FIRST DATA CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FDC)") else Response.Write("(NYSE: FDC)") end if %>
401 Hackensack Avenue
7th Floor
Hackensack, NJ 07601

ALEXANDRIA, Va., July 22, 1996/FOOLWIRE/ --- First Data Corporation <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:FDC)") else Response.Write("(NYSE:FDC)") end if %> announced its second quarter earnings and reported that the results were consistent with the company's 1995 forward looking figures. The merger with First Financial Management has been successful and the integration completed. The results from this quarter clearly reflect the pooling together resources. Also, there continues to be interest in pursuing a public offering or the private sale of MoneyGram.

Operating revenues were up 18% to $1.2 billion, compared with $1.01 billion in the prior year. Net income in the quarter rose 40% to $140 million from $100 million in 1995's second quarter. Earnings per share were up 33% to $0.60 from $0.45 a year ago.

For the six months ending June 30, 1996 operating revenues were up 22% to $2.33 billion from $1.92 billion from the same period the year before. In addition, net income increased 34% and earnings per share increased 26% from the same period the year before. These results take into account the $10 million nonrecurring merger, integration and impairment charge. Excluding this charge, net income rose 39% to $255.6 million from $183.6 million from the same period in the previous year. Earnings per share rose 31% from the previous year to $1.10.

Revenues from major service areas continued to be strong this quarter. In particular, the company's Domestic Card Issuer Services, Domestic Merchant Processing Services, and Payment Instruments had solid revenue growth. The Domestic Card revenues were up 20% with the processing services revenues up 22%, card holder accounts up 24% and hard holder transactions up 26%. Domestic Merchant Processing Services revenue were up 23% with a 32% increase in domestic transactions processes and a 36% increase in dollar volume processing. Payment Instruments revenues were up 22%.

HIGHLIGHTS

The Oil Services unit introduced a proprietary prepaid oil card called "PetroCash" for its gas retailer clients. The core credit card processing businesses also introduced a new proprietary modeling tool called "Score Site" which is designed to help clients gather information on the management of credit card portfolios.

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