First Data Reports 18 Percent Growth in Earnings Per Share

Earnings Per Share of $0.47 this Quarter v. $0.40 in 1Q 2000



Revenue grew 10%



Apr 12, 2001, 01:00 ET from First Data Corp.

    ATLANTA, April 12 /PRNewswire/ -- First Data Corp. (NYSE:   FDC), a global
 leader in electronic commerce and payment services, announced strong first
 quarter results, Chairman and Chief Executive Officer Ric Duques reported
 today.  Earnings per share were $0.47, an increase of 18% over first quarter
 2000.  This marks the company's eighth consecutive quarter of double-digit EPS
 growth.  Revenue grew 10% to $1.5 billion.
     "First Data achieved superb financial results this quarter with consistent
 operating performance in each of our core businesses," said Duques.  "We
 continued our efforts to secure First Data's future by establishing
 significant partnerships, renewing key business contracts, and making select
 acquisitions in growth areas of the business.  We remain confident that by
 capitalizing on our strengths and focusing on operating performance, we will
 deliver earnings per share in 2001 in the range of $2.44 to $2.50, up 14-17%
 over year 2000."
 
     Financial Highlights (excluding nonrecurring items)
     *  EPS increased 18% to $0.47, up from $0.40 in the first quarter 2000.
     *  Net income increased 11% to $190 million.
     *  All three primary business segments -- Payment, Merchant and Card
        Issuing Services -- achieved operating margin improvement compared to
        first quarter 2000, with margins in each exceeding 20%.  The Company's
        net income margin was 12.9%, up slightly over first quarter 2000.
     *  The company continued to generate strong free cash flow of
        approximately $245 million after capital expenditures.
     *  During the quarter, First Data completed the $1 billion share
        repurchase program authorized in May 2000 by acquiring 2.9 million
        shares of its stock for $163.6 million at an average price of
        approximately $56 per share.  In addition, under a new $500 million
        share repurchase program authorized in December 2000, the Company
        repurchased 365,000 shares during the first quarter for $21.0 million
        at an average price of approximately $58 per share, leaving
        $479 million for future purchases.
 
     In addition to reporting strong first quarter earnings, First Data
 recently executed several agreements that continue to provide growth
 opportunities in its core business and adjacent markets.  Some of these
 include:
     *  In January, Western Union signed a 5-year agreement with the India
        Department of Posts which is expected to expand our money transfer
        services throughout India to 5,000 locations in three years.
     *  Western Union signed an agreement with China Post, as a money transfer
        agent, which is expected to add 1,000 new agent locations in the next
        year.  Eventually, more than 40,000 of China Posts' 66,000 locations
        may offer Western Union's money transfer services to China's
        1.3 billion people.
     *  Western Union also signed an agreement with 7-Eleven to offer automated
        money transfer services to potentially 5,000 new locations, and signed
        a five-year agreement with Publix supermarkets to increase its presence
        throughout the Southeast United States, with 650 new locations.
        Another agreement with Rite-Aid drugstores will add 1,600 money
        transfer locations.
     *  First Data signed a long-term agreement to continue to provide
        processing services for Citibank USA bankcard accounts and the
        Associates National Bank (Delaware) portfolio.
     *  First Data also signed a definitive agreement, which is subject to
        material closing conditions, to acquire PaySys International, which
        provides card processing in more than 35 countries for bank, retail,
        and private label cards.
     *  First Data also formed Nihon Card Processing Co. Ltd., the first
        company in Japan to provide third-party credit card processing
        services.
 
