Heartland Payment Systems (HPY) 8-K Heartland Payment Systems Announces Fourth Quarter and Full Year

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

HEARTLAND PAYMENT SYSTEMS ANNOUNCES FOURTH QUARTER AND FULL YEAR

2007 FINANCIAL RESULTS

Company Reports Record 2007 Revenues and Earnings

Board Raises Dividend 20%

Princeton, NJ – February 13, 2008 –Heartland Payment Systems, Inc. (NYSE: HPY), a leading provider of credit/debit/prepaid card processing, payroll and payment services, today announced fourth quarter and full year 2007 financial results.

Highlights for the year include:

• Record earnings of $35.9 million, up 26% from fiscal 2006, and excluding non-operating items in both years, up 32% to $38.2 million

• Record diluted earnings per share of $0.90, an increase of 27% from fiscal 2006, and excluding non-operating items in both years, up 32% to $0.96

• Record transaction processing volume - up 20.0%

• Record Net Revenues - up 20.1%

• New margin installed increased by 22.2%

For the Fourth Quarter:

• Transaction processing volume grew by 17.6%

• New margin installed increased by 20.6%

• Net Revenues up 19.6%, including payroll revenue that advanced 58%

• Total period end merchants were up 17.1% to 161,000

• Net income was $6.8 million, up 3.9%, and diluted earnings per share were $0.17, up 6.3%. Net income and diluted earnings per share (excluding non-operating items in both years) were $8.7 million or $0.22, up 15% and 16%, respectively

Page 1

Net income in the fourth quarter of 2007 was impacted by an aggregate $2.9 million pre-tax charge to write off the carrying cost of our Parcxmart investment ($1.6 million) and for costs associated with the opening and relocation to our new Jeffersonville, Indiana customer service center ($1.3 million). Results for the full year also include a $0.8 million pre-tax charge related to indemnification of an insurer. These non-operating items had a negative $0.05 per share impact on fourth quarter results and a negative $0.06 per share impact on full year 2007 results. Net income in the fourth quarter of 2006 was impacted by a $1.5 million pre-tax charge to write off purchased software, and results for the full year also include a $0.8 million pre-tax gain on a legal settlement. The Company believes a review of its results excluding the non-operating items presents a clearer measure of its operating performance.

Robert Carr, Chairman and CEO, said, “Fourth quarter earnings growth was limited by higher overall expenses, primarily investments to bolster our internal security and disaster recovery controls, as well as a rise in general and administrative costs. In addition, the quarterly results reflect a challenging retail environment, with processing volumes dampened by the lowest level of same store sales growth in six years, including for December the first monthly decline in same store sales since December, 2001.”

Same store sales were up 2.1% for the fourth quarter, including a 1.3% decline in December same store sales.

Mr. Carr continued, “For 2007 we achieved new records in virtually all of our key metrics, including volume processed, new margin installed, operating margin and, most importantly earnings per share, which were up 27% over the previous year, and would have been up 32% excluding the non-operating items. At the same time, we achieved remarkable progress preparing Heartland Payment Systems for strong performance over the long term with significant investments in new technology, infrastructure and products. We continued to grow our franchise, with new margin installed up by over 20% for both the quarter and the year. In the fourth quarter, 86% of new card merchants installed and 79% of total transactions processed were on HPS Exchange, providing for continued processing cost savings, which are the key to sustaining wider operating margins. At year end, our sales organization had grown to 1,117 relationship managers representing Heartland, all committed to the continued expansion of our franchise.”

“We are looking forward to the many opportunities to grow our business in 2008. Our Campus Card represents new technology targeted to expand our core business with an increasing number of main street merchants; we are encouraged with the success of our first implementation at Slippery Rock University. We have also introduced new products, including remote deposit check capture, which along with our rapidly growing payroll product, opens a whole new market of non-retail businesses that were previously not prospective Heartland customers because they did not have a card processing need. In addition, we just signed a new agreement with American Express that will benefit our merchants as well as offer us greater margin potential. This year we started making the investments necessary to establish the infrastructure needed to succeed with these exciting new paths, and we will continue to make these expenditures in 2008. As the seeds of future growth, the ramp in new product revenues will initially trail the upfront investment,

Page 2

likely keeping operating income growth only modestly better than our top line growth in 2008. We believe these investments demonstrate our commitment to strengthen our franchise and drive growth for many years to come.”

FULL YEAR 2008 GUIDANCE

The Company is establishing guidance for fiscal 2008. For the year, we expect net revenue (total revenues less interchange, dues and assessments) to grow by 16% - 18%; operating income as a percentage of net revenue to be 20% - 21%; and earnings per share of $1.13 - $1.17.

