Changing of the Guard AFFN Celebrates 20th Anniversary

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					A R M E D

F O R C E S

F I N A N C I A L

N E T W O R K

Winter 2005

AFFN NEWS

www.affn.org

Changing of the Guard
AFFN Announces New Board of Directors
In accordance with AFFN by-laws, every two years the Chairman and Vice Chairman leadership positions of the AFFN Board of Directors are rotated between the Defense Credit Union Council (DCUC) and the Association of Military Banks of America (AMBA). The AMBA and DCUC organizations nominate their candidates from their Boards of Directors to serve on the AFFN Board of Directors, and the leadership positions are then voted on and appointed for a two-year term. At the 2005 Annual Meeting, held January 28, Chairman Gordon Simmons and Vice Chairman Robert E. Morgan (representing DCUC) turned the gavel over to incoming Chairman Don Giles and Vice Chairman Scott Mullen (representing AMBA). Gordon Simmons Immediate Past Chairman Simmons has served as AFFN’s Immediate Past Chairman Chairman for the past two years. During his tenure on the AFFN Board, he has also served as AFFN Vice Chairman, an AFFN Audit Committee Member, and has been an active volunteer member of the AFFN Board since 1997. Mr. Simmons is President & CEO of Service Credit Union (New Hampshire), past Chairman and current Treasurer of DCUC, Chairman of the NH Credit Union League, and Chairman of the New England Credit Union Heritage Foundation. Don Giles Chairman

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AFFN Celebrates 20th Anniversary
1985 – 2005: A History of Service
While individual banks have been serving our nation’s armed forces and military personnel almost since the founding of our country, it wasn’t until 1942 that Congress passed legislation allowing banks to operate on military installations. In 1959, the “military” banks realized that they had much in common and formed an association – the Association of Military Banks of America (AMBA). When the armed services changed from paying their personnel in cash to mandating direct payroll deposits to financial institutions, those deposits went to bank and credit union accounts. The Department of the Army/Finance and Accounting, realizing there was a need to facilitate access to these accounts by service personnel as they traveled around the world, turned to the banking industry for assistance. AMBA, working with Clyde E. Jeffcoat, Deputy Assistant Secretary of the Army for Finance and Accounting, and his team, decided a worldwide automated teller machine (ATM) network dedicated to the armed services would provide worldwide access for the troops, while strengthening the Army’s SURE-PAY program. This included all bases where an AMBA member bank was resident, including overseas, where no U.S. ATM Network was then operating.

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Routing List

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AFFN NEWS is a publication of the ARMED FORCES FINANCIAL NETWORK
Financial institutions who wish to serve the military community have found the Armed Forces Financial Network (AFFN) to be a valuable corollary to their other financial services. AFFN was formed in 1985 at the request of the U.S. Army in support of the SURE-PAY direct deposit system, to provide U.S. Military personnel (active, reserve, dependents, and retired) with access to their funds through ATM and POS terminals at or near U.S. Military bases worldwide.

Letter from the President
No doubt about it, 2004 was a very challenging year! Even with daunting world events, the impact of war, and the continuing volatility throughout the financial services industry, we all have reasons to be optimistic as we head into 2005. This year AFFN, in partnership with our AMBA banks and DCUC credit unions, will celebrate its 20th year of service to those who serve our great nation. The success of AFFN speaks directly to the success of DCUC and AMBA, two fellow organizations that also have a special interest in helping military-orientated financial institutions serve the U.S. military and defense communities worldwide. AFFN’s mission is to provide quality products and services for participating financial institutions serving the U.S. military community worldwide. AFFN service has grown in participants and transactions over the years because the staff, management, and volunteer Board of Directors have remained true to our mission – a mission taken very seriously because of the constituencies we serve – the U.S. military and defense communities worldwide. Over the past twenty years AFFN, along with AMBA banks and DCUC credit unions, has seen tremendous change with the advancement of technology in the financial services industry. Just think back...
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AFFN’S MISSION
To provide quality products and services for participating financial institutions serving the U.S. Military Community worldwide.

Armed Forces Financial Network 5201 West Kennedy Blvd., Suite 915 Tampa, Florida 33609 Telephone: (813) 875-6051 Fax: (813) 870-2177 E-Mail: affn@affn.org Web Site: www.affn.org

from the batch off-line ATMs and posting files evolving to on-line, real-time ATM and host authorization; from 2400 baud modem point-to-point telecommunications to frame relay, TCP/IP and wireless technology. Including encryption standards more secure than ever; from through-the-wall mammoths to table-top ATMs. They have decreased in size and cost while increasing their offerings through the use of state-of-the-art technology. Consumers now expect to find an ATM whenever they need one; from dubious to preferred, debit POS service has experienced worldwide acceptance by the retailers and cardholders, with transaction volumes surpassing credit card transactions.

