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Chase Student Loans To Purchase Collegiate Funding Services, Creating a Comprehensive Education Finance(Student Lending) Business

CHICAGO and FREDERICKSBURG, Va., Dec. 15, 2005 JPMorgan Chase Bank, N.A. (NYSE: JPM) (Chase Student Loans) has signed a definitive agreement to purchase Collegiate Funding Services, Inc. (NASDAQ: CFSI), a leader in student loan servicing and consolidation, to create a comprehensive education finance(student lending) business, the companies announced today.

Chase Student Loans will pay $20 per share in cash, for total consideration of approximately $663 million, for Collegiate Funding Services.

In 2004, Chase Education Finance(Chase Student Loans) originated $7.9 billion and Collegiate Funding Services originated $4.4 billion in student loans, including Federal Family Education Loan Program and private student loans. Collegiate Funding Services serviced approximately $12.1 billion in student loans as of September 30, 2005.

Collegiate Funding Services marketing, origination and servicing capabilities will complement our sales and marketing expertise, said Brad L. Conner, executive vice president of Chase Student Loans. Together, we will be a major provider of every type of student loan as we help students and their parents achieve their educational goals. Both Chase Student Loans and CFS schools should expect continued excellence from the combined business.

Upon completion of the transaction, J. Barry Morrow, president and chief executive officer of Collegiate Funding Services, will become president of the combined Chase Education Finance(Chase Student Loans) business. He will report to Conner, who has responsibility for home equity and education lending at Chase.

This combination is a great opportunity for CFS and our customers, employees and shareholders, Morrow said. We will be joining forces with a powerful brand and a recognized leader in financial services, and CFS employees will play a key role in the combined business.

The combined business will be headquartered in Fredericksburg, Va., the current home of Collegiate Funding Services, and will maintain other sites, including Jackson, Miss.; Indianapolis, Tampa and Boston.

The companies expect the purchase, which is subject to CFS shareholder and regulatory approval, to close in the first quarter of 2006. The Lightyear Fund, L.P., which is the largest shareholder of CFS, has agreed to vote its shares in favor of the transaction.

Chase's most

Neither JPMorgan Chase nor Collegiate Funding Services undertakes, and each specifically disclaims, any obligation to update or revise any forward-looking information, whether as a result of new information, future developments or otherwise.

' stockholders and investors are urged to read the proxy statement regarding the merger and any other relevant documents carefully in their entirety when they become available because they will contain important information about the proposed merger. The proxy statement and other documents will be available free of charge at the SEC's ' directors and executive officers is available in Collegiate Funding Services'

SOURCE JPMorgan Chase & Co; Collegiate Funding Services, Inc.
CONTACT:
Chase Media: Thomas Kelly (312) 732-7007, thomas.a.kelly@chase.com
JPM Investor Relations: Julia Bates (212) 270-7318, julia.b.bates@jpmorgan.com
CFS Media: Ann Collier (800) 762-6441, x5259, acollier@cfsloans.com
CFS Investors Relations: Kevin Landgraver (800) 762-6441, x5294, klandgraver@cfsloans.com

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Collegiate Funding Services Inc's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

Student Loan Consolidation | Federal Student Loans | Private Student Loans