Press Release

ARC Systems Surpass $1 Billion in the Month of October With LT2k(TM) AU Decisioning System

As the Mortgage Marketplace Consolidates, ARC Systems Stays on Solid Course With Steady Growth

AUSTIN, Texas, Nov. 27 /PRNewswire/ -- ARC Systems, the leading e-commerce lending technology solution provider, branded ``Best-Of-Breed'' by TOWER Group, announced today that it passed a Billion-Dollar milestone in monthly loan application decisioning for October 2000.

``Passing the Billion-Dollar target keeps us on our consistent growth curve which has increased each of the last 12 months. We have processed over $5.5 billion dollars of applications this year with projections in excess of $7 billion for year-end compared to a total of $1.8 billion last year,'' said Ed Jones, President and CEO of ARC Systems. ``We are expecting this trend to maintain its growth pattern as the mortgage marketplace continues to consolidate and the need for improved efficiencies, consistent decisioning, and quality control increases.''

ARC Systems customer base includes some of the strongest sub-prime lenders in the country. These lenders clearly understand the power of being able to deliver a consistent, accurate automated underwriting decision in less than 30 seconds. ARC Systems LT2k technology benefits a lender's origination platform and their credit risk department. The credit risk department sleeps easy at night knowing that all loans applications are being processed against a consistent credit benchmark system.

Lenders and originators benefit from the ability to review a consumer loan application against multiple loan programs, including COMBOS, through the ``Loan Optimizer''. At the Point-of-Sale originators, using the Optimizer feature, can re-work customer scenarios and resubmit applications for underwriting approval within 30 seconds.

Empowering financial institutions to make better business decisions, LT2k is used by more than 120 lending operations nationwide, including First Franklin Financial, and Option One Mortgage. For more information about ARC Systems, contact Mary Tipps at (512) 892-5550 or email at mtipps@arcsystems.com. The Company's Web site can be viewed at www.arcsystems.com.