Press Release

Independent Industry Report on Wholesale Receivables Confirms Extraordinary Value for Banks Using the VICOR RIDS Platform

Contact: Bob Murphy
VICOR, Inc.
510-621-2047 or rmurphy@vicor.com

RICHMOND, CA, June 6, 2006 – VICOR, Inc. today announced that in a comprehensive analysis of operational performance for 13 wholesale lockbox providers, processors deploying the VICOR RIDS (Receivables Information Delivery System) platform achieved significant and measurable differentiation in terms of higher revenues, higher profit margins, increased quality, and lower unit costs.

The independent research report, conducted and funded by Treasury Strategies, Inc., was designed to provide senior payments executives with industry benchmarks and key insights into the U.S. wholesale lockbox business. Conducted in late 2005 and early 2006, the study included 13 participants, representing five institutions with greater than $100 billion in assets, six regional banks with less than $100 billion in assets, and two non-bank lockbox providers. Combined, the participants process over 345 million wholesale remittances annually across 62 sites.

“Treasury Strategies’ 2005 Wholesale Payments Study demonstrates that sites utilizing VICOR’s platform have achieved industry-leading performance compared to sites processing through a different receivables platform,” stated VICOR President and CEO Bob Kirk.

The Treasury Strategies study identified critical factors that are associated with high performing sites, including scale, operating and management practices, and technology deployment. While technology is not the sole factor in performance, sites deploying VICOR’s platform achieved performance superior to industry medians. Among the key findings in the Treasury Strategies study:

COST: Sites using VICOR’s RIDS reported higher levels of cost efficiency, with nearly 70 percent lower per-item direct costs than sites using other receivables platforms.
PROFITABILITY: On a per-item basis, sites using VICOR achieved a gross margin greater than 8 times that of non-VICOR sites.
EFFICIENCY: Sites using VICOR reported throughput levels, on a per-item basis, which were 70 percent higher than those of sites using other platforms.
PRODUCTIVITY: Sites using the VICOR platform exhibited significantly higher levels of keystroke productivity -- more than double the rate of non-VICOR sites.

Other key operational metrics where VICOR’s RIDS platform achieved exceptional performance were: value-added revenue per item, % of boxes truncated, keystrokes per item, and items processed per customer service FTE.

“The 2005 Wholesale Payments Study provides a comprehensive and strategic assessment of products, operating practices, technology and market trends in the wholesale receivables industry,” said Treasury Strategies Partner David Robertson, CTP. “Based on our findings, sites that run the VICOR receivables platform perform exceptionally well and the VICOR platform supports many best practices, including front-end image scanning and image-based workflow.”

With the information obtained by Treasury Strategies, VICOR now has the data and information to help financial institutions accurately project and model the operational metrics and financial aspects of their receivables operations when deploying the RIDS Receivables solution. To obtain additional information about Treasury Strategies’ 2005 Wholesale Payments Study, visit VICOR’s Web site at www.vicor.com or contact Mike Dignen at 610.524.5950 (mdignen@vicor.com).

About VICOR, Inc.

VICOR, Inc. is the leading provider of solutions that optimize the processing of complex payments for businesses and financial institutions. By managing multiple payment types and formats across diverse distribution channels, VICOR helps businesses and financial institutions save time and money, attract new customers, generate revenue, and leverage existing technologies. In 2005, VICOR’s solutions processed over $1.4 trillion in payment volume, 222 million payment transactions and 335 million payment related documents. VICOR owns and manages the Corporate Payment Progress Index (CPPI), an industry initiative that quantitatively measures the progress of corporate payments. VICOR is headquartered in Richmond, CA. For more information about VICOR and its solutions, contact 510-621-2000 or visit www.vicor.com.