Fiserv Reports Record Earnings for Second Quarter of 2003 BROOKFIELD, Wis., Jul 22, 2003 (BUSINESS WIRE) -- Fiserv, Inc. (Nasdaq:FISV) announced today record earnings for the second quarter of 2003.

For the three-month period ended June 30, 2003, Fiserv processing and services revenues were $659.1 million, a 17% increase over the $563.6 million for the second quarter of 2002. Net income per share-diluted for the second quarter of 2003 was $0.40 per share, compared to $0.34 per share for the second quarter of 2002.

For the six-month period ended June 30, 2003, Fiserv processing and services revenues were $1,283.9 million, a 14% increase over the $1,124.3 million for the first six months of 2002. Net income per share-diluted for the first six months of 2003 was $0.78 per share, compared to $0.67 per share for the first six months of 2002.

"Fiserv continued to perform well in the second quarter, again posting record earnings," said Leslie M. Muma, President and CEO of Fiserv, Inc. "During the second quarter, we saw solid growth in our various lines of business, with most business units on or above our target expectations in terms of revenue and profit growth.

"We're also off to a great acquisition year with six acquisitions closed so far in 2003, totaling combined annualized processing and services revenues of approximately $270 million," Muma continued. "Our earnings estimate for full year 2003 continues to be $1.58 to $1.62 per share."

During the second quarter of 2003, Fiserv closed two acquisitions: ReliaQuote, Inc., located in Falls Church, Virginia, which specializes in the marketing and sale of fully underwritten term life insurance policies, primarily through the Internet; and Wausau Benefits, an employee benefits administrator located in Wausau, Wisconsin, that provides a full range of health and related employee benefit plan administration services nationwide.

Since the close of the second quarter, Fiserv completed the acquisition of the EDS Credit Union Industry Group, based in Plano, Texas. The business, which supports about 1,000 credit unions, specializes in core processing and provides a variety of other products and services, including debit card and transaction processing, electronic banking and lending, and on-line bill payment and presentment services. Fiserv also completed its acquisition of Chase Credit Research and Chase Credit Systems, based in North Hollywood, California. Together, the companies provide information from the three major credit repositories in a consolidated report to lenders, and lease software that allows lenders and credit-reporting companies to perform their own analyses.

Significant client relationships signed during the second quarter included First Federal Savings and Loan Association, a $1 billion institution in Lakewood, Ohio, for an enhanced solution set that includes the Fiserv VISION core processing system, data warehouse and an Internet banking platform; Marriott Vacation Club International, the vacation ownership division of Marriott International, agreed to use the Fiserv MortgageServ mortgage loan servicing system for its loan portfolio; Pacific Capital Bancorp, a $4.4 billion, multi-bank holding company in Santa Barbara, California, will use software from the Precision Computer Systems unit of Fiserv to replace its current core banking system; the Benefit Planners unit of Fiserv Health will handle health plan management for Station Casinos, Inc. under a multi-year contract; and Porsche Financial Services, Inc., has substantially increased its relationship with Fiserv LeMans for automotive financing solutions. In addition, Romania's fifth largest bank, Raiffeisen Bank-Romania, has expanded its relationship with Fiserv CBS Worldwide to include an upgrade and maintenance of the existing Fiserv core processing system, and improved service offerings for the bank's 650,000 customers.

Fiserv, Inc. (Nasdaq:FISV) provides information management systems and services to the financial industry including transaction processing, outsourcing, business process outsourcing and software and systems solutions. The company serves more than 14,000 clients, including banks, broker-dealers, credit unions, financial planners/investment advisers, insurance companies and agents, self-insured employers, lenders and savings institutions. Headquartered in Brookfield, Wisconsin, Fiserv reported $2.3 billion in processing and services revenues for 2002. Fiserv can be found on the Internet at www.fiserv.com.

As previously announced, Fiserv, Inc. will hold a Webcast July 23, 2003, at 10 a.m. Central time to allow securities analysts and shareholders the opportunity to hear management discuss the Company's quarterly results. The Webcast can be accessed through the Company's Web site at www.fiserv.com. The Webcast will be available for replay through July 21, 2004.

The disclosure set forth above contains forward-looking statements, specifically Mr. Muma's statements regarding earnings targets and acquisition prospects for 2003. These statements are covered by the safe harbor included in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may cause actual results to differ materially from those contemplated by the forward-looking statements include, among others, changes in customers' demand for the Corporation's products, pricing and other actions by competitors, and general changes in economic conditions or U.S. financial markets. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.