     Business Segment Highlights
     Payment Services, comprised largely of Western Union and representing
 approximately 40% of First Data revenue, delivered stellar quarterly
 performance, with revenue up 18% to $626 million and profits up 20% to
 $161 million.  Global demand for money transfers continued to fuel growth,
 along with increased utilization of Quick Collect(R) and other commercial
 services in the U.S. market.
     Worldwide money transfer transactions increased 23% to 25.6 million, in
 line with aggressive expansion of the global Western Union agent network that
 grew 21%, year over year, to 104,000 locations.  Western Union is targeting
 location growth of approximately 20% in 2001, and expects to reach 120,000
 locations by year-end.
     Western Union International revenue was up 36%, or up 40% when adjusted
 for the weaker Euro.  Money transfer transactions increased 46% year over
 year.
     Merchant Services, comprised primarily of the company's merchant acquiring
 and TeleCheck businesses, accounts for approximately 30% of First Data's
 revenue.  Merchant Services posted 17% growth in revenue to $476 million, with
 21% growth in operating profits to $103 million.
     The Company believes the increasing use of credit, debit, stored value,
 and other electronic payments will underpin transaction growth as consumers
 continue to rely on the ease and convenience they offer.
     The TeleCheck business continues to significantly expand merchant
 utilization of electronic check acceptance (ECA), which converts paper checks
 into electronic items at the point of sale.  In the first quarter, it handled
 more than 13 million ECA transactions, nearly doubling the prior year's
 volume.
     During the quarter, First Data acquired a majority interest in TASQ
 Technology, Inc., an industry leader in point-of-sale (POS) technologies that
 will complement First Data Merchant Services' POS deployment operations.
     Card Issuing Services, the world's largest third-party card processor,
 accounts for approximately 25% of First Data's revenue. Operating profits
 increased 6% to $73 million, while revenue of $362 million was relatively
 flat.  Operating margins increased to 20.1%, as the result of ongoing cost
 management initiatives.
     Accounts on file, consisting of credit, debit and retail store cards, grew
 21% to 311 million, reflecting the addition of 44 million JC Penney accounts
 last fall.
     Emerging Payments, a newly formed segment focused on building and
 commercializing emerging technologies, reported $21 million in revenue for the
 first quarter, a 5% growth over first quarter 2000.
     eONE Global continues to pursue new growth opportunities and build its
 operating companies in the business and government payment markets.  It
 launched govONE Solutions, combining CashTax with the recently acquired
 transaction processing business of govWorks to augment payment solutions for
 regional and national governments.  More recently, eONE Global and VeriSign
 announced a partnership to co-market each other's products and to develop
 solutions to increase secure payment options in B2B and B2C marketplaces.
 
     Outlook for 2001
     "We are extremely pleased with our outstanding first quarter results in
 the face of a slowing economy and weaker consumer spending," Duques said.  "We
 remain confident about our ability to deliver on our previously announced
 earnings expectations.  Based on our market leadership, our strong client
 relationships and current business trends, we continue to expect revenue
 growth in the range of 13-16% and earnings per share in the range of
 $2.44-$2.50, or 14-17% growth for the year."
 
     Conference Call
     A conference call will be held at 8:30 a.m. EDT today to discuss the
 Company's 2001 first quarter financial performance.  Ric Duques, Chairman and
 Chief Executive Officer, Charlie Fote, President and Chief Operating Officer
 and Kim Patmore, Chief Financial Officer will host the call.  The call will be
 open to the public. The conference call can be accessed by calling
 888-730-9134 or 212-287-1857 and passcode:  FDC.
     This call will be broadcast on the Company's website at
 www.firstdata.com .  Interested parties are encouraged to click on the webcast
 link 10-15 minutes prior to the start of the conference call.
 
     Atlanta-based First Data Corp. (NYSE:   FDC) helps move the world's money.
 As the leader in electronic commerce and payment services, First Data serves
 nearly 2.5 million merchant locations, 1,400 card issuers and millions of
 consumers, making it easier, faster and more secure for people and businesses
 to buy goods and services using virtually any form of payment.  With more than
 27,000 employees worldwide, the company provides credit, debit and
 stored-value card issuing and merchant transaction processing services;
 Internet commerce solutions; money transfers and money orders; and check
 processing and verification services throughout the United States, United
 Kingdom, Australia, Mexico, Spain and Germany.  In addition, its Western
 Union(R) network includes approximately 104,000 agent locations with
 operations in 186 countries and territories.  For more information, please
 visit the company's Web site at www.firstdata.com .
 
