First Data Announces Plan to Separate Western Union Business; Will Realign Merchant, Card and International Businesses

First Data Corp. (NYSE: FDC) today announced that its Board ofDirectors, following a review of the Company's businesses andstructure, has decided to separate its fast-growing Western Unionconsumer payments business into an independent publicly traded companythrough a tax-free spin-off of 100% of Western Union to First Datashareholders.

The transaction will create two well-positioned public companieswith global franchises: a high-growth company focused on servingconsumers and a steady-growth company with great cash flow focused onserving merchants and financial institutions. First Data believes thatits shareholders, customers and employees will all benefit from thefocus of each company on its own strategic initiatives, growth plansand capital usage. First Data expects to complete the separation inthe second half of 2006, and will update shareholders on the structureand timing of the transaction when first quarter results are announcedin April.

First Data also announced that it will retain its domestic CardIssuing business, and will organize and report its businesses afterthe spin-off in three primary segments: First Data FinancialInstitution Services (including the Card Issuing business), First DataCommercial Services and First Data International. This alignmentenables an increased focus on each customer group and better targetedsales and marketing programs.

Ric Duques, Chairman and Chief Executive Officer, said: "Since Ireturned to First Data two months ago, I have spent considerable timeevaluating our businesses and working with the Board on a strategicplan to reinvigorate growth, reduce our cost structure and simplifyour organization with a sharpened focus on our core competencies andour three customer groups -- consumers, merchants and financialinstitutions. I am confident that this strategy, coupled with thesimpler structure, recent management changes in our Merchant and Cardbusinesses, and a renewed commitment to meeting the needs of ourfinancial institution and merchant customers, will benefit ourshareholders and lead First Data into a new phase of growth andexpansion."

The independent Western Union company, which will include WesternUnion, Orlandi Valuta and the recently acquired Vigo business, will bethe largest money transfer company, offering customers the ability totransfer money or make payments virtually anywhere in the world.Western Union handles more than 275 million money transfers each yearthrough its more than 271,000 agent locations in over 200 countriesand territories. The business will be led by Christina Gold, who willbecome chief executive officer of Western Union.

Duques said: "We have concluded that our shareholders will derivelong-term benefit from keeping the U.S. Card Issuing business as partof First Data and taking concerted actions to improve this business.We will capitalize on the significant growth opportunities in each ofour three new segments. First Data has successfully expanded globallyby leveraging the credibility we have gained and the relationships wehave established over many years with major U.S. customers. Buildingon this foundation, our laser-like focus on all three segments willmake First Data an even more formidable player in the worldwidepayments industry."

Overview of New Segments

First Data's businesses will be reported in 2006 in the followingprimary segments. Accompanying this release are schedules with thepreliminary reclassifications in the new segment format by quarter for2005 and 2004. Final adjusted schedules will be provided with thefirst quarter earnings release.

-- First Data Financial Institution Services, which had revenue and operating profit of approximately $1.9 billion and $378 million respectively for 2005, presented in the new segment format. This business, which includes the Card Issuing, Debit, REMITCO and Output Services units, will be led by David Bailis, who is currently president of First Data's Card Issuing Services business.

-- First Data Commercial Services, which had revenue and operating profit of approximately $3.8 billion and $893 million respectively for 2005, presented in the new segment format. This business, which includes the Merchant Domestic, Merchant Debit, TeleCheck and Prepaid units, will be led by Ed Labry, who is currently president of First Data Merchant Services.

-- First Data International, which had revenue and operating profit of $915 million and $113 million respectively for 2005, presented in the new segment format. This business, which includes all current First Data International businesses, will continue to be led by Pam Patsley, who is currently president of First Data International.

-- Western Union, which had revenue and operating profit of approximately $4.0 billion and $1.3 billion respectively for 2005, presented in the new segment format. This business, which includes Western Union, Orlandi Valuta and the recently acquired Vigo business, will continue to be led by Christina Gold.

4Q and 2005 Financial Results

First Data also announced financial results for the fourth quarterand full year ended December 31, 2005. Consolidated revenue for thequarter was $2.8 billion. Net income from continuing operations forthe quarter was $409 million, or $0.53 per share. EPS includes $0.03of integration expenses and $0.09 of other charges, $0.05 of whichrelates to the restructuring charge announced in December. Aspreviously planned, EPS also includes a $0.03 gain on the sale of aportion of First Data's ownership interest in the PNC alliance.

For the full year, consolidated revenue was $10.5 billion, and netincome from continuing operations was $1.6 billion, or $2.04 pershare, which includes $0.12 of integration expenses and $0.11 of othercharges, primarily related to restructuring and impairment. EPS alsoincludes the aforementioned $0.03 gain on the sale of a portion ofFirst Data's interest in the PNC alliance.

Existing Segment Results

For the quarter, Payment Services generated revenue of $1.2billion, a 13% increase from the fourth quarter of 2004. Operatingprofit for the quarter was $375 million, up 24% compared to the fourthquarter last year.

For the full year, the Payment Services segment generated $4.4billion in revenue and $1.4 billion of operating profit. 2005 revenuesgrew 10%, and operating profit grew 6%. Segment profit margin was 31%.

For the quarter, Western Union money transfer, including Vigo,represented 87% of Payment Services' revenue. Western Union deliveredoutstanding results, driven by strong consumer-to-consumer transactiongrowth of 29% and consumer-to-business transaction growth of 11%.Money transfer revenue increased 14% for the quarter to over $1billion, and operating profit grew 23% to $351 million. Margin was astrong 34%. Excluding Vigo, consumer-to-consumer transaction growthwould have been 22%, money transfer revenue growth would have been 12%(13% excluding the impact of the Euro), and profit growth would havebeen 23%. Margin for Western Union, excluding Vigo, would have been35%.