  FISERV, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
               (In thousands, except per share amounts)
                              (Unaudited)

                           Three Months Ended     Six Months Ended
                                June 30,              June 30,
                              2003      2002      2003        2002
                           --------- --------- ----------- -----------

Revenues:
Processing and services    $659,112  $563,599  $1,283,879  $1,124,338
Customer reimbursements      79,503    69,394     162,234     141,498
                           --------- --------- ----------- -----------
Total revenues              738,615   632,993   1,446,113   1,265,836
                           --------- --------- ----------- -----------
Cost of revenues:
Salaries, commissions and
 payroll related costs      306,301   267,606     601,130     539,238
Customer reimbursement
 expenses                    79,503    69,394     162,234     141,498
Data processing costs and
 equipment rentals           51,614    41,665     103,995      80,773
Other operating expenses    129,154   108,420     244,715     215,352
Depreciation and
 amortization                39,983    34,476      77,382      68,114
                           --------- --------- ----------- -----------
Total cost of revenues      606,555   521,561   1,189,456   1,044,975
                           --------- --------- ----------- -----------
Operating income            132,060   111,432     256,657     220,861
Interest expense - net       (3,474)   (2,178)     (6,451)     (4,865)
                           --------- --------- ----------- -----------
Income before income taxes  128,586   109,254     250,206     215,996
Income tax provision         50,148    42,609      97,580      84,238
                           --------- --------- ----------- -----------
Net income                  $78,438   $66,645    $152,626    $131,758
                           ========= ========= =========== ===========

Net income per share:
   Basic                      $0.41     $0.35       $0.79       $0.69
   Diluted                    $0.40     $0.34       $0.78       $0.67

Shares used in computing
 net income per share:
   Basic                    193,295   191,420     192,716     191,044
   Diluted                  195,811   195,474     195,279     195,313



                     FISERV, INC. AND SUBSIDIARIES
                     SELECTED SEGMENT INFORMATION
                            (In thousands)
                              (Unaudited)

                           Three Months Ended     Six Months Ended
                                June 30,              June 30,
                              2003      2002      2003        2002
                           --------- --------- ----------- -----------

Processing and services
 revenues:
Financial institution
 outsourcing, systems
 and services              $498,860  $434,866    $976,386    $864,824
Health plan management
 services                    81,823    52,195     150,963     103,940
Securities processing and
 trust services              55,135    55,080     110,185     110,758
All other and corporate      23,294    21,458      46,345      44,816
                           --------- --------- ----------- -----------
Total                      $659,112  $563,599  $1,283,879  $1,124,338
                           ========= ========= =========== ===========

Operating income:
Financial institution
 outsourcing, systems
 and services              $117,397   $99,187    $224,853    $192,615
Health plan management
 services                    10,898     8,480      22,999      16,841
Securities processing and
 trust services               6,519     6,491      13,759      14,972
All other and corporate      (2,754)   (2,726)     (4,954)     (3,567)
                           --------- --------- ----------- -----------
Total                      $132,060  $111,432    $256,657    $220,861
                           ========= ========= =========== ===========

Note: Due to the recent growth of the health plan management services
of the Company, the Company changed its reportable business segments
in the second quarter of 2003 to add the Health plan management
services segment. The Health plan management services segment provides
services to employers who self-fund their health plans, offering
services such as handling payments to health care providers, assisting
with cost controls, plan design services, medical provider
administration and other related services.



                    FISERV, INC. AND SUBSIDIARIES
                 HISTORICAL 2002 SEGMENT INFORMATION
                            (In thousands)
                             (Unaudited)
                          Three Months Ended
----------------------------------------------------------------------

                   March 31,  June 30, Sept. 30,  Dec. 31,
                     2002      2002      2002      2002       Total
                   --------- --------- --------- --------- -----------

Processing and
 services revenues:
Financial
 institution
 outsourcing,
 systems and
 services          $429,958  $434,866  $428,771  $446,709  $1,740,304
Health plan
 management
 services            51,745    52,195    53,374    58,831     216,145
Securities
 processing and
 trust services      55,678    55,080    59,199    60,664     230,621
All other and
 corporate           23,358    21,458    22,745    25,431      92,992
                   --------- --------- --------- --------- -----------
Total              $560,739  $563,599  $564,089  $591,635  $2,280,062
                   ========= ========= ========= ========= ===========

Operating income:
Financial
 institution
 outsourcing,
 systems and
 services           $93,428   $99,187   $95,139   $97,006    $384,760
Health plan
 management
 services             8,361     8,480     8,811     8,412      34,064
Securities
 processing and
 trust services       8,481     6,491     8,348     7,939      31,259
All other and
 corporate             (841)   (2,726)   (2,049)      992      (4,624)
                   --------- --------- --------- --------- -----------
Total              $109,429  $111,432  $110,249  $114,349    $445,459
                   ========= ========= ========= ========= ===========