Harbor Payments Corporation closes $40 million from Oak Investment Partners to Increase its Share in the Electronic Invoicing and Billing Markets

Atlanta, GA, August 31, 2005 – Harbor Payments Corporation (www.harborpayments.com), a leading provider of next generation enterprise payment management solutions, today announced that it successfully secured a $40 million capital commitment from Oak Investment Partners. The capital will fund a general expansion of infrastructure, targeted acquisitions, and the development of an international presence.

According to Annie Lamont, a General Partner at Oak Investment Partners, “Harbor Payments is well-positioned to be a leader in the fast-growing and dynamic electronic invoicing and billing markets. The company has developed broad capabilities to serve a wide variety of industries and we are excited to partner with an experienced senior management to accelerate the growth of the business.”

In addition to Annie Lamont, Gene Lockhart will join the Harbor Payments Board of Directors. Lockhart, who is a highly-respected leader in the financial services and consumer services industry, has served as the CEO of MasterCard International, the President and Sr. Vice Chairman of Bank of America, and the President of Consumer Services at ATT.

In its short 5-year history, the company has been one of the fastest growing companies in the Southeastern United States and has recently received accolades from Inc Magazine and the American Electronics Association (AEA). The company is projecting an 80% growth in total transaction volumes in 2005.

“While there was much interest from the investment community in Harbor Payments, we were delighted to have the opportunity to partner with Oak” stated Ashish Bahl, The Founder and Chief Executive Officer of Harbor Payments. “Oak has a tremendous track record in venture capital dating back to 1978, they delivered value to Harbor during due diligence, and were fully aligned with Harbor Payments’ management in their view of the trajectories of the rapidly developing electronic billing and invoicing markets.”

About Harbor Payments

Harbor Payments is a leading corporate payments’ management company focused on electronic outsourced billing, invoicing and disbursement solutions for the Global 1000. Solutions of the Company are marketed under the brands of Invoice Harbor, Billing Harbor and Payments Harbor. The Company, which was formed in 2000, is headquartered in Atlanta and employs approximately 200 people.

Harbor Payments has over 55 clients including UPS, Kodak, Proctor & Gamble, American Express, and AIG for whom it provides electronic invoicing services. Additionally, the Company has over 100 clients, including Time-Warner Cable, Energy East and Chevron, for whom it provides electronic billing services.

For more information, please visit the company’s web site at www.harborpayments.com

About Oak Investment Partners

Established in 1978, Oak Investment Partners is a venture capital firm with a strong track record as a stage-independent investor. To date, Oak has funded more than 350 companies with aggregate annual revenues in excess of $60 billion. Oak's investment strategy focuses on growth opportunities in enterprise application and infrastructure software, communications equipment and services, data storage, semiconductors, outsourced services, financial services technology, and healthcare services.

Located in Westport, CT, and with offices in Minneapolis, MN, and Palo Alto, CA, Oak concentrates on building long-term relationships with experienced management to develop successful companies that deliver consistent performance over time such as AthenaHealth, Compaq, Genzyme, Parametric Technology Corporation, PictureTel (now part of Polycom), Polycom, SanDisk, Seagate Technologies, Sybase, Synopsys, Telica (acquired by Lucent), Wellfleet (acquired by Nortel), Wireless Facilities, etc. For additional information, please visit the company’s web site at www.oakvc.com