For the full year, Western Union money transfer revenue, includingVigo, grew 14% to $3.8 billion, and operating profit grew 18% to $1.3billion. Excluding Vigo, money transfer revenue and profit growth forthe year would have been 13% and 18%, respectively. Margin would havebeen 34%.

For the quarter, Merchant Services reported revenue of $1.1billion. Operating profit was $283 million. Margin for the quarter was25%, and transactions were up 13%. Fourth quarter 2004 merchantrevenue and profit included $101 million from a portfolio sale.

Full year revenue was $4.1 billion, up 7%. Operating profit was$971 million, down 2% and margin was 24%.

Fourth quarter Card Issuing Services revenue was $568 million,down 7%. Operating profit was $112 million, down 8%. Margin for thequarter was 20%.

Full year Card Issuing Services revenue was $2.4 billion, down 1%.Operating profit was $456 million, down 10%. Full year margin was 19%.

Outlook for 2006

Commenting on 2006, Duques said revenue growth for the combinedCompany is expected to be in the range of 10% to 13%, which includesapproximately $250 million of current year revenue from plannedacquisitions primarily in the First Data International segment.Overall revenue growth will be led by expected high-teens revenuegrowth at Western Union.

The Company expects to deliver EPS from continuing operations inthe range of $2.35-$2.42 for 2006. Included in the EPS range is anapproximately $0.07 impact from expensing stock-based compensation asa result of adopting Statement of Financial Accounting StandardsNumber 123R. This guidance does not include the costs that will beincurred in the Western Union spin-off.

After the Western Union spin-off is completed, annual revenue andEPS growth over the long-term for the new First Data is expected to bein the range of 8-10%, and annual revenue and EPS growth for WesternUnion is expected to be in the mid-teens.

Investor and Analyst Conference

First Data will hold an investor and analyst conference today at8:00 a.m. EST. Ric Duques, chairman and CEO, will host the meeting. Tolisten to the broadcast and view the slide presentation, please log onto http://www.firstdata.com, and click on the link under the Investsection at least 15 minutes prior to the start of the call. Toparticipate in the call, dial 888-831-9087 (U.S.) or +1-210-234-0003(outside the U.S.) ten minutes prior to the start of the call andenter passcode FDC. A replay of the webcast will be available on thecompany website shortly after the meeting ends until 5:00 p.m. ESTFeb. 2, or call 800-666-8092 (U.S.) or +1-203-369-3311 (outside theU.S.). No passcode is required.

Please note: All statements made by First Data officers on thiscall are the property of First Data and subject to copyrightprotection. Other than the replay, First Data has not authorized, anddisclaims responsibility for, any recording, replay or distribution ofany transcription of this call.

About First Data

First Data Corp. (NYSE: FDC) is a leading provider of electroniccommerce and payment solutions for businesses and consumers worldwide.Serving 4.6 million merchant locations, 1,500 card issuers andmillions of consumers, First Data powers the global economy by makingit easy, fast and secure for people and businesses around the world tobuy goods and services using virtually any form of payment. Thecompany's portfolio of services and solutions includes credit, debit,private-label, smart and stored-value card issuing and merchanttransaction processing services; money transfer services; moneyorders; fraud protection and authentication solutions; check guaranteeand verification services through TeleCheck; as well as Internetcommerce and mobile solutions. Western Union and its subsidiary,Orlandi Valuta, together make up one of the world's largest moneytransfer networks with approximately 271,000 Agent locations in morethan 200 countries and territories. The company's STAR Network offersPIN-secured debit acceptance at 1.9 million ATM and retail locations.For more information, visit www.firstdata.com.

Notice to Investors, Prospective Investors and the InvestmentCommunity; Cautionary Information Regarding Forward-Looking Statements

Statements in this press release regarding First DataCorporation's business which are not historical facts, including therevenue and earnings projections, are "forward-looking statements."All forward-looking statements are inherently uncertain as they arebased on various expectations and assumptions concerning future eventsand they are subject to numerous known and unknown risks anduncertainties which could cause actual events or results to differmaterially from those projected. Important factors upon which theCompany's forward-looking statements are premised include: (a) nounanticipated developments that delay or negatively impact the plannedtax-free spin-off of 100% of the Western Union subsidiary to theCompany's shareholders; (b) continued growth at rates approximatingrecent levels for card-based payment transactions, consumer moneytransfer transactions and other product markets; (c) successfulconversions under service contracts with major clients; (d) renewal ofmaterial contracts in the Company's business units consistent withpast experience; (e) timely, successful and cost-effectiveimplementation of processing systems to provide new products, improvedfunctionality and increased efficiencies; (f) successful and timelyintegration of significant businesses and technologies acquired by theCompany and realization of anticipated synergies; (g) continuingdevelopment and maintenance of appropriate business continuity plansfor the Company's processing systems based on the needs and risksrelative to each such system; (h) absence of further consolidationamong client financial institutions or other client groups which has asignificant impact on FDC client relationships and no material loss ofbusiness from significant customers of the Company; (i) achievingplanned revenue growth throughout the Company, including in themerchant alliance program which involves several joint ventures notunder the sole control of the Company and each of which actsindependently of the others, and successful management of pricingpressures through cost efficiencies and other cost managementinitiatives; (j) successfully managing the credit and fraud risks inthe Company's business units and the merchant alliances, particularlyin the context of the developing e-commerce markets; (k) anticipationof and response to technological changes, particularly with respect toe-commerce; (l) attracting and retaining qualified key employees; (m)no unanticipated changes in laws, regulations, credit card associationrules or other industry standards affecting FDC's businesses whichrequire significant product redevelopment efforts, reduce the marketfor or value of its products or render products obsolete; (n)continuation of the existing interest rate environment so as to avoidincreases in agent fees related to IPS' products and increases ininterest on the Company's borrowings; (o) absence of significantchanges in foreign exchange spreads on retail money transfertransactions, particularly in high-volume corridors, without acorresponding increase in volume or consumer fees; (p) continuedpolitical stability in countries in which Western Union has materialoperations; (q) implementation of Western Union agent agreements withgovernmental entities according to schedule and no interruption ofrelations with countries in which Western Union has or is implementingmaterial agent agreements; (r) no unanticipated developments relatingto previously disclosed lawsuits, investigations or similar matters;(s) no catastrophic events that could impact the Company's or itsmajor customer's operating facilities, communication systems andtechnology or that has a material negative impact on current economicconditions or levels of consumer spending; (t) no material breach ofsecurity of any of our systems; and (u) successfully managing thepotential both for patent protection and patent liability in thecontext of rapidly developing legal framework for expansive softwarepatent protection.
FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)

