MADISON, WI -- CUNA Strategic Services, Inc. (CSSI) today announced its contribution of e-commerce assets with

Sunstar IP Communications, LLC (Sunstar), its current provider of virtual private network (VPN), Internet service

provider (ISP) and web site hosting services. Sunstar has changed its name to CUNA Network Services, LLC to

reflect its emphasis on providing services to the credit union movement and its mission of becoming a development

and delivery system for future e-commerce products and services, such as smart cards.

CSSI is the for-profit online and strategic products and services delivery organization owned by the Credit

Union National Association, Inc. (CUNA) and state credit union leagues. The combination of e-commerce assets

from CSSI and the technology delivery and development assets of Sunstar will result in CSSI owning a 40% stake in

CUNA Network Services, LLC, and holding four of seven seats on the organization's Board of Directors.

"We know credit unions want and need an affordable, system-oriented mechanism to provide members with online

financial services," says Juri Valdov, president of Northwest FCU, Herndon, Va, and CSSI board chairman. "To do

this, we need the assets, efforts, and collaboration of an established partner. Through this business combination

with Sunstar, we are creating the entity to take us into the future of online service."

Adds John Hobko, a 25-year veteran in the technology development sector and founder/president of Sunstar, and

now president of CUNA Network Services: "We are extremely pleased to be joining forces with the credit union

movement. I am confident the talent, know-how and experience Sunstar possesses and the marketplace knowledge CSSI

and the state credit union leagues represent will make CUNA Network Services a dynamic, innovative organization,

one that will bring tremendous value to credit unions, members and investors."

CUNA Network Services will see CUNA Vice President of e-Commerce Doug Benzine become the company's senior vice

president. CSSI e-Commerce staff will remain CUNA employees leased back to CUNA Network Services. The majority

of Sunstar staff will be directly employed by CUNA Network Services.

Currently, Sunstar provides the technology for CSSI's VPN services, which allow credit unions and their

branches to have secure data transmission over the public Internet; ISP services, which allow credit unions to

sell Internet access to their members; and web site hosting services, which enable credit unions to have a

sophisticated presence on the World Wide Web.

Richard Ghysels, president/CEO of First Financial Credit Union, West Covina, Calif., and secretary of the CSSI

board, says an independent analysis by the TowerGroup was a major factor in the CSSI Board's decision to pursue

this opportunity. "The report confirmed in detail that members' need and desire for online services will only

grow," says Ghysels. "It also confirmed that it is vital for the credit union system, because of its size and

many components, to pursue a plan of long-term cooperative development to offer these products and services

effectively and competitively. CUNA Network Services is the perfect vehicle for this kind of cooperation."

"The cost of building this type of organization from scratch would be prohibitive," says Dick Ensweiler,

president of the Texas Credit Union League and CSSI board treasurer, noting that Sunstar is bringing an

established service and development infrastructure to CUNA Network Services. "This initiative is starting with

strong leadership, excellent product offerings, a good financial base and a sound business plan. We are actively

looking for involvement from other members of the movement that recognize the need for system-controlled and

system-focused e-commerce product development. Based on preliminary discussions, we expect a strong response."