U.S. Department of Defense to Enhance Charge Card Fraud Detection with Fair Isaac Falcon Technology

Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision management technology, today announced that the U.S. Department of Defense (DoD) will utilize the company’s industry-leading fraud detection technology to deter misuse in its Purchase Card Program. The DoD Purchase Card Program enables authorized DoD personnel to purchase certain goods and services, such as office supplies and equipment, directly from private sector vendors. It is one of several charge card programs that the DoD operates to streamline business processes and reduce administrative costs. Under terms of the agreement, Fair Isaac’s wholly owned subsidiary HNC Software LLC will deliver a custom modified Falcon™ Fraud Manager solution in an ASP environment to help the DoD combat misuse of purchase cards — including cardholder and vendor fraud. Falcon Fraud Manager is recognized as the leading global payment card fraud detection system. It protects nearly 900 million payment card accounts across six continents, and saves businesses in the financial services, retail, telecommunications, government and other sectors millions of dollars every day. "The use of charge cards across federal agencies helps to streamline the procurement of goods and services, but it also requires reliable and efficient fraud management to prevent losses due to card fraud and abuse,” said John McDowell, vice president, Government Solutions at Fair Isaac. "Fair Isaac’s advanced, real-time fraud analytics are known worldwide for their effectiveness in helping organizations cut losses and protect their customers from fraudulent transactions. We welcome the opportunity to work with the DoD in establishing effective fraud detection and prevention practices that will further streamline its operations for even greater control over fraud and abuse.” The custom fraud solution will analyze each authorization transaction using DoD-specific risk indicators. By leveraging custom predictive models developed specifically for the DoD purchase card program as well as patented account profiling technologies and sophisticated case management, the analytic solution will quickly and reliably identify at-risk transactions and generate a risk score. Based on scoring thresholds and flexible, user-defined rules, a transaction will be referred for further evaluation. Periodic audits and risk assessments will help the DoD identify and keep ahead of emerging new schemes for purchase card misuse. About Fair Isaac Fair Isaac Corporation (NYSE:FIC) combines trusted advice, world-class analytics and innovative applications to help businesses make smarter decisions. Fair Isaac’s solutions and technologies for Enterprise Decision Management turn strategy into action and elevate business performance by giving organizations the power to automate more decisions, improve the quality of their decisions, and connect decisions across their business. Clients in 80 countries work with Fair Isaac to increase customer loyalty and profitability, cut fraud losses, manage credit risk, meet regulatory and competitive demands, and rapidly build market share. Fair Isaac also helps millions of individuals manage their credit health through the www.myFICO.com website. Learn more about Fair Isaac at www.fairisaac.com. Statement Concerning Forward-Looking Information Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac, including statements regarding its Falcon Fraud Manager product offering, and the benefits to be derived from this offering, are forward-looking statements within the meaning of the "safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including any unforeseen technical difficulties related to the implementation, use and functionality of the offering, the risks that customers will not perceive material benefits from the offering, failure of the products to deliver the expected result, the possibility of errors or defects in the offering, regulatory changes applicable to the use of consumer credit and other data, and other risks described from time to time in Fair Isaac’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2006, and quarterly report on Form 10-Q for the period ended June 30, 2007. Forward-looking statements should be considered with caution. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Fair Isaac’s results could differ materially from Fair Isaac’s expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements. Fair Isaac and Falcon are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and/or in other countries. Other product and company names herein may be the trademarks of their respective owners.