     Notice to Investors, Prospective Investors and the Investment Community
     Cautionary Information Regarding Forward-Looking Statements
     The revenue and EPS growth projections for the Company and its segments as
 set forth in this press release, and other statements which project
 performance or events in the future, are "forward-looking statements".  All
 forward-looking statements are inherently uncertain as they are based on
 various expectations and assumptions concerning future events and they are
 subject to numerous known and unknown risks and uncertainties which could
 cause actual events or results to differ materially from those projected.
 Important factors upon which the Company's forward-looking statements are
 premised include:  (a) continued growth at rates approximating recent levels
 for card-based payment transactions, consumer and commercial money transfer
 transactions and other product markets;  (b) successful conversions under
 service contracts with major clients; (c) renewal of material contracts in the
 Company's business units consistent with past experience; (d) timely,
 successful and cost effective implementation of processing systems to provide
 new products, improved functionality and increased efficiencies, particularly
 in the Card Issuing Services segment; (e) continuing development and
 maintenance of appropriate business continuity plans for the Company's
 processing systems based on the needs and risks relative to each such system;
 (f) absence of consolidation among client financial institutions or other
 client groups which has a significant impact on FDC client relationships and
 no material loss of business from significant customers of the Company; (g)
 achieving planned revenue growth throughout the Company, including in the
 merchant alliance program which involves several joint ventures not under the
 sole control of the Company and each of which acts independently of the
 others, and successful management of pricing pressures through cost
 efficiencies and other cost management initiatives; (h) no material slowing of
 economic conditions or consumer spending, (i) anticipation of and response to
 technological changes, particularly with respect to e-commerce; (j) attracting
 and retaining qualified key employees; (k) no imposition of a Value Added Tax
 on third-party credit card processing services by the European Community
 ("EC"), which could put credit card processing outsourcers at a competitive
 disadvantage to in-house solutions in the EC; (l) no unanticipated changes in
 laws, regulations, credit card association rules or other industry standards
 affecting FDC's businesses which require significant product redevelopment
 efforts, reduce the market for or value of its products, or render products
 obsolete; (m) continuation of the existing interest rate environment, avoiding
 increases in agent fees related to the Company's consumer money transfer
 products and the Company's short-term borrowing costs; (n) absence of
 significant changes in foreign exchange spreads on retail money transfer
 transactions, particularly between the United States and Mexico, without a
 corresponding increase in volume or consumer fees; (o) continued political
 stability in countries in which Western Union has material operations; (p)
 implementation of Western Union agent agreements with governmental entities
 according to schedule and no interruption of relations with countries in which
 Western Union has or is implementing material agent agreements; (q) no
 unanticipated developments relating to previously disclosed lawsuits against
 Western Union, inter alia, violation of consumer protection laws in connection
 with advertising the cost of money transfer; and (r) successfully managing the
 potential both for patent protection and patent liability in the context of
 rapidly developing legal framework for expansive software patent protection.
 
 
                              FIRST DATA CORPORATION
                           SUMMARY FINANCIAL HIGHLIGHTS
                                    (Unaudited)
                      (In millions, except per share amounts)
 
 
                                              Three Months Ended March 31,
 
                                              2001         2000         Change
 
     Revenues
        Total Revenue                       $1,471.2     $1,343.2         10%
 
     Income before income taxes
        Before nonrecurring items             $266.1       $239.1         11%
        Restructuring, business
         divestitures, litigation and
        impairments, net                          --         (9.5)
                                              $266.1       $229.6         16%
 
     Net Income
        Before nonrecurring items             $190.2       $171.0         11%
        Restructuring, business
         divestitures, litigation and
        impairments, net                          --         (6.0)
        Cumulative effect of a change in
         accounting principle                   (2.7)          --
                                              $187.5       $165.0         14%
 
     Earnings per common share
        Before nonrecurring items              $0.47        $0.40         18%
        Restructuring, business
         divestitures, litigation and
        impairments, net                          --        (0.01)
        Cumulative effect of a change in
         accounting principle                     --          --
                                               $0.47        $0.39         21%
 
     Weighted average shares outstanding
      - diluted                                402.2        423.4         -5%
 
     Net Income margins
        Before nonrecurring items              12.9%        12.7%     0.2 pts
        Restructuring, business
         divestitures, litigation and
        impairments, net                                    (0.4%)
        Cumulative effect of a change in
         accounting principle                  (0.2%)
                                               12.7%        12.3%     0.4 pts
 
 
 
                              FIRST DATA CORPORATION
                         CONSOLIDATED STATEMENTS OF INCOME
                                    (Unaudited)
                      (In millions, except per share amounts)
 
                                          Three Months Ended March 31,  Percent
                                               2001          2000       Change
     Revenues:
     Service revenues (a)                    $1,427.3      $1,316.1
     Product sales and other                     43.9          27.1
                                              1,471.2       1,343.2       10%
 
     Expenses: (a)
     Operating                                  914.1         873.9        5%
     Selling, general & administrative          259.5         209.8       24%
     Restructuring, business divestitures,
      litigation and impairments, net (b)          --           9.5       N/M
     Interest expense                            31.5          20.4       54%
                                              1,205.1       1,113.6        8%
 
     Income before cumulative effect of
      a change in accounting principle
      and income taxes                          266.1         229.6       16%
 
     Income taxes                                75.9          64.6       17%
 
     Income before cumulative effect of
      a change in accounting principle          190.2         165.0       15%
 
     Cumulative effect of a change in
      accounting principle, net of $1.6
      income tax benefit (c)                     (2.7)         --
 
     Net income                                $187.5        $165.0       14%
 
     Diluted earnings per common share          $0.47         $0.39       21%
 
     Weighted average shares outstanding
      - diluted                                 402.2         423.4       -5%
 
     Shares outstanding at end of period        392.2         412.2       -5%
 
 
     Depreciation expense                       $52.0         $60.2      -14%
     Goodwill amortization
        Deductible                              $12.4         $11.7        6%
        Non-deductible                           12.2          12.5       -2%
     Other intangibles amortization              72.3          65.1       11%
           Total amortization                   $96.9         $89.3        9%
 
     (a)First Data Corporation adopted Staff Accounting Bulletin No. 101 -
        Revenue Recognition in Financial Statements in 2000 which resulted in
        the netting of certain revenue and expenses that were previously
        presented gross in the income statement.  2000 amounts were restated.
 
