Concord EFS Reports Second Quarter 1998 Results.

MEMPHIS, Tenn.--(BUSINESS WIRE)--July 23, 1998--Concord EFS Inc. (NASDAQ/OTC:CEFT) and Subsidiaries (the company) reports second quarter results.

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.

The second quarter results are: diluted earnings per share of $0.15, up 67 percent; revenue of $90,588,000, up 42 percent; and net income of $15,014,000, up 62 percent, when compared to the same period of the prior year.

Dan M. Palmer, chairman and CEO of the company, commented, "We are pleased with second quarter results, which include our recent acquisition of Digital Merchant Systems. The acquisition is already accretive to earnings and will be a positive addition to the growth of the company."

For the six months ended June 30, 1998, the company reported diluted earnings per share of $0.27, up 69 percent; revenue of $166,855,000, up 41 percent; and net income of $27,174,000, up 68 percent.

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.

The digested performance in thousands, except earnings per share is -0-

                            Quarter   Quarter   Six Months  Six Months
                             Ended     Ended      Ended       Ended
                            6/30/98   6/30/97    6/30/98      6/30/97
                           --------  ---------  ----------  ----------
                                     (Restated) (Restated)  (Restated)

Revenue                    $ 90,588  $ 63,628   $166,855     $118,412

Operating Income             19,947    12,378     34,917       21,441

Net Income                   15,014     9,255     27,174       16,138

Basic Earnings Per Share (a)  $0.15     $0.10      $0.28        $0.17

Diluted Earnings Per
 Share (a)                    $0.15     $0.09      $0.27        $0.16

(a) All per share amounts reflect the three-for-two stock split
    effected June 1998.

CONTACT: Concord EFS Inc., Memphis

Edward A. Labry III, 901/371-8000