Three Months Ended
December 31,
--------------------------
2005 2004 Change
--------- --------- ------
Revenues:
Transaction and processing service fees:
Payment Services $1,153.7 $1,012.3 14%
Merchant Services 804.9 739.2 9%
Check verification and guarantee
services 93.4 101.2 -8%
Card Issuing Services 389.7 429.0 -9%
All other 28.1 30.0 -6%
Investment income, net (16.5) (14.6) -13%
Professional services 22.6 19.5 16%
Software licensing and maintenance 15.2 17.9 -15%
Product sales and other 126.7 210.3 -40%
Reimbursable postage and other 149.2 145.0 3%
--------- ---------
2,767.0 2,689.8 3%
--------- ---------

Expenses:
Cost of services 1,494.3 1,372.9 9%
Cost of products sold 72.0 64.4 12%
Selling, general and administrative 427.3 450.3 -5%
Reimbursable postage and other 149.2 145.0 3%
Other operating expenses:
Restructuring, net 67.3 12.6 NM
Impairments 23.5 (6.9) NM
Other 24.3 - NM
--------- ---------
2,257.9 2,038.3 11%

--------- ---------
Operating profit 509.1 651.5 -22%
--------- ---------

Other income (expense):
Interest income 6.1 5.8 5%
Interest expense (65.3) (40.7) 60%
Investment gains and (losses) (0.9) (3.7) NM
Divestitures, net 45.5 0.1 NM
--------- ---------
(14.6) (38.5) NM
--------- ---------

Income before income taxes, minority
interest, equity earnings in affiliates
and discontinued operations 494.5 613.0 -19%

Income taxes 120.2 160.4 -25%

Minority interest (32.6) (32.9) -1%
Equity earnings in affiliates 67.7 45.4 49%

--------- ---------
Income from continuing operations 409.4 465.1 -12%

Loss from discontinued operations, net of
taxes of $(6.9) (a) (11.5) - NM

--------- ---------
Net income $397.9 $465.1 -14%
========= =========

Earnings per share from continuing
operations:
Basic $0.54 $0.57 -5%
Diluted $0.53 $0.56 -5%


Earnings per share:
Basic $0.52 $0.57 -9%
Diluted $0.52 $0.56 -7%


Weighted-average shares outstanding:
Basic 763.7 816.5 -6%
Diluted 772.4 828.0 -7%

Shares outstanding at end of period 762.7 804.0 -5%

(See accompanying notes)
FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)

Twelve Months Ended
December 31,
--------------------------

2005 2004 Change
--------- --------- ------
Revenues:
Transaction and processing service fees:
Payment Services $4,261.6 $3,720.4 15%
Merchant Services 2,946.4 2,736.3 8%
Check verification and guarantee
services 373.7 405.4 -8%
Card Issuing Services 1,583.1 1,677.3 -6%
All other 118.2 127.5 -7%
Investment income, net (58.3) 91.2 NM
Professional services 89.0 89.9 -1%
Software licensing and maintenance 58.6 63.4 -8%
Product sales and other 502.2 518.0 -3%
Reimbursable postage and other 615.9 583.8 5%
--------- ---------
10,490.4 10,013.2 5%
--------- ---------

Expenses:
Cost of services 5,661.3 5,140.6 10%
Cost of products sold 264.7 223.1 19%
Selling, general and administrative 1,628.4 1,610.5 1%
Reimbursable postage and other 615.9 583.8 5%
Other operating expenses:
Restructuring, net 81.6 63.5 NM
Impairments 50.3 0.5 NM
Litigation and regulatory settlements (1.4) 32.4 NM
Other 34.2 25.0 NM
--------- ---------
8,335.0 7,679.4 9%

--------- ---------
Operating profit 2,155.4 2,333.8 -8%
--------- ---------

Other income (expense):
Interest income 21.2 25.1 -16%
Interest expense (228.3) (136.8) 67%
Investment gains and (losses) 22.3 5.9 NM
Divestitures, net 61.3 265.2 NM
--------- ---------
(123.5) 159.4 NM
--------- ---------

Income before income taxes, minority
interest, equity earnings in affiliates and
discontinued operations 2,031.9 2,493.2 -19%

Income taxes 542.9 674.7 -20%

Minority interest (128.6) (114.6) 12%
Equity earnings in affiliates 236.9 163.9 45%

--------- ---------
Income from continuing operations 1,597.3 1,867.8 -14%

Income (loss) from discontinued operations,
net of taxes of $(6.9) and $21.3,
respectively (a) (11.5) 7.4 NM

--------- ---------
Net income $1,585.8 $1,875.2 -15%
========= =========

Earnings per share from continuing
operations:
Basic $2.06 $2.26 -9%
Diluted $2.04 $2.22 -8%


Earnings per share:
Basic $2.05 $2.27 -10%
Diluted $2.02 $2.23 -9%


Weighted-average shares outstanding:
Basic 775.0 827.0 -6%
Diluted 784.3 840.2 -7%

