FDRL to offer HNC Software's real-time fraud detection; New distribution agreement to benefit card issuers.

SAN DIEGO, Calif.--(BUSINESS WIRE)--Oct. 21, 1996--HNC Software Inc. and First Data Resources Ltd., a business unit of First Data Corp. that is the largest, independent third-party bank card processor in the United Kingdom, today jointly announced the signing of a 5-year agreement for FDRL to offer its clients HNC's Falcon payment card fraud detection system in a true, transaction-based implementation.

Falcon is a neural network-based system that examines transaction, cardholder and merchant data to detect a wide range of payment card fraud. Falcon runs within the FDRL authorization system to capture relationships and patterns that often are missed by traditional methods of detecting suspicious card use. With its ability to look at every transaction as it occurs, including settlement information for below-floor-limit transactions, Falcon has improved fraud detection rates while significantly lowering the rate of false positives over traditional methods. The version of Falcon deployed by FDRL will include a neural network model based on account data exclusively from the United Kingdom. FDRL plans to provide the Falcon fraud detection capabilities to its clients in a real-time fashion in 1997.

As part of the agreement, FDRL will also distribute the optional Falcon Expert subsystem, which lets fraud managers easily define and deploy rules to automate various fraud prevention procedures, including responding to authorization requests in real time, and creating or reopening cases based on Falcon transaction fields and/or the Falcon score.

According to Rick Norman, director client services, FDRL, "We are pleased to be partnered with HNC in offering a proven solution to minimizing bank card fraud. Our goal is to bring our client banks the best card processing technology available, and we are convinced that a real-time implementation of the Falcon product line is the optimal way to prevent fraud losses."

HNC Software President Robert North added, "FDRL carefully considered its clients' needs in reaching an agreement with HNC Software. We believe that their decision will be a winning one for all parties concerned -- HNC, FDRL and the client base."

With approximately 2,000 employees in Basildon, England, FDR Ltd. is the UK business unit of First Data (NYSE: FDC), which provides information processing services to financial institutions, merchants, insurance companies, health care providers, governmental agencies, public utilities and consumers throughout the United States, United Kingdom, Germany and Australia, FDC is a world leader in payment services. Employees in more than 120 countries work behind the scenes to help clients grow their own businesses. In 1995, FDC generated $4.1 billion in revenue through its efforts to help clients round the clock better serve their own customers. Together, First Data's group of diverse, highly interrelated business units serve some of the largest corporate names in the world.

Headquartered in San Diego, Calif., HNC Software Inc. (NASDAQ: HNCS) is a world leader in the application of neural network technology in client/server environments. The company develops, markets, integrates and supports advanced decision software based on computational intelligence. HNC provides practical solutions in the areas of electronic payments, financial services, retail, educational publishing, direct marketing and market research. For more information, contact Patsy Campbell, director of marketing, HNC Software Inc., 5930 Cornerstone Court West, San Diego, CA 92121, 619/546-8877. -0-

Falcon is a trademark of HNC Software Inc.

CONTACT: HNC Software Inc.

Patricia Campbell, 619-546-8877

or

First Data Resources Ltd.

Janet Reynolds, 011-441-268-296308