Conference 7.286::dcu

DAN LONG (Nominated)

 Once again, I choose to stand for election to the board of our credit
union. I have been a software engineer at Digital for ten years; I
provide engineering technical support for the Multia Enterprise Client,
in both the sales and service arenas. I have always been in the
support field; in the past I have supported a number of Digital's video
and printer products. I have the ability to apply engineering discipline
and basic problem solving techniques to other fields as well, and look
forward to the opportunity to apply these skills to DCU. In addition,
I currently serve on DCU's Credit Appeals Committee, am a director
and treasurer of my condo association, and provide management
assistance and creative consulting in the local music scene. I have
experience in investing, personal financial management and asset
allocation; operation of stock, bond and other financial markets; and
the mortgage and banking businesses.
 A vital part of being a member of a board of directors is being able
to distinguish the role of the board from the role of management. A
board should set goals and objectives for management and allow
management to create, implement and modify policies to reach those
goals. As a director of a small, self-managed condo association, I find
myself acting in dual roles of director and management Rather than
finding the roles blurring together, I have been able to clearly separ-
ate the two. I believe this has improved both the effectiveness and the
efficiency of the board. As a director of DCU, I would have the exper-
ience to differentiate the roles of board and management continuing
to improve the effectiveness and efficiency of DCU's board.
 I believe that the primary business of DCU - or any credit union -
should be making loans to members. I believe this should also be
DCU's primary investment strategy. By offering superior services, a
strong capital ratio would result naturally, rather than by
micromanagement This strategy increases total assets, generates
increased revenue, and earns profit for the owners - us! I also
believe DCU must benchmark against and compete with other credit
unions as well as banks. We must then deliver this message - not just
to our members, but to our entire field of membership. Additionally,
I believe DCU must always engage in open, effective two-way
communication with our members, and provide first-rate customer
satisfaction - as measured *and* interpreted by our members.
 Last year, I wrote about how it was time for us to cement the legacy
of the true credit union philosophy at DCU. I feel that our board, our
new CEO, and the management team have done just that And, while
I believe our primary business is making loans to members, I also
wrote about providing products and services that encourage
members to use DCU as their primary financial institution. Now, we
have savings rates that encourage members to bring more of their
money to DCU, Metpay, and financial advisory services available to
us. We have PC Branch, technology for improving DCU's ability to
provide its services. We have also increased DCU's field of member-
ship, and reaped the benefits that come with carefully managed
controlled growth.
 As we look forward to the next century, we need to continue to
improve existing services and add new ones, to encourage us to
bring more of our financial business to DCU. We must be prepared
for continuing improvements in technology to enhance the delivery
of these services. We should also continue the responsible expansion
of the field of membership. In short I advocate adherence to the
business plan - one that is currently working extremely well. Over the
next few years, we must also be prepared to look outside the scope
of DCU - and of credit unions in general. The banking industry is
undergoing significant change brought about by events in the
legislative and legal arenas, from the international to the local level.
External forces may bring about change to the way credit unions
provide services. DCU should not only be prepared to adapt to any
changes that may come to the credit union industry, but, where
possible, look to contribute to processes that would bring change to
the industry.
 In summary, I believe DCU should continue to: adhere to the true
credit union philosophy, maintain its core function of making loans
to members, and add services that encourage members to bring
more of their financial business to DCU. I believe I have the skills and
experience to help bring that about, and hope you will consider me
as you make your choices for DCU's Board of Directors.

STEVE EDDLESTON (Nominated)
 Our board has done an excellent job regaining DCU's position as
a credible and viable credit union. However, the personal financial
concerns of our members have increased dramatically in recent
years given significant changes in our industry, and I believe that
DCU must now focus on becoming the trusted financial partner of
choice for every one of our members.
 Only by offering cutting-edge services, the very best rates, and
value-based products that meet and exceed our needs, will our
members reward DCU with their ongoing business, thus assuring our
credit union's long term growth and viability.
 In order to achieve this challenge, our DCU has to better focus on
the current concerns of many of our members today who are:
� Concerned about our retirement savings - will they be sufficient?
� Concerned about escalating college bills for our children's
education
� Telecommuting, spending more and more time working away from
our traditional workplace
� In addition to being a traditional wage-earner, running a small
business from home
� Faced with less and less time to conduct our financial affairs

� Looking for a trusted financial institution that can advise, educate
 and help us to achieve our personal financial goals

