Filed by Towne Services, Inc.
                         Pursuant to Rule 425 under the Securities Act of 1933
                         and deemed filed pursuant to Rule 14a-12 of the
                         Securities Exchange Act of 1934 Subject Company:
                         Towne Services, Inc. Commission File No. 000-24695


The following is the text of  a press release issued by Towne Services, Inc.
on March 30, 2001 announcing that they have extended their previously announced
proposed execution date for a definitive merger agreement until April 9, 2001.


 FOR IMMEDIATE RELEASE

CONTACT FOR PRIVATE BUSINESS:             CONTACT FOR TOWNE SERVICES:
TOM BLACK                                 G. LYNN BOGGS
CHIEF EXECUTIVE OFFICER                   CHAIRMAN AND CHIEF EXECUTIVE OFFICER
615/565-7774                              (678) 475-5200



                 PRIVATE BUSINESS, INC. AND TOWNE SERVICES, INC.
                     ANNOUNCE EXTENSION OF LETTER OF INTENT

SUWANEE, Ga. and BRENTWOOD, Tenn. (March 30, 2001) -- Towne Services, Inc.
(Nasdaq/NM: TWNE) and Private Business Inc. (Nasdaq/SC: PBIZ) today announced
that they have extended their previously announced letter of intent through
April 9, 2001.

         As previously announced on March 13, 2001, Private Business and Towne
Services signed a letter of intent to engage in a strategic merger. During the
past two weeks the companies and their advisors have been holding discussions
regarding the final terms of the merger, conducting due diligence, and focusing
on their obligations to file annual reports on Form 10-K with the SEC. Final
terms of the proposed transaction will be disclosed upon the signing of a
definitive agreement, which is now expected April 9, 2001. The merger is subject
to customary closing conditions, including approval by the shareholders of both
companies, and is expected to close in the first half of 2001.

         Towne Services, Inc., based in the metropolitan Atlanta area, is a
leading provider of services and products that process sales and payment
information and related financing transactions for small and mid-sized retail
and commercial businesses and banks in the United States. Towne delivers these
services and products on-line by linking its business and bank customers to its
processing systems using the Internet and telecommunications lines. Towne's
systems also act as a hub, or electronic gateway, through which customers can
access a variety of e-commerce business and management tools provided by Towne
and its strategic alliances.

         Private Business Inc., based in Brentwood, Tennessee, is a leading
provider of technology-driven solutions that help banks manage accounts
receivable financing for small businesses. The company's principal product,
Business Manager, is based on software, marketing services, and online
electronic transaction processing offered through a nationwide client network of
banks, providing cash flow to thousands of small businesses across the U.S. by
enabling them to sell their receivables to the bank.

         WE URGE INVESTORS AND SECURITY HOLDERS TO READ PRIVATE BUSINESS'S
REGISTRATION STATEMENT ON FORM S-4 AND THE JOINT PROXY STATEMENT/PROSPECTUS AND
ANY OTHER RELEVANT DOCUMENTS RELATING TO THE MERGER TRANSACTION WHEN THEY BECOME
AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. When these and other
documents relating to the transaction are filed with the SEC, investors and
security holders may obtain a free copy at the SEC's web site at www.sec.gov.
The documents filed with the SEC by Private Business may also be obtained free
of charge from Private Business by directing a request to Private Business Inc.,
9010 Overlook Boulevard, Brentwood, Tennessee 37027, Attention Investor
Relations, 615/565-7774. The documents filed with the SEC by Towne may also be
obtained free of charge from Towne by directing a request to Towne Services,
Inc., 3950 Johns Creek Court, Suite 100, Suwanee, Georgia 30024, Attention
Investor Relations (678) 475-5200. WHEN THEY BECOME AVAILABLE, READ THE
DEFINITIVE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT / PROSPECTUS
CAREFULLY BEFORE MAKING A DECISION CONCERNING THE MERGER.

         Although this release contains a "forward-looking statement" concerning
the parties' belief that the definitive merger agreement will be signed on or
before April 9, 2001, the merger agreement might not be signed by that date, or
at all, due to a number of factors, including, but not limited to, the results
of each party's due diligence investigation.