PARTICIPANT BOARD MEMBERS
Don Giles, Chairman President/CEO, Armed Forces Bank, N.A. (KS) Scott Mullen, Vice Chairman President/CEO, Bank of America, Military Bank (TX) Gordon A. Simmons, Immediate Past Chairman President/CEO, Service Credit Union (NH) Robert E. Morgan, Treasurer Board of Directors, ABNB FCU (VA) Jean M. Yokum, President/CEO Langley FCU (VA) Greg Oveland, President/CEO Eisenhower National Bank (TX) Roland A. Arteaga, ex officio President/CEO, DCUC (DC) Major General Andrew Egeland, Jr., (USAF, Ret) ex officio President/CEO, AMBA (VA)

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On-line home banking, email, and bill payment are all available on-line, real-time. Consumers expect “any time, any place” access to their funds. New services such as Check Truncation, Imaging, and Check 21 will offer banks, credit unions, retailers, and consumers future improved efficiencies, reduced float, and increased funds availability. The financial services industry has also experienced mergers and acquisitions of both financial institutions and electronic funds transfer (EFT) networks. Your business and our business have both experienced the repercussions – some positive and some negative. The EFT network industry has fewer alternatives today because of the consolidation, control and ownership by non-financial institutions. More “special deals” are being made to retailers and financial institutions alike, encouraging the discontinuation of what they label “ancillary” networks (specifically referring to AFFN and other independent networks), in favor of their own brand. What these organizations fail to point out is that by dropping “ancillary networks” such as AFFN from an organization’s EFT offering, it is removing an alternative processing route, limiting competitive alternatives in the marketplace, and decreasing the need for competitive interchange on both the issuer and acquirer side of the network equation. It is favoring the few at the expense of the many. It is also decreasing the funding to AMBA and DCUC in support of initiatives important to your organization as well as decreasing the funding to AFFN’s Military Community Support and Matching Grant Programs. Every transaction re-routed or dropped from AFFN in favor of these “special deals” has a negative impact on AFFN, AMBA, and DCUC and their ability to continue to provide support to the military community. While we have made great inroads to serve military and civilian consumers over the past two decades, we are faced with this industry turmoil. We are committed and remain focused on the expansion of acceptance worldwide, competitive interchange to all – all issuers, all acquirers, and the continuation of AFFN’s Matching Grant Program. I would like to thank you and your organization for the critical role each has played in AFFN’s success. Thank you for your loyalty to AFFN and our business partners, AMBA and DCUC. And most importantly, thank you for the service provided to our troops, their families, and overall U.S. military and defense.

AFFN STAFF
David O. Weber, President/CEO Larry Borden, EVP, Marketing John Broda, EVP, Sales & Assistant Secretary Andrew Egeland, Jr. Secretary Roland A. Arteaga, Treasurer Karin DeNisco, Assistant Treasurer Ann Morsch, Senior Account Executive Rhonda Wilson, Network Service Coordinator Beverly Griffiths, Administrative Assistant Bridget R. Anderson, Editor

David O. Weber President and CEO

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AFFN Salutes Its Inaugural Retailer
The Defense Commissary Agency

AFFN Point-of-Sale
July, 1990 AFFN, along with Sovran Bank/Kentucky, Fort Campbell Bank and Ft. Campbell Credit Union launched AFFN’s first Point-of-Sale (POS) system First AFFN POS transaction took place at Fort Campbell commissary November/December, 1990 Marine Federal Credit Union introduced AFFN POS at Camp Lejune, NC and Quantico, VA commissaries January, 1992 DeCA and AFFN expanded AFFN POS coast-to-coast, including Hawaii 15 military bases active on AFFN POS February, 1993 AFFN POS active on 17 military installations AFFN POS exceeded 35K transactions per month April, 1993 Service Federal Credit Union (now Service Credit Union) completed the first AFFN International POS transaction on April 14th, 1993 at the Heidelberg, Germany commissary March, 1995 DeCA and AFFN POS expanded to over 24 bases AFFN announced reduction in transaction fees, delivering a cost savings of $1.2 million annually for AFFN participants November, 1995 Overseas, 12 participating institutions provided network access to 330 ATMs in 36 countries, and POS access at DeCA January, 1996 The United States Postal Service began to honor AFFN ATM/POS cards July, 1996 DeCA and AFFN continued to expand POS acceptance worldwide January, 1998 AFFN POS continued to expand offbase at retailers such as Shell Oil and WAL*MART Stores, Inc. August, 2000 AFFN POS growth has been 4X the industry average January, 2001 AFFN POS expanded to include the Washington DC Metropolitan Area Transit Authority (WMATA) - METRO July, 2001 AFFN retailers deployed and promoted AFFN POS with Cash Back April, 2003 AAFES Army & Air Force Exchange Service went live on AFFN POS

