City Public Service Adds BillMatrix Telephone and
Internet Bill Payment Service
Responded to Customer Requests for Convenience and Speed

DALLAS, Texas – August 5, 2004 – City Public Service (CPS), Greater San Antonio’s natural gas and electricity provider, went live with a new payment service that allows consumers to pay their bills by phone or online 24 hours a day, seven days a week. The service is provided through CPS’ partner BillMatrix Corporation, who hosts the secured website and the dedicated 1-800 telephone number where consumers pay with a credit card, ATM/debit card or ACH/electronic check on-demand, without having to register for the service.

“We conducted a thorough review of the market, and determined that BillMatrix best met our needs and those of our customers,” said Sylvia Arnold, CPS’ director of customer services. “We try to ensure that we are easy to do business with, offering services that are convenient, fast and simple to use. The on-demand nature of the BillMatrix system has been well received; it has been up for only a few days, and our customers are already taking advantage of these new payment methods.”

The advantages of offering multiple payment methods go beyond customer convenience. For example, BillMatrix has strong connections to the ATM networks, can validate that funds are available and set them aside for the bill payment. CPS benefits from faster cash flow, elimination of insufficient fund items (NSF’s) and reduced disconnection/reconnection costs. The ACH/electronic check option is backed up with BillMatrix’ sophisticated, multi-layered Enhanced Check Verification™ service to determine – in real-time – the anticipated status of each transaction. This also minimizes the likelihood of NSF’s, while maximizing the number of good payments that flow through the labor- and cost-saving automated system.

“We are happy to add CPS to our long list of clients, which includes 40% of the nation’s leading utilities” said Jerry Portocalis, BillMatrix’ senior vice president of sales and marketing. “They are delivering on their promise to meet changing expectations by offering these payment options in a direct response to customer requests. This client is also a milestone for BillMatrix, as we now offer consumers in every major city in Texas access to convenient, secure, and reliable electronic payment methods.”

About City Public Service
CPS is the nation’s largest municipally owned energy company providing both natural gas and electric service. Acquired by the City of San Antonio in 1942, CPS serves more than 600,000 electric customers and more than 300,000 natural gas customers in and around the eighth largest city in the U. S. Proceeds from CPS remain in San Antonio and account for more than one-fifth of the City’s annual operating budget for police and fire protection, street improvements, parks and other services. CPS has earned the highest financial rating of any electric system in the nation. More CPS information can be found on the Web at www.citypublicservice.com. CPS is a registered trademark of City Public Service.

About BillMatrix Corporation
BillMatrix Corporation provides outsourced payment services for the nation’s largest companies using the latest automated consumer interface technologies. Founded in 1994 and headquartered in Dallas, BillMatrix works with corporations in the telecommunications, utility, insurance, mortgage and financial services industries to replace expensive, paper-based methods of remittance with a set of convenient, labor- and cost-saving electronic transactions. Consumers are able to make payments in a private and secure manner, via the Internet and telephone, using a variety of credit card, ATM/debit card, and electronic check payment options. BillMatrix maintains a fully staffed customer service organization to support both its clients and their consumers with any payment issues. For more information, visit www.BillMatrix.com or call (800) 596-0221.