Payless Car Sales, Inc., a franchiser of used-car dealerships, recently announced that it has formed a strategic alliance with interSTATE NETBANK (ISNB) to provide ISNB’s Internet-based retail financing services to Payless Dealers in 44 states. The alliance with Payless Car Sales is one of the initial steps that ISNB has taken in executing its National Auto Services business plan.

“The alliance with Payless Car Sales enables ISNB to expand into several new markets immediately and the rapid expansion of the Payless Franchise Network assists in the execution of our high performance growth strategy,” said ISNB’s senior vice president for Auto Financial Services, Larry Chiavaro. “The quality of Payless dealers and the retail contracts they generate are excellent additions to our existing customer base and related loan portfolios.”

Payless Car Sales, a subsidiary of Avalon Global Group, Inc. and a sister company to Payless Car Rental System, Inc., launched a new franchise program for used-car dealers in March of 2002, allowing them to leverage the national Payless brand image with any pre-existing identity in their local markets. The franchise program includes an assortment of features and benefits for dealers including retail financing sources, brand identity and image, floor plan finance sources, advertising and promotion assistance, training and support, vehicle supply and systems and services.

Because of the extensive documentation requirements and screening process that Payless Car Sales provides for its Payless dealers, the dealer qualification and set up process for retail lenders is streamlined. ISNB began rolling out its program to Payless Dealers in September.

“Payless Car Sales is focused on providing the products and services that our Payless dealers need to be successful,” said Mike Harley, president of Payless Car Sales. “ISNB’s emphasis on technology and its one-stop shopping strategy are a great fit for our business model and product/service delivery philosophy. ISNB provides a full spectrum of lending opportunities to our Payless Car Sales dealers and we are very pleased to add them to our growing list of business partners.”

About Payless Car Sales

Payless Car Sales, Inc. is a wholly owned subsidiary of Avalon Global Group, Inc. and a sister company to Payless Car Rental System, Inc, a Florida corporation that serves auto rental locations in more than 120 cities in 20 countries.

Payless and Avalon are privately held corporations headquartered in St. Petersburg, Fla., and have been involved in franchising since 1971. Payless Car Sales recently signed its 38th dealership agreement and plans to open a minimum of 300 Payless Car Sales locations in the United States.

For more information visit www.paylesscarsales.com.

About interState NetBank

interSTATE NETBANK, based in Cherry Hill, N.J., originates and services prime, nonprime, and subprime installment sales contracts in 44 states, facilitating “one-stop shopping” for dealership retail auto financing needs.

ISNB opened for business in May of 2001, as New Jersey’s first Commercial Internet Bank, and has grown to an asset base of more than $140 million. ISNB says it combines highly personalized service with a fully Web-enabled technology platform, providing commercial banking products and services to small and medium-sized business in its targeted market areas.

For more information, contact Larry Chiavaro, senior vice president, at (856) 675-6162, ext. 276.