As AFFN commemorates its 20th anniversary serving those who so proudly serve, we are reminded that it is our participants and partners who are responsible for AFFN’s success. One such partnership was created between the U.S. Army Troop Support Agency, the Department of Defense, the U.S. Treasury Department Financial Management Service, Sovran Bank/KY (now Bank of America), and Fort Campbell FCU. This partnership was responsible for the creation of AFFN POS. “It is hard to believe that the launch of the AFFN POS pilot program was nearly 17 years ago,” said David Weber, AFFN President & CEO. He added, “Since the launch of the pilot, AFFN POS has continued to expand access and has become an accepted product/service that is used every day without a second thought by AFFN cardholders worldwide.” Currently, DeCA continues to improve systems and take advantage of technological advances in order to reduce overhead and provide superior service to its patrons. “DeCA is proud to have a long history of leadership in testing and implementing customer conveniences such as debit and credit card acceptance in commissaries worldwide,” said DeCA’s Acting Director and Chief Executive Officer Patrick B. Nixon. “AFFN has certainly played a part in the success of DeCA over the years, and in the success of the DeCA team in providing our military customers with top notch customer service.” “Service Credit Union has members deployed globally. We believed early on that by embracing and supporting technology, members would benefit by increased access to their SCU accounts

AFFN salutes the DeCA management team. Pictured L-to-R: Mr. Clayton E. Childers, DeCA Systems Accountant; Mr. Gregory T. Kochuba, Chief, Financial Services & Systems; Mr. Jimaye H. Sones, DeCA Comptroller; and Mr. Jay Manning, Deputy General Counsel, Commercial Law.

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DCUC and AFFN Leadership Attend Dedication at America’s Credit Union Museum
DCUC Honored with Permanent Exhibit
S e r v i c e C r e d i t U n i o n , a charter founding member of DCUC, sponsors the permanent Defense Credit Union Council (DCUC) exhibit at America’s Credit Union Museum (ACUM), located in Manchester, New Hampshire. The exhibit highlights the history of the Defense Credit Union Council, details the role defense credit unions play in U.S. wars, and features a bronze eagle to honor credit union service in the U.S. and internationally. Leadership from both AFFN and DCUC attended the exhibit’s dedication this past Fall. DCUC President Roland ‘Arty’ Arteaga said he was “thrilled to have the DCUC enshrined in America’s Credit Union Museum.” Defense credit unions have honorably served U.S. military personnel for more than 65 years. Jean Yokum, DCUC Board Chairman and President/CEO of Hampton, Virginia-based Langley Federal Credit Union added, “Throughout my fifty-year career in the credit union movement, there have been some special moments. The dedication of DCUC’s exhibit at the museum was one of those moments.” “AFFN is proud to be a part of this historical event,” said David Weber, AFFN President and CEO. “DCUC should be commended for the role it continues to play within the credit union community.”

DCUC leadership attends exhibit’s unveiling. Pictured L-to-R: Gordon Simmons, Service Credit Union President/CEO and Treasurer of the DCUC; Jean Yokum, Langley FCU President/CEO and Chairman of the DCUC; and Roland ‘Arty’ Arteaga, President/CEO of the Defense Credit Union Council in front of DCUC’s exhibit depicting the role defense credit unions play in U.S. wars.

The museum’s mission is to tell the human side of the credit union story through compelling exhibits and powerful, lively story telling so its visitors will be entertained, moved, and surprised by the personal accounts of what it was like to live in America from the Great Depression to modern times. More information about the credit museum can be found at www.acumuseum.org. AFFN

Also part of DCUC’s exhibit, the bronze eagle honors credit union service in the U.S. and around the world.

