Concord EFS Completes Acquisition of Payment Services Reseller; Transaction Adds Important New Distribution Channel for Concord Products.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Feb. 1, 2000

Concord EFS, Inc. (NASDAQ: CEFT) announced today that it has completed the acquisition of Card Payment Systems (CPS), a New York-based reseller of payment processing services. CPS essentially acts as a &uot;wholesaler&uot; of payment services, selling to &uot;distributors&uot; who in turn sell the payment services to retailers. Concord executives say that CPS will form the foundation for an important new unbranded distribution channel for Concord's payment processing services.

&uot;Concord's current distribution channels are direct to the retail, grocery, oil and gas, financial institution, and trucking markets. Historically, we've added new channels when we determined that there was significant, untapped opportunity for growth,&uot; said Edward A. Labry III, Concord president. &uot;We believe that the reseller channel, which is currently under-served due to a high degree of market fragmentation, is ready for Concord's broad retail product line and vertically-integrated, turn-key services. With the addition of CPS, we gain expertise in this market, along with a reputation for excellent back office servicing, flexible underwriting, and a strong residual program. The combination will produce a completely integrated product at a competitive price that we think will be unique in the reseller market.&uot;

Concord is known for providing an end-to-end processing package that includes equipment leasing, card association sponsorship, transaction authorization and capture, settlement, and funds movement in a single turn-key service. Concord products that will be sold through this new channel include credit card, debit card, and electronic benefits transfer processing, payroll processing, and retail ATMs.

CPS currently services approximately 25,000 merchant accounts, adding over 2,000 new accounts per month and processing in excess of $1.8 billion in acquiring volume annually. The acquisition is expected to be accretive, adding approximately $84 million in revenue and $15 million in pre-tax net income in 2000, based on CPS' historical performance and trended growth rates.

About Concord:

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 segments of the market. Concord news releases, links to SEC filings, and other information are available on its corporate web site at www.concordefs.com.

This release may contain or incorporate by reference statements which may constitute &uot;forward-looking&uot; information, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Any such statements are not guarantees for future performance and involve risks and uncertainties, and actual results may differ materially from those contemplated by such forward-looking statements. 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. See the cautionary statements included as Exhibit 99 to our Form 10-Q for the quarter ended March 31, 1999 for a more detailed discussion of certain of the factors that could cause actual results to differ materially from those included in the forward-looking statements.