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                                                                    EXHIBIT 99.1


FOR IMMEDIATE RELEASE

November 30, 1998

                                        CONTACT: Bruce Lowthers
                                                 SVP/Chief Financial Officer
                                                 (770) 734-2680
                                                       or
                                                 Janice J. Kuntz
                                                 Fleishman-Hillard
                                                 (404) 659-4446


   TOWNE SERVICES, INC. TO ACQUIRE MAJOR COMPETITOR - BANKING SOLUTIONS, INC.
          EXPANDS MERCHANT SALES TEAM, ADDS MORE THAN 1,000 MERCHANTS,
              200 BANK RELATIONSHIPS & 9 JOINT MARKETING AGREEMENTS

NORCROSS, Georgia - Towne Services, Inc. (Nasdaq: TWNE) today announced that it
will acquire one of its key competitors, Banking Solutions, Inc., a McKinney,
Texas, company that provides an accounts receivable financing product to banks
and their commercial customers under the name CashFlow(SM) Manager. The
transaction consideration will include a combination of cash and stock and a
performance based earn-out component.

"I'm excited about this transaction because it is expected to be accretive to
our earnings per share even before realizing the obvious synergies. These
synergies include the combination of our sales force that specializes in smaller
merchants and primarily retail receivables with Banking Solutions' sales force
that specializes in larger merchants and primarily commercial receivables. In
addition, we gain the ability to merge the best of both companies' products and
technologies, giving our financial institution clients a complete spectrum of
processing and financing alternatives available," commented Drew Edwards,
chairman and chief executive officer of Towne Services, Inc.

 Edwards continued, "Each of the more than 200 Banking Solutions' bank customers
are already offering accounts receivable financing programs, and we are excited
about the opportunity to cross-

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sell our retail-based and collections products within this customer base. In
addition, we pick up nine new marketing agreements with banking associations and
a strong geographic presence in the southwest."

"For the last five years our consultants have excelled in helping financial
institutions finance receivables for commercial accounts. I believe that Towne
has emerged as the new leader in enabling banks to offer accounts receivable
financing via an electronic retail gateway. Both our clients and our consultants
who work with them believe they can expand their market penetration using
Towne's products," stated Don G. Shafer, chief executive officer of Banking
Solutions, Inc. "It's a win, win, win," Shafer continued.

Through this transaction, Towne will more than double its merchant customer
base, add more than 200 bank relationships, gain a sales team with an average of
five years experience in selling commercial financing products and increase
market presence into seven new states.

Towne Services is based in Norcross, Georgia, and its electronic processing
systems help community banks to compete with larger financial institutions,
attract and retain customers, increase market share, and generate a new source
of fee income. Advantages to the bank's customers include improved cash flow,
automated accounts receivable functions and relief from billing and collection
responsibilities. Towne Services' two primary products are TOWNE CREDIT(SM) and
TOWNE FINANCE(SM).

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This release contains statements which constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These statements
include all statements that are not statements of historical fact regarding the
intent, belief or current expectations of the Company, its directors or its
officers with respect to, among other things: (i) the Company's business plans;
(ii) trends affecting 

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the Company's financial condition or results of operations; and (iii) the
Company's growth strategy and operating strategy. The words "may," "would,"
"could," "will," "expect," "anticipate," "believe," "intend," "plans," and
similar expressions and variations thereof are intended to identify
forward-looking statements. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance and involve
risks and uncertainties, many of which are beyond the Company's ability to
control. Actual results may differ materially from those projected in the
forward-looking statements as a result of the Company's limited operating
history and prior losses; its dependence or increased sales and marketing
resources; its ability to grow and manage its growth; acquisition risks
(including the ability to integrate the operations of Banking Solutions and
realize synergies in the future) and various other factors discussed in detail
in the Company's filings with the Securities and Exchange Commission, including
the "Risk Factors" section of the Company's Registration Statement on Form S-1
(Registration Number 333-53341), as declared effective by the Securities and
Exchange Commission on July 30, 1998.