Discover(R) Debit Wins Independent Bankers Association of Texas Endorsement.

Leading Organization of Texas Community Banks to Promote Discover-Branded Signature Debit Program to More Than 510 Financial Institutions

HOUSTON & AUSTIN, Texas -- The Board of Directors of the Independent Bankers Association of Texas (IBAT) has voted unanimously to endorse Discover([R]) Debit, a new signature debit program developed jointly by PULSE EFT Association LP and Discover([R]) Network, a division of Discover Financial Services LLC.

IBAT Services Inc., IBAT's products and services marketing division, will work with PULSE([R]), a Discover Financial Services company, to promote the product to the trade association's more than 510 Texas community banks. The organizations will undertake a comprehensive marketing campaign to familiarize the IBAT financial institution members with the advantages of the Discover Debit program.

Under the terms of a multi-year agreement between IBAT and PULSE, IBAT has agreed to endorse the Discover Debit program exclusively.

"This signature debit program was designed with the needs of financial institutions in mind, offering improved revenue potential, transparent pricing, simple operating regulations and enhanced product features," said Chris Williston, President and CEO of IBAT. "Following an in-depth review, IBAT is endorsing Discover Debit because it represents the best value for our member institutions."

The first new signature debit program to be introduced in more than a decade, Discover Debit offers many advantages to financial institutions, including lower expenses, fully disclosed pricing and simplified billing. In addition, the product features proactive fraud and security measures, broad acceptance and numerous value-added cardholder services for both the consumer and business card programs.

Financial institutions may elect to offer Discover Debit in addition to any other signature debit products currently available. Participation does not require discontinuation of any existing relationship with other programs.

"Discover Network and PULSE are pleased that the Independent Bankers Association of Texas responded to the value proposition offered by Discover Debit and chose to endorse the program," said David Schneider, President of PULSE. "PULSE and IBAT have a long-standing relationship, and we look forward to working together to market this exciting product to Texas community banks."

IBAT also endorses Select ATM([R]), PULSE's surcharge-free ATM alliance.

About IBAT Services Inc.

IBAT Services is the for-profit subsidiary of the Independent Bankers Association of Texas. The Services board of directors assumes the responsibility for IBAT for performing due diligence on products and services that enhance the competitive advantages and profitability of community bank members in Texas. Services' purchasing power and marketing support helps negotiate advantageous benefits for IBAT members.

About PULSE EFT Association LP

PULSE is one of the nation's leading ATM/debit networks, currently serving more than 4,200 banks, credit unions and savings institutions across the country. PULSE is owned by Discover Financial Services LLC, a business unit of Morgan Stanley (NYSE:MS). The network links cardholders with nearly 250,000 ATMs and approximately 3.4 million POS terminals at retail locations nationwide. The company is also a valued resource for consumer research related to electronic payments and is committed to providing its participants with education on evolving products, services and trends in the payments industry. For more information, visit www.pulse-eft.com.