Chase and NatWest to Form a Strategic Alliance.

Business Editors

NEW YORK and LONDON--(BUSINESS WIRE)--Jan. 10, 2000

Chase Merchant Services L.L.C. (CMS), and National Westminster Bank (NatWest) today announced that they have signed a Letter of Intent regarding the formation of a strategic alliance to provide credit card acceptance services for corporations who want to centralize their international credit card processing activities.

Chase Merchant Services, a joint venture between The Chase Manhattan Bank (NYSE:CMB) and First Data Merchant Services (FDMS), a subsidiary of First Data Corp. (NYSE:FDC), and NatWest are the leading merchant credit card processors in the US and the UK.

Chase Merchant Services and NatWest will jointly promote the alliance's service to both new and existing customers. CMS and NatWest Merchant Services together process 3.2 billion card transactions per year with a total value of over $220 billion.

This alliance is intended to provide an opportunity to increase business volumes significantly by joining Chase's major international corporate customer base with NatWest's extensive multi-currency capability and experience as the first multi-currency global card acquirer.

Corporate customers of the alliance will be able to accept card transactions in 145 currencies across the world and will also be able to receive reimbursement in up to 22 settlement currencies. This will benefit multinational companies that trade internationally across the globe, but who want to receive settlement for their trading activities in, for example, their own currency.

Patrick Boylan, Chief Executive, NatWest Card Services said: "NatWest's strategic alliance with Chase provides a significant step towards achieving our global ambition. It further demonstrates our commitment to being a key player in the global card business. We recognize the strength of the Chase franchise and their leading position in card acquiring and are totally confident that this strategic alliance will enable us to develop successful global solutions for our customers."

Donald L. Boudreau, Chase Vice Chairman, said: "We are delighted with the opportunity to form a strategic alliance with the NatWest Group. They are the fourth largest credit card acquirer in the world, the largest international acquirer, and have a proven track record in international acquiring. Corporate customers of both Chase and NatWest will benefit greatly from the combined capabilities of both institutions."

The Letter of Intent is subject to negotiation of a definitive agreement among Chase, First Data and NatWest.

Chase Merchant Services is the nation's largest merchant acquirer and the provider of comprehensive Internet-based solutions for merchants. Chase Merchant Services processes nearly 2 billion transactions a year and more than $120 billion in annual credit and debit card sales volume at the point of sale and over the Internet. Chase Merchant Services is a joint venture between First Data Merchant Services Corporation and The Chase Manhattan Bank, the fourth largest bankcard issuer in the United States. Chase, with more than $370 billion in assets, has relationships with more than 30 million consumers coast to coast. Chase can be reached on the Web at www.chase.com. First Data Merchant Corp. is one of the nation's leading providers of electronic commerce solutions for hundreds of institutions and nearly two million businesses.

NatWest Group is engaged in a wide range of banking, financial and related activities in the UK and in 25 other countries ranging from individuals and small businesses to multi-national companies. NatWest has over 25 years experience in the UK cards market offering personal and commercial card services, is the No. 1 acquirer outside the US and offers multi-currency acquiring services accepting transactions in 145 currencies and offering the ability to settle in 22.