     (b)Results for 2000 include a gain on the sale of Hogan of $3.2 million
        and restructuring charges of $12.7 million.  Net of taxes, the effect
        of these items was a loss of $6.0 million.
 
     (c)Represents the transition adjustment for the adoption of Statement of
        Financial Accounting Standard No. 133, "Accounting for Derivative
        Instruments and Hedging Activities," as amended January 1, 2001.
 
        N/M = Not meaningful.
 
 
 
                              FIRST DATA CORPORATION
                         Financial Transaction Processing
                                  Key Indicators
                                   (Unaudited)
 
 
     March 31,                                    2001        2000  Percent
 
     Card accounts on file (millions) (a)
        Domestic Cards                            282.4       231.4      22%
        International Cards                        28.5        25.4      12%
           Total                                  310.9       256.8      21%
 
     For the Three Months Ended March 31:
 
     Merchant dollar volume (billions,
      North America only) (b)                    $110.1       $99.7      10%
 
     North America Merchant transactions
      (millions) (b)                            1,966.0     1,790.0      10%
 
     Payment Instrument transactions
      (millions)
        Money Transfer                             25.6        20.8      23%
 
     (a)2000 domestic and international card accounts on file have been
        restated to reflect a reclassification from international to domestic
        in 2001.
     (b)North America Merchant dollar volume includes Visa and Mastercard
        credit and off-line debit, and on-line debit at the point-of-sale.
        North America Merchant transactions include Visa and Mastercard credit
        and off-line debit, processed-only customer transactions, and on-line
        debit at the point-of-sale.
 
 
                               FIRST DATA CORPORATION
                                SUMMARY SEGMENT DATA
                                    (Unaudited)
                                   (In millions)
 
                                                Three Months Ended March 31,
                                                 2001         2000    % Inc/Dec
     Revenues:
         Payment Services                       $625.6        $530.5       18%
         Merchant Services (f)                   476.2         408.3       17%
         Card Issuing Services (d)               361.8         364.0       -1%
         Emerging Payments (e)                    21.4          20.4        5%
         All Other and Corporate                  38.6          57.4      -33%
 
              Subtotal                         1,523.6       1,380.6       10%
 
         Eliminations (a)                        (52.4)        (37.4)      40%
 
              Consolidated                    $1,471.2      $1,343.2       10%
 
     Operating Profit: (c)
         Payment Services                       $161.3        $134.4       20%
         Merchant Services (f)                   103.4          85.7       21%
         Card Issuing Services                    72.7          68.9        6%
         Emerging Payments (e)                     0.2           3.2       N/M
         All Other and Corporate                  (1.2)          4.7       N/M
 
              Subtotal                           336.4         296.9       13%
 
         Corporate Interest Expense, net         (31.5)        (20.4)      54%
         Restructuring, Business
          Divestitures, Litigation and
          Impairments, net                         ---          (9.5)      N/M
         Eliminations (b)                        (38.8)        (37.4)       4%
 
              Consolidated                      $266.1        $229.6       16%
 
     Depreciation & Amortization:
         Payment Services                        $30.2         $30.3        0%
         Merchant Services                        64.6          58.6       10%
         Card Issuing Services                    50.1          56.0      -11%
         Emerging Payments (e)                     0.7           0.7       -2%
         All Other and Corporate                   3.3           3.9      -14%
 
              Consolidated                      $148.9        $149.5        0%
 
      (a) Represents elimination of adjustment to record payment services
          revenues on a pre-tax equivalent basis and elimination of
          inter-segment revenue.
 
      (b) Represents elimination of adjustment to record payment services
          profit on a pre-tax equivalent basis.
 
      (c) Operating profit with respect to the Company's segments represents
          earnings before income taxes and interest expense and includes
          certain allocations of Corporate overhead.
 
      (d) First Data Corporation adopted Staff Accounting Bulletin No. 101-
          Revenue Recognition in Financial Statements in 2000 which resulted in
          the netting of certain revenue and expenses that were previously
          presented gross in the income statement.  2000 amounts were restated.
 
      (e) The Emerging Payments segment was created in 2000 by moving non-core
          E-Commerce related activity and investments from the other segments
          and "All Other and Corporate".  Additionally, a small information
          business was moved from "All Other and Corporate" to "Card Issuing
          Services".  2000 amounts were restated.
 
      (f) In the third quarter of 2000 the Company gained a controlling
          interest in a merchant alliance.  Revenues and expenses have been
          restated to the beginning of 2000 to reflect this venture as a
          consolidated subsidiary.
 
