer value and behavior, today announced the newest addition to its optimization suite - LineSelect. Building on the success of CallSelect and ActionSelect for assigning optimal customer level cross-sell and collection treatments, LineSelect now empowers credit card issuers to strike the optimal balance between conflicting business goals at the time of account origination.

With low and declining response rates and long duration, negative funded introductory periods, the card-issuing environment has never been more competitive. Thin product margins in today's rising-rate environment make the initial credit line decision critical to growing a healthy and profitable portfolio. To stay competitive, issuers must precisely assign initial credit lines that simultaneously drive revenue growth and account for risk.

Austin Logistics developed LineSelect with exactly this challenge in mind. LineSelect ties account-specific behavior, such as activation, utilization and attrition, to global business strategy and goals, including portfolio profitability, contingent liability and receivables growth, through an innovative approach that yields a truly optimal solution. By combining action-specific predictive analytics and constrained optimization, LineSelect enables consumer credit card issuers to precisely target initial credit lines to accounts in order to provide the most revenue with minimal risk.

"Our proven optimization technology, combined with advanced modeling for account level profit and loss predictions, makes us unique in the marketplace," explains Daniel Duncan, president of Austin Logistics. LineSelect provides an incomparable level of precision in assigning credit lines that maximize net revenue from newly booked accounts while keeping losses at an acceptable level. "Now issuers can safely grow receivables in today's highly competitive environment without sacrificing credit quality" says Duncan.

LineSelect is a turnkey solution for scientifically creating and deploying account level initial line decisions to maximize portfolio profitability while satisfying multiple business goals.

• Empirically drive line strategy using constrained optimization
• Competitively assign lines
• Incorporate strategic policy into line assignment strategy
• Simulate and evaluate the trade-offs between expected net revenue, bad balances, and exposure across the portfolio
• Control exposure while increasing product utility

LineSelect is now available from Austin Logistics and its partners. For more information, visit www.AustinLogistics.com or contact us at 512-328-8215.

About Austin Logistics Incorporated
Austin Logistics is a leading provider of analytic software and solutions that predict customer value and behavior to drive more profit from every customer interaction-delivering a proven return on investment in six months or less. The company's products and solutions enable its global client base to make proactive, profit-focused decisions that optimize actions in collections, risk/fraud, and customer loyalty applications. Since 1992, Austin Logistics has been trusted by many of the world's largest financial services companies. The company's products and solutions are also available to insurance and telecommunications operations worldwide. For more information, please visit www.AustinLogistics.com.