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Mr. Simmons represents the true spirit of volunteerism, serving numerous other leadership roles within the state and national credit union movement as well as his local communities, both stateside in New Hampshire and in Europe (Germany). When Chairman Simmons was recently asked what was the most difficult challenge he faced during his tenure as AFFN Chairman, he cited “the conversion of AFFN’s corporate structure and the organization’s quest to remain price competitive. I believe that the organization has been successful on both fronts, which has benefited its member credit unions and banks.” He added, “It has been an honor and privilege to serve the AFFN organization as its Chairman. I have enjoyed working with every member of the management team and Board and look forward to a very successful future for AFFN. I know that incoming Chairman Giles will represent the organization well.” Immediate Past Vice Chairman Robert E. Morgan has served on the AFFN Board of Directors since 2000. Mr. Morgan retired as President and CEO of ABNB FCU (formerly Amphibious Base Naval Base FCU). He currently serves as Treasurer of ABNB FCU, and is a DCUC Board Member. He has tirelessly served the national, state, and local credit union movement and his local Virginia Beach, VA community. He has served on many Boards during his career, including as a CUNA National Delegate, Chairman of the Virginia Credit Union League, and past Chairman of DCUC. Mr. Morgan said he has enjoyed serving on the AFFN Board of Directors. He added,“The AFFN Board and management team are dedicated professionals working together as a team to ensure continued success for the organization, its Participants, the Department of Defense, and the soldiers we serve.” David O. Weber, AFFN President & CEO, said, “Gordon has represented all AFFN participants, banks and credit unions, with the utmost integrity. He has led the organization through many challenges and opportunities over the past two years, including corporate restructuring, the vendor switch processor selection award to Fifth Third Processing Solutions, and the establishment of AFFN’s Military Community Support and Matching Grant Programs.” He added, “We sincerely appreciate Gordon’s and Bob’s leadership and dedication, and we look forward to their continued involvement.” Incoming Chairman Giles is no stranger to AFFN. Mr. Giles has served on the AFFN Board since 1998. He is the President & CEO of Armed Forces Bank (Fort Leavenworth, KS), and is AMBA’s Immediate Past Chairman. “I look forward to continued AFFN success. The spirit of cooperation between military banks and defense credit unions is ever present at the Board level and within our participant base. We are focused on our mission and will continue to manage the strategic plan developed by Chairman Simmons, the Board of Directors, and the management team,” said Chairman Giles. He added, “I would like to officially welcome Mr. Greg Oveland, President & CEO, Eisenhower National Bank (San Antonio, TX) to the AFFN Board. Mr. Oveland is filling the AFFN/AMBA Board position of George William Miller, III. MG (Ret.) SAF/FM, Vice Chairman of 5 Star Bank. I would also like to take this opportunity to acknowledge and sincerely thank General Miller for his seven years of dedicated service to the AFFN organization. He has served AFFN well during his years of voluntary service, and he has always represented the best interest of the troops and their families.” Mr. Scott Mullen will serve as AFFN Vice Chairman. Mr. Mullen is President of Bank of America Military Bank, serves on the AMBA Board, and has served on the AFFN Board of Directors since 2002. AFFN
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AFFN Transactions
June, 1986 First AFFN ATM transaction processed between First Navy Bank and Jax Navy FCU (now Vystar Credit Union) December, 1986 26,621 annual AFFN transactions processed November, 1987 753 ATMs dispensed over 14 million dollars to AFFN cardholders from Jan-Nov. June 26, 1988 AFFN’S ONE MILLIONTH transaction processed December, 1988 1,600 ATMs, dispensed over four million dollars per month December, 1989 AFFN annual transaction volume exceeded 3.3 million transactions September, 1990 3,000 ATMs live on AFFN April, 1992 5,000 ATMs live on AFFN 1.5 million AFFN transactions processed monthly March, 1995 Monthly average AFFN transactions exceeded 2.5 million December, 1994 9,300 ATMs live on AFFN 9+ million cardholders June, 1995 AFFN transactions exceeded 3 million transactions Fall, 1995 10,000 ATMs live on AFFN 32 million cardholders December, 1997 AFFN participants processed over 4 million monthly transactions, in 37 countries, at ATMs located on land, sea, and mobile ATM units December, 2003 167,000,000 AFFN transactions processed in 2003 April, 2004 88 million cardholders December, 2004 102,000 ATMs live on AFFN 88.5 million cardholders More than 15 million transactions processed monthly January, 2005 118,000 ATMs live on AFFN