         N/M = Not meaningful
 
 

SOURCE First Data Corp.
    ATLANTA, April 12 /PRNewswire/ -- First Data Corp. (NYSE:   FDC), a global
 leader in electronic commerce and payment services, announced strong first
 quarter results, Chairman and Chief Executive Officer Ric Duques reported
 today.  Earnings per share were $0.47, an increase of 18% over first quarter
 2000.  This marks the company's eighth consecutive quarter of double-digit EPS
 growth.  Revenue grew 10% to $1.5 billion.
     "First Data achieved superb financial results this quarter with consistent
 operating performance in each of our core businesses," said Duques.  "We
 continued our efforts to secure First Data's future by establishing
 significant partnerships, renewing key business contracts, and making select
 acquisitions in growth areas of the business.  We remain confident that by
 capitalizing on our strengths and focusing on operating performance, we will
 deliver earnings per share in 2001 in the range of $2.44 to $2.50, up 14-17%
 over year 2000."
 
     Financial Highlights (excluding nonrecurring items)
     *  EPS increased 18% to $0.47, up from $0.40 in the first quarter 2000.
     *  Net income increased 11% to $190 million.
     *  All three primary business segments -- Payment, Merchant and Card
        Issuing Services -- achieved operating margin improvement compared to
        first quarter 2000, with margins in each exceeding 20%.  The Company's
        net income margin was 12.9%, up slightly over first quarter 2000.
     *  The company continued to generate strong free cash flow of
        approximately $245 million after capital expenditures.
     *  During the quarter, First Data completed the $1 billion share
        repurchase program authorized in May 2000 by acquiring 2.9 million
        shares of its stock for $163.6 million at an average price of
        approximately $56 per share.  In addition, under a new $500 million
        share repurchase program authorized in December 2000, the Company
        repurchased 365,000 shares during the first quarter for $21.0 million
        at an average price of approximately $58 per share, leaving
        $479 million for future purchases.
 
     In addition to reporting strong first quarter earnings, First Data
 recently executed several agreements that continue to provide growth
 opportunities in its core business and adjacent markets.  Some of these
 include:
     *  In January, Western Union signed a 5-year agreement with the India
        Department of Posts which is expected to expand our money transfer
        services throughout India to 5,000 locations in three years.
     *  Western Union signed an agreement with China Post, as a money transfer
        agent, which is expected to add 1,000 new agent locations in the next
        year.  Eventually, more than 40,000 of China Posts' 66,000 locations
        may offer Western Union's money transfer services to China's
        1.3 billion people.
     *  Western Union also signed an agreement with 7-Eleven to offer automated
        money transfer services to potentially 5,000 new locations, and signed
        a five-year agreement with Publix supermarkets to increase its presence
        throughout the Southeast United States, with 650 new locations.
        Another agreement with Rite-Aid drugstores will add 1,600 money
        transfer locations.
     *  First Data signed a long-term agreement to continue to provide
        processing services for Citibank USA bankcard accounts and the
        Associates National Bank (Delaware) portfolio.
     *  First Data also signed a definitive agreement, which is subject to
        material closing conditions, to acquire PaySys International, which
        provides card processing in more than 35 countries for bank, retail,
        and private label cards.
     *  First Data also formed Nihon Card Processing Co. Ltd., the first
        company in Japan to provide third-party credit card processing
        services.
 
     Business Segment Highlights
     Payment Services, comprised largely of Western Union and representing
 approximately 40% of First Data revenue, delivered stellar quarterly
 performance, with revenue up 18% to $626 million and profits up 20% to
 $161 million.  Global demand for money transfers continued to fuel growth,
 along with increased utilization of Quick Collect(R) and other commercial
 services in the U.S. market.
     Worldwide money transfer transactions increased 23% to 25.6 million, in
 line with aggressive expansion of the global Western Union agent network that
 grew 21%, year over year, to 104,000 locations.  Western Union is targeting
 location growth of approximately 20% in 2001, and expects to reach 120,000
 locations by year-end.
     Western Union International revenue was up 36%, or up 40% when adjusted
 for the weaker Euro.  Money transfer transactions increased 46% year over
 year.
     Merchant Services, comprised primarily of the company's merchant acquiring
 and TeleCheck businesses, accounts for approximately 30% of First Data's
 revenue.  Merchant Services posted 17% growth in revenue to $476 million, with
 21% growth in operating profits to $103 million.
     The Company believes the increasing use of credit, debit, stored value,
 and other electronic payments will underpin transaction growth as consumers
 continue to rely on the ease and convenience they offer.
     The TeleCheck business continues to significantly expand merchant
 utilization of electronic check acceptance (ECA), which converts paper checks
 into electronic items at the point of sale.  In the first quarter, it handled
 more than 13 million ECA transactions, nearly doubling the prior year's
 volume.
     During the quarter, First Data acquired a majority interest in TASQ
 Technology, Inc., an industry leader in point-of-sale (POS) technologies that
 will complement First Data Merchant Services' POS deployment operations.
     Card Issuing Services, the world's largest third-party card processor,
 accounts for approximately 25% of First Data's revenue. Operating profits
 increased 6% to $73 million, while revenue of $362 million was relatively
 flat.  Operating margins increased to 20.1%, as the result of ongoing cost
 management initiatives.
     Accounts on file, consisting of credit, debit and retail store cards, grew
 21% to 311 million, reflecting the addition of 44 million JC Penney accounts
 last fall.
     Emerging Payments, a newly formed segment focused on building and
 commercializing emerging technologies, reported $21 million in revenue for the
 first quarter, a 5% growth over first quarter 2000.
     eONE Global continues to pursue new growth opportunities and build its
 operating companies in the business and government payment markets.  It
 launched govONE Solutions, combining CashTax with the recently acquired
 transaction processing business of govWorks to augment payment solutions for
 regional and national governments.  More recently, eONE Global and VeriSign
 announced a partnership to co-market each other's products and to develop
 solutions to increase secure payment options in B2B and B2C marketplaces.
 
