MBNA Europe Acquires Loans.co.uk

CHESTER, England, August 1 /PRNewswire/ -- MBNA Europe, subsidiary of MBNA, the recognised leader in affinity marketing, today announced that it will acquire one of the UK's fastest growing financial services originators, Loans.co.uk.

Loans.co.uk provides secured loans for Customers seeking either to consolidate their existing credit into a single loan, or requiring finance for a new purchase. These loans are sourced from third-party household name lenders, direct mail marketing, and the internet. Founded in 1997 with six people, Loans.co.uk employs over 400 people across its two sites in Watford and Preston.

Under the agreement, MBNA Europe will acquire the outstanding shares of Loans.co.uk and operate the business as a subsidiary. The Loans.co.uk management team and existing employees will join MBNA and continue to operate the business from the existing facilities. Loans.co.uk will continue to serve existing Customers and partners whilst expanding its reach in the market under the current business model.

Commenting on the transaction, Shane Flynn, Chief Executive Officer of MBNA Europe, said:

"The acquisition of Loans.co.uk is a milestone in MBNA Europe's development. This acquisition is another step in diversifying our business in the UK. MBNA has been working with Loans.co.uk for some time and have always been impressed by their approach to their business and their Customers. This is a winning company whose fit with MBNA Europe is tremendous.

"By deepening our relationship, not only are we bringing significant leverage to the Loans.co.uk business, enabling it to continue its tremendous growth, but we are also able to offer our Customers a broader range of products. The Loans.co.uk business model has clearly been a significant factor in their rapid growth and success and we intend to continue with this formula. Loans.co.uk has developed many very successful partnerships with some of the UK's leading loan providers and this strategy complements MBNA's successful affinity approach."

Loans.co.uk Chairman, David Cowham, added:

"When my business partner Stephen Hayes and I were looking at how Loans.co.uk could still be the pre-eminent force in its industry in ten years time, we concluded that we needed the support of a larger parent organisation. Having worked with MBNA for some time we knew of their marketing expertise and commitment to their people, partners and customers and knew that they were the right organization to help sustain and further fuel our growth.

"In our business models and our approach to Customers, it's hard to imagine two more complementary businesses than Loans.co.uk and MBNA."

About MBNA Corporation

MBNA (NYSE:KRB), the largest independent credit card lender in the world and the recognised leader in affinity marketing, is an international financial services company providing lending, deposit, and credit insurance products and services. MBNA credit cards and related products and services are endorsed by more than 5,000 organisations worldwide. For more information, visit the company's web site at www.mbna.com. MBNA Europe Bank is a wholly owned subsidiary of MBNA America Bank, N.A., itself owned by MBNA Corporation. MBNA Corporation was organised in 1991 and is a registered U.S. bank holding company. MBNA Europe Bank opened for business in October 1993 and now employs over 5,000 people.

About Loans.co.uk

Launched in June 1997 with just six members of staff, Loans.co.uk is now the UK's leading finance originator. Over 400 staff work in the company's Head Office based in Croxley Business Park, Watford and in its Preston office, which opened in April 2004. Loans.co.uk specialises in arranging and completing loans and offers a full and free loan sourcing and processing service for thousands of people throughout the UK. The company prides itself on taking the time to listen and providing each customer with a fast solution tailored to their individual needs. Loans.co.uk was recently placed 10th in The Sunday Times 100 Best Companies to Work For and has been identified by Fast Track for two consecutive years as one of the Fastest Growing UK companies in the Profit Track listings. Loans.co.uk is the club and shirt sponsors of Wycombe Wanderers FC and Official club sponsors for Watford FC.