First Data Revenue Up 14%; Net Down 34%

First Data reported that fourth quarter revenue grew 14% to $1.9 billion. While operating profit was up 67% year-on-year, net income fell 34% from the year-ago quarter to $278.5 million due to costs related to debt repayment, restructuring and impairment. For the fourth quarter, Commercial Services generated revenue of $1.1 billion, up 10% over 4Q/05, driven by transaction growth of 13%. Commercial Services’ operating profit was up 17% year-on-year to $306 million. Financial Institution Services produced revenue of $484 million, up 10%. Financial Institution Services’ operating profit was $96 million, up 12%. First Data International generated revenue of $377 million, up 43%, driven by organic transaction growth. First Data International’s operating profit was $59 million, up 52% over 4Q/05. During the fourth quarter First Data signed an agreement with Hong Kong-based Standard Chartered to jointly establish a new merchant acquiring company for Asian merchants, inked a renewal of a major processing agreement with Lloyds TSB in the United Kingdom and renewed its agreement with Advanta for small business credit card processing services. First Data projects earnings per share in the range of $1.20 to $1.26 for full year 2007. This is the second quarter First Data has reported since its spin-off of Western Union. For complete details on First Data’s fourth quarter performance visit CardData ([www.carddata.com][1]). (CF Library 12/15/06; 12/20/06)

FDC REVENUE HISTORICAL
4Q/05: $1684.4 million
1Q/06: $1635.7 million
2Q/06: $1731.1 million
3Q/06: $1787.2 million
4Q/06: $1922.4 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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Oberthur Smart Payment Cards Soar 44% in Q4

Paris and Los Angeles-based Oberthur Card Systems reported that its payment smart card volume rose more than +44% to 23 million units in the fourth quarter, compared to one-year ago. Overall, fourth quarter revenues increased 15% to $201.6 million. During the quarter Oberthur delivered over 89 million microprocessor cards, compared to 58.2 million units one-year earlier. Revenue in this segment rose 21.9% year-on-year. In the payment market Oberthur revenue increased by 30.5% compared to last year. The Company noted it faced a temporary slow down in the contactless segment in the U.S. during the quarter. Sales in the “Other Cards” segment (magnetic stripe cards, scratch cards and memory cards) hit $25.5 million, a 5.6% increase on a year-on-year basis. During the fourth quarter Oberthur named Philippe Geyres as CEO effective January 2nd and Bank of America chose Oberthur to provide contactless payment fobs as part of a trial to test radio frequency contactless payment companion devices. For complete details on Oberthur’s fourth quarter performance, visit CardData ([www.carddata.com][1]) (CF Library 12/19/06; 12/20/06)

REVENUES
4Q/05: $178.3 million
1Q/06: $158.5 million
2Q/06: $159.8 million
3Q/06: $161.5 million
4Q/06: $201.6 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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i2c Hires a Director of Infrastructure

CA-based i2c has hired Scott Conway as Director, Infrastructure. Previously he held positions within Sun Microsystems Inc. and Merrill Lynch in various disciplines including customer care, engineering, system administration, business and technical analytics, x-organizational program/project management, standards. He is a member of the Project Management Institute (PMI), PMI Mile-Hi Chapter and the PMI Information Systems Specific Interest Group (ISSIG). i2C is headquartered in Redwood Shores with over 250 employees and five Sales and Support offices worldwide. i2c is a leading, global technology provider of electronic payment processing solutions.

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StolenID Search for Consumers is Launched

CA-based TrustedID has introduced “StolenID Search”, a free global service that allows consumers to check a secure database to find out if their personal information has been stolen or compromised. “StolenID Search” will initially cover two types of information: credit cards and social security numbers. Individuals enter their information into a secure search engine to learn if any of their information has been stolen or compromised. The search results will return a simple “found” or “not found” response. Individuals who receive notification of a match will be directed to additional resources to take appropriate next steps to protect themselves. The new service contains more than 2 million pieces of information. TrustedID,is a provider of identity management and protection solutions.

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FDC Certifies ACH Direct PaymentsGateway

ACH Direct has announced that its “PaymentsGateway” platform to process credit cards payments has been certified to process by First Data. “PaymentsGateway” processes retail, e-commerce, direct marketing, recurring transactions and “Level 2 Commercial Cards” market segments. ACH Direct processed $6 billion in electronic funds transfer transactions in 2006.

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Affluent Cardholders Hit the Brakes in 4Q/06

The nation’s most affluent cardholders, with average incomes above $150,000, are hitting the brakes this year over concerns about the state of the overall economy. The “Luxury Consumption Index,” by PA-based Unity Marketing, showed a decline of 5.1 points in the fourth quarter, dropping to 98.2 points, down from 103.3 in the third quarter. The typical luxury consumer spent less on luxury purchases in the period, dropping 3.4% from $13,432 during the third quarter to $12,982 in the fourth quarter. Unity says the dollar’s continued decline against the Euro and pound sterling and continued political instability in the Persian Gulf region accounts for the current softness in luxury demand.

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