Open Solutions Inc.
NASDAQ : OPEN

Open Solutions Inc.

August 11, 2005 20:33 ET

Open Solutions Launches POS IP Gateway Expanding POS Offering; Canada's Largest Off-Premise Network Enters Quick Service Market

GLASTONBURY, CONNECTICUT--(CCNMatthews - Aug. 11, 2005) - Open Solutions Inc. (NASDAQ:OPEN), a provider of integrated enabling technologies for financial institutions, today announced the launch of a POS IP Gateway through its Open Solutions Canada Payment Solutions Group. The POS IP solution expands the company's offering to deliver credit and debit transaction processing in quick service and multi-lane environments in the Canadian marketplace. Open Solutions Canada runs Canada's largest off-premise ATM network and its largest processor of independent POS terminal transactions. Open Solutions introduced IP-connected POS terminal service in 2004 to stay current with the market. The new POS IP Gateway provides an enhanced service, offering both wired and wireless IP connectivity in an end-to-end solution for Independent Sales Organizations (ISOs) and merchants.

Leveraging off high bandwidth DSL or cable connections, the IP Gateway provides the instant transaction response time that is essential in Quick Service Restaurants (QSRs) and multi-lane environments. "With credit and debit cards widely accepted across most retail segments, quick service restaurants have become a major growth market in POS terminal placements. Using the IP connection to access our networks for credit and debit authorizations translates in to reduced processing times and lower transaction processing costs in this environment," said Mike Kelso, president of Open Solutions' Payment Solutions Group. He added, "Canadians are among some of the heaviest debit card users in the world and expect to use their credit and debit cards everywhere. Equipping our ISOs with this technology allows them to expand even further into the marketplace."

The solution is attractive to both QSR franchisees and to owners of medium-sized stores because it improves their customer service through reduced check-out times and reduces revenue lost when customers abandon a purchase due to long lines. It also offers merchants the potential to save money on telephone line costs by using cable or high-speed telephone connections to run multiple applications. The gateway supports both native IP POS devices and dial POS devices (through an IP conversion device). The QSR market cannot afford to have terminals that don't complete the transaction when needed and Open Solutions has invested heavily in redundancy to ensure the highest possible end-to-end availability for all transactions.

In addition to providing both wired and wireless IP connectivity, the gateway allows direct connectivity to the Open Solutions Canada network for both individually connected POS devices and for IP Gateways. The Payment Solutions Group manages Canada's largest ATM network and develops and delivers electronic payment products and services internationally, including fast, secure ATM and POS systems residing on a Windows platform using a relational database and Web access for remote management and electronic funds transfer transaction processing, device management and monitoring.

Open Solutions Canada provides outsourcing services that are designed to enable Canadian credit unions to operate on a full front- and back-end banking system platform to service their retail and commercial customers, including multiple access channels such as teller, telephone and Internet banking. Open Solutions Canada also supplies other related services including banking system enhancement and development work.

About Open Solutions Inc.

Open Solutions Inc. offers a fully featured strategic product platform that integrates core data processing applications, built on a single centralized Oracle® relational database, with Internet banking, cash management, CRM/business intelligence, financial accounting tools, imaging, Check 21, interactive voice response, payment and loan origination solutions. Open Solutions' full suite of products and services allows banks, thrifts and credit unions in the United States and Canada to better compete in today's aggressive financial services marketplace, and expand and tap their trusted financial relationships, client affinity, community presence and personalized service.

Safe Harbor Statement

Statements made in this press release that state Open Solutions Inc.'s or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. All forward looking-statements are only as of the date of this press release and Open Solutions Inc. undertakes no obligation to update or revise them. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause Open Solutions Inc.'s actual results to differ materially from those projected in such forward-looking statements. For example, we face risks associated with our Canadian operations that could harm our financial conditions and results of operation. Factors which could cause our actual results to differ materially from those projected in forward-looking statements include, without limitation, economic, competitive, governmental and technological factors affecting the banking and credit union industry and/or Open Solutions Inc.'s operations, markets, products, services, prices and other factors set forth under the heading "Factors Affecting Future Operating Results" in Open Solutions' Quarterly Report on Form 10-Q for the three months ended June 30, 2005, as filed with the Securities and Exchange Commission.

Copyright (C)2005 Open Solutions Inc. All rights reserved.


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