Concord EFS Announces First Quarter 1999 Results.

MEMPHIS, Tenn.--(BUSINESS WIRE)--April 26, 1999--

Concord EFS, Inc. (Nasdaq:CEFT) today reported first quarter 1999 net income of $24.0 million or $0.18 diluted earnings per share excluding one-time acquisition and restructuring charges of $26.9 million, net of tax. Net income for the first quarter of 1998 was $17.3 million or $0.13 diluted earnings per share. Excluding the charges, net income increased 39% in the first quarter of 1999 when compared to the same period of the prior year. Additionally, first quarter 1999 revenue was $170.2 million, compared to $134.7 million in first quarter 1998, an increase of 26%. The one-time acquisition and restructuring charges were incurred in association with the merger of Concord EFS, Inc. and Electronic Payment Services, Inc. Historical results include the results of Electronic Payment Services, Inc. which was acquired by Concord EFS, Inc. on February 26, 1999 and accounted for as a pooling of interests.

Concord is a vertically-integrated electronic transaction processor, providing transaction authorization, data capture, settlement and funds transfer services to selected markets. Concord's primary activities include providing credit, debit, check authorization and electronic benefits transfer (EBT) processing services to supermarket, petroleum, convenience store and other retailers; and providing gateway processing, ATM driving and MAC(R) network access to the financial services industry. Concord also provides electronic payment and payroll services to trucking companies, truck stops and other niches of the market.

The following table presents selected consolidated financial data (in thousands, except earnings per share) for the first quarter of 1999 and 1998. -0-

                                                              First
                                                             Quarter
                                      First        First       1999
                                     Quarter      Quarter    Excluding
                                       1999         1998      Charges

Revenue                              $170,234     $134,666    $170,234

Cost of Operations                    120,850       95,029     120,850

Selling General and
     Administrative Expenses           12,368       13,100      12,368

Acquisition Expenses and
     Restructuring Charges             34,810

Operating Income                        2,207       26,537      37,016

Interest Income, Net                    1,732          749       1,732

Income Taxes                            6,807        9,937      14,715

Net Income (Loss)                      (2,868)      17,349      24,033

Basic Earnings (Loss) Per Share        ($0.02)       $0.14       $0.19

Diluted Earnings (Loss) Per Share      ($0.02)       $0.13       $0.18

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. 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, successful implementation of the Company's Year 2000 compliance project, the impact of the Company's recent acquisition of Electronic Payment Services, Inc. on its business and the market for the Company's stock 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.