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CheckFree to Divest Seven Software Products

CheckFree Holdings Corp., a provider of financial electronic commerce services, said it is divesting seven of its software products to enhance the company's focus on its core businesses in electronic commerce products and services.

The software products to be divested include corporate cash management, wire transfer, leasing, item processing, imaging, mortgage and safe box accounting.

CheckFree completed the sale of its item processing business to CONIX Systems Inc. on March 24, and has agreements, or is in discussions with potential buyers for the majority of the other software products to be sold.

The divestiture process is expected to be substantially completed by June 30, the company said. The businesses planned for divestiture recorded collective revenue of approximately $34 million for the fiscal year ended in June 1997, and were projected to generate revenue of $36 million to $38 million with a modest operating loss for the year ending June 1998.

"This divestiture will conclude our efforts to concentrate management and financial resources on our core strategy for electronic banking, billing and payment, brokerage and business solutions," said Peter J. Kight, chairman and chief executive officer. "Our software group will continue to develop ACH processing, reconciliation and compliance products, which play an important role in our relationships with key billers and financial institutions."

CheckFree provides electronic banking and bill payment processing services for over 300 banks and approximately 1,000 merchants. In addition, CheckFree markets an electronic bill presentment product that is in production and working for banks, businesses and consumers. Twenty-three of the nation's largest billers have already signed on to provide the product, CheckFree E- Bill, for their customers, the company said.