JACKSONVILLE, Fla., – FIS (NYSE:FIS), a leading global provider of technology services to financial institutions, today reported financial results for the quarter ended September 30, 2009.

Consolidated revenue of $850.7 million declined 3.8% in U.S. dollars and 1.9% in constant currency compared to $884.0 million in the third quarter of 2008. The adjusted EBITDA margin expanded 250 basis points to 27.7%. Non-GAAP adjusted net earnings per share increased 12.2% to $0.46 per share in U.S. dollars, compared to $0.41 in the prior year, and increased 14.6% in constant currency. The increase is due primarily to improved operating performance across all major business lines, which offset a higher average diluted share count in the third quarter of 2009. GAAP net earnings from continuing operations attributable to common stockholders totaled $67.6 million, or $0.35 per share, compared to $0.23 per share in the prior period. Free cash flow (cash from operations less capital expenditures) was $132.8 million compared with $118.2 million in the prior year quarter.

FIS completed the acquisition of Metavante Technologies, Inc. (NYSE: MV) on October 1, 2009. Metavante’s operations will be included in the FIS results prospectively, beginning in the fourth quarter of 2009.

“While revenue growth remains challenging in the current economic environment, we continue to drive strong margin expansion, double-digit growth in earnings per share and excellent free cash flow. We are confident in our ability to drive solid organic top line growth and realize strong operating leverage when the banking industry recovers,” stated William P. Foley, II, executive chairman. “With the successful completion of the Metavante acquisition, FIS will be even better positioned to compete on a global basis and deliver strong financial performance.”

Frank Martire, president and chief executive officer of FIS added, “We are very excited about the future of this great company. We remain highly focused on meeting our customers’ needs, driving operational excellence and building long-term value.”

Supplemental Information
Consolidated revenue in the third quarter of 2009 was $850.7 million, compared with $884.0 in the prior year quarter, a decrease of 3.8% in U.S. dollars. Excluding a $16.8 million unfavorable impact of foreign currency, consolidated revenue declined 1.9%. The decline was primarily due to lower license and professional services revenue, coupled with nonrecurring interchange adjustments and card marketing revenue recorded in the prior year quarter.

• Financial Solutions revenue declined 7.3% to $278.2 million compared to $300.2 million in the prior period, due to lower software license and professional services revenue.
• Payment Solutions revenue declined 5.0% to $369.5 million compared to $389.1 million in the 2008 quarter, due to ongoing weakness in consumer spending and lower item processing volumes. The growth rate was also impacted by a nonrecurring interchange adjustment and particularly strong card marketing revenue in the third quarter of 2008.
• International Solutions revenue increased 4.1% to $203.5 million in U.S. dollars, and 12.7% in constant currency compared to $195.4 million in the prior year quarter. Core processing revenue increased 14.3% driven by strong services revenue and volumes in Asia Pacific and EMEA, while payments revenue increased 11.8% driven by organic account growth across all regions.
  

Adjusted EBITDA increased 5.6% to $235.3 million in the third quarter of 2009 compared to $222.8 million in the 2008 quarter. The adjusted EBITDA margin improved 250 basis points to 27.7% compared to 25.2% in the prior-year quarter, driven by ongoing expense management across all operating segments.

• Financial Solutions EBITDA decreased 1.7% to $126.6 million due to lower software sales and professional services revenue, while the margin improved 260 basis points to 45.5% compared to 42.9% in the prior year.
• Payment Solutions EBITDA increased 2.8% to $108.3 million, and the margin increased 220 basis points to 29.3% compared to 27.1% in the prior year.
• International EBITDA increased 57.1% to $42.9 million. The EBITDA margin improved 710 basis points to 21.1% compared to 14.0% in the prior year, as account growth and productivity improvements more than offset a $3.7 million unfavorable currency impact
  

The effective tax rate in the third quarter of 2009 was 34.4% compared to 34.9% in the third quarter of 2008.

Balance Sheet
FIS had $205.6 million in cash and cash equivalents at September 30, 2009. The company repaid $153.7 million of debt during the third quarter, reducing total debt outstanding to $2.1 billion, the majority of which has been swapped to fixed interest rates. The effective interest rate was 5.9% as of September, 2009. Total debt outstanding increased to $3.4 billion in conjunction with the October 1, 2009 acquisition of Metavante.

Capital expenditures totaled $49.4 million in the quarter, compared to $48.2 million spent in the prior year.

Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, the company has provided non-GAAP financial measures which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include earnings before interest, taxes and depreciation and amortization (EBITDA), adjusted net earnings, and free cash flow. Adjusted EBITDA excludes the impact of merger and acquisition and integration expenses, LPS spin-off related costs, certain stock compensation charges and certain other costs. Adjusted net earnings exclude the after-tax impact of merger and acquisition and integration expenses, LPS spin-off related costs, certain stock compensation charges, acquisition related amortization and certain other costs. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. Further, FIS’s non-GAAP measures may be calculated differently from similarly-titled measures of other companies. A reconciliation of these non-GAAP measures to related GAAP measures is included in the press release attachments.

Conference Call and Webcast
FIS will host a call with investors and analysts to discuss third quarter 2009 results on Wednesday, October 21, 2009, beginning at 5:00 p.m. Eastern daylight time. To register for the live event and to access a supplemental slide presentation, go to the Investor Relations section at www.fidelityinfoservices.com and click on “Events and Multimedia.” A webcast replay will be available on FIS’ Investor Relations website, and a telephone replay will be available through November 4, 2009, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 117478. To access a PDF version of this release and accompanying financial tables, go to www.investor.fidelityinfoservices.com.

About FIS
FIS delivers banking and payments technologies to more than 14,000 financial institutions and businesses in more than 90 countries worldwide. FIS provides financial institution core processing, and card issuer and transaction processing services, including the NYCE Network. FIS maintains processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10. FIS is a member of Standard and Poor's (S&P) 500® Index and has been ranked the number one overall financial technology provider in the world by The American Banker newspaper and the research firm Financial Insights in their annual “FinTech 100” rankings. Headquartered in Jacksonville, Fla., FIS employs approximately 30,000 on a global basis. FIS is listed on the New York Stock Exchange under the “FIS” ticker symbol. For more information about FIS see www.fidelityinfoservices.com.

Forward-Looking Statements
This press release contains statements related to FIS’ future plans and expectations, and, as such, constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. The risks and uncertainties that forward-looking statements are subject to include, without limitation: changes in general economic, business and political conditions, including changes in the financial markets; the effect of governmental regulations; the effects of our substantial leverage which may limit the funds available to make acquisitions and invest in our business; the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in the banking, retail and financial services industries or due to financial failures suffered by firms in those industries; failures to adapt our services to changes in technology or in the marketplace; the failure to achieve some or all of the benefits that we expect from the acquisition of Metavante, including the possibility that our acquisition of Metavante may not be accretive to our earnings due to undisclosed liabilities, management or integration issues, loss of customers, the inability to achieve targeted cost savings, or other factors; our potential inability to find suitable acquisition candidates or difficulties in integrating acquisitions; competitive pressures on product pricing and services; and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Form 10-K and other filings with the Securities and Exchange Commission (“SEC”) that are available on the SEC’s web site located at www.sec.gov. All forward-looking statements included in this document are based on information available at the time of the document. FIS assumes no obligation to update any forward-looking statement.

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