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2004 Military Community Support Program – A Major Success!
AFFN’s Matching Grant Program Donates $100,000 in Support of U.S. Troops
At the conclusion of the 2004 Military Community Support and Matching Grant Programs, The Armed Forces Financial Network (AFFN), in partnership with the Defense Credit Union Council (DCUC) credit union participants and the Association of Military Banks of America (AMBA) bank participants, presented donations in the amount of $30,000.00 to two military-focused organizations. The recipients, the National Military Family Association (NMFA) [www.nmfa.org] and Fisher House [ www.fisherhouse.org ], were presented checks in separate ceremonies recently in Washington, DC. These donations are part of AFFN’s overall Military Community Support Program. AFFN banks and credit unions have partnered with AFFN in granting over $100,000.00 to ‘military focused’ organizations serving our global military and defense communities. It is through their generosity that troops and their families are receiving direct benefits during such a critical time in our nation’s military history. “AFFN is so very proud to be in partnership with our AMBA banks and DCUC credit unions in this giving campaign,” said David Weber, AFFN President/CEO. He added, “now, more than ever, our participating partners are showing their patriotism, spirit, generosity, and true colors – red, white, and blue!” AFFN’s Military Community Support Program, which includes the 2004 AFFN Matching Grant Program, provides direct support to our troops and their families. This support includes such services as care and comfort, communication, entertainment, financial literacy education, and family and children programs, to mention just a few worthwhile examples.
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Randolph-Brooks Federal Credit Union and AFFN donated $1,000 to the Operation Warmheart program on Randolph Air Force Base located in Universal City, Texas. Pictured L-to-R: Don Whitler, Assistant Vice President, Randolph-Brooks Federal Credit Union and Randolph AFB Branch Manager presented a $500 check to Operation Warmheart program representatives MSgt. Michael Mitchell and MSgt. Dean A. Ferris. Armed Forces Financial Network (AFFN) matched this donation.

E CO 302d Family Readiness Program. Pictured L-to-R: Richard Freeman, Chairman of the Board of Directors of Fort Belvoir Federal Credit Union (FTBFCU); Patricia Kimmel, CEO/ President of FBFCU; Cpt. Dan Wood and Cpt. Eric Jackson.

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2005 Matching Grant Program Takes Off
With the overwhelming success of the 2004 Program generating over $100,000.00 to military orientated organizations, AFFN’s President/ CEO, David Weber, recently announced AFFN’s 2005 Matching Grant Program. In addition to AFFN’s donations made on behalf of all Participants to national military charitable foundations, this program has been designed to allow AFFN participants the opportunity to increase the charitable support their organization provides to our military community at the local level. First Citizens Bank, headquartered in Raleigh, North Carolina, is the first recipient of AFFN’s 2005 Matching Grant Program. Together, First Citizens Bank and AFFN have done “something amazing” by contributing $3,000 to the Chaplain’s Office at Landstuhl Medical Center in support of Operation Restore Faith. Operation Restore Faith is focused on caring for wounded heroes and their families at Landstuhl Medical Center, Landstuhl, Germany. The funds will be used to provide direct support for morale and welfare of the soldiers and their families. AFFN’s Matching Grant Program allows for a maximum matching grant of up to $1,500 per participant. Funds are limited and will be disbursed (once qualified and approved) on a first come, first served basis. For an application, please refer to page 11, or visit AFFN’s website at www.affn.org/ matchinggrant.php. For additional information, please contact John Broda, AFFN Executive Vice President, at 973-257-1216 or via email at John.Broda@AFFN.org. AFFN

AFFN Participants
May, 1985 Charter Members: [4] First Navy Bank Warrington Bank Vanguard Bank Fort Knox National Bank

Followed By: [+11] Seymour-Johnson FCU Navy Orlando FCU Cherry Point FCU Pentagon FCU Barbers Point FCU 1st National/Belleville Jax Navy FCU Tyndall Air Force Base FCU Atlantic Bank Cedar Point FCU Fort Belvoir FCU
April, 1986 85 Participants October, 1987 97 Participants December, 1988 128 Participants March, 1990 148 Participants September, 1990 150 Participants April, 1992 162 Participants December, 1994 193 Participants November, 1995 201 Participants January, 2004 324 Participants April, 2004 330 Participants December, 2004 335 Participants

2004 Award Recipients
AFFN salutes the leadership of our AMBA banks and DCUC credit unions who contributed generously to the following organizations: Service Credit Union & Fisher House, Germany Pentagon Federal Credit Union & The Pentagon Foundation, Alexandria, VA Langley Federal Credit Union & Friends of the Family Support Center, Langley Air Force Base, VA Fort Lee FCU & Fort Lee Youth Program, Fort Lee, VA Armed Forces Bank & USO International, Arlington, VA 1st Advantage FCU & USO Ft. Eustis, VA Randolph-Brooks FCU & Operation Warmheart, RB, AFB, TX Bank of America Military Bank & Fisher House Wilford Hall, BAMC, TX ABNB FCU & Rudy Extreme SEAL Challenge –The Naval Special Warfare Foundation, Naval Amphibious Base Little Creek, VA Hanscom Federal Credit Union & Patriot Honor Guard, Hanscom Air Force Base, MA Fort Monroe CU, Inc. & The Peninsula Salvation Army, Hampton, VA Bragg Mutual FCU & Kids Voting USA/North Carolina Cumberland County, Fayetteville, NC Fort Belvoir FCU & The 1st Information Operations Command’s Family Support Group, Ft. Belvoir, VA Eisenhower Bank & Wounded Soldiers’ Fund, BAMC, TX DCUC & AFFN – The Fisher House Foundation, Walter Reed, Washington, DC
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AFFN Insider
Administrative and Operational Updates
Welcome to the AFFN Team
We are pleased to introduce Rhonda Wilson, the newest member of the AFFN organization. With over 14 years of experience in the retail, point-of-sale (POS), debit/ credit card industries, Ms. Wilson brings both industry knowledge and strong customer service skills to the AFFN organization. Ms. Wilson is a graduate of Southwest Baptist University and Oklahoma State University. She resides in Tampa, Florida with her husband, Jason. We are confident that you will enjoy working with Rhonda in her role as AFFN Network Service Coordinator. She may be reached at 1-813-739-2365, or via email at Rhonda.Wilson@AFFN.org.