Shares outstanding at end of period 762.7 804.0 -5%

(See accompanying notes)
FIRST DATA CORPORATION
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)

Three Months Ended
December 31,
--------------------------

2005 2004 Change
--------- --------- ------
Revenues:
---------
Payment Services $1,196.7 $1,058.5 13%
Merchant Services 1,121.4 1,121.1 0%
Card Issuing Services 567.6 608.5 -7%
--------- ---------
Subtotal segment revenues 2,885.7 2,788.1 4%
All Other and Corporate 61.4 56.2 9%
--------- ---------
2,947.1 2,844.3 4%
--------- ---------

Adjustments for items included in
segment and All Other and Corporate
revenues: (b)
Equity earnings in affiliates (c) (76.9) (54.8) 40%
Interest income (6.1) (5.8) 5%
Eliminations (e) (97.1) (93.9) NM
--------- ---------
Consolidated revenue $2,767.0 $2,689.8 3%
========= =========

Operating profit: (f)
---------------------

Payment Services $375.1 $303.4 24%
Merchant Services 283.0 350.3 -19%
Card Issuing Services 112.0 121.5 -8%
--------- ---------
Subtotal segment operating profit 770.1 775.2 -1%
All Other and Corporate (43.2) (43.9) 2%
--------- ---------
726.9 731.3 -1%
--------- ---------

Adjustments for items included in
segment and All Other and
Corporate operating profit: (b)
Equity earnings in affiliates (67.7) (45.4) 49%
Minority interest from segment
operations (g) 34.5 33.0 5%
Eliminations (e) (63.4) (55.9) NM
Interest expense (65.3) (40.7) 60%
Items excluded from segment operations
(h) (70.5) (9.3) NM
--------- ---------
Income before income taxes, minority
interest, equity earnings in affiliates
and discontinued operations $494.5 $613.0 -19%
========= =========

Depreciation & Amortization:
----------------------------

Payment Services $30.7 $27.5 12%
Merchant Services 101.1 91.8 10%
Card Issuing Services 58.7 66.0 -11%
All Other and Corporate 8.3 6.9 20%
--------- ---------
Consolidated depreciation & amortization $198.8 $192.2 3%
========= =========

(See accompanying notes)
FIRST DATA CORPORATION
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)

Twelve Months Ended
December 31,
----------------------------

2005 2004 Change
---------- ---------- ------
Revenues:
---------
Payment Services $4,447.6 $4,043.3 10%
Merchant Services 4,111.4 3,844.3 7%
Card Issuing Services 2,362.9 2,383.7 -1%
---------- ----------
Subtotal segment revenues 10,921.9 10,271.3 6%
All Other and Corporate 230.9 249.2 -7%
---------- ----------
11,152.8 10,520.5 6%
---------- ----------

Adjustments for items included in
segment and All Other and Corporate
revenues: (b)
Equity earnings in affiliates (c) (273.2) (198.3) 38%
Interest income (21.2) (25.1) -16%
Divested business (d) - 58.1 NM
Eliminations (e) (368.0) (342.0) NM
---------- ----------
Consolidated revenue $10,490.4 $10,013.2 5%
========== ==========

Operating profit: (f)
---------------------

Payment Services $1,389.0 $1,305.2 6%
Merchant Services 971.4 990.3 -2%
Card Issuing Services 455.7 508.1 -10%
---------- ----------
Subtotal segment operating profit 2,816.1 2,803.6 0%
All Other and Corporate (124.1) (95.1) -30%
---------- ----------
2,692.0 2,708.5 -1%
---------- ----------

Adjustments for items included in
segment and All Other and Corporate
operating profit: (b)
Equity earnings in affiliates (236.9) (163.9) 45%
Divested business (d) - 11.2 NM
Minority interest from segment
operations (g) 130.4 136.8 -5%
Eliminations (e) (244.2) (212.3) NM
Interest expense (228.3) (136.8) 67%
Items excluded from segment operations
(h) (81.1) 149.7 NM
---------- ----------
Income before income taxes, minority
interest, equity earnings in
affiliates and discontinued operations $2,031.9 $2,493.2 -19%
========== ==========

Depreciation & Amortization:
----------------------------

Payment Services $114.4 $104.0 10%
Merchant Services 385.3 352.3 9%
Card Issuing Services 249.1 252.4 -1%
All Other and Corporate 28.5 26.8 6%
Divested business - 2.7 NM
---------- ----------
Consolidated depreciation &
amortization $777.3 $738.2 5%
========== ==========

(See accompanying notes)
FIRST DATA CORPORATION
NOTES TO FINANCIAL SCHEDULES
(Unaudited)

In December 2005 FDC sold 33% of its interest (20% of the company) in
the PNC Merchant Services alliance to The PNC Financial Services
Group, its partner in the alliance. Upon closing of the agreement the
Company owned 40% of the alliance and began accounting for it under
the equity method of accounting. Revenues and expenses have been
retroactively adjusted back to January 1, 2005 to reflect the alliance
as an investment accounted for under the equity method. In addition,
amounts for 2005 and 2004 have been adjusted for a reclassification of
leasing revenue from "Transaction and processing services fees" to
"Product sales and other." Both adjustments relate to the Merchant
Services segment.

