Webster Announces Information Technology to Be Provided by Fidelity Information Services, Inc.; Plans Acquisition of Software and Application Processing Services

Sep 08, 2004

WATERBURY, Conn.--(BUSINESS WIRE)--Sept. 8, 2004--Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, National Association, announced today that it will begin to use Fidelity Information Services, Inc. (FIS) under a ten-year agreement to provide information technology and application processing services. Webster plans to use new software for core data processing services, enhancing both capacity and speed for customer benefit in consumer, commercial, mortgage and small business accounts in Fidelity's application service provider (ASP) environment. Webster will complete its migration to the new technology platform in the third quarter of 2005.

"As the largest independent bank based in southern New England and one of the region's leading financial service providers, Webster understands and values the vital role of technology in serving our customers' financial needs," stated Webster Chairman and Chief Executive Officer James C. Smith. "Our partnership with Fidelity will strengthen and improve Webster's line of business platforms and offer scalability to grow. Our investment in sophisticated, service-friendly technology will produce greater efficiency and be a strategic asset in our competitive markets."

Webster's new systems will enhance its sales and service delivery capabilities across its lines of business. Additionally, leveraging the processing capacity of Fidelity's data centers will provide Webster with ability to continue to grow and expand its markets.

"Our relationship with Fidelity will be the major piece of an overall infrastructure upgrade that will significantly increase our capacity to function as a leading commercial bank," stated Webster Executive Vice President and Chief Information Officer Zeynep Fredrick.

Webster anticipates one-time implementation costs of approximately $500,000 in 2004 and $3.1 million in 2005. Judging from its current operating environment, Webster estimates that operation of the new infrastructure system will be net cost neutral in 2006 and beyond.

Fidelity Information Services is a division of Fidelity National Financial, with clients in more than 50 countries and territories. FIS provides application software, information processing management, outsourcing services and professional IT consulting to the financial services and mortgage industries.

Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $17 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 147 banking offices, 268 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., and Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut.

For more information about Webster, including past press releases and the latest Annual Report, visit the Webster website at www.websteronline.com.

CONTACT: Webster Contacts
Media:
Meghan Thompson, 203-578-2287
mthompson@websterbank.com
OR
Investor:
Terry Mangan, 203-578-2318
tmangan@websterbank.com

SOURCE: Webster Financial Corporation