Mark Your Calendars
2005 AFFN Regional Meetings
The Armed Forces Financial Network is pleased to announce the following Regional Briefings for 2005: Date City / Location

March 16th March 18th April 6th April 12th April 13th

San Diego, California Marriott San Diego La Jolla Honolulu, Hawaii Waikiki Beach Marriott San Antonio, Texas Hyatt Regency San Antonio Norfolk, Virginia Norfolk Waterside Marriott Atlanta, Georgia Crowne Plaza Atlanta Airport

WELCOME TO THE AFFN COMMUNITY!
New Participants
Bank First – Sioux Falls, SD [www.bankfirstcorp.com] First Federal Savings Bank of the Midwest – Sioux Falls, SD [www.firstfedsf.com] Jilapuhn EFCU – East Point, GA Honolulu FCU – Honolulu, HI [www.hfefcu.com]

New Retailers Accepting AFFN POS
Landis SuperMarkets (PA) [www.landismarket.com] Butera Finer Foods (IL) Payless Shoes (Nationwide) [www.payless.com] Plus, an additional 189 other small to mid-sized retailers, regionally and nationally, have added AFFN POS.

These 1-day sessions will be held from 9:30 a.m.– 12:30 p.m., with a break for lunch, followed by an afternoon educational session from 1:30-3:30. The agenda will include an AFFN Update, Industry Update, DoD/AMBA/DCUC Updates, and an afternoon with industry experts presenting educational sessions on hot market topics. (A finalized agenda will be available and distributed next month.) There is no registration fee, and all AFFN participants are strongly encouraged to send at least one attendee. Please contact Beverly Griffiths, AFFN’s Administrative Assistant via email at Beverly.Griffiths@AFFN.org, or by FAX (813-870-2177) noting the meeting site of your choice along with the attendee. Space is limited.

Over 15,000 More ATMs Available to AFFN Cardholders!
NetBank & NetBank Processing Solutions, Inc. CardTronics Columbus Data Services C and R National ATM Company, Inc. ATM Service, Inc. Tech-Systems, Inc. Travelex America, Inc. Nexnet, Inc. USA Payment Systems, Inc.
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JP Morgan Chase to Add Thousands of ATMS
With the merger/acquisition of Bank One and JPMorgan Chase, the bank will soon have 6,500 ATMs available in 14 states. The ATMs are targeted to be on-line in 2nd Quarter, 2005.
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Migration Update
AFFN continues migration efforts with participants, processors/gateways, and Fifth Third Processing Solutions (FTPS) has the following milestones to report:

Recent Successful Implementations
Pulse STAR (Southeast) STAR (Northeast) STAR (West) Co-Op October, 2004 November, 2004 January, 2005 January, 2005 January, 2005

Upcoming 2005 Implementations
FDMS (Concord/Buypass) VISA DPS PLUS 1st Quarter, 2005 1st Quarter, 2005 2nd Quarter, 2005

Ann Morsch is the AFFN staff point-of-contact for migration-related questions and tasks such as scheduling project coordination and test time. She can be reached at 813-739-2366, or Ann.Morsch@AFFN.org. Additionally, should you have any questions related to your financial institution’s AFFN processing contract, options or alternatives, please contact John Broda at 973-257-1216 or John.Broda@AFFN.org.

DeCA Partnership < 3
worldwide,” said Gordon Simmons, President & CEO, Service Credit Union, and Immediate Past Chairman of the AFFN Board of Directors. He added, “We are proud to have worked with AFFN and DeCA in support of AFFN POS overseas because the SCU membership and all AFFN cardholders have benefited by the advancement of AFFN POS.” “It’s a win-win for everyone,” said Nixon. “The use of credit and debit cards allows DeCA to offer our customers the flexibility to shop whenever it is convenient for them, not just on pay days. And because the Treasury funds the purchase of groceries stocking commissary shelves, the use of debit and credit cards allows much faster reimbursement to the Treasury. In addition, with less cash and checks to handle at store level, DeCA realizes time and labor savings.”

