CFSI Collegiate Funding Services (MM)

FREDERICKSBURG, Va., Nov. 3 /PRNewswire-FirstCall/ -- Collegiate Funding Services, Inc. (NASDAQ:CFSI) today announced that Y2M: Youth Media and Marketing Networks, its wholly owned advertising and direct marketing subsidiary, has agreed to acquire the online publishing and national advertising assets of New Digital Holdings, Inc. (Logo: http://www.newscom.com/cgi-bin/prnh/20050714/DCTH039LOGO ) The combined online media network will serve approximately 450 school publications at colleges and universities with more than 4 million enrolled students. College newspapers, both online and print editions, are an important source of information for college students and alumni. According to the Spring 2005 Lifestyle & Media Report by Student Monitor, a market research study of the college student market, college newspapers have been the most read media source by students, with 76 percent of students reading at least one edition of the past five issues. "As a result of this acquisition, student newspapers will benefit from a single network and a common technology platform, enabling them to further engage their readers thru the electronic distribution of their content via their online and email editions," said John Fees, executive vice president of Collegiate Funding Services and president of Y2M. "In addition, advertisers will have an increased ability to serve the collegiate market and the 2.1 million registered users who frequent online college newspapers." About Collegiate Funding Services Collegiate Funding Services is a leading education finance company dedicated to providing students and their families with the practical advice and loan solutions they need to help manage and pay for the cost of higher education. Collegiate Funding Services also offers a comprehensive portfolio of education loan products and services -- including loan origination, loan servicing and campus-based scholarship and affinity marketing tools -- to the higher education community. As of September 30, 2005, Collegiate Funding Services had facilitated the origination of more than $21 billion in education loans; the company currently manages $12 billion in student loans for more than 476,000 borrowers. For additional information, visit http://www.cfsloans.com/ or call 1-888-423-7562. About Y2M: Youth Media & Marketing Networks Y2M is a media and marketing company focused exclusively on the college market. From its headquarters in Boston, Mass., the company reaches college students and recent graduates where they live, study, work and play, through media properties including official campus newspapers and underground campus communities. Leveraging its knowledge of college-educated consumers, Y2M helps advertisers, including Ford Motor Company, Samsung Electronics NA, Amazon, Apple and Citibank effectively communicate with students and graduates online, in print and on campus. Y2M owns and operates College Publisher, the leading provider of content management and advertising services to the college newspaper market. For more information, please call 617-399-8000 or visit http://www.y2m.com/. Forward-Looking Statements This news release includes "forward-looking statements" about Collegiate Funding Services, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this release, the words "looking forward," "expects," "plans," "intends," "believes," "forecasts," or future or conditional verbs, such as "will," "should," "could" or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. Among the key factors that may have a direct bearing on the company's operating results, performance or financial condition are (1) the company's ability to successfully integrate the operations of acquired entities; (2) changes in terms, regulations and laws affecting student loans and the educational credit marketplace; (3) changes in the demand for educational financing or in financing preferences of educational institutions, students and their families; (4) changes in the credit quality or performance of the loans that the company purchases, retains, services and securitizes; or (5) changes in interest rates and in the securitization or secondary markets for education loans. Important factors that could cause the company's actual results to differ materially from the forward-looking statements the company makes in this release are set forth in the company's filings with the Securities and Exchange Commission, including in the section entitled "Risk Factors" in the company's Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2005. The company undertakes no obligation to update or revise forward-looking statements which may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events unless the company has an obligation to do so under the federal securities laws. http://www.newscom.com/cgi-bin/prnh/20050714/DCTH039LOGO http://photoarchive.ap.org/ DATASOURCE: Collegiate Funding Services, Inc. CONTACT: Media: Ann Collier, Senior Vice President, Corporate Communications, +1-540-368-5970, , or Investors: Gary Tiedemann, Vice President, Investor Relations, +1-540-735-1235, , both of Collegiate Funding Services, Inc. Web site: http://www.cfsloans.com/ http://www.y2m.com/

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