Exhibit 99.1
NELNET 121 South 13th Street, Suite 400 p 402-458-2370 www.nelnet.net
Lincoln, NE 68508 f 402-458-2344 NELNET CORPORATE
SERVICES, INC.
Media Contact: Sheila Odom, 402.458.2329
Investor Contact: Cheryl Watson, 317.469.2064
For immediate release
Nelnet announces acquisition of EDULINX Canada Corporation from CIBC
LINCOLN, NE - Nelnet, Inc. (NYSE: NNI) today announced it has entered into an
agreement to acquire EDULINX Canada Corporation from CIBC for an undisclosed
price. The transaction is expected to close on or about November 30, 2004,
subject to normal regulatory approval and closing conditions. EDULINX will
remain a Canadian company and will complement Nelnet's current U.S. servicing
operations.
EDULINX Canada Corporation is the leading student loan servicer in Canada and is
a wholly-owned subsidiary of CIBC. The company services approximately one
million student loans totaling approximately $7 billion. EDULINX works closely
with federal and provincial governments, educational and financial institutions,
and individual borrowers to provide a full suite of loan administration and
portfolio management services. The company was originally established in 1999.
CIBC became the sole owner of EDULINX in January 2002.
"We look forward to supporting EDULINX's continued growth as the leading
Canadian-based and Canadian-focused student loan service provider," said Steve
Butterfield, Nelnet Vice Chairman and Co-CEO. "Nelnet has always pointed to
customer focus and high quality standards as key drivers for our strong
servicing record and our continued success in reducing student loan default
rates. We believe EDULINX has demonstrated that same commitment to quality."
Rob Cummings, Senior Vice-President of Retail and Small Business Lending, CIBC,
noted that CIBC will remain a client of EDULINX and an active participant in the
Canadian student loan market.
"Nelnet brings many years of top-quality client service and student loan
processing experience, combined with leading edge technology, to this business,"
said Cummings. "This will ensure a continued high level of service for the
federal and provincial governments, schools, financial institutions, including
CIBC, and the approximately one million student borrowers that EDULINX currently
serves." Cummings added, "It is far better to have an expert in student loan
servicing operate this business moving forward. We believe the combination of
EDULINX and Nelnet represents a powerful team to administer the CIBC portfolio
in the years ahead. It will ensure the service for our student loan borrowers
remains at the highest possible standards."
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About Nelnet
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Nelnet is one of the leading education finance companies in the United States
and is focused on providing quality student loan products and services to
students and schools nationwide. With over $13 billion in total assets, Nelnet
originates in excess of $3 billion for itself and its service partners annually,
and its servicing software is used by approximately 35 clients, including
Nelnet, to service nearly $50 billion in student loans. Nelnet ranks among the
nation's leaders in terms of total student loan assets.
Nelnet offers a broad range of student loan and financial services and
technology-based products, including student loan origination and lending,
guarantee servicing, and a suite of software solutions. Our products are
designed to simplify the student loan process by automating
financial aid delivery, loan processing, and funds disbursement. Our services
help to facilitate and streamline education finance for all involved in the
industry, including student and parent borrowers, lenders, financial aid
officers, guaranty agencies, governmental agencies, servicers, and the capital
markets.
Additional information is available at www.nelnet.net.
About CIBC
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CIBC is a leading North American financial institution with more than nine
million personal banking and business customers. CIBC offers a full range of
products and services through its comprehensive electronic banking network and
at branches and offices across Canada, the United States and around the world.
You can find other news releases and information about CIBC in our Press Centre
on our corporate website at www.cibc.com.
About EDULINX
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EDULINX is the country's leading student loan service provider, offering
portfolio administration services to the federal and provincial government
sponsored student loans industry. EDLULINX currently employs approximately 600
people servicing approximately one million student loans totaling approximately
$7 billion. The company is based in Mississauga, Ontario and additional
information is available at www.EDULINX.ca.
Information contained in this press release, other than historical information,
may be considered forward-looking in nature and is subject to various risks,
uncertainties, and assumptions. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those anticipated, estimated, or
expected. Among the key factors that may have a direct bearing on Nelnet's
operating results, performance, or financial condition are changes in terms of
student loans and the educational credit marketplace, changes in the demand for
educational financing or in financing preferences of educational institutions,
students and their families, or changes in the general interest rate environment
and in the securitization markets for education loans.