First Data Decides to Exit Encorus Business and Updates Earnings Guidance

DENVER – First Data Corp. announced today that upon completion of the strategic review of its Encorus business, the company has decided to write-off its investment in this business. As a result, there will be a $0.04 charge in the third quarter, $0.03 of which is non-cash.

In addition, the third quarter results will include a pre-tax gain of approximately $8 million from the sale of its remaining interest in International Banking Technologies, which had been substantially divested in 2001.

With these two changes, First Data has updated its 2005 full-year earnings per share (EPS) guidance. The new 2005 GAAP EPS range is $2.19 to $2.23 versus the previous range of $2.23 to $2.32. The new EPS range, excluding the impact of Concord integration spending, which is projected to be $0.13, is $2.32 to $2.36.

The company remains focused on driving growth in its core businesses in the second half of 2005 and positioning itself for continued growth in 2006.