(a) Discontinued operations consist of NYCE.
(b) Reconciles the total segment and All Other and Corporate revenue
to consolidated revenue or total segment and All Other and
Corporate operating profit to income before income taxes, minority
interest, equity earnings in affiliates and discontinued
operations as reported on the Consolidated Statements of Income.
(c) Excludes equity losses that were recorded in expense and the
amortization related to the excess of the investment balance over
the Company's proportionate share of the investee's net book
value.
(d) The Company sold its 67% owned subsidiary, Global Cash Access,
("GCA") in March 2004. Revenue and operating profit associated
with GCA are excluded from segment results.
(e) Represents elimination of adjustment to record Payment Services
segment revenues and operating profit on a pretax equivalent basis
and elimination of intersegment revenue.
(f) Segment and All Other and Corporate operating profit includes
interest income, minority interest from segment operations, equity
earnings in affiliates and the allocation of corporate overhead.
Segment and All Other and Corporate operating profit excludes
items discussed in note (h) below and interest expense.
(g) Minority interest from segment operations excludes minority
interest attributable to items excluded from segment operations
discussed in note (h) below as well as minority interest related
to interest expense and income taxes.
(h) Items, other than interest expense, excluded from segment
operations consist of the following:


Three Twelve
months months
ended ended
December December
31, 31,
(in millions) 2005 2005
----------------------------------------------------------------------

Restructuring charges of $67.7 million
and $84.8 million were recorded in
the three and twelve months ended
December 31, 2005, offset with
reversals of excess restructuring
accruals of $0.4 million and $3.2
million for three and twelve months,
respectively. The charges related
mostly to the severance of
approximately 1,420 and 1,750
Restructuring, employees in the three and twelve
net $(67.3) $(81.6) months ended December 31, 2005.

A loss of $37.2 million was recorded
for the twelve months ended December
31, 2005, related to the impairment
of goodwill and other assets due to
strategic decisions related to the
Company's mobile payments business
and a business in the Payments
Services segment. Losses were also
recorded related to the impairment of
Impairments (23.5) (50.3) software and other assets.

Charges recorded during the twelve
months ended December 31, 2005,
relate to a regulatory settlement of
$1.5 million offset by reversals of
Litigation and unutilized reserves for $2.9 million
regulatory for the settlement of lawsuits all in
settlements - 1.4 the Payment Services segment.

A gain of $21.4 million on the sale of
CheckFree Corporation common stock
was recorded during the twelve months
Investment ended December 31, 2005, as well as
gains and the sale and impairment of other
(losses) (0.9) 22.3 strategic investments.

Gains on the sales of small businesses
and assets were recorded (including
the sale of IBT interests, 20% of the
PNC Merchant Services alliance (gain
of approximately $36 million) and the
sale of the Company's interest in its
Link2Gov investment) and certain
excess divestiture accruals were
reversed due to the expiration of
certain contingencies during the
Divestitures, three and twelve months ended
net 45.5 61.3 December 31, 2005.

During the three months ended December
31, 2005, most of the charge related
to an additional accrual of domestic
and international escheatment
liabilities related to transactions
processed prior to 2005 (although
portions of this charge are not
scheduled to be remitted until
periods beyond 2006), with the
remaining charge related to contract
terminations. Also in the twelve
months, Other relates to a charge for
the reimbursement to certain clients
for the misallocation of certain
pass through billings, the majority
Other (24.3) (34.2) of which related to 2004.
-----------------
(70.5) (81.1)
Minority
interest - (0.1)
-----------------
$(70.5) $(81.2)
=================

Three Twelve
months months
ended ended
December December
31, 31,
(in millions) 2004 2004
----------------------------------------------------------------------

Restructuring charges of $13.0 million
and $65.6 million were recorded in
the three and twelve months ended
December 31, 2004, offset with
reversals of excess restructuring
accruals of $0.4 million and $2.1
Restructuring, million for three and twelve months,
net $(12.6) $(63.5) respectively.

Impairment charges were recorded for
the three and twelve months ended
December 31, 2004, related primarily
to software and goodwill as a result
of business restructuring. A $12.0
million recovery was recorded for the
three months ended December 31, 2004,
related to an impairment of
capitalized customer contract costs
associated with a customer bankruptcy
Impairments 6.9 (0.5) recognized in 2002.

Litigation charges were recorded in
the second and third quarters related
Litigation and to the anticipated settlement of a
regulatory lawsuit associated with the Merchant
settlements - (32.4) Services segment.

Net investment gains in the twelve
months ended December 31, 2004,
relate to the $12.2 million gain on
the sale of a strategic investment
Investment offset by losses on e-commerce
gains and businesses and other business
(losses) (3.7) 5.9 ventures.

Divestitures related to the gain on
the sale of GCA and the release of
$1.4 million of divestiture accruals
Divestitures, related to the expiration of certain
net 0.1 265.2 contingencies.

Other related to adjustments for
TeleCheck accounting entries that
originated primarily during 2002 and
Other - (25.0) 2003.
-----------------
(9.3) 149.7
Minority
interest 0.1 22.2
-----------------
$(9.2) $171.9
=================

NM = Not meaningful.


FIRST DATA CORPORATION
FINANCIAL TRANSACTION PROCESSING
KEY INDICATORS
(Unaudited)
(in millions)

At December 31, 2005 2004 Change
--------------- --------- --------- ------
Card accounts on file
Domestic cards 415.3 369.9 12%
International cards 45.0 36.1 25%
--------- ---------
Total 460.3 406.0 13%
========= =========

For the Three Months Ended December 31:
---------------------------------------

Payment Services transactions:

Consumer-to-consumer money transfer (a) 34.10 26.39 29%

Consumer-to-business (b) 41.33 37.21 11%

North America merchant transactions (c) 6,350.5 5,598.7 13%

North America issuer transactions (d) 2,085.2 1,924.1 8%

For the Twelve Months Ended December 31:
----------------------------------------

Payment Services transactions:

Consumer-to-consumer money transfer (a) 118.52 96.66 23%

Consumer-to-business (b) 160.40 146.13 10%

North America merchant transactions (c) 23,424.7 19,829.4 18%

North America issuer transactions (d) 7,906.8 6,818.9 16%


(a) Consumer-to-consumer money transfer transactions include consumer-
to-consumer money transfer services worldwide. Amounts for 2005
include Vigo Remittance Corp. ("Vigo") transactions since the
acquisition date of October 21, 2005. Excluding Vigo, consumer-
to-consumer money transfer transactions grew 22% and 21% for the
three and twelve months ended December 31, 2005, respectively.

