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Netzee Liquidates Assets to Certegy

Netzee is calling it quits and has decided to sell its assets and dissolve the company.

The Atlanta-based provider of Internet banking and bill payment services agreed to sell its assets, which include Internet and telephone-based products it sells to over 800 financial institutions, to Certegy for $10.4 million. That's about $6 million less than Netzee paid to scoop up Internet banking and bill payment businesses of John H. Harland during its hyper-growth phase.

Netzee common stock will now receive approximately $.50 per share in the liquidation proceedings, according to a company statement.

The sale transaction is subject to shareholder approval and the parties said they "hope to close the sale by mid-January 2003."

Certegy provides card services to over 6,000 independent financial institutions and provides electronic banking and bill payment service to a variety of community banks.

Intercept, Inc., which owns 28 percent of Netzee's common stock, said it has already signed onto the agreement with Certegy. Certegy's core businesses are credit and debit card processing, check risk management, check cashing services and merchant payment processing.

On November 5th, Certegy settled a California court case agreeing to pay $4 million, after it was accused of improperly assessing service charges on unpaid checks, according to a SEC filing.