ATLANTA, Dec. 22 /PRNewswire-FirstCall/ -- Global Payments Inc. (NYSE: GPN), a worldwide provider of electronic transaction processing solutions, today announced that it has acquired a group of European electronic money transfer firms from individual investors. These firms operate collectively under the name Europhil. (Logo: http://www.newscom.com/cgi-bin/prnh/20010221/ATW031LOGO ) Founded in 1989, Europhil was one of the first money transfer firms established in Spain. Based in Madrid, the group operates 26 retail branches in Spain, Belgium and the United Kingdom. Europhil's vast settlement network includes approximately 1,000 locations in over 20 countries. More than 80 percent of its money transfers are sent to Latin American countries, including Ecuador, Columbia, Bolivia and Brazil. Most of its remaining money transfers are sent to African and Asian countries, including Morocco, the Philippines and India. "We are pleased to expand our position in the fast-growing money transfer industry," said Paul R. Garcia, chairman, president and CEO of Global Payments. "With this strategic acquisition, we are entering a new region outside the U.S. with large fund flows into our core Latin American market, in addition to accessing new and attractive money transfer regions in Europe, Africa and Asia," continued Garcia. "Europhil is remarkably similar to DolEx in its early stages, with a fixed-cost business model, a dedicated management team and a potential for high growth," added Raul Limon, who, as president of DolEx, will have responsibility for Europhil. "We are excited about this unique opportunity to combine our strengths and expand our share of these large markets," continued Limon. For calendar year 2004, Europhil anticipates approximately $12 million in revenue. Over the long term, Global anticipates strong revenue growth and earnings accretion from this transaction, as the company expands Europhil's branch presence, enters new fund flow corridors and leverages its DolEx channel. In its second quarter earnings release, Global will update its fiscal 2005 guidance to reflect this acquisition. Global Payments will discuss this transaction during an earnings conference call on December 23, 2004 at 10:30 a.m. EST. The call may be accessed by calling 1-888-790-1641 (U.S.) or 1-210-234-8000 (internationally), or via the company's Web site at http://www.globalpaymentsinc.com by clicking the "Web Cast" button. The pass code for callers is GPN. A slide presentation will be available during the call on Global's Web site, and a replay of the call will also be available on this site through January 12, 2005. Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi- national corporations located throughout the United States, Canada, Latin America and Europe. Global Payments offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, check guarantee, verification and recovery including electronic check services, as well as terminal management and money transfer services. For additional information about the company and its services, visit http://www.globalpaymentsinc.com . This announcement and comments made by Global Payments' management during the conference call may contain forward-looking statements pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements involve risks and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, development difficulties, foreign currency risks, costs of capital, continued certification by credit card associations, the ability to consummate and integrate acquisitions, and other risks detailed in the Company's SEC filings, including the most recently filed Form 10-Q or Form 10-K, as applicable. The Company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events. Fact Sheet Global Payments Expands Worldwide Presence in Money Transfer Industry through Acquisition of Europhil Acquisition Summary: Global Payments ("Global") has acquired a group of European electronic money transfer firms ("Europhil" or the "company") from individual investors. These firms operate collectively under the name Europhil. Global used existing cash to complete the acquisition, which is not subject to regulatory approval or other conditions. Description of Europhil: Founded in 1989, Europhil was one of the first money transfer firms established in Spain. Based in Madrid, the company operates 20 retail branches in Spain, 4 in Belgium and 2 in the United Kingdom. Europhil's branches are located in major cities with large immigrant populations, including Madrid, Barcelona, Brussels and London. The company serves a growing market of immigrant customers who send a portion of their earnings to relatives in their home countries. Europhil's vast settlement network includes approximately 1,000 locations in over 20 countries. This settlement network primarily includes bank branches, currency exchange houses and money transfer firms. More than 80 percent of its money transfers are sent to Latin American countries, including Ecuador, Columbia, Bolivia, Brazil, the Dominican Republic and Peru. Most of its remaining money transfers are sent to African and Asian countries, including Morocco, the Philippines and India. The Electronic Money Transfer Industry: The money transfer industry is a large and growing market primarily due to increased population migration and the continued immigrant usage of money transfer firms. According to 2003 data from the International Monetary Fund ("IMF") and the Inter-American Development Bank ("IADB"), Western Europe and the U.S. are two of the largest origination regions for money transfers ($52 billion and $34 billion, respectively), and Latin America is one of the largest destination regions ($38 billion). Management: Europhil has more than 200 employees, including an experienced management team that will remain with Global Payments and will be managed through Global Payments' DolEx channel. DolEx is a leading provider of money transfer services to Latino customers and has approximately 660 retail branches in the U.S. and 10,000 settlement locations in Latin America. Competitive Advantages: DolEx and Europhil share many competitive advantages. Among these include a branch model that provides more control over the customer experience and creates more financial leverage than the agent model. Both DolEx and Europhil have customer card programs that not only promote brand loyalty, but also allow for fast, convenient transactions. More than 80 percent of DolEx's transactions are made using over 850,000 issued "Amigo Latino" cards, and more than 70 percent of Europhil's transactions are made using over 75,000 issued "Club Europhil" cards. DolEx and Europhil also have proprietary, leading-edge technology platforms that allow for real-time control over the majority of operations, including pricing, compliance and settlement. Both technology platforms meet or exceed regulatory requirements, resulting in favorable compliance reports from government audits. Finally, both DolEx and Europhil offer an expansive settlement network that management believes is the largest in Latin America. Growth Opportunities: Europhil has many significant growth opportunities. According to the IADB, money transfer volume to Latin America (Europhil's largest settlement region) has grown 18 percent per year from 2000 to 2003. Further, according to the IMF, money transfer volume sent from Spain (Europhil's largest origination market) was approximately $4 billion in 2003, reflecting growth of 26 percent per year since 1999. Spain's recent money transfer growth has primarily been due to an aging native population and the related influx of immigrants needed in the workforce (20+ percent average annual immigrant growth from 2000 to 2003) to fuel Spain's recently strong economic expansion (7 percent average annual GDP growth from 1999 to 2003). In addition to benefiting from these macro trends, Europhil's growth opportunities also include expanding its branch footprint by either opening or acquiring new locations, developing new services, expanding its settlement presence, leveraging the market presence and management experience of DolEx and entering new fund flow regions. Financial Summary: For calendar year 2004, Europhil anticipates approximately $12 million in revenue. Global expects the acquisition will be non-dilutive to earnings per share. Over the long term, Global anticipates strong revenue growth and earnings accretion from this transaction, as it expands Europhil's branch presence, enters new fund flow corridors and leverages its DolEx channel. Global Payments Web Conference: December 23, 2004 at 10:30 a.m. EST U.S. access telephone number: 1-888-790-1641 International access telephone number: 1-210-234-8000 The call pass code is GPN A replay of the conference will be available through January 12, 2005. A copy of the press release announcing the acquisition is posted on the Global Payments Inc. Web site. A slide presentation describing the acquisition will also be posted to the Web site during the conference call. Web site URL is http://www.globalpaymentsinc.com . Investor Relations Contact: Jane M. Forbes 770 829-8234 Voice Investor.firstname.lastname@example.org Media Relations Contact: Phyllis McNeill 770 829-8245 Voice email@example.com
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