(b) Consumer-to-business transactions include Quick Collect, EasyPay,
PhonePay, Paymap's Just-in-Time and Equity Accelerator services,
and E Commerce Group's Speedpay transactions directly processed by
E Commerce Group.


(c) North America merchant transactions include acquired VISA and
MasterCard credit and signature debit, PIN-debit, electronic
benefits transactions ("EBT"), and processed-only or gateway
customer transactions at the point of sale ("POS"). North America
merchant transactions also include acquired ATM transactions,
gateway transactions at ATMs, and STAR PIN-debit POS transactions
received from other acquirers.

(d) North America issuer transactions include VISA and MasterCard
signature debit, STAR ATM, STAR PIN-debit POS, and ATM and PIN-
debit POS gateway transactions.
FIRST DATA CORPORATION
SUPPLEMENTAL METRICS
(Unaudited)


At December 31, 2005
--------------- --------------
Card accounts on file (in millions):
Bankcard 89.5
Retail 258.4
Debit 112.4
--------------
Total 460.3
==============

For the Three Months Ended December 31: Including Vigo Excluding Vigo
--------------------------------------- -------------- --------------

Money transfer and bill payment:
Revenue growth 14% 12%
Operating profit growth 23% 23%

Money transfer:
U.S. consumer-to-consumer same
store sales transaction growth N/A 15%
International transaction growth 33% 27%
International revenue growth 16% 15%
Mexico transaction growth 48% 19%
Mexico revenue growth 46% 21%

North America merchant transactions:
PIN debit POS and network
transaction growth 10%

Consolidated financial metrics (in
millions):
Capital expenditures $131
Dividends $46


For the Twelve Months Ended December 31: Including Vigo Excluding Vigo
---------------------------------------- -------------- --------------

Money transfer and bill payment:
Revenue growth 14% 13%
Operating profit growth 18% 18%

Money transfer:
U.S. consumer-to-consumer same
store sales transaction growth N/A 15%
International transaction growth 28% 26%
International revenue growth 18% 18%
Mexico transaction growth 26% 19%
Mexico revenue growth 27% 20%

North America merchant transactions:
PIN debit POS and network
transaction growth 22%

Consolidated financial metrics (in
millions):
Capital expenditures $398
Dividends $155

N/A - Not applicable

FIRST DATA CORPORATION
(Unaudited)
(in millions)

In December 2005 FDC sold 33% of its interest (20% of the company) in
the PNC Merchant Services alliance to The PNC Financial Services
Group, its partner in the alliance. Upon closing of the agreement the
Company owned 40% of the alliance and began accounting for it under
the equity method of accounting. Revenues and expenses have been
retroactively adjusted back to January 1, 2005 to reflect the alliance
as an investment accounted for under the equity method. In addition,
amounts for 2005 and 2004 have been adjusted for a reclassification of
leasing revenue from "Transaction and processing services fees" to
"Product sales and other." Both adjustments relate to the Merchant
Services segment.

Consolidated Results


Q1 Q2 Q3 Q4 YTD
Revenues: 2005 2005 2005 2005 2005
------------------------------------------------
Transaction and
processing service
fees:
Payment Services $976.5 $1,039.7 $1,091.7 $1,153.7 $4,261.6
Merchant Services 660.4 731.6 749.5 804.9 2,946.4
Check
verification and
guarantee
services 94.0 92.3 94.0 93.4 373.7
Card Issuing
Services 409.8 396.2 387.4 389.7 1,583.1
All Other 32.2 31.3 26.6 28.1 118.2
Investment Income (12.8) (14.8) (14.2) (16.5) (58.3)
Professional services 22.0 22.1 22.3 22.6 89.0
Software licensing
and maintenance 13.1 15.1 15.2 15.2 58.6
Product sales and
other 110.9 123.4 141.2 126.7 502.2
Reimbursable postage
and other 160.2 158.3 148.2 149.2 615.9
----------------------------------------------------------------------
Total Revenues 2,466.3 2,595.2 2,661.9 2,767.0 10,490.4
----------------------------------------------------------------------

Cost of services 1,345.5 1,397.8 1,423.7 1,494.3 5,661.3
Cost of products sold 59.6 58.6 74.5 72.0 264.7
Selling, general and
administrative 390.4 407.9 402.8 427.3 1,628.4
Reimbursable postage
and other 160.2 158.3 148.2 149.2 615.9
Other operating
expenses (0.9) 21.8 28.7 115.1 164.7

----------------------------------------------------------------------
Total Expenses 1,954.8 2,044.4 2,077.9 2,257.9 8,335.0
----------------------------------------------------------------------

Operating profit 511.5 550.8 584.0 509.1 2,155.4

Other income
(expense) (14.1) (50.8) (44.0) (14.6) (123.5)
----------------------------------------------------------------------
Income before income
taxes, minority
interest, equity
earnings in
affiliates and
discontinued
operations 497.4 500.0 540.0 494.5 2,031.9

Income taxes 143.4 130.6 148.7 120.2 542.9

Minority interest (27.6) (32.9) (35.5) (32.6) (128.6)
Equity earnings in
affiliates 48.1 55.4 65.7 67.7 236.9
----------------------------------------------------------------------
Income from
continuing
operations 374.5 391.9 421.5 409.4 1,597.3

Loss from
discontinued
operations, net of
taxes of $(6.9) - - - (11.5) (11.5)

