Year 2000 Readiness Disclosure

To Our Customers:

About Our Year 2000 Readiness

  Our efforts at Rushmore Bank & Trust to prepare for Year 2000 have been on-going since 1996. Our goal is to provide uninterrupted service to our customers. We have purchased and installed new data processing software which has been in use since mid 1998. We completed testing of this mission critical software last year in December. multiple critical dates in the year 2000 were tested on our bank's software and all tests resulted in positive and accurate recognition of the year 2000 dates.

Customer Information

  Your banking records are sent periodically, usually monthly, and provide you with balance information and transaction summary information. As a customer of our bank you can rely on this information as an accurate record of your business with Rushmore Bank & Trust. For our customers that are preparing their own plans to meet the new century with their financial records as part of a personal file, we will be printing and mailing all of our customers statements in December 1999. We also want to assure our customers that it is our policy to retain month-end and year-end paper records of our customer's accounts.

Your Accounts FDIC Insured

  Your insured deposits are protected by FDIC insurance. Your deposits in Rushmore Bank & Trust have been our business for wver 53 years and we expect to serve you in that business in the next century as well. The FDIC has been examining banks for the past eighteen months and report that the highest degree of readiness by any industry is the banking industry. In addition, our primary bank connection is the Federal Reserve Bank which just completed its Year 2000 testing successfully and will be a strong link to uninterrupted banking service to Americans. Successful testing by the Federal Reserve Bank means that your checks used for payments such as rent, fuel or in your business will still be honored by business and settled by the banking system.

A Look at Rushmore Bank & Trust's year 2000 Plan

At RB&T, we have a Year 2000 plan of action in place to ensure a smooth transition as we approach the next millennium. As you review our plan, think about how these steps may apply to your own company. The five major phases of our Year 2000 project are:

AWARENESS: We have defined the Year 2000 problem and gained executive level support for the resources necessary to complete the project. Our team has developed an overall strategy that encompasses in-house systems, outsourced systems, auditors, vendors, customers and suppliers.

ASSESSMENT: We have assessed the scope of the problem. In this phase, we must inventory all hardware and software systems, survey all vendors for their Year 2000 status, identify resources required to resolve the problems, and develop an implementation plan for our Year 2000 efforts. We are including all computer systems (PC, mainframe, mini/mid-range), systems which may have embedded microprocessors (fire/security and vaults), telecommunication systems and third party processors, service providers and suppliers.

RENOVATION: We will take action to fix items with Year 2000 problems. Decisions will be made to replace, repair or upgrade systems. We will monitor our vendors and third party providers for their Year 2000 progress to ensure they can provide uninterrupted service to our organization.

VALIDATION: Testing encompasses all facets of the organization, including computer hardware and software, systems with embedded microprocessors, and third party vendors we depend on. We will test systems we believe to be Year 2000 compliant to validate that they truly are, and also those systems which will be fixed, upgraded or replaced.

IMPLEMENTATION: Business users will certify systems as Year 2000 compliant. For any system not Year 2000 compliant, the business user will assess the business effect and implement a contingency plan if necessary. Any potential non-compliant mission critical system will be brought to the attention of executive management immediately for resolution. In addition, we will ensure that all new systems or subsequent changes to verified systems are Year 2000 compliant.

Major Areas Rushmore Bank & Trust is Addressing:

Mainframe computer hardware/software - all applications and operating system software, utilities, communication software and other areas.

PC hardware/software - all PC hardware for date rollover, all operation systems including LAN/WAN software, desktop software and PC application software.

Facilities - HVAC, energy management systems, fire safety systems, lighting and backup power supply systems.

Branch/Security - vault time locks, alarm systems, camera security systems, ATM machines, night depository boxes, teller and platform systems.

Third Parties - credit card processor, credit bureaus, check printers, payroll processor, ATM regional networks, brokerage/investment firms, and armored transportation.

Telecommunications - internal phone systems, phone mail, routers, pagers, frame relay system, and phone companies.

Year 2000 Compliance Checklist for Business

If your organization does not take the appropriate precautions and fix all potential Year 2000 problems, hundreds of activities - including functions critical to the operation of your business - could come to a halt. It is absolutely essential that you survey all the mission critical computer-controlled business and accounting systems within your organization to ensure they are Year 2000 compliant.

Even if you identify and fix all Year 2000 problems within your organization, you may still be subject to Year 2000 risks. These risks could come from business partners, suppliers, sales agents, utility providers, insurance carriers, government agencies, contractors, electronic data interfaces, and others.

We have prepared the following checklist for you to use within your organization and with the businesses and organizations that affect your operations.

1. Does the management of your company fully understand the implications of the Year 2000 issue and are they supporting all Year 2000 efforts?

2. Is your company committed to allocating adequate funds and resources to fully address the year 2000 issue?

3. Has information on the Year 2000 problem been communicated throughout the entire organization?

4. Has a computer system (mainframe, PC, mini-computers-hardware and software) inventory been completed and vendors contacted for their response to the Year 2000 problem?

5. Have all third party vendors and others you depend on to operate your business been contacted for their response to the Year 2000 problem to ensure they can provide uninterrupted service to your organization?

6. Has language regarding Year 2000 compliance been established and added to all future contracts?

7. Have all facilities, manufacturing, and other plant equipment been examined (and vendors contacted) for Year 2000 issues, especially those containing micro-processors (e.g. HVAC, fire and security systems, elevator and phone systems)?

8. Have your products been examined and tested for any Year 2000 issues, especially any relating to micro-processors?

9. Have you assessed the impact of the Year 2000 on your entire organization, including all areas previously mentioned (computer systems, third party vendors, facilities, telecommunications, plant equipment, products, etc.)?

10. Has your organization established a comprehensive plan for achieving Year 2000 compliance before disruption occurs, including testing, fixing, and replacing any Year 2000 issues?