NCO Group, CyberStarts, and CollectionsX to Partner On e-Collections Development

NCO Group, Inc. (?NCO?) (Nasdaq:NCOG), the worlds largest provider of accounts receivable management and collection services, CyberStarts, Inc., a leading financial services technology holding company, and CollectionsX, a leading online exchange for the debt collection industry announced today that they will form an alliance to jointly develop e-collection products and services.

As part of the alliance agreement, NCO will invest in CyberStarts, as well as become a strategic partner and investor in CollectionsX, a CyberStart portfolio company that provides on-line debt auction services, placement services, and an agency management platform.

?We are very excited to partner with an industry stalwart such as NCO,? said Ashish Bahl, CyberStarts’ Founder and President. ?Our strategy is to take large or controlling stakes in e-business companies that can dominate their sector and pair those companies with large established players. NCO’s participation is very consistent with this strategy.?

Michael J. Barrist, Chairman and Chief Executive Officer of NCO stated, ?We are extremely impressed with the CyberStarts business model as well as their management team. Over the past two years we have used the internet primarily as a tactical tool to create operational efficiencies and reduce costs. While we fundamentally believe that the internet provides us with strategic opportunities, we have been challenged with finding an incubation methodology that would not adversely impact our near term financial performance. The concept of matching a traditional company who has the dominant position in an industry with a leading e-business company in the same industry creates an environment where viable service channels are built with immediate commerce opportunities. CyberStarts’ proven model has been successful in both the financial services and insurance industries, and we believe that our alliance with CollectionsX will lead to similar results.?

NCO Group, Inc. is the largest provider of accounts receivable collection services in the world. NCO provides services to clients in the healthcare, financial services, retail, commercial, education, telecommunications, utilities and government sectors.

CyberStarts is a technology holding company that focuses on opportunities in the financial services sector. Its mission is to invest and operate technology companies in under-served markets within financial services. Currently, CyberStarts focuses on collections, insurance, payments, and investments sectors. CyberStarts’ strategic investors and partners include Marsh & McLennan Capital, First Data Corporation, Wachovia Capital Associates, iXL, and Guyton Partners. Its team has a combined background of more than 100 years of expertise in investments, insurance, banking, credit, and payments.

CollectionsX is a leading online exchange for the debt collections industry, making it easier, faster, and more convenient for collection agencies and credit grantors to interact with each other. CollectionsX utilizes advanced, custom auction capabilities to help companies buy and sell debt portfolios more easily. The company also assists creditors in placing debt portfolios for contingency collection by leveraging proprietary information, analytics and cutting edge technology.

Certain statements in this press release, including, without limitation, statements as to the Companies’ or their respective management’s beliefs, expectations or opinions, and all other statements in this press release, other than historical facts, are forward-looking statements, as such term is defined in the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. Forward-looking statements are subject to risks and uncertainties, are subject to change at any time and may be affected by various factors which may cause actual results to differ materially from the expected or planned results. In addition to the factors discussed above, certain other factors, including without limitation, risks relating to growth and future acquisitions, risks related to the timing of contracts, risks related to strategic acquisitions and international operations, and other risks detailed from time to time in NCO Group, Inc.’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K, filed on March 27, 2000, as amended, can cause actual results and developments to be materially different from those expressed or implied by such forward-looking statements.