----------------------------------------------------------------------
Net income $374.5 $391.9 $421.5 $397.9 $1,585.8
----------------------------------------------------------------------
FIRST DATA CORPORATION
(Unaudited)
(in millions)


Merchant Services Segment

Q1 Q2 Q3 Q4 YTD
Revenues: 2005 2005 2005 2005 2005
-----------------------------------------------
Transaction and
processing service
fees $660.5 $731.6 $749.5 $805.2 $2,946.8
Check verification
and guarantee
services 94.0 92.3 94.0 93.4 373.7
Investment Income,
net 7.8 9.6 11.8 14.0 43.2
Professional services 5.6 5.6 5.6 6.0 22.8
Software licensing
and maintenance 1.6 1.9 1.6 1.3 6.4
Product sales and
other 95.2 104.1 108.5 120.4 428.2
Reimbursable postage
and other 6.3 6.4 5.8 5.8 24.3
Equity earnings in
affiliates 54.7 62.3 72.7 74.4 264.1
Interest income 0.3 0.4 0.3 0.9 1.9
----------------------------------------------------------------------
Total Revenue $926.0 $1,014.2 $1,049.8 $1,121.4 $4,111.4
----------------------------------------------------------------------

Merchant Services Segment Leasing Reclassification

YTD Q1 Q2 Q3 Q4 YTD
Revenues: 2003 2004 2004 2004 2004 2004
--------------------------------------------------
Transaction and
processing service
fees $1,694.8 $508.9 $726.5 $708.7 $740.5 $2,684.6
Product sales and
other 376.9 85.0 96.6 96.1 203.0 480.7

Consolidated Results Leasing Reclassification

YTD Q1 Q2 Q3 Q4 YTD
Revenues: 2003 2004 2004 2004 2004 2004
--------------------------------------------------
Transaction and
processing service
fees:
Merchant
Services $1,962.4 $565.2 $725.0 $706.9 $739.2 $2,736.3
Product sales and
other 421.1 85.9 105.4 116.4 210.3 518.0
FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION SUMMARY
(Unaudited)
(in millions)

2004
---------
Revenue: Q1 Q2 Q3 Q4 FY
-------- --------------------------------------------------

Western Union $821.6 $864.2 $895.9 $941.6 $3,523.3

First Data
Commercial
Services 701.9 919.6 906.5 1,054.4 3,582.4

First Data Finl.
Inst. Services 430.7 474.3 485.7 466.1 1,856.8

First Data
International 161.6 186.7 203.0 224.9 776.2

Integrated Payment
Systems 94.2 94.3 56.5 34.1 279.1

--------------------------------------------------
Subtotal Segment
Revenue $2,210.0 $2,539.1 $2,547.6 $2,721.1 $10,017.8
==================================================

All Other and
Corporate $120.3 $133.7 $139.9 $128.2 $522.1
==================================================

Consolidated
Revenue $2,258.4 $2,529.1 $2,535.9 $2,689.8 $10,013.2
==================================================


FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION SUMMARY
(Unaudited)
(in millions)

2005
---------
Revenue: Q1 Q2 Q3 Q4 FY
-------- --------------------------------------------------

Western Union $918.3 $979.7 $1,023.5 $1,079.0 $4,000.5

First Data
Commercial
Services 855.0 929.7 962.9 1,014.4 3,762.0

First Data Finl.
Inst. Services 470.3 481.7 474.3 437.5 1,863.8

First Data
International 212.8 212.0 227.6 262.3 914.7

Integrated Payment
Systems 33.1 34.8 32.2 30.2 130.3

--------------------------------------------------
Subtotal Segment
Revenue $2,489.5 $2,637.9 $2,720.5 $2,823.4 $10,671.3
==================================================

All Other and
Corporate $131.1 $123.7 $123.5 $130.7 $509.0
==================================================

Consolidated
Revenue $2,466.3 $2,595.2 $2,661.9 $2,767.0 $10,490.4
==================================================
FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION SUMMARY
(Unaudited)
(in millions)

2004
-------
Operating Profit: Q1 Q2 Q3 Q4 FY
----------------- -----------------------------------------

Western Union $260.2 $272.8 $300.2 $287.7 $1,120.9

First Data Commercial
Services 151.9 222.5 230.2 338.0 942.6

First Data Finl. Inst.
Services 78.2 115.1 125.5 94.8 413.6

First Data International 7.3 16.3 25.9 28.4 77.9

Integrated Payment Systems 69.1 68.9 31.6 8.1 177.7

-----------------------------------------
Subtotal Segment
Operating Profit $566.7 $695.6 $713.4 $757.0 $2,732.7
=========================================

All Other and Corporate $(4.6) $(6.3) $12.4 $(25.7) $(24.2)
=========================================


FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION SUMMARY
(Unaudited)
(in millions)

2005
-------
Operating Profit: Q1 Q2 Q3 Q4 FY
----------------- -----------------------------------------

Western Union $298.5 $324.4 $351.0 $360.2 $1,334.1

First Data Commercial
Services 173.2 217.5 239.8 262.3 892.8

First Data Finl. Inst.
Services 87.6 106.2 98.6 85.5 377.9

First Data International 21.6 23.3 29.2 38.9 113.0

Integrated Payment Systems 10.8 10.5 7.7 6.4 35.4

-----------------------------------------
Subtotal Segment
Operating Profit $591.7 $681.9 $726.3 $753.3 $2,753.2
=========================================

All Other and Corporate $0.8 $(19.8) $(15.8) $(26.4) $(61.2)
=========================================
FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION
(Unaudited)
(in millions)
Year ended December 31, 2004

Segment Revenues:
-----------------
Card
Payments Merchant Issuing
Services Services Services
--------- ----------- --------- --------------