     Outlook for 2001
     "We are extremely pleased with our outstanding first quarter results in
 the face of a slowing economy and weaker consumer spending," Duques said.  "We
 remain confident about our ability to deliver on our previously announced
 earnings expectations.  Based on our market leadership, our strong client
 relationships and current business trends, we continue to expect revenue
 growth in the range of 13-16% and earnings per share in the range of
 $2.44-$2.50, or 14-17% growth for the year."
 
     Conference Call
     A conference call will be held at 8:30 a.m. EDT today to discuss the
 Company's 2001 first quarter financial performance.  Ric Duques, Chairman and
 Chief Executive Officer, Charlie Fote, President and Chief Operating Officer
 and Kim Patmore, Chief Financial Officer will host the call.  The call will be
 open to the public. The conference call can be accessed by calling
 888-730-9134 or 212-287-1857 and passcode:  FDC.
     This call will be broadcast on the Company's website at
 www.firstdata.com .  Interested parties are encouraged to click on the webcast
 link 10-15 minutes prior to the start of the conference call.
 
     Atlanta-based First Data Corp. (NYSE:   FDC) helps move the world's money.
 As the leader in electronic commerce and payment services, First Data serves
 nearly 2.5 million merchant locations, 1,400 card issuers and millions of
 consumers, making it easier, faster and more secure for people and businesses
 to buy goods and services using virtually any form of payment.  With more than
 27,000 employees worldwide, the company provides credit, debit and
 stored-value card issuing and merchant transaction processing services;
 Internet commerce solutions; money transfers and money orders; and check
 processing and verification services throughout the United States, United
 Kingdom, Australia, Mexico, Spain and Germany.  In addition, its Western
 Union(R) network includes approximately 104,000 agent locations with
 operations in 186 countries and territories.  For more information, please
 visit the company's Web site at www.firstdata.com .
 
     Notice to Investors, Prospective Investors and the Investment Community
     Cautionary Information Regarding Forward-Looking Statements
     The revenue and EPS growth projections for the Company and its segments as
 set forth in this press release, and other statements which project
 performance or events in the future, are "forward-looking statements".  All
 forward-looking statements are inherently uncertain as they are based on
 various expectations and assumptions concerning future events and they are
 subject to numerous known and unknown risks and uncertainties which could
 cause actual events or results to differ materially from those projected.
 Important factors upon which the Company's forward-looking statements are
 premised include:  (a) continued growth at rates approximating recent levels
 for card-based payment transactions, consumer and commercial money transfer
 transactions and other product markets;  (b) successful conversions under
 service contracts with major clients; (c) renewal of material contracts in the
 Company's business units consistent with past experience; (d) timely,
 successful and cost effective implementation of processing systems to provide
 new products, improved functionality and increased efficiencies, particularly
 in the Card Issuing Services segment; (e) continuing development and
 maintenance of appropriate business continuity plans for the Company's
 processing systems based on the needs and risks relative to each such system;
 (f) absence of consolidation among client financial institutions or other
 client groups which has a significant impact on FDC client relationships and
 no material loss of business from significant customers of the Company; (g)
 achieving planned revenue growth throughout the Company, including in the
 merchant alliance program which involves several joint ventures not under the
 sole control of the Company and each of which acts independently of the
 others, and successful management of pricing pressures through cost
 efficiencies and other cost management initiatives; (h) no material slowing of
 economic conditions or consumer spending, (i) anticipation of and response to
 technological changes, particularly with respect to e-commerce; (j) attracting
 and retaining qualified key employees; (k) no imposition of a Value Added Tax
 on third-party credit card processing services by the European Community
 ("EC"), which could put credit card processing outsourcers at a competitive
 disadvantage to in-house solutions in the EC; (l) no unanticipated changes in
 laws, regulations, credit card association rules or other industry standards
 affecting FDC's businesses which require significant product redevelopment
 efforts, reduce the market for or value of its products, or render products
 obsolete; (m) continuation of the existing interest rate environment, avoiding
 increases in agent fees related to the Company's consumer money transfer
 products and the Company's short-term borrowing costs; (n) absence of
 significant changes in foreign exchange spreads on retail money transfer
 transactions, particularly between the United States and Mexico, without a
 corresponding increase in volume or consumer fees; (o) continued political
 stability in countries in which Western Union has material operations; (p)
 implementation of Western Union agent agreements with governmental entities
 according to schedule and no interruption of relations with countries in which
 Western Union has or is implementing material agent agreements; (q) no
 unanticipated developments relating to previously disclosed lawsuits against
 Western Union, inter alia, violation of consumer protection laws in connection
 with advertising the cost of money transfer; and (r) successfully managing the
 potential both for patent protection and patent liability in the context of
 rapidly developing legal framework for expansive software patent protection.
 
