Fiserv Reports Record Earnings During Second Quarter of 2001; Announces 3-for-2 Common Stock Split.

Business Editors/High Tech Writers

BROOKFIELD, Wis.--(BUSINESS WIRE)--July 23, 2001

Fiserv, Inc. (Nasdaq: FISV) announced today record earnings for the second quarter of 2001 and a 3-for-2 Common Stock split among shareholders of record as of August 10, 2001.

For the three-month period ended June 30, 2001, Fiserv revenues were $472.6 million, a 13.5% increase over the $416.4 million reported for the second quarter of 2000. Net income per share-diluted (excluding realized gains from sale of investment) for the second quarter of 2001 was $0.40 per share, compared to $0.34 per share for the second quarter of 2000.

For the six-month period ended June 30, 2001, Fiserv revenues were $926.6 million, a 14.0% increase over the $812.8 million reported for the first six months of 2000. Net income per share-diluted (excluding realized gains from sale of investment) for the first six months of 2001 was $0.79 per share, compared to $0.68 per share for the first six months of 2000.

"During the first half of 2001, Fiserv reported strong earnings results as we continue to build on our successful history of consistent growth," said Leslie M. Muma, President and CEO of Fiserv, Inc. "Most of our business units continued to perform at or above our expectations during the first six months, both in terms of internal revenue growth from existing clients and new sales contracts. We saw very strong growth in our Financial Institution Outsourcing, Systems and Services Segment, which accounts for approximately 80% of our total revenue. This was partially offset by the decline in our Securities Processing and Trust Services Segment that had been anticipated. Our target for full-year diluted earnings per share (EPS) for 2001 continues to be $1.60 to $1.61, excluding any realized gains from sale of investment. This is consistent with our historical EPS growth targets of 18% - 20% per year.

"Sales of our traditional products remained strong with the year-to-date signing of 193 new clients and 670 cross-sell agreements, and our pipeline continues to be robust as we move into the second half of the year. Revenues associated with new contracts signed in 2001 are up more than 30% over the prior year due largely to an increase in average contract size," Muma added.

"We serve a dynamic market, where our clients are facing evolving customer needs and technology demands on a daily basis. Using our extensive resources, industry-specific expertise and advanced product suite, clients gain in Fiserv a partner who will help successfully manage the many challenges of an evolving business environment," Muma concluded.

Fiserv announced during the second quarter that it will provide the technology to support CIGNA Bank & Trust, the new federally chartered, full-service thrift formed by CIGNA Corporation. CIGNA Corporation's subsidiaries are leading providers of employee benefits. In June, Fiserv and Northern Trust announced the formation of a joint venture to provide receivables management services, commonly known as lockbox. The venture will provide receivables management services to Northern Trust for its clients, with plans to sell services to additional financial institutions. As part of the joint venture, Northern Trust also signed a long-term servicing agreement.

Subsequent to quarter end, Fiserv announced that it had acquired Austin, Texas-based EPSIIA Corporation, a provider of large-scale electronic archival, retrieval and presentment solutions. Fiserv currently provides solutions for paper-based systems, including laser printing, mailing and fulfillment of statements and other documents. As the industry continues to move toward electronic presentment and delivery, there has been a growing demand for these types of delivery options. EPSIIA provides a real-world, proven solution for Fiserv clients who are looking to complement, or possibly replace, their current paper-based systems through electronic document management services.

Fiserv announced today a 3-for-2 split in its outstanding shares of Common Stock among shareholders of record as of August 10, 2001. Distribution of new shares will be mailed on or about August 31, 2001, by the Company's transfer agent, EquiServe Trust Company, N.A. This stock split will be the Company's sixth since it went public in September 1986. Fiserv previously carried out 3-for-2 splits in April 1999, May 1998, May 1993, June 1992 and July 1991.

Fiserv, Inc. (Nasdaq: FISV) is an independent, full-service provider of integrated data processing and information management systems to the financial industry. As a leading technology resource, Fiserv serves more than 10,000 financial services providers worldwide, including banks, broker-dealers, credit unions, financial planners and investment advisers, insurance companies and agents, mortgage banks and savings institutions. Headquartered in Brookfield, Wisconsin, Fiserv also can be found on the Internet at www.fiserv.com.

