Fiserv, Inc. Acquires Item Processing Business of the Federal Home Loan Bank of Indianapolis.

Business Editors

BROOKFIELD, Wis.--(BUSINESS WIRE)--Nov. 3, 2003

With Purchase, Fiserv Further Expands

its Role as the Nation's Largest Third-Party Processor of Checks

Fiserv, Inc. (Nasdaq: FISV) has acquired the item processing business of the Federal Home Loan Bank of Indianapolis, further broadening its nationwide infrastructure at a time of great change for the check-processing industry. No purchase price was disclosed.

The item processing business of the Federal Home Loan Bank of Indianapolis, which has annualized processing and services revenues of $3 million, provides check processing to more than 45 financial institutions in Indiana and Michigan. The unit has 32 employees in its Indianapolis facility.

Leslie M. Muma, Fiserv President and Chief Executive Officer, sees significant opportunity for Fiserv in the item processing business.

"The check processing business is in the midst of possibly its most dramatic changes ever," Muma said, referring to the Check Truncation Act, or Check 21, a recently enacted federal law that is expected to speed the transition to greater use of digital images in check processing. "This acquisition is part of our strategic plan to be the vendor of choice for financial institutions that want to participate in the changes encouraged by Check 21."

Fiserv already is the nation's largest third-party processor of checks, annually touching more than 4.7 billion checks, or more than 10% of the country's total volume. With this acquisition, Fiserv now operates 49 image-enabled check-processing facilities across the country - all linked to the Fiserv Image Archive. Fiserv did not previously have a location in Indiana.

Fiserv operates an additional 17 check-processing facilities across Canada through its Intria Items, Inc. joint venture with the Canadian Imperial Bank of Commerce.

Vince Cera, Senior Vice President of Information Systems and Operations for the Federal Home Loan Bank of Indianapolis, said the sale to Fiserv ensures continued quality service to the bank's clients.

"Fiserv has the expertise and the nationwide scale to continue making investments in new technology," Cera said. "The sale enables the Federal Home Loan Bank of Indianapolis to focus on our core business of providing liquidity through advances and other services - such as purchasing mortgages through our growing mortgage purchase program - to our 433 financial institution members."

With this latest acquisition, Fiserv has acquired the item processing businesses of 10 of the Home Loan Banks that offered item processing services.

Mark Damico, President of the Fiserv Item Processing Group, said Fiserv will continue to look for more ways to expand its nationwide network to gain closer proximity to clients. With the acquisition, Fiserv provides item processing services to more than 1,700 financial institutions across the country.

"We see great opportunities in this business as we move closer to a day when images - instead of paper - are used to exchange checks," Damico said.

Fiserv, Inc. (Nasdaq: FISV) provides industry leading information management systems and services to the financial industry, including transaction processing, outsourcing, business process outsourcing and software and systems solutions. The company serves more than 14,000 clients worldwide, including banks, broker-dealers, credit unions, financial planners/investment advisers, insurance companies and agents, self-insured employers, lenders and savings institutions. Headquartered in Brookfield, Wisconsin, Fiserv reported $2.3 billion in processing and services revenues for 2002. Fiserv can be found on the Internet at www.fiserv.com.