SOUTHAMPTON, PA- January 26, 2006

Penncro Associates, Inc., a national collection agency and certified women’s business enterprise (WBE) based in Southampton, Pennsylvania, announced today that it has been awarded a contract with the U.S. General Services Administration (GSA) to be included on Federal schedule 520-4, Debt Collection (520-4). GSA awarded a contract to Penncro Associates based on the firm’s qualifications including past performance, references, nationwide capabilities, and financial strength.

Penncro Associates (www.penncro.com) was founded in 1982 and since that time has grown into a nationwide collection agency, with a second call center in McAllen, Texas, and a total capacity of over 600 workstations, with room for additional growth. Penncro Associates garnered state recognition for its early-out collection’s training program when South Texas College developed the program into an accredited college-level course. In late 2005, Penncro Associates also obtained their SAS-70.

“We were pleased to be awarded a contract with the GSA,” commented Regina Crowley, President. “This tells our clients and prospects that Penncro Associates has the qualifications to do business with the Federal government, which reinforces what creditors already know about our capabilities. It is a step in the right direction toward further business development in the government sector,” she added.

Working in conjunction with Net Gain Marketing (www.netgain4results.com) to complete the proposal development and follow up process, Penncro Associates is now able to compete for any Federal debt collection contract awarded to vendors listed among those pre-qualified by the GSA. This includes any contracts issued by the Internal Revenue Service and Financial Management Service under the Department of Treasury and the Department of Education.