First Data Corporation to Restate Historical Financial Statements Based on Review of SFAS 133; No Impact on Cash Flows, Stockholders' Equity or on Timing of Western Union Spin-Off

First Data Corporation (NYSE: FDC) announced today thatit will restate its Form 10-K for the year ended December 31, 2005 andits Form 10-Q's for the quarters ended March 31, 2006 and June 30,2006 to reflect the current U.S. Securities and Exchange Commission(SEC) interpretations of SFAS 133, Accounting for DerivativeInstruments and Hedging Activities, which governs the appropriateaccounting treatment for hedging and derivative transactions. Based ondiscussions with the SEC, First Data and its Audit Committee concludedthat certain of its interest rate swap and foreign exchange forwardinstruments may not have qualified for cash flow hedge accountingunder SFAS 133.

The cumulative effect of these changes is a non-cash earningsincrease of approximately $30 million for the five and a half yearsfrom the adoption of SFAS 133 in 2001 through the second quarter of2006, or less than one half of one percent of First Data's earningsduring the period. The restatements will have no effect on theCompany's cash flows or total stockholders' equity, nor is it expectedto affect the timing of the spin-off of Western Union, which isscheduled for late in the third quarter or early fourth quarter 2006.

Ric Duques, Chairman and CEO said: "Our initial accountingtreatment for the derivative instruments properly reflected the intentand economics of the underlying transactions, and was reviewed andapproved by our independent auditors Ernst & Young LLP. However, theinterpretations of how to apply SFAS 133 and how to comply withtechnical documentation requirements for such instruments are complexand continue to evolve. We determined that it was in the best interestof our stockholders to restate our financial statements, and FirstData will utilize the current interpretations going forward so that itcan qualify for hedge accounting in order to minimize earningsvolatility."

First Data intends to file the restated Consolidated FinancialStatements as soon as practicable, and expects to file restatedCombined Financial Statements for The Western Union Company inAmendment No. 2 to Form 10 in August 2006.

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, 1,700 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, gift and other prepaid 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, together with itsaffiliates Orlandi Valuta and Vigo, are leaders in global moneytransfer, providing people with fast, reliable and convenient ways tosend money around the world, pay bills and purchase money ordersthrough a network of over 270,000 agent locations in more than 200countries 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.)

FDC-1