The disclosure set forth above contains forward-looking statements, specifically Mr. Muma's statements regarding future earnings, earnings targets and business prospects. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may cause actual results to differ materially from those contemplated by the forward-looking statements include, among others, changes in customers' demand for the Corporation's products, pricing and other actions by competitors, and general changes in economic conditions or U.S. financial markets. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.

                     FISERV, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF INCOME
               (In thousands, except per share amounts)
                              (Unaudited)


                         Three Months Ended          Six Months Ended
                              June 30,                  June 30,
                         2001          2000          2001        2000
                     --------      --------      --------    --------

Revenues             $472,646      $416,434      $926,558    $812,836
                     --------      --------      --------    --------
Cost of revenues:
Salaries,
 commissions and
 payroll related
 costs                227,194       198,029       445,889     387,601
Data processing
 expenses,
 rentals and
 telecommunication
 costs                 30,948        28,457        60,553      56,569
Other operating
 expenses              97,898        78,371       190,290     153,598
Depreciation and
 amortization of
 property and
 equipment             18,758        17,419        37,063      34,168
Amortization of
 intangible assets      8,877        15,626        17,669      22,802
Amortization
 (capitalization)
 of internally
 generated computer
 software-net             592          (856)          110        (244)
                     --------      --------      --------    --------
Total cost of
 revenues             384,267       337,046       751,574     654,494
                     --------      --------      --------    --------
Operating income       88,379        79,388       174,984     158,342
Interest expense
 - net                 (3,237)       (6,000)       (7,054)    (11,806)
Realized gain from
 sale of investment     1,506         2,928         3,327       2,928
                     --------      --------      --------    --------
Income before
 income taxes          86,648        76,316       171,257     149,464
Income tax provision   34,659        31,289        68,503      61,280
                     --------      --------      --------    --------
Net income           $ 51,989      $ 45,027      $102,754    $ 88,184
                     ========      ========      ========    ========

Net income per share:
   Basic                $0.42         $0.37         $0.83       $0.72
   Diluted              $0.41         $0.36         $0.81       $0.70
Excluding realized
 gain from sale of
 investment:
   Diluted              $0.40         $0.34         $0.79       $0.68
   Diluted
    (excluding
    goodwill
    amortization)       $0.44         $0.38         $0.87       $0.75

Shares used in
 computing net
 income per share:
   Basic              124,372       122,991       124,240     122,807
   Diluted            127,501       126,401       127,367     125,972


                     FISERV, INC. AND SUBSIDIARIES
                     SELECTED SEGMENT INFORMATION
                            (In thousands)
                              (Unaudited)


                          Three Months Ended         Six Months Ended
                               June 30,                 June 30,
                         2001          2000          2001        2000
                     --------      --------      --------    --------

Revenues:
Financial
 institution
 outsourcing,
 systems and
 services            $374,618      $313,092      $734,980    $606,180
Securities
 processing and
 trust services(1)     81,627        87,727       157,649     174,174
All other and
 corporate             16,401        15,615        33,929      32,482
                     --------      --------      --------    --------
Total                $472,646      $416,434      $926,558    $812,836
                     ========      ========      ========    ========

Operating income:
Financial institution
 outsourcing, systems
 and services         $78,548       $60,519      $158,144    $109,855
Securities processing
 and trust
 services(1) (2)       12,103        20,449        20,491      50,396
All other and
 corporate             (2,272)       (1,580)       (3,651)     (1,909)
                     --------      --------      --------    --------
Total                 $88,379       $79,388      $174,984    $158,342
                     ========      ========      ========    ========

(1) Includes a $12.0 million termination fee received by the

Company in the second quarter of 2001 from a broker-dealer

customer recently acquired by a third party.

(2) Includes a $12.3 million charge recorded in the second quarter

of 2001 related to the planned consolidation of the Company's

securities processing businesses.