BOARD AUTHORIZES 20% INCREASE IN QUARTERLY DIVIDEND

The Company also announced that the Board of Directors has increased the quarterly dividend by 20% to $0.09 per common share. The dividend is payable to shareholders of record on February 28, 2008 and will be paid on March 15, 2008.

CONFERENCE CALL

Heartland Payment Systems, Inc. will host a conference call on February 13, 2008 at 5:00 PM Eastern Time to discuss financial results and business highlights. The conference call may be accessed by calling (800) 559-6679 at 4:55 PM Eastern Time on February 13, 2008. Please provide the operator with PIN number 32194011. The conference call will also be Web cast where it can be accessed on the investor relations portion of Heartland’s website atwww.heartlandpaymentsystems.com.

A taped replay of the conference call will be available within two hours of the conclusion of the call and will remain available through Tuesday, May 13, 2008. The number to call for the taped replay is (800) 642-1687 and the conference PIN number 32194011. The webcast will also be archived within two hours of the live call on the investor relations portion of the Company’s website.

About Heartland Payment Systems

Heartland Payment Systems, Inc., a NYSE company trading under the symbol HPY, delivers credit/debit/prepaid card processing, payroll and payment solutions to more than 162,000 small and mid-sized businesses nationwide.

Heartland is the founding supporter of The Merchant Bill of Rights, a public advocacy initiative that educates merchants about fair credit and debit card processing practices. For more information, visitwww.heartlandpaymentsystems.com andwww.MerchantBillOfRights.com.

Page 3

Forward-looking Statements

This press release may contain statements of a forward-looking nature which represent our management’s beliefs and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors. Information concerning these factors is contained in the Company’s Securities and Exchange Commission filings, including but not limited to, the Company’s registration statement on Form 10- K, or Form 10-Q as applicable. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

CONTACT:

Joe Hassett

Gregory FCA Communications

27 West Athens Ave.

Ardmore, PA 19003

Tel: 610-642-8253

Email:Heartland_ir@gregoryfca.com

###

Tables Follow

Page 4

Heartland Payment Systems, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)

(unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2007			2006			2007			2006
Total Revenues	$	341,574		$	287,994		$	1,313,846		$	1,097,041
Costs of Services:
Interchange		250,587			211,841			962,025			804,267
Dues and assessments		12,611			10,602			48,529			40,334
Processing and servicing		35,388			29,686			135,120			118,342
Customer acquisition costs		10,862			10,182			44,193			35,451
Depreciation and amortization		1,779			1,639			6,806			6,042
Total costs of services		311,227			263,950			1,196,673			1,004,436
General and administrative		16,877			12,298			57,404			47,787
Total expenses		328,104			276,248			1,254,077			1,052,223
Income from operations		13,470			11,746			59,769			44,818
Other income (expense):
Interest income		484			366			1,934			1,225
Interest expense		(198	)		(145	)		(785	)		(753	)
Loss on cost basis equity investment		(1,650	)		—			(1,650	)		—
Exit costs for Service Center		(1,267	)		—			(1,267	)		—
Other, net		30			(1,500	)		(841	)		(669	)
Total other income (expense)		(2,601	)		(1,279	)		(2,609	)		(197	)
Income before income taxes		10,869			10,467			57,160			44,621
Provision for income taxes		4,038			3,895			21,290			16,077
Net income	$	6,831		$	6,572		$	35,870		$	28,544
Earnings per common share:
Basic	$	0.18		$	0.18		$	0.95		$	0.78
Diluted	$	0.17		$	0.16		$	0.90		$	0.71
Weighted average number of common shares outstanding:
Basic		37,964			37,280			37,686			36,394
Diluted		39,780			40,020			39,980			39,943

Page 5

Heartland Payment Systems, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(unaudited)

