Human Resources: Fiserv Reports Third Quarter Results

Brookfield, Wis., Oct. 24, 2006—Fiserv, Inc. (Nasdaq: FISV), a leading provider of information management systems and services to the financial and health benefit industries, today reported revenues and earnings for the third quarter of 2006. Total revenues for the quarter increased 14 percent to $1.16 billion compared with $1.01 billion in 2005.

Earnings per share for the quarter were $0.63 compared with $0.60 in 2005. Earnings per share from continuing operations were $0.63 for the quarter compared with adjusted earnings per share of $0.56 for the third quarter of 2005.

For the nine months ended Sept. 30, 2006, total revenues increased 12 percent to $3.35 billion compared with $2.98 billion in 2005. Earnings per share for the first nine months of 2006 were $1.93 compared with $1.90 in 2005. Earnings per share from continuing operations increased 15 percent to $1.89 for the first nine months of 2006 versus adjusted earnings per share of $1.65 in 2005.

“The Financial segment led our strong third quarter performance. Solid revenue growth and increasing margins are indicative of our enhanced focus on delivering results,” said Jeff Yabuki, president and chief executive officer of Fiserv. “We are pleased with our results and are on track to achieve our full-year targets.

“We are excited about the positive response to our recent launch of Fiserv 2.0, our new plan to enhance value, opportunity and growth for our key stakeholders,” added Yabuki. “We are putting the strategies and initiatives in place that we believe will help us to deliver even better results over the long term.”

Other business and operating highlights for the third quarter and the first nine months of 2006 included:

· Cash flow from operations increased 15 percent for the first nine months to $453 million in 2006 from $393 million in 2005, and capital expenditures were $150 million for the first nine months of the year;

· Financial segment operating income was up 16 percent to $165 million versus adjusted operating income of $142 million in the third quarter of 2005;

· Adjusted operating margin for the quarter in the company’s Financial segment improved 150 basis points to 23.9 percent as compared to 22.4 percent in the third quarter of 2005;

· The company repurchased 1.6 million shares of its common stock in the third quarter for a total of 9.8 million shares during the first nine months of 2006. The company had 3.2 million shares remaining under its repurchase authorization as of Sept. 30, 2006;

· Fiserv Electronic Funds Transfer had strong sales results with 48 new clients signed in the quarter, bringing the total for the year to 159 new clients. Nearly 85 percent of the year-to-date sales were made within the Fiserv core client base;

· The Fiserv Clearing Network (FCN) added 81 new clients in the quarter and a total of 205 clients in 2006. FCN has 100 percent settlement bank coverage across the United States;

· Wachovia Bank recently selected Fiserv to provide home equity processing services that will enable the bank to reduce its costs, while meeting its customers’ need for an efficient process;

· Fiserv successfully converted Sovereign Bank’s recent acquisition of Independence Community Bank Corp., a $19 billion asset institution, to Fiserv’s SourceOne core processing system. Sovereign Bank is now an $89 billion financial institution;

· Fiserv completed two acquisitions in the quarter:

Ø The Jerome Group LLC, a full-service direct marketing firm and digital print provider, which enhances the ability of Fiserv’s Output Solutions division to help clients build loyalty and drive new revenues; and

Ø InsureWorx®, a provider of core processing software solutions for workers’ compensation, commercial property and casualty and risk administration organizations, which enhances Fiserv’s commercial insurance solutions capabilities.

OUTLOOK FOR 2006

The company updated its full-year 2006 continuing operations earnings estimate to be within a range of $2.51 to $2.54 per share, from its previously communicated guidance of $2.48 to $2.54 per share. The company anticipates its 2006 adjusted internal revenue growth rates (excluding customer reimbursements and prescription product revenues) will be in the mid-single digits for the Financial and Investment segments and low single digits in the Health segment.

ACCOUNTING CHANGE

On Jan. 1, 2006, the company adopted Statement of Financial Accounting Standards No. 123 (revised 2004), “Share-Based Payment” (“SFAS 123R”), which requires companies to expense the value of employee stock purchase plans, stock option grants and similar awards. The company adopted SFAS 123R under the modified prospective method, which requires the application of SFAS 123R in 2006 to new awards and to awards modified, repurchased, or cancelled after the effective date. Additionally, compensation cost for the portion of outstanding awards for which service had not been rendered (such as unvested options) that were outstanding as of Jan. 1, 2006 will be recognized as the remaining services are rendered.

Share-based compensation expense for the third quarter of 2006 was $4.7 million, or $0.02 per share, and for the nine-month period ended Sept. 30, 2006 was $24.0 million, or $0.09 per share. Share-based compensation expense is estimated to be $0.11 per share for the full year of 2006.

EARNINGS CONFERENCE CALL

Fiserv will discuss the third quarter results on a conference call and Webcast at 4 p.m. CDT on Oct. 24. To register for the event, go to www.fiserv.com and click on “Upcoming Events.”

USE OF NON-GAAP FINANCIAL INFORMATION

The company reports its financial results in accordance with GAAP. In addition, the company uses certain non-GAAP performance measures, including “free cash flow,” “internal revenue growth,” “adjusted operating income,” “adjusted operating margin,” and “adjusted earnings per share,” to provide investors a more complete understanding of the company’s underlying operational results. These non-GAAP measures are indicators that management uses to provide additional meaningful comparisons between current results and prior reported results, and as a basis for planning and forecasting for future periods. As an example, the company uses adjusted earnings per share to present the impact of certain transactions or events that management expects to occur infrequently, such as the realized gain on sale of investment occurring in the nine-month period ended Sept. 30, 2005. The company believes this adjusted measure is more indicative of the company’s operating performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for comparable metrics prepared in accordance with GAAP in the United States.