Concord EFS, Inc. Reports Third Quarter 1998 Results.

MEMPHIS, Tenn.--(BUSINESS WIRE)--Oct. 22, 1998--Concord EFS, Inc. (NASDAQ/OTC:CEFT) and Subsidiaries (the Company) reports third quarter Diluted Earnings Per Share of $0.17, up 42%; Revenue of $99,715,000, up 40%; and Net Income of $16,709,000, up 44%.

For the nine months ended September 30, 1998, the Company reported Diluted Earnings Per Share of $0.44, up 57%; Revenue of $266,570,000, up 41%; and Net Income of $43,883,000, up 58% when compared to the same period of the prior year.

The historical financial information presented in this press release has been restated to include the results of Digital Merchant Systems (DMS), which was acquired in a pooling-of-interests transaction completed on June 30, 1998. In accordance with pooling-of-interests method of accounting, no adjustments have been made to the historical carrying amounts of assets and liabilities of DMS. However, the financial information has been restated to include the operating results of DMS for all periods prior to the combination.

Digested performance in thousands, except earnings per share: -0-

                                                    Nine       Nine
                           Quarter     Quarter     Months     Months
                            Ended       Ended       Ended      Ended
                           9/30/98     9/30/97     9/30/98    9/30/97
                           -------     -------     -------    -------
                                     (Restated)             (Restated)

Revenue                   $ 99,715    $ 71,306    $266,570   $189,719

Operating Income            22,238      14,856      57,155     36,298

Net Income                  16,709      11,592      43,883     27,730

Basic Earnings Per Share     $0.17       $0.12       $0.45      $0.29

Diluted Earnings Per Share   $0.17       $0.12       $0.44      $0.28

Per share amounts have been restated to reflect all stock splits.

This release may contain statements which may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Prospective investors are cautioned that any such statements are not guarantees for future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include significant fluctuations in interest rates, inflation, economic recession, significant changes in the federal and state legal and regulatory environment, and competition in the company's markets. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future results over time.