Electronic Deposit Service promotes fund availability.

Press Release Summary:



To facilitate financial transactions, eDeposit allows businesses to deposit checks from their own offices using rented desktop scanner and normal Internet connection. Web-based, Check 21-compliant program requires no special software or system upgrades, and scanner is equipped with technology necessary to endorse checks so they cannot mistakenly be deposited twice. User scans check and transmits image to First Niagara for processing. Email confirmation is sent when file is received.



Original Press Release:



First Niagara Bank's New eDeposit Service Promotes Significant Advantages for Businesses



Quicker Access to Funds and an End to Frantic Mid-Afternoon Trips to the Bank

Business Customers Can Deposit Checks Right from Their Offices

LOCKPORT, N.Y., Feb. 7 -- First Niagara Financial Group Inc. (NASDAQ:FNFG) today announced it has launched a new electronic service that will make depositing checks easier for business customers and contribute to greater productivity for their companies.

Called eDeposit, the service allows businesses to conveniently deposit checks from their own offices using a special desktop scanner and a normal computer Internet connection. By using eDeposit, business customers can scan and transmit check images to First Niagara for processing. An email confirmation is sent when the file is received.

Driving the offering of eDeposit is a 2004 federal law known as "Check 21," which made it possible for banks to pass checks electronically and for customers to accept an electronic image of a cancelled check as a legal document.

As a web-based program, First Niagara's eDeposit requires no special software or system upgrades. The scanner, which is rented for a nominal monthly fee, is equipped with the technology necessary to "endorse" checks so they cannot mistakenly be deposited twice.

For the past several months First Niagara has worked with a number of business customers to pre-test its eDeposit service including Buffalo-based Personal Touch Food Service, Inc. According to its Controller, Paul M. Tyrpak, "The set up of eDeposit was a breeze. First Niagara delivered superior customer service and support during the pilot program. Not only has the end result been a time-saver, but it has helped us to streamline many of our internal processes and better utilize the resources that have been freed up since the implementation of this product."

The savings for a business include the cost of sending an employee or courier to the bank branch to deposit checks. Businesses also experience consistency in their availability of funds. Many times businesses have to hold their deposit until the next business day because they couldn't make it to the bank on time.

Increased efficiencies come from immediate online access to check images and the reduction of clerical errors. In addition, with eDeposit, First Niagara business customers benefit from extended cutoff times -- they have the opportunity to deposit later than their nearest branch may be open.

"We believe this new service represents an important extension of the convenient Web banking service most of our business customers already use," said Sharon Fanelli, First Vice President of Business Banking Services at First Niagara. "From a business standpoint, we see not only current business customers but also new ones being attracted to the benefits of eDeposit."

First Niagara is providing interested customers with setup of eDeposit via onsite installations or through web-ex support.

First Niagara Financial Group, Inc., through its wholly owned subsidiary First Niagara Bank, has assets of $7.9 billion and deposits of $5.7 billion. First Niagara Bank is a full-service, community-oriented bank that provides financial services to individuals, families and businesses through 119 branches and several financial services subsidiaries across New York State.

CONTACT: Leslie Garrity, Public Relations and Corporate Communications Manager, First Niagara Financial Group, Inc., +1-716-625-7528

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