TACOMA, Wash -- May 17, 1999 -- (PRIMEZONE) T&W Financial Corporation (NASDAQ: TWFC) and the Principal Financial Group today announced the formation of a unique partnership to enhance each company's distribution of products and services.
Under the terms of their alliance, Principal Financial Group (The Principal) producers will refer select customers to T&W Financial. The Principal will gain access to T&W Financial's market experience, especially in key niche markets. At the same time, T&W Financial will refer certain customers to The Principal to provide a broad array of financial products and services to T&W customers. Each company will benefit from the other's customer base and market expertise.
Principal Financial member companies serve more than 10 million customers by providing a full line of individual and group insurance and financial products. T&W currently provides equipment leasing and specialty finance services to more than 15,000 small- to medium-sized independent businesses for a variety of industries including agriculture, independent grocer, funeral home and waste management.
"T&W Financial's services complement the services our producers currently offer," said Bob Duncan, Senior Vice President of Principal Financial Group. "Gaining their marketing expertise will help us stay competitive. This is a partnership that is equally beneficial for everyone involved, on all levels of operation."
"We feel fortunate to be able to team with the Principal Financial Group," said Thomas Price, President of T&W Financial Corp. "Not only do we benefit from its excellent name recognition, but we also gain a nationwide network of financial professionals."
Paul Luke, Senior Vice President and Director of Finance, added "The T&W and Principal Financial Group strategic alliance allows us the opportunity to market differentiate in our various origination channels and opens up the possibility of future mutually beneficial relationships. In addition, the alliance is designed to take advantage of Internet-based processing through T&W's web-enabled systems."
Michael Price, chairman and chief executive officer of T&W, said, "The alliance forges a common bond with the small- and medium-sized business customer/owner that will allow both T&W and The Principal to add significant value to their origination channels. With a strong infrastructure in place, T&W's strategy remains focused on enhancing and expanding our origination channels."
The Principal Financial Group is a diversified family of insurance and financial services companies with more than $82 billion in assets under management. Its flagship and largest member, Principal Life Insurance Company, is the eighth largest U.S. life insurance company in assets under management. The Principal is a member of the Fortune 500 and is ranked one of Fortune's Most Admired Companies.
Based in Tacoma, Washington, and founded in 1976, T&W Financial Corporation is a specialty commercial finance company. It provides equipment leasing, focusing primarily on the "small-ticket" sector of the market, which are leases less than $250,000. Its customers are small-to medium-sized independent businesses throughout the U.S. and Canada.
This release contains forward-looking statements including statements regarding Management's expectations and goals in future periods. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements including the Company's ability to manage growth and credit risk, retain key personnel and effectively change its securitization policy. Readers should not place undue reliance on the forward-looking statements, which reflect the management's view only as of the date hereof. T&W undertakes no obligations to publicly revise these forward-looking statements to reflect subsequent events or circumstances. Readers should also carefully review the risk factors described in documents T&W files from time to time with the Securities and Exchange Commission.