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SPS REPORTS 69 PERCENT INCREASE IN NET INCOME

 RIVERWOODS, Ill., July 19 /PRNewswire/ -- SPS Transaction Services, Inc. (NYSE: PAY) today reported net income for the quarter ended June 30, 1993, rose to a record $7.0 million, equal to 52 cents per share, compared with a restated $4.1 million, or 31 cents per share, in the same period a year earlier. Net income for 1992 has been restated to reflect an accounting change related to future retirees' accrued health benefits. Net operating revenues for the second quarter were a record $49.3 million, up 25 percent from $39.6 million during the same period in 1992.
 Net income for the six months ended June 30 was $14.3 million, up 89 percent from a restated $7.6 million during the same period last year. Earnings per share were $1.06 compared to a restated 62 cents for the first half of 1992. Net operating revenues increased to $98.1 million, compared to $77.2 million for the same period in 1992.
 Robert L. Wieseneck, president and chief executive officer, attributed the company's second quarter performance to continued growth in each of its three principal businesses.
 Electronic Transaction Processing Services processed 75.5 million point-of-sale transactions, an increase of 30 percent from 57.9 million in the second quarter of 1992. The increase was the result of growth in the number of transactions processed for existing clients and the implementation of three new clients during the quarter.
 Wieseneck also cited continued earnings growth in the Private Label Credit Card Services business due to the use of improved credit risk scoring models and improved collection methods. Second quarter highlights included the roll-out of the United Surgical Funding and Systems' MedCash card and expansion of the use of the Fred Meyer card to all store departments.
 The Operational Outsourcing Services business showed revenue increases resulting from the expanded level of PRODIGY member services, including technical support, provided by SPS to Prodigy Services Company, a national on-line computer network.
 Wieseneck also announced that the company and Phillips Petroleum Company, the company's longest-standing customer, have entered into a new long-term agreement under which SPS will continue to provide a broad range of transaction processing services including authorization and data capture.
 On June 30, 1993, Sears, Roebuck and Co. completed its spin-off of Dean Witter, Discover & Co. As a result, SPS is no longer an indirect subsidiary of Sears, but remains a 74.1 percent owned, indirect subsidiary of Dean Witter, Discover & Co.
 SPS Transaction Services, Inc. headquartered in Riverwoods, Ill., is a leading third-party provider of electronic payment systems and customer services. Principal services include processing electronic credit card transactions, developing and implementing private label credit card programs, and providing customized operational outsourcing solutions.
 SPS TRANSACTION SERVICES, INC.
 Financial Highlights
 (Unaudited -- In thousands, except per share data)
 Three Months Ended June 30
 1993 1992(A) Pct. Change
 Net Operating Revenues $49,307 $39,586 25
 Net Income $ 7,016 $ 4,149 69
 Net Income per
 Common Share $ 0.52 $ 0.31 68
 Weighted Average Common
 Shares Outstanding 13,473 13,450 --
 SPS TRANSACTION SERVICES, INC.
 Financial Highlights
 (Unaudited -- In thousands, except per share data)
 Six Months Ended June 30
 1993 1992(A) Pct. Change
 Net Operating Revenues $98,157 $77,157 27
 Income Before
 Cumulative Effect
 of Accounting Change $14,332 $ 8,583 67
 Cumulative Effect
 of Accounting Change $ -- $ (991) --
 Net Income $14,332 $ 7,592 89
 Net Income per Common Share:
 Income Before
 Cumulative Effect
 of Accounting Change $ 1.06 $ 0.70 51
 Cumulative Effect
 of Accounting Change $ -- $ (0.08) --
 Net Income per
 Common Share $ 1.06 $ 0.62 71
 Weighted Average
 Common Shares
 Outstanding 13,466 12,275 --
 (A) Restated to reflect accounting change related to future retirees' accrued health benefits (SFAS No. 106).
 -0- 7/19/93
 /CONTACT: Jean Fargo of SPS Investor Relations, 708-405-3400/
 (PAY)


CO: SPS Transaction Services, Inc. ST: Illinois IN: SU: ERN

PS -- NY010 -- 2872 07/19/93 08:26 EDT
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Publication:PR Newswire
Date:Jul 19, 1993
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