AFFN POS in motion at Fort Lee, VA Commissary. Pictured L-to-R: Jacquelyn Brown, Sales Store Checker and Gretchen Petty, Lead Sales Checker at Fort. Lee Commissary. (Picture courtesy of Alfred Crawford, Fort Lee Commissary Officer.)

“On behalf of the AFFN Board of Directors and all of the AMBA AFFN banks and DCUC AFFN credit unions, I would like to extend our sincere gratitude to Mr. Nixon and the men and women of DeCA for their dedication and service to the troops and their families. We look forward to continued success in our future as we reflect on our past accomplishments,” said Weber. “AFFN has always been willing to provide us with a wealth of information and expertise and I see that relationship continuing,” said Nixon. “Although approximately 50 percent of our customer transactions are currently by credit and debit cards, it is not unrealistic to expect that to rise significantly, particularly as DeCA continues to move into new technologies and increased customer conveniences.” AFFN

Looking Back
1988-1990 – AFFN & Army Commissary System develop and deploy AFFN POS in pilot mode. July 1990 – The Fort Campbell Commissary is the first location to offer AFFN’s POS services to its patrons. October 1991 – DeCA is created. July 1992 – AFFN & DeCA expand POS acceptance from coast to coast. April 1993 – Service Credit Union (NH) cardholder/DeCA patron completes the first purchase at an overseas commissary at U.S. Army Base, Heidelberg, Germany. 1995 – AFFN & DeCA pilot credit card acceptance. 1996 – DeCA begins to equip military commissaries worldwide with a state-of-the-art grocery checkout and cash register system. 1997 – DeCA presents DeCA’s Medal for Outstanding Performance to David O. Weber (then AFFN Vice President, now AFFN President & CEO) for his leadership in inaugurating POS systems and procedures for DeCA. 2002 – DeCA is awarded AFFN’s Excellence in Service Award for outstanding quality service to AFFN cardholders/DeCA patrons worldwide. 2002-2004 – AFFN focuses on promoting the use of AFFN ATM/POS card at DeCA. DeCA focuses on exceeding system availability and up time and realizes tremendous growth (over 50%) in the acceptance of plastic cards. 20
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When informed of the plan, the then President of the Defense Credit Union Council (DCUC), Col. George Myers, appealed to his AMBA counterpart, Grafton F. “Nick” Nichols, to include the DCUC constituency. DCUC, organized in 1963, is an organization of credit unions whose membership consists wholly or in part of personnel of the U.S. Department of Defense, both military and civilian. Despite the competition between the banking and credit union industries on military installations then (and now), AMBA and DCUC leadership had the foresight to cooperate and share in the extensive expenses associated with developing the necessary worldwide switching infrastructure to better serve those who so proudly serve our great nation. Working in close cooperation, AMBA and DCUC network capabilities expanded. Thus, the Armed Forces Financial Network, AFFN, was established in 1985. The benefits the network brought to our nation’s armed forces became apparent as the new network grew. From its beginning, the network has provided a complete range of ATM services to U.S. military personnel (active duty, reserve, National Guard, and retired) and their families. AFFN soon became a leader in the financial services arena. Aware of the needs of military banks and defense credit unions, the network voluntarily developed a point-of-sale (POS) system to aid the U.S. Treasury and the DoD in processing appropriated funds through military commissaries worldwide. From this early beginning, numerous commercial firms learned the benefits of joining AFFN, and the number of POS transactions processed by AFFN jumped to several million monthly. This has been another AFFN service well received by the troops and their families. AFFN was among the first networks to develop uses for the Stored Value Card (SVC). In 1997, AFFN began testing a SVC application with the DoD’s encouragement. Hickam Air Force Base in Hawaii saw AFFN’s “@ ease Card,” allowing funds to be transferred from an ATM/checking account to an SVC, which could then be scanned through a reader at the merchant’s POS. While the “@ ease Card” is no longer being used, many applications have been developed for similar stored value products that are common in today’s military, government, and private sectors. AFFN focused on the military, military banks, and defense credit unions and soon piloted a “ATMs at Sea” program for the U.S. Navy. In 1997, utilizing satellite communications, this program placed ATMs on-line, real-time, on two deployed aircraft carriers, the USS Theodore Roosevelt (CV-71) and the USS Constellation (CV-64). This gave sailors/marines global access to their hometown bank/credit union accounts whether underway or in port.