 My Position

 I believe Digital Credit Union must strive to become the "one stop
shopping" financial partner to every one of our members. By fulfilling
our members personal and small business financial needs, DCU will
become the leading credit union in the industry, second to none!
In order to achieve this vision, I will help to lead DCU to offer:
� the most innovative and customer-focused banking services for
our members
� the best accessibility to those services for our members whether
from home, on the road, while shopping, or at work
� the best interest rates and most competitive loans rates in the
 industry
 If we can achieve these three strategies, I believe our credit union
will continue to grow profitably for our members exclusive benefit into
the next decade.
 Some examples of how DCU can achieve these strategies include:
Innovative Services - New and innovative services we should look
to offering, through appropriate partnerships with best-in-class
industry leaders would include
� Retirement and College savings Mutual Funds (and IRA's) offered
 in association with some of the best Fund families in the industry
 that complement our company's SAVE and pension plans.
� Closer integration of DCU Visa and PC Banking with best-in-class
 financial tools like Quicken. The less we use checks and cash in
 the future, the lower we can drive banking costs while increasing
 the safety and convenience of our transactions. Perhaps be the first
 credit union to implement the "Electronic Wallet" concept!
� Expanded small/home business financial services
� Secure electronic transaction and commerce capabilities for our
 personal and small business needs taking full advantage of Web-
 based Internet merchandising services such as electronic
 payments, money transfers, statement delivery etc.
� Newsletters, seminars, Internet Web pages that help to educate our
 membership about financial matters such as budgeting, savings
 strategies, retirement planning etc.
Improved member access - Continue to help our members to use
their credit union whenever and wherever they choose such as:
� More convenient easier to use touch-tone and telephone-based
 teller services -- remember, many of our members still prefer these
 choices over PC banking
� Access to more ATM machines available at more locations without
 members having to pay access charges.
� If possible, broaden the membership rules to attract additional
 membership to include "Friends and Family". By growing our
 customer base, we can benefit from economies of scale.

Best Financial Rates in the Business - Continue the recent board
philosophy of avoiding checking account and service fees. Maintain
best-in-class interest and loan rates to ensure that our members don't
have to consider an alternative financial institution.


My skills and capabilities

� Extensive background in Multivendor Customer Services Division,
 leading innovative Mobile-Wireless, Internet and CD-ROM based
 information services for our customers and engineers worldwide.
� Strong financial planning and management education, recent
 graduate of Certified Financial Planning academic program.
� Proven ability to lead diverse teams of technical, business, and
 vendor-partners to develop a common set of goals, and quickly
 implement innovative programs through rapid prototyping and
 implementation techniques
� Proven business development and management skills
� Baby-boomer married parent and home-business owner with
 many of the same issues, concerns and needs of other DCU
 members.

Qualifications
� 20 year Digital employee, 16 years DCU member.
� Bachelor of Electrical Engineering, Auckland NZ. Graduated with
 Honors 1973.
� College for Financial Planning, Denver CO. Graduate of Certified
 Financial Planning academic program 1995.
� Duke University, Fuqua School of Business Program for Manager
 Development, September 1989.
� Graduate of Digital's Management of Service Staff and Operations
 program

JACKIE ROSE (Nominated)
 As a long time member of DCU, I have seen the many changes that
have occurred over the last few years. My goal, if elected, will be to
continue the positive growth in products and services while
strengthening DCU's financial position and increasing members'
confidence in DCU. Now Ids take those points one by one.
 DCU must continue to provide competitive rates to its members,
whether it's interest on a savings account, interest on a mortgage, or
keeping you interested in our products and senrices. Do you have a
thorough knowledge of our new and improved features? Could one
of these make your life easier?
� Four ATM withdrawals free per month at non-DCU machines
� No annual fee for a DCU Visa and new lower rates
� Tiered money market accounts with free optional checks
� A home equity loan for up to 100% of your home's value at only
 1% over Prime

DCU currently has a solid financial position. Your response to im-
provements in rates and services resulted in strong financial results.
In January 1996, $1 million in additional earnings were returned to
DCU members as bonus dividends. I wholeheartedly support DCU's
goal to continue to return those rates to you through better rates,
product enhancements, and new services.