 
                              FIRST DATA CORPORATION
                           SUMMARY FINANCIAL HIGHLIGHTS
                                    (Unaudited)
                      (In millions, except per share amounts)
 
 
                                              Three Months Ended March 31,
 
                                              2001         2000         Change
 
     Revenues
        Total Revenue                       $1,471.2     $1,343.2         10%
 
     Income before income taxes
        Before nonrecurring items             $266.1       $239.1         11%
        Restructuring, business
         divestitures, litigation and
        impairments, net                          --         (9.5)
                                              $266.1       $229.6         16%
 
     Net Income
        Before nonrecurring items             $190.2       $171.0         11%
        Restructuring, business
         divestitures, litigation and
        impairments, net                          --         (6.0)
        Cumulative effect of a change in
         accounting principle                   (2.7)          --
                                              $187.5       $165.0         14%
 
     Earnings per common share
        Before nonrecurring items              $0.47        $0.40         18%
        Restructuring, business
         divestitures, litigation and
        impairments, net                          --        (0.01)
        Cumulative effect of a change in
         accounting principle                     --          --
                                               $0.47        $0.39         21%
 
     Weighted average shares outstanding
      - diluted                                402.2        423.4         -5%
 
     Net Income margins
        Before nonrecurring items              12.9%        12.7%     0.2 pts
        Restructuring, business
         divestitures, litigation and
        impairments, net                                    (0.4%)
        Cumulative effect of a change in
         accounting principle                  (0.2%)
                                               12.7%        12.3%     0.4 pts
 
 
 
                              FIRST DATA CORPORATION
                         CONSOLIDATED STATEMENTS OF INCOME
                                    (Unaudited)
                      (In millions, except per share amounts)
 
                                          Three Months Ended March 31,  Percent
                                               2001          2000       Change
     Revenues:
     Service revenues (a)                    $1,427.3      $1,316.1
     Product sales and other                     43.9          27.1
                                              1,471.2       1,343.2       10%
 
     Expenses: (a)
     Operating                                  914.1         873.9        5%
     Selling, general & administrative          259.5         209.8       24%
     Restructuring, business divestitures,
      litigation and impairments, net (b)          --           9.5       N/M
     Interest expense                            31.5          20.4       54%
                                              1,205.1       1,113.6        8%
 
     Income before cumulative effect of
      a change in accounting principle
      and income taxes                          266.1         229.6       16%
 
     Income taxes                                75.9          64.6       17%
 
     Income before cumulative effect of
      a change in accounting principle          190.2         165.0       15%
 
     Cumulative effect of a change in
      accounting principle, net of $1.6
      income tax benefit (c)                     (2.7)         --
 
     Net income                                $187.5        $165.0       14%
 
     Diluted earnings per common share          $0.47         $0.39       21%
 
     Weighted average shares outstanding
      - diluted                                 402.2         423.4       -5%
 
     Shares outstanding at end of period        392.2         412.2       -5%
 
 
     Depreciation expense                       $52.0         $60.2      -14%
     Goodwill amortization
        Deductible                              $12.4         $11.7        6%
        Non-deductible                           12.2          12.5       -2%
     Other intangibles amortization              72.3          65.1       11%
           Total amortization                   $96.9         $89.3        9%
 
     (a)First Data Corporation adopted Staff Accounting Bulletin No. 101 -
        Revenue Recognition in Financial Statements in 2000 which resulted in
        the netting of certain revenue and expenses that were previously
        presented gross in the income statement.  2000 amounts were restated.
 
