DELUXE DATA SYSTEMS NAMES TRANSACTION NETWORK SERVICES AS PRIMARY NETWORK PROVIDER FOR EBT BUSINESS.

RESTON, Va.--(BUSINESS WIRE)--Feb. 24, 1997--Transaction Network Services, Inc. (TNS) (NASDAQ:TNSI) announced today that it has been chosen by Deluxe Data Systems to be the primary provider of transaction transport services for Deluxe's electronic benefits transfer (EBT) business.

EBT traffic from programs in Colorado, Connecticut, Kansas, Louisiana, and Utah will be the first to be fully converted to the TNS network, followed by Maryland and New Jersey later in the year. Deluxe Data Systems has also been awarded or is subcontracting to provide services on EBT contracts from 20 other states, which will add new traffic to the TNS network over the next year as these projects become operational.

TNS, which has been providing network services to Deluxe Data Systems for EBT transactions since 1992, expects transaction volume to grow by nearly 1,300 percent over the next year as a result of the new deal.

Deluxe Data Systems, headquartered in Milwaukee, Wisconsin, is a leading supplier of EBT services across the nation. The electronic delivery of benefits from government assistance programs reduces costs and fraud opportunities, while improving access to recipients. Federal law will require the electronic delivery of virtually all federal payments by the turn of the century, and welfare reform legislation enacted this year directs all states to deliver food stamps electronically by the year 2000.

"The expanding growth in the EBT market will directly affect the growth of our business," commented John J. McDonnell, Jr., TNS president and CEO. "This new alliance with Deluxe Data helps to further establish TNS as the network of choice for EBT. We're extremely proud to be so closely associated with such a dominant player in this market."

Tom McLaughlin, Deluxe Data Systems vice president for government and merchant services, welcomed the expanded relationship with TNS. "TNS has consistently provided high quality services and we look forward to this enhanced partnership," he said.

Transaction Network Services, Inc., headquartered in Reston, Virginia, provides data communications services for transaction-oriented applications. The company is listed on the NASDAQ National Market under the symbol TNSI. Additional company information is available on the TNS website at www.tnsi.com.

CONTACT: Transaction Network Services, Inc.

Karen Kazmark, Dir. of Investor Relations, 703/453-8406