 Did you know that, in 1995, members nearly tripled their investment
in DCU certificates? I believe this to be a result of not only great rates,
but because of an increase in communications. To increase your
confidence in DCU, you need to hear from us often about what is
going on. I am a firm believer in frequent communications with the
membership. DCU's new web site (http://www.dcu.com) is a first
step for getting up-to-date rate information out to the membership, as
is Members' Monthly and Network - the DCU newsletters. As a
Director, I would actively seek out ways to get our message and
relevant information out to members and future members.
 Now what about me? I have solid business experience, having
worked at Digital (in Educational Services and in GIA) and, currently,
for a Big Six professional services firm as a Communications Mana-
ger. I have a BS in Marketing and Management from Franklin Pierce
College and have been a member of DCU for about eight years.
I look forward to representing you on the DCU Board of Directors.

TOM MCEACHIN (Nominated-Incumbent)
 I am very excited by the prospect of serving another term as a
director on the DCU Board. As many of you know, I was elected to
the board in 1992 in response to the tremendous disappointment
members had with the state of DCU management and board in years
prior. The problems we faced then were substantial ... DCU members
had lost a significant amount of their capital foundation, due to the
fraud, confidence in the DCU was extremely low, the regulators were
looking closely at our actions, and we had to build a new team of
professional managers to operate the credit union.
 I am proud to see the results of our actions. The credit union is
strong again, in terms of its financial health, its product and service
portfolio, and in its ability to provide continuing services at a compet-
itive value to members. The renewal of DCU's strength is testament
to the hard work of DCU's management and employees, and the
careful guidance of the existing team of directors. I would like you to
vote for me so we can continue the progress made thus far, and as
a team, continue to develop the roadmap for DCU's future.

 In my opinion, the future is sparkling bright however it is not absent
of risk. The financial services industry is volatile, fast-paced, and
constantly developing new avenues for our members to travel. Just
as the DCU has changed from a union of Digital employees to a union
of many members working at many companies around the USA with
a variety of needs, the strategies of the DCU must adjust from time
to time to address this very different membership base. We are now
actively seeking selected employee groups (SEG's) to join our family,
thus expanding the base of our membership outside of the traditional
core. Similarly, we are emphasizing the slogan "once a member,
always a member". The slogan now has a significant amount of
attractiveness to it because we are able to offer services to members
no matter where they live or work. Personal computer banking is
catching the attention of many of you, as it should, since it offers a
timeless approach to financial management of your assets. DCU was
one of the first credit unions to offer this service and one of the first
financial institutions in New England to do so. Personal financial
management is more than just traditional lending and saving, and we
now offer an expansive menu of financial options, through our partner
FNIC, to fit the needs of virtually any financial plan a member might
utilize. The board and management have a very effective process of
scanning the industry for good ideas, then executing the best of these
ideas to bring ultimate benefits to the members.
 I believe we need to focus heavily on strategic positioning. In my
opinion, the wide choice of financial service offerings will continue
to close the gap with the credit union. We will have to offer better
technology to meet your needs. We will have to have flawless,
responsive service, when and where you want it We will have to keep
our costs low in order to provide you with better pricing and better
returns than other service providers.
 Maintaining control while growing and changing is very important
The board needs to be staffed with volunteers who are prepared to
give their time and energy to the tasks at hand. But in addition,
experience and subject matter knowledge cannot be overempha-
sized. In other words, diligence is a given; competence is a must My
commitment to the members is I will make the necessary time to
diligently handle the affairs of the credit union. I believe my four years
of board experience, comprised of two years as a vice chairperson,
one year as a treasurer and chair of the Finance and Investment
Committee, and three years as a member of the Human Resource
Committee, have given me the qualifications to serve in a competent
manner. In addition to my experience in the credit union environment,
I also have twenty-one years of experience as a finance professional
(11 years with Xerox Corporation and ten years with Digital). I have
worked in the areas of pricing, accounting, internal audit and
information systems. I have worked effectively for many years at a
senior level of Xerox Corporation and Digital, and during my four year
tenure on the board of DCU. My education was at the NYU School
of Engineering (B.S. Operations Research), augmented by an MBA
from Stanford University, and an executive management program at
the Wharton School of the University of Pennsylvania.

 A vote for me is a vote for experience, competence, and reasoned
guidance to the DCU. I look forward to serving you for another three
years.