     (b)Results for 2000 include a gain on the sale of Hogan of $3.2 million
        and restructuring charges of $12.7 million.  Net of taxes, the effect
        of these items was a loss of $6.0 million.
 
     (c)Represents the transition adjustment for the adoption of Statement of
        Financial Accounting Standard No. 133, "Accounting for Derivative
        Instruments and Hedging Activities," as amended January 1, 2001.
 
        N/M = Not meaningful.
 
 
 
                              FIRST DATA CORPORATION
                         Financial Transaction Processing
                                  Key Indicators
                                   (Unaudited)
 
 
     March 31,                                    2001        2000  Percent
 
     Card accounts on file (millions) (a)
        Domestic Cards                            282.4       231.4      22%
        International Cards                        28.5        25.4      12%
           Total                                  310.9       256.8      21%
 
     For the Three Months Ended March 31:
 
     Merchant dollar volume (billions,
      North America only) (b)                    $110.1       $99.7      10%
 
     North America Merchant transactions
      (millions) (b)                            1,966.0     1,790.0      10%
 
     Payment Instrument transactions
      (millions)
        Money Transfer                             25.6        20.8      23%
 
     (a)2000 domestic and international card accounts on file have been
        restated to reflect a reclassification from international to domestic
        in 2001.
     (b)North America Merchant dollar volume includes Visa and Mastercard
        credit and off-line debit, and on-line debit at the point-of-sale.
        North America Merchant transactions include Visa and Mastercard credit
        and off-line debit, processed-only customer transactions, and on-line
        debit at the point-of-sale.
 
 
                               FIRST DATA CORPORATION
                                SUMMARY SEGMENT DATA
                                    (Unaudited)
                                   (In millions)
 
                                                Three Months Ended March 31,
                                                 2001         2000    % Inc/Dec
     Revenues:
         Payment Services                       $625.6        $530.5       18%
         Merchant Services (f)                   476.2         408.3       17%
         Card Issuing Services (d)               361.8         364.0       -1%
         Emerging Payments (e)                    21.4          20.4        5%
         All Other and Corporate                  38.6          57.4      -33%
 
              Subtotal                         1,523.6       1,380.6       10%
 
         Eliminations (a)                        (52.4)        (37.4)      40%
 
              Consolidated                    $1,471.2      $1,343.2       10%
 
     Operating Profit: (c)
         Payment Services                       $161.3        $134.4       20%
         Merchant Services (f)                   103.4          85.7       21%
         Card Issuing Services                    72.7          68.9        6%
         Emerging Payments (e)                     0.2           3.2       N/M
         All Other and Corporate                  (1.2)          4.7       N/M
 
              Subtotal                           336.4         296.9       13%
 
         Corporate Interest Expense, net         (31.5)        (20.4)      54%
         Restructuring, Business
          Divestitures, Litigation and
          Impairments, net                         ---          (9.5)      N/M
         Eliminations (b)                        (38.8)        (37.4)       4%
 
              Consolidated                      $266.1        $229.6       16%
 
     Depreciation & Amortization:
         Payment Services                        $30.2         $30.3        0%
         Merchant Services                        64.6          58.6       10%
         Card Issuing Services                    50.1          56.0      -11%
         Emerging Payments (e)                     0.7           0.7       -2%
         All Other and Corporate                   3.3           3.9      -14%
 
              Consolidated                      $148.9        $149.5        0%
 
      (a) Represents elimination of adjustment to record payment services
          revenues on a pre-tax equivalent basis and elimination of
          inter-segment revenue.
 
      (b) Represents elimination of adjustment to record payment services
          profit on a pre-tax equivalent basis.
 
      (c) Operating profit with respect to the Company's segments represents
          earnings before income taxes and interest expense and includes
          certain allocations of Corporate overhead.
 
      (d) First Data Corporation adopted Staff Accounting Bulletin No. 101-
          Revenue Recognition in Financial Statements in 2000 which resulted in
          the netting of certain revenue and expenses that were previously
          presented gross in the income statement.  2000 amounts were restated.
 
      (e) The Emerging Payments segment was created in 2000 by moving non-core
          E-Commerce related activity and investments from the other segments
          and "All Other and Corporate".  Additionally, a small information
          business was moved from "All Other and Corporate" to "Card Issuing
          Services".  2000 amounts were restated.
 
      (f) In the third quarter of 2000 the Company gained a controlling
          interest in a merchant alliance.  Revenues and expenses have been
          restated to the beginning of 2000 to reflect this venture as a
          consolidated subsidiary.
 
         N/M = Not meaningful
 
 SOURCE  First Data Corp.

RELATED LINKS

http://www.firstdatacorp.com