Previous Segment
Reporting $4,043.3 $3,844.3 $2,383.7 $-


Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate (520.0) 98.1 54.0

Reclassification of
FDI-Merchant to FDI,
and PPS to All Other
and Corporate (360.0) 321.3

Reclassification of
FDI-Card to FDI,
and FD Solutions and
FDT to All Other and
Corporate (580.9) 454.9

--------- ----------- --------- --------------
New Segment Reporting $3,523.3 $3,582.4 $1,856.8 $776.2
========= =========== ========= ==============

--------- ----------- --------- --------------
Western First Data First First Data
Union Commercial Data International
Services Finl
Inst
Services

Segment Operating
Profit:
------------------

Card
Payments Merchant Issuing
Services Services Services
--------- ----------- --------- --------------

Previous Segment
Reporting $1,305.2 $990.3 $508.1 $-

Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate (184.3) (9.1) (1.6)

Reclassification of
FDI-Merchant to FDI,
and PPS to All Other
and Corporate (38.6) 27.8

Reclassification of
FDI-Card to FDI, and
FD Solutions and FDT
to All Other and
Corporate (92.9) 50.1

--------- ----------- --------- --------------
New Segment Reporting $1,120.9 $942.6 $413.6 $77.9
========= =========== ========= ==============

--------- ----------- --------- --------------
Western First Data First First Data
Union Commercial Data International
Services Finl
Inst
Services


FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION
(Unaudited)
(in millions)
Year ended December 31, 2004

Segment Revenues:
-----------------
All Other
and
Corporate Total
----------- ----------- ----------

Previous Segment
Reporting $- $249.2 $10,520.5

Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate 279.1 100.7 11.9

Reclassification of
FDI-Merchant to FDI,
and PPS to All Other
and Corporate 41.1 2.4

Reclassification of
FDI-Card to FDI,
and FD Solutions
and FDT to All
Other and Corporate 131.1 5.1

----------- ----------- ----------
New Segment
Reporting $279.1 $522.1 $10,539.9
=========== =========== ==========

----------- ----------- ----------
Integrated All Other Total
Payment and
Systems Corporate


Segment Operating Profit:
-------------------------

All Other
and
Corporate Total
----------- ----------- ----------

Previous Segment
Reporting $- $(95.1) $2,708.5

Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate 177.7 17.3 0.0

Reclassification of
FDI-Merchant to
FDI, and PPS to All
Other and Corporate 10.8 0.0

Reclassification of
FDI-Card to FDI,
and FD Solutions
and FDT to All
Other and Corporate 42.8 0.0

----------- ----------- ----------
New Segment
Reporting $177.7 $(24.2) $2,708.5
=========== =========== ==========

----------- ----------- ----------
Integrated All Other Total
Payment and
Systems Corporate


FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION
(Unaudited)
(in millions)
Year ended December 31, 2005

Segment Revenues:
-----------------


Card
Payments Merchant Issuing
Services Services Services
--------- ----------- --------- --------------

Previous Segment
Reporting $4,447.6 $4,111.4 $2,362.9 $-

Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate (447.1) 124.3 97.3

Reclassification of
FDI-Merchant to FDI,
and PPS to All Other
and Corporate (473.7) 436.2



Reclassification of
FDI-Card to FDI, and
FD Solutions and FDT
to All Other and
Corporate (596.4) 478.5

--------- ----------- --------- --------------
New Segment Reporting $4,000.5 $3,762.0 $1,863.8 $914.7
========= =========== ========= ==============

--------- ----------- --------- --------------
Western First Data First First Data
Union Commercial Data International
Services Finl
Inst
Services

Segment Operating
Profit:
------------------

Card
Payments Merchant Issuing
Services Services Services
--------- ----------- --------- --------------

Previous Segment
Reporting $1,389.0 $971.4 $455.7 $-

Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate (54.9) (2.6) 2.1

Reclassification of
FDI-Merchant to FDI,
and PPS to All Other
and Corporate (76.0) 60.1

Reclassification of
FDI-Card to FDI, and
FD Solutions and FDT
to All Other and
Corporate (79.9) 52.9

--------- ----------- --------- --------------
New Segment Reporting $1,334.1 $892.8 $377.9 $113.0
========= =========== ========= ==============

--------- ----------- --------- --------------
Western First Data First First Data
Union Commercial Data International
Services Finl
Inst
Services


FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION
(Unaudited)
(in millions)
Year ended December 31, 2005

Segment Revenues:
-----------------

All Other
and
Corporate Total
----------- ----------- ----------

Previous Segment
Reporting $- $230.9 $11,152.8

Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate 130.3 106.2 11.0

Reclassification of
FDI-Merchant to
FDI, and PPS to All
Other and Corporate 51.2 13.7

Reclassification of
FDI-Card to FDI,
and FD Solutions
and FDT to All
Other and Corporate 120.7 2.8

----------- ----------- ----------
New Segment
Reporting $130.3 $509.0 $11,180.3
=========== =========== ==========

----------- ----------- ----------
Integrated All Other Total
Payment and
Systems Corporate

Segment Operating
Profit:
-----------------
All Other
and
Corporate Total
----------- ----------- ----------

Previous Segment
Reporting $- $(124.1) $2,692.0

Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS' to
All Other and
Corporate 35.4 20.0 0.0

Reclassification of
FDI-Merchant to
FDI, and PPS to All
Other and Corporate 15.9 0.0

Reclassification of
FDI-Card to FDI,
and FD Solutions
and FDT to All
Other and
Corporate 27.0 0.0

----------- ----------- ----------
New Segment
Reporting $35.4 $(61.2) $2,692.0
=========== =========== ==========

----------- ----------- ----------
Integrated All Other Total
Payment and
Systems Corporate

FDC-1