BOB AINSLEY (Nominated)
 Our DCU has come a long, long way from those dark days just a
few, short years ago, when we had non-performing participation
loans and a former President indicted on Federal charges made in
connection with many of those bad loans. As bad as that situation
was, it was part an even larger problem at DCU. There were many
on the Board and in DCU Management who were actively trying to
change DCU from a member-owned credit union into what was in
every way, except for name, a commercial bank These bank-like
features included excessive fees, reduced services, and a "drive-the-
little-member-away" mentality.
 The Special Meeting was a wake up call to the membership, and
we responded, decisively, by electing many member-oriented
Directors. These Directors set to work by selecting a new President,
and, together with the DCU employees, they started steering the
course of our DCU away from a bank to that of a true credit union.
To those Directors, our President and employees of DCU who have
worked so hard to make those positive changes, we give them our
hearty thanks and support.
 However, a reading of the Minutes of the Board of Directors
meetings over the past two years indicates there are still those who
would bring back the old, non-member friendly, DCU. We must not
let this happen! This would, once again, negate the very spirit in
which the original DCU was chartered some years ago, in which the
Digital employees were the owner/members, and for whom this
financial institution was intended to serve as a friendly, convenient
and affordable place to conduct one's personal banking affairs.
 The DCU faces some real and problematic challenges that will
affect more and more of its members as Digital continues to reduce
its workforce, divesting itself of excess real estate and office space,
and closing buildings and ATM sites as a byproduct of that process,
and as employees, ex-employees/members relocate. Potentially,
without more flexible and creative policies in place to attract and
keep members, the DCU runs the real risk of not having quorum to
maintain a healthy profitability, which in turn, benefits directly, its
membership. This calls for creative measures, and certainly, member-
friendly policies, in order to encourage members who work remotely,
or may no longer be employed by Digital, to continue to place their
financial needs and trust in the DCU, which in turn, keeps it a viable
financial institution.

 As a member who has never resided less than 1,000 miles away
from the nearest DCU branch and ATM, I am acutely aware of the
unique challenges faced by many of our members who are either
remotely employed, no longer Digital employees and/or no longer
have a DCU branch office convenient to them. I realize the need for
more and more electronic services, well staffed telephone services,
frequent and clear communications to the membership, fee-free
services, and the core trust that the DCU will continue to be respon-
sive to its true "owners", it members! To that end, I believe it vital that
the BOD have healthy representation among its membership,
members like myself, who are physically remote from the GMA area,
and can keep the unique issues common to remote Digital
employees, and ex-employees at the forefront. Current Director Paul
Kinzelman is a good example of how well that can be done. Paul has
served actively throughout his tenure, and has done so for the last
two years from California, where he now resides and works. I live in
Dallas, TX, and am confident that I can continue Paul's fine legacy,
and help keep the DCU BOD focused on its mission of keeping the
DCU focused on its charter of being member-owned and member
responsive, for both current and ex-employees of Digital Equipment
Corp. and their families.
To all members I promise to:
�Listen, really listen, then:
� Respond, thoughtfully and promptly, to all legitimate member con-
 cerns and suggestions, and always:
� Be available!
 Let me start by posting my home INTERNET address and my home
phone number. I welcome communications, sharing of concerns,
suggestions on how we can make things better for all of us:
INTERNET: [email protected] HOME PHONE: 214-491-3803
 Most of all, I urge you to participate in YOUR DCU, when you get
your ballot VOTE!

             NOMINATING COMMITTEE REPORT
June 1996
Dear Fellow Member:

This year you have the opportunity to elect two Directors to Digital Employees'
Federal Credit Union's Board of Directors. Each elected Director will serve 
until the 1999 Annual Meeting is held.

The Nominating Committee received five applications for nomination this year,
and all five candidates have been nominated. In the opinion of this Committee,
each candidate is qualified to provide the membership with the leadership
necessary to ensure our continued success.

After the nomination process is completed, DCU's Bylaws permit members to
petition for candidacy. No petition applications were requested this year.

Results of the election will be announced at the Annual Meeting on July 16,
1996, at 5:00 p.m., at the Maynard Rod & Gun Club, Maynard, Massachusetts.
All members are invited to attend.

DCU's Annual Election of Directors is very important. To have your vote count,
it must be received by the Teller of Election no later than July 9, 1996. Thank
you in advance for your participation.

Sincerely,

DCU'S 1996 NOMINATING COMMITTEE


Jack Del Balso, Chairperson
Ken Backaler
Mark Buda

[Pensively we await the results from one fortunate enough to have been able 
 to attend the meeting ...]