ConServe Awarded U.S. Department of Education Contract

May 6, 2009

Award creates opportunity for 150 new jobs.

Fairport, N.Y. – The U.S. Department of Education has awarded Continental Service Group, Inc., d.b.a. ConServe, a position on its elite student loan collection contract in the unrestricted business size category. This Contract will run through 2014 and will nearly double the size of ConServe's employee base, and create more than 150 new jobs in Monroe County over the next 18-24 months.

The U.S. Department of Education operates over 175 programs that touch every area and level of education. Through its Federal Student Aid unit (FSA), the division that manages the multi-billion dollar collection contract, the Department maintains contracts with a select number of agencies to administer collection and resolution activities for defaulted student loan accounts.

ConServe was awarded a small business contract with The U.S. Department of Education in 2004. ConServe quickly achieved the number one performance ranking and has maintained its long term position as the top rated agency among the small business contractors. ConServe has collected more total dollars ($181.1M.) and has achieved the highest recovery percentage over any other small business on the contract. In addition, ConServe has assisted more borrowers than any other small business competitor, by helping over 42,000 borrowers begin post default repayment programs and also helped nearly 12,000 borrowers resolve their default problems through administrative resolutions.

Since the inception of the competitively scored performance based contract in 2004, ConServe has averaged an outstanding 93.8 points out of a possible 100 points on the Department of ED performance rankings. The Department of Education considers an average score between 75 to 85 points to be "Excellent" and an average score of 85 points and above to be "Outstanding".

ConServe's strong performance on the 2004 contract ultimately secured ConServe's promotion to the 2008 unrestricted business contract.

"We are extremely honored to receive this contract and task order award from the U.S. Department of Education," said Mark E. Davitt, President of ConServe. "Our success in resolving the problems associated with defaulted student loans pivots around our philosophy of developing win-win scenarios for both our Clients and their student borrowers. Our staff members are real time problem solvers, dedicated to helping borrowers find a solution that preserves a sense of control and individual self-esteem. In today's economy, it's imperative that we work with people who are currently delinquent on their obligations to help them regain control of their finances and assist them in achieving long term fiscal well being."

Officials from Monroe County, N.Y. were also pleased with the notification of the contract award. "We would like to congratulate ConServe on this achievement," said Maggie Brooks, Monroe County Executive. "The contract will provide good-paying job opportunities for hardworking families in our area and have a strong, positive impact on our local economy."

ConServe is headquartered in Fairport, NY and will begin hiring this summer to prepare for the expanded business which will ramp up in the fall and become fully operational in the first quarter of 2010. Positions available will include debt collection and counseling, training, quality assurance, human resources and supervisory positions.