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With AFFN’s continued growth and the expansion of its services, many financial institutions not located on military installations realized the network’s value. Many soldiers were already customers of these non-military financial institutions. Because AFFN is open only to active dues-paying members of the two founding associations, AMBA and DCUC, banks and credit unions worked with these two associations to join as either regular members or associate/affiliate members. Since AFFN’s incorporation in 1985, the network has benefited by the leadership and dedication of staff, management, and volunteers. AFFN participant committees such as the Rules & Standards and Pricing Committees, as well as the Board of Directors, are all staffed by leadership from AMBA banks and DCUC credit unions on a volunteer basis. The founding members of the Board of Directors included: Lyle L. Adcock (Boatmen’s Bank), Don R. Athearn, Mildred Hodgin (Seymour-Johnson FCU), Angel Lopez (Credit Union One), W. Ray Luttrull, Jr. (Planters Bank and Trust, Ft. Campbell, KY), and Clarence W. Pratt (Ft. Knox National Bank). Over the past two decades, AFFN has benefited from the knowledge and experience of over 100 dedicated professionals serving AFFN as either a volunteer committee member and/or member of the Board of Directors. AFFN reorganized its corporate structure in 2002. While the new structure is transparent to the network’s participating financial institutions, it allows both AMBA and DCUC to expand the services they provide to their members and, more importantly, to the military personnel they ultimately serve. From 1985-1989, the AFFN Chairman also served as President. However, in 1989 the Board appointed then AFFN Executive Director, LeRoy Collins, Jr., to the office of President and CEO. Mr. Collins proudly served as AFFN President & CEO from 1989 until his retirement in 2002, and he remains an active member on the Board. Mr. David Weber was promoted to the office of AFFN President & CEO in 2002. Mr. Weber continues the tradition of the leaders who came before him and is dedicated to the success of the AMBA/DCUC/AFFN partnership. AMBA banks and DCUC credit unions have been an integral part of AFFN since its founding in 1985. The unique spirit of cooperation continues today as it has for over twenty years, benefiting military banks, defense credit unions, their customers/members, and the Armed Services. It is truly a history of service. AFFN

[A special note of thanks to COL Henry (Hank) W. Neill, Jr, (USA, Ret.), former Executive Vice President of AMBA, for his historical contribution to this edition of AFFN News.]

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AFFN’S 2005 MATCHING GRANT PROGRAM APPLICATION
AFFN Participant Name: _____________________________________________________________________ Mailing Address: ____________________________________________________________________________ Telephone Number: _________________________________________________________________________ Fax Number: _______________________________________________________________________________ Web Site Address: __________________________________________________________________________ President/CEO: ____________________________________________________________________________ Marketing/Public Relations Contact: ___________________________________________________________ Matching Funds Request: ____________________________________________________________________ Program Description/Overview: (Please feel free to attach supporting documentation) __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Community Served/Beneficiary: __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Submitted By _______________________________________________________________________________
Name/Title/E-mail Address

Your President/CEO Authorization _____________________________________________________________

Please return completed application to AFFN, PO Box 659, Boonton, NJ 07005-0659. Should you have any questions, please contact John Broda – John.Broda@AFFN.org, or 973-257-1216.

For Internal Use Only: Received on: Reviewed on: __________________ ___________________

Processed: __________________

Participant Notified: ___________________

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AFFN on the Move
Please look for the AFFN management team at these upcoming meetings in support of our Participants: TechMecca 2005 Sponsored by TCUl, Pulse-EFT, and IBAT February 14-16, 2005 New Orleans ✩✩✩ DCUC Defense Issues 2005 February 26, 2005 Washington, DC ✩✩✩ CUNA GAC February 27-March 2, 2005 Washington, DC ✩✩✩ Overseas Defense Credit Union Sub-Council Conference April 21-23, 2005 Budapest, Hungary

America Supports You
America Supports You is a nationwide program launched by the U.S. Department of Defense. The website, www.AmericaSupportsYou.mil, recognizes citizens’ support for our military men and women.
All across America, thousands of individual citizens, businesses, and groups – from local schools and establishments to nationallyknown corporations and organizations – are hosting events and undertaking projects to support America’s Armed Forces, especially in forward-deployed areas of the global war on terrorism.

America Supports You spotlights what Americans are doing all across the United States, encourages others to join the team, and shares their stories by giving voice and visibility to their efforts.

More information on the program and how to register/participate can be found at www.AmericaSupportsYou.mil

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PRESORTED STANDARD U.S. Postage Paid Tampa, FL Permit #2899

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Armed Forces Financial Network
Suite 915 5201 W. Kennedy Boulevard Tampa, Florida 33609

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