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SPS THIRD QUARTER EARNINGS UP 45 PERCENT

 RIVERWOODS, Ill., Oct. 11 /PRNewswire/ -- SPS Transaction Services, Inc. (NYSE: PAY) today reported net income for the quarter ended Sept. 30, 1993 rose to a record $8.2 million, equal to 61 cents per share, compared with a restated $5.7 million, or 42 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 third quarter were a record $51.7 million, up 21 percent from $42.7 million during the same period in 1992.
 Net income for the nine months ended September 30, 1993 was $22.5 million, up 70 percent from a restated $13.3 million during the same period last year. Earnings per share were $1.67 compared to a restated $1.05 for the nine month period in 1992. Net operating revenues increased 25 percent to $149.9 million, compared to $119.8 million for the same period last year.
 Robert L. Wieseneck, president and chief executive officer, attributed the company's third quarter performance to continued growth in each of its three principal businesses.
 Electronic Transaction Processing Services processed 78.5 million point-of-sale transactions, an increase of 22 percent from 64.6 million in the third quarter of 1992. The increase was the result of existing client growth and the addition of six new clients during the quarter. The company has recently announced a five-year agreement to continue providing transaction processing services for Conoco Inc., one of its largest transaction processing clients.
 Wieseneck 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. Wieseneck also noted the October launch of a new adaptive control behavioral scoring system to further streamline collections and reduce related expenses.
 The Operational Outsourcing Services business showed revenue increases resulting primarily from the expanded level of PRODIGY member services, including technical support, provided by SPS for Prodigy Services Company, a national on-line computer network.
 SPS Transaction Services, Inc. headquartered in Riverwoods, 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 High
 (Unaudited, in thousands, except per share)
 Three months ended Sept. 3 1993 1992(A) Pct. Chg.
 Net operating revenues $ 51,740 $ 42,666 21
 Net income $ 8,212 $ 5,672 45
 Net income per common share $ 0.61 $ 0.42 45
 Weighted average common shares
 outstanding 13,492 13,450 --
 Nine months ended Sept. 3 1993 1992(A) Pct. chg.
 Net operating revenues $149,897 $119,823 25
 Income before cumulative effect of
 accounting change $ 22,544 $ 14,255 58
 Cumulative effect of accounting
 change $ - $ (991) --
 Net income $ 22,544 $ 13,264 70
 Net income per common share:
 Income before cumulative effect of
 accounting change $ 1.67 $ 1.13 48
 Cumulative effect of accounting
 change -- $ (0.08) --
 Net income per common share $ 1.67 $ 1.05 59
 Weighted average common shares
 outstanding 13,475 12,669 --
 (A) -- Restated to reflect accounting change related to future retirees' accrued health benefits (SFAS No. 106).
 -0- 10/11/93
 /CONTACT: Jean Fargo, investors relations of SPS Transaction Services, 708-405-3400/
 (PAY)


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

TS -- NY009 -- 0538 10/11/93 08:22 EDT
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Date:Oct 11, 1993
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