MCLENNAN COMMUNITY COLLEGE SIGNS AGREEMENT TO USE HIGHER ONE’S ONEDISBURSE(SM) ID AND ONEFINANCESM SERVICES

Higher One Disbursement, Banking and Debit Card Services Program Integrates Seamlessly with Existing Diebold CS Gold® Campus Card System

NEW HAVEN, CT, March 15, 2005 – Higher One, a leading provider of customized financial services dedicated exclusively to the higher education market, today announced that McLennan Community College (MCC) in Waco, TX, will implement a new, custom electronic funds disbursement, banking and OneCard services program through Higher One. McLennan becomes the second Higher One client and first Community College client to integrate a new college-branded ID card – the Highlander OneCard – with its existing Diebold CS Gold® campus card system. Delivered through its new ID card, the Higher One service will enable students to use their card to receive financial aid disbursements electronically, for primary bank access, retrieving cash from ATMs, making purchases on and off campus, transferring money electronically and monitoring accounts online through a new college-branded web site. Students will continue to enjoy the benefits of the existing Diebold system, using the new Highlander OneCard for meal plans and access to events, services, and dining and residence halls. McLennan issued an RFP in December of 2004 and signed a five-year contract with Higher One at the end of January 2005.

“We are excited that McLennan Community College has chosen Higher One to implement and manage a leading-edge disbursements and banking service for its community, and pleased that the positive experiences of two of our other clients – ASU and University of Wisconsin - Stout – played an important role in introducing them to our services. The word about Higher One is really spreading,” said Dean Hatton, President and CEO of Higher One. “McLennan offered a unique situation, using both Diebold and Datatel, but we were confident the implementation would go smoothly as we already partner with Diebold at ASU and Datatel at UW Stout and we know our systems mesh seamlessly.”

McLennan Community College was looking to replace the costly and time-consuming paper check disbursement system they were using, provide new services to students, and update the functionality and services they could offer through their campus ID cards. The new Highlander OneCard will enable students to choose any of three options to receive financial aid and other refunds and easily sign up for payroll direct deposit online. With money in a OneAccount, the Highlander OneCard also serves as a MasterCard Debit Card accepted at millions of merchants worldwide, and can also be used for purchases on campus. McLennan has between 10,000 and 12,000 students, and issues an average $20 million per year in financial aid refunds. Higher One expects to eliminate some 27,000 paper checks per year, or 135,000 checks over the life of its contract. Studies show that for many schools doing financial aid disbursement themselves, the cost of maintaining refund preferences, handling errors, and providing customer service along with making the actual payment can run as high as $35 per disbursement. OneDisburse provides all of these functions, creating drastic cost avoidance.

Higher One’s OneDisburse is the only comprehensive refund management solution available to colleges and universities. Unlike EFT programs or stored value refund card programs, OneDisburse is a patent pending service that offers students three choices to receive their refunds while eliminating many of the costs associated with refund delivery for the college. Refund choices include Easy Refund (an instantly available refund to their OneAccount), ACH to any 3rd party bank, or a paper check. Regardless of the student preference, Higher One handles the delivery of the refund - - the college only needs to send Higher One a file that includes the identifier for the student and the amount of the payment, and a wire transfer for the total amount of the disbursements. Authorized college representatives can view the status of any individual refund payment via real-time online reports.

Because Higher One handles everything related to the disbursement, including any refund payment errors, the college only needs to support one payment process and reconcile each wire transfer (instead of each individual payment). OneDisburse enables institutions to offer more student choice, free-up staff time, reduce costs, remain compliant with the 14 day rule, avoid storing bank account information or handling paper checks (vastly reducing fraud risk) and, because the college does not create a commercial banking relationship with Higher One (Higher One never holds state funds), implementation is simplified dramatically.

Higher One’s OneDisburse Refund Management service enables institutions to create significant cost avoidance and increases service in the financial disbursements process compared to disbursing via paper check or ACH direct deposit. OneFinanceSM is a suite of financial services including the OneAccount free checking account, the OneCard, and the OneRewards program that earns points for purchases at participating local merchants. Higher One currently serves 21 public and private university and college clients and has helped them disburse over half a Billion dollars through more than 340,000 individual payments since September 2002.