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TSYS aligns with M&I Data Services to offer online debit processing

February 21, 2002

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COLUMBUS, Ga. -- Total System Services, Inc. (NYSE: TSS) has signed an agreement with M&I Data Services that will allow TSYS to enter the PIN-based debit processing arena.

For TSYS, which currently provides non-PIN-based processing services, the alignment with M&I Data Services gives the company a cost-effective and rapid entry into the online debit business. TSYS will offer issuers full-service debit processing with transparent connectivity for both PIN-based and non-PIN-based debit transactions.

The market potential for debit transactions is growing. According to Bank Network News, POS transaction volumes in March 1999 totaled 202.3 million, or 18 percent of the 1.1 billion total EFT transactions for the month. Debit card volume will grow by 780 percent between 1998 and 2010, according to the December 1999 issue of The Nilson Report.

"Our arrangement with M&I gives TSYS the domestic and international flexibility to enter a full-service debit processing market as well as other electronic payment markets like electronic bank transfers and stored-value programs," said Shannon Vestal, director of Debit Services at TSYS.

Frank D'Angelo, senior vice president and general manager for M&I's Electronic Funds Delivery Services, said, "This alignment is an exciting opportunity for both M&I Data Services and TSYS to participate in the explosive growth of new payment methods, such as debit and Internet-based transactions."

Based in Milwaukee, M&I Data Services supports both Visa Check and MasterMoney PIN-based and non-PIN-based debit cards. M&I services high-volume users, small credit unions and community banks. The company had total revenues of $583 million in 1999.

The Electronic Funds Delivery (EFD) Services division of M&I Data Services provides transaction routing, switching, and authorization services for the EFT industry. It supports all major makes and models of ATMs and provides ATM and debit card processing. EFD also performs network gateway services and has network interfaces with all major regional and national ATM and POS networks.