First Data Acquiring Polish Card Issuer for $325 million

First Data International, part of First Data Corp., a global leader in electronic commerce and payment services, announced today that it has reached an agreement to acquire POLCARD SA, Poland’s leading independent merchant acquirer and card issuer processor, in an all-cash transaction for $325 million.

Poland is the largest market of the recent countries to join the European Union, with a population of 39 million, a strong and growing economy and a rapidly developing electronic cards market. The acquisition of POLCARD positions First Data International strongly in Poland, as well as supports its continued expansion in the fast growing markets of Central and Eastern Europe and provides an entry point to other major markets in the region.

Founded in 1990, POLCARD has the largest network of electronic card acceptance devices in Poland, driving more than 58,000 terminals and managing 1,700 ATMs. POLCARD enables the acceptance of all national and most international debit and credit card brands, both at the point of sale (POS) and over the Internet, as well as cards from non-bank organizations. POLCARD provides a broad range of issuing card services to its banking clients, processing around 170 million transactions per year at its local authorization and clearing center. POLCARD had 2006 revenues of $44 million, and its revenue and earnings growth rates are in line with that of First Data International.

David Yates, president, Europe, Middle East and Africa, First Data International, said: "We are delighted to have reached agreement to acquire POLCARD, and we look forward to enhancing our global sourcing capabilities through the employees’ depth of technical expertise. Poland is a strategic market for First Data, and POLCARD is an excellent complement to our existing business in the region. Through this acquisition, we are well positioned to support our multinational clients as they extend their presence across Central and Eastern Europe – and to apply First Data’s global electronic payments expertise to the benefit of financial institutions and merchants in Poland."

"We are pleased to join First Data, and are confident that it will deliver our clients the quality of service excellence they expect with its global expertise in the electronic commerce industry, and strong reputation for delivering value to its clients through its global reach and robust portfolio of solutions," said Janusz Diemko, CEO of POLCARD.

First Data International opened an office in Poland earlier this year, and has a strong local management team in place to assist with the integration of POLCARD into First Data. First Data is already an industry leader in Central Europe, managing more than 11 million cards, more than 100,000 POS terminals and 8,500 ATMs for banks and merchants throughout the region. With the addition of POLCARD, First Data adds significant local operations in Poland to its existing hubs in Austria, Slovakia, Serbia and the Baltics and the customer service units in Czech Republic, Croatia, Hungary and Romania.

Pam Patsley, president, First Data International, commented: "We continue to look for opportunities to expand our international operations, and see great potential for further development in the countries of Central and Eastern Europe. POLCARD provides us with an important new base in this rapidly expanding market. Over the past few months, First Data International has also announced a major new agreement with China UnionPay; a merchant acquiring alliance with Standard Chartered across Asia; and a strategic partnership with NCS to offer mobile payments and e-commerce services globally. We are committed to delivering the highest quality services to our financial institution and merchant clients worldwide."

The acquisition of POLCARD is subject to the approval of relevant authorities, and it is expected to be completed in the second quarter of 2007.