TSYS(SM)[LOGO] News Release
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Contacts:
Eric S. Bruner James B. Lipham Leo S. Berard
Media Relations Chief Financial Officer Investor Relations
706+644.8457 706+649.2262 706+644.6081
TSYS to Process Student Financial Aid for the U.S. Department of Education
TSYS Expands Outside Traditional Card Processing to Manage Data for Title IV
Funding
Columbus, Ga., April 30, 2002 -- TSYS steps outside its traditional
card-processing business by entering into a five-year agreement with Accenture,
valued in excess of $120 million, to process postsecondary student grant- and
loan-funding for the U.S. Department of Education. As part of the arrangement
with Accenture, the prime contractor to the U.S. Office of Federal Student Aid
(FSA), TSYS also developed a central Web site, making federal financial aid
delivery to students across the nation easier and more efficient. TSYS began
processing all new originations for the Department of Education on April 26,
2002. The agreement also involves converting all existing student records
currently residing on two legacy systems to TSYS' new stand-alone platform
during several phases. The first conversion phase is scheduled to begin in
December 2002, with an estimated 4 million records.
"This agreement signifies a tremendous opportunity for TSYS as we
continue to diversify our business outside the traditional credit-card market,"
said Richard W. Ussery, chairman of the board and CEO for TSYS. "We recently
disclosed that we were nearing a major decision point with a prospective,
nontraditional customer whose revenues were included in our 2002 forecast. That
prospect was the U.S. Department of Education, and TSYS is pleased to now play a
critical role in delivering federal financial aid to our nation's students."
The new, stand-alone system, developed by TSYS for the Department of
Education, allows the Department of Education and schools across the nation to
create and manage originations, administer school information, complete
abbreviated credit checks and confirm the account status. Additionally, the new
Web site streamlines the process for incoming originations and disbursements for
Title IV funding such as Pell Grants, and Direct and PLUS loans, by providing a
central storage area for all accounts.
"TSYS' proven technology, superior customer service and willingness to
work with us to build this new platform were all contributing factors in our
decision to partner with them," said Steven R. Shane, Partner, Accenture. "TSYS'
new platform gives the Department of Education common capabilities across all of
its financial aid programs, increased Web ability and significant improvement in
efficiencies."
The Department of Education provides more than $50 billion in financial
aid a year -- about 70 percent of all student aid -- to help millions of
students and families pay for postsecondary education. This agreement expands
TSYS ability to manage other financially sensitive data and process information
beyond its traditional niche of card processing. It also builds upon an existing
relationship with the federal government. TSYS is the only processor for the
federal government's "Smart Pay" program, which enables federal employees of
various governmental agencies to use credit cards for business-related expenses
such as travel, entertainment and purchasing.
About Accenture
Accenture is the world's leading management and technology consulting
organization. Through its network of businesses approach -- in which the company
enhances its consulting and outsourcing expertise through alliances, ventures
and other capabilities -- Accenture delivers innovations that help clients
across all industries quickly realize their visions. With more than 75,000
people in 46 countries, the
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TSYS to Process Student Financial Aid for the U.S. Department of Education/p.2
company generated net revenues of $11.44 billion for the fiscal year ended
Aug. 31, 2001. Its home page is http://www.accenture.com.
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About TSYS
TSYS (NYSE: "TSS") (www.tsys.com) brings integrity and innovation to
the world of electronic payments. TSYS serves as the integral link between
buyers and sellers in the rapidly evolving universe of electronic payments. With
more than 229 million accounts on file, TSYS makes it possible for millions of
consumers to use their credit, debit, stored value, commercial, smart and retail
cards any time, anywhere through any medium or portal. TSYS and its family of
companies offer a full range of acquiring and issuing services from accepting
and settling electronic payments for goods and services to credit applications,
bankruptcy and collections. Based in Columbus, Ga., TSYS serves companies in 23
countries, 14 currencies and four languages. TSYS maintains operations in
Canada, Mexico, Japan, and Europe and is an 81.1-percent-owned subsidiary of
Synovus (NYSE: "SNV") (www.synovus.com ), No. 5 on FORTUNE magazine's list of
"The 100 Best Companies To Work For" in 2002.
On Thursday, May 2, at 7:40 a.m. EDT, TSYS Chairman of the Board and
CEO Richard W. Ussery will appear on Morning Call on Bloomberg with anchor Dylan
Ratigan to discuss the company's financial performance. The interview will be
rebroadcast later in the day on the company's Web site, www.tsys.com. For more
information, contact news@tsys.com.
This press release contains statements that constitute "forward-looking
statements" within the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act
of 1995. These forward-looking statements include, among others, statements
regarding TSYS' expected growth in net income for the year 2002, and the
assumptions underlying such statements, including, with respect to TSYS'
expected increase in net income; TSYS' expected internal growth rate for
existing portfolios; an aggressive focus on expense control and productivity
improvement; the successful implementation and market acceptance of new product
offerings; expected increases in the number of accounts on file; expected
increases in revenues; and expected increases in revenues attributable to
international clients. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and involve
risks and uncertainties, and that actual results may differ materially from
those contemplated by such forward-looking statements. A number of important
factors could cause actual results to differ materially from those contemplated
by the forward-looking statements in this press release. Many of these factors
are beyond TSYS' ability to control or predict. The factors include, but are not
limited to, adverse developments with respect to TSYS' sub-prime clients; lower
than anticipated internal growth rates for TSYS' existing customers; TSYS'
inability to control expenses and increase market share; TSYS' inability to
successfully bring new products to market, including, but not limited to,
stored-value products, e-commerce products, loan processing products and other
processing services; the inability of TSYS to grow its business through
acquisitions; adverse developments with respect to entering into contracts with
new clients and retaining current clients; TSYS' inability to increase the
revenues derived from international sources; the merger of TSYS clients with
entities that are not TSYS clients or the sale of portfolios by TSYS clients to
entities that are not TSYS clients; TSYS' inability to anticipate and respond to
technological changes, particularly with respect to e-commerce; adverse
developments with respect to the successful conversion of clients; the absence
of significant changes in foreign exchange spreads between the United States and
the countries TSYS transacts business in, to include Mexico, United Kingdom,
Japan, Canada and the European Union; adverse developments with respect to the
credit card industry in general; TSYS' inability to successfully manage any
impact from slowing economic conditions or consumer spending; the occurrence of
catastrophic events that would impact TSYS' or its major customers' operating
facilities, communications systems and technology, or that has a material
negative impact on current economic conditions or levels of consumer spending;
generated by sub-prime lending clients being less than anticipated; successfully
managing the potential both for patent protection and patent liability in the
context of rapidly developing legal framework for expansive software patent
protection; and overall market conditions. Additional factors that could cause
actual results to differ materially from those contemplated in the attached
press release can be found in TSYS' filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K, quarterly reports on Form
10-Q, and current reports on Form 8-K. We believe these forward-looking
statements are reasonable; however, undue reliance should not be placed on any
forward-looking statements, which are based on current expectations.
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