	December 31,
	2007			2006
Assets
Current assets:
Cash and cash equivalents	$	35,508		$	16,054
Funds held for payroll customers		24,201			16,960
Receivables, net		122,613			107,154
Investments		1,119			1,082
Inventory		5,383			2,252
Prepaid expenses		3,478			2,030
Current tax asset		5,449			19,227
Current deferred tax assets, net		690			757
Total current assets		198,441			165,516
Capitalized customer acquisition costs, net		70,498			56,705
Deferred tax assets, net		3,878			4,562
Property and equipment, net		50,248			23,135
Goodwill and intangible assets		5,970			1,757
Deposits and other assets		154			93
Total assets	$	329,189		$	251,768
Liabilities and stockholders’ equity
Current liabilities:
Due to sponsor banks	$	49,798		$	27,253
Accounts payable		20,495			16,936
Deposits held for payroll customers		24,201			16,960
Current portion of accrued buyout liability		11,521			11,519
Merchant deposits and loss reserves		14,757			8,210
Accrued expenses and other liabilities		15,266			9,649
Current portion of borrowings and financing arrangements		—			174
Total current liabilities		136,038			90,701
Reserve for unrecognized tax benefits		1,230			—
Long-term portion of accrued buyout liability		26,252			21,774
Total liabilities		163,520			112,475
Commitments and contingencies		—			—
Stockholders’ equity
Common Stock, $.001 par value, 100,000,000 shares authorized, 39,804,322 and 38,488,880 shares issued at December 31, 2007 and 2006; 37,989,622 and 37,405,680 shares outstanding at December 31, 2007 and 2006		40			38
Additional paid-in capital		173,346			153,997
Accumulated other comprehensive loss		(62	)		(21	)
Retained earnings		36,729			10,804
Treasury stock, at cost (1,814,700 and 1,083,200 shares at December 31, 2007 and 2006)		(44,384	)		(25,525	)
Total stockholders’ equity		165,669			139,293
Total liabilities and stockholders’ equity	$	329,189		$	251,768

Page 6

Heartland Payment Systems, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flow

(In thousands)

(unaudited)

	Year Ended December 31,
	2007			2006			2005
Cash flows from operating activities
Net income	$	35,870		$	28,544		$	19,093
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of capitalized customer acquisition costs		45,191			35,823			24,636
Other depreciation and amortization		8,616			7,557			5,695
Addition to loss reserve		3,035			1,970			1,235
Provision for doubtful receivables		1,249			628			173
Deferred taxes		752			(351	)		1,811
Share-based compensation		1,747			1,323			—
Loss on cost basis equity investment		1,650			—			—
Exit costs for Service Center		1,267			—			—
Loss on purchased software		—			1,500			—
Fair value adjustment for warrants with mandatory redemption provisions		—			—			2,912
Gain on settlement of financing arrangement		—			—			(5,140	)
Other		295			254			33
Changes in operating assets and liabilities:
Increase in receivables		(16,701	)		(13,017	)		(29,604	)
(Increase) decrease in inventory		(1,737	)		(438	)		104
Payment of signing bonuses, net		(44,700	)		(33,743	)		(21,788	)
Increase in capitalized customer acquisition costs		(14,284	)		(15,855	)		(11,531	)
(Increase) decrease in prepaid expenses		(1,448	)		(59	)		172
Decrease (increase) in current tax asset		21,401			10,978			(2,783	)
(Increase) decrease in deposits and other assets		(61	)		23			1
Excess tax benefits on options exercised under SFAS No. 123R		(7,623	)		(28,603	)		—
Increase in reserve for unrecognized tax benefits		716			—			—
Increase (decrease) in due to sponsor bank		22,545			(7,277	)		(10,623	)
Increase (decrease) in accounts payable		3,559			1,325			(2,955	)
Increase in accrued expenses and other liabilities		3,260			1,958			2,116
Increase (decrease) in merchant deposits and loss reserves		3,512			(1,210	)		(960	)
Payouts of accrued buyout liability		(8,806	)		(10,664	)		(13,481	)
Increase in accrued buyout liability		13,286			15,483			14,920
Net cash provided by (used in) operating activities		72,591			(3,851	)		(25,964	)
Cash flows from investing activities
Purchase of investments		(1,904	)		(2,158	)		(1,544	)
Maturities of investments		310			1,258			487
Increase in funds held for payroll customers		(7,376	)		(5,972	)		(163	)
Increase in deposits held for payroll customers		7,241			6,357			1,192
Acquisition of business, net of cash acquired		(6,300	)		(3,453	)		—
Purchases of property and equipment		(34,247	)		(13,960	)		(12,337	)
Proceeds from disposal of property and equipment		—			—			27
Net cash used in investing activities		(42,276	)		(17,928	)		(12,338	)
Cash flows from financing activities
Principal payments on borrowings and financing arrangements		(174	)		(261	)		(7,520	)
Proceeds from exercise of stock options		9,955			27,658			8,953
Excess tax benefits on options exercised under SFAS No. 123R		7,623			28,603			—
Repurchase of common stock		(18,859	)		(25,030	)		(495	)
Dividends paid on common stock		(9,431	)		(1,861	)		—
Net proceeds from sale of common stock		25			—			41,712
Net (used in) cash provided by financing activities		(10,861	)		29,109			42,650
Net increase (decrease) in cash and cash equivalents		19,454			7,330			4,348
Cash and cash equivalents at beginning of year		16,054			8,724			4,376
Cash and cash equivalents at end of year	$	35,508		$	16,054		$	8,724

Page 7