ITEM 1.     BUSINESS

G eneral

First Data Corporation (“FDC” or “the Company”) operates electronic commerce and payment services businesses which are reported in three business segments. In the Payment Services segment, the Company provides money transfer and bill payment services through its Western Union and Orlandi Valuta money transfer agent networks that consist of approximately 219,000 agent locations in more than 195 countries and territories. In the Merchant Services segment, the Company provides merchant and network acquiring and transaction processing services, automated teller machine (“ATM”) processing and check guarantee and verification services. In the Card Issuing Services segment, the Company provides credit, debit, private-label, smart and stored-value card and debit network issuing and processing services.

FDC was established in its current form in 1992 through an initial public offering in connection with a spin-off from American Express. In 1995, the Company merged with First Financial Management Corporation, which included Western Union Financial Services, Inc. (“Western Union”) and much of what is now First Data Merchant Services (“FDMS”). On February 26, 2004 the Company merged with Concord EFS, Inc. (“Concord”). The operations of Concord were aligned into each of FDC’s three business segments outlined below.

The following provides a brief overview of the segment operations:

Payment Services Segment

The Payment Services segment is comprised of businesses that provide money transfer and bill payment services to consumers and businesses whether they are from one location to another or through the issuance of an official check or money order by a bank or other institution. It is headquartered in Denver, Colorado and has approximately 219,000 money transfer agent locations throughout the world. A brief explanation of the segment’s service and product offerings is presented below.

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Merchant Services Segment

The Merchant Services segment is comprised of businesses that facilitate the acceptance of consumer transactions at the point of sale, whether it is transactions at a physical merchant location, over the internet or at an ATM. It is headquartered in Melville, New York and has significant operations in Hagerstown, Maryland; Houston, Texas; Coral Springs, Florida; Marietta, Georgia; Wilmington, Delaware; Toronto, Canada; Basildon, England; Stuttgart, Germany; and Sydney, Australia. A brief explanation of the segment’s service and product offerings is presented below.

Card Issuing Services Segment

The Card Issuing Services segment primarily encompasses domestic and international card processing for card issuers. Its most significant operations are located in Omaha, Nebraska; Wilmington, Delaware; Basildon, England; Sydney, Australia; and Athens, Greece. A brief explanation of the segment’s service and product offerings is presented below.

All Other and Corporate

The remainder of the Company’s business units are grouped in the “All Other and Corporate” category, which includes Teleservices, a provider of voice-center services to telecommunications and financial services industries and First Data Voice Services, a provider of Interactive Voice Response (“IVR”) services and Corporate operations. All Other and Corporate also includes eONE Global L.P. (“eONE”), of which FDC holds a majority ownership interest of approximately 75%. eONE is focused on identifying, developing, commercializing and operating emerging payment systems and related technologies in two areas: government payments, primarily facilitating electronic tax and other payments, tax calculations and reporting; and mobile payments, providing mobile payment processing services and related support.

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Operating locations

FDC’s facilities in the United States provide the data center infrastructure that processes the majority of the Company’s transactions. FDC’s operations in the United Kingdom, Germany, Greece and Australia represent the Company’s most significant foreign transaction processing locations. The United Kingdom, Greece and Australia operations process transactions for Card Issuing Services clients located outside of North America. In the Merchant Services segment, the Germany operations sell and service POS devices throughout Europe, and the Australia operations process transactions outside the United States. Payment Services domestic and international transactions are processed through the data centers located in the United States. Other than the electronic routing of transactions through these data centers, the Payment Services international operations are managed and operate outside the United States. Each of the Company’s three business segments has an international presence through various regional or country offices where sales, customer service and/or administrative personnel are based. These international operations generate revenues from customers and consumers located and operating outside of the United States. The following table presents revenues generated from processing transactions at locations within the United States (domestic) and outside of the United States (international) as percentages of FDC’s consolidated revenues for the years ended December 31, 2004, 2003 and 2002:

The following table presents long-lived assets attributable to operations with processing locations based within the United States (domestic) and outside of the United States (international) as percentages of FDC’s total long-lived assets as of December 31, 2004, 2003 and 2002:

No individual foreign country is material to the Company’s total revenues or long-lived assets.

Business Strategy

The Company’s general business strategy is to be a global, integrated, electronic payment processor that authenticates, authorizes, and settles transactions from any payment device to any customer account. Its growth strategy is focused on internal revenue growth supplemented by acquisitions. The Company focuses its efforts on developing and expanding new products and services, leveraging its consumer brands and enhancing its processing platforms in response to Company growth, client requirements, competition, and changing technology to serve as the single source, end-to-end provider of integrated payment solutions. The Company also continues to develop long-term contractual relationships with clients to support the Company’s core businesses.

The Company considers strategic investment and acquisition opportunities, as well as divestitures, as part of its business strategy. Acquisitions supplement the Company’s efforts to access new markets and client groups, while divestitures have been completed for businesses that do not complement the Company’s overall strategic plan. No assurance can be given with respect to the timing, likelihood, or the financial or business effect of any possible acquisitions or divestitures.

Concord Merger

On February 26, 2004 the Company completed its merger with Concord. FDC and Concord each have distinct strengths in product lines and markets that in combination provide financial institutions, retailers and consumers with a broader spectrum of payment options, greater input into the future direction of the electronic payments industry and access to new technologies and global markets. The all-stock transaction resulted in a total purchase price of approximately $6.9 billion, including acquisition-related costs.

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On December 15, 2003, the Company announced an agreement with the U.S. Department of Justice (“DOJ”) that allowed it to complete the merger with Concord. The Company agreed to divest its 64% ownership of NYCE Corporation (“NYCE”), an electronic funds transfer network. The Company completed the sale of NYCE on July 30, 2004 for the purchase price of $610.0 million, of which $389.6 million was the Company’s share.

Since the completion of the merger the Company has begun executing numerous initiatives to integrate Concord into FDC and reorganize existing FDC businesses. The initiatives include consolidation of data centers and facilities, sales forces, products and services, and administrative functions. Major initiatives completed in 2004 include the consolidation of the First Data PayPoint and Concord BUYPASS acquiring businesses and the consolidation of Concord’s network settlement functions in Maitland, Florida into the Wilmington, Delaware platform. Several smaller operations are similarly in the process of being merged into other existing operations, such as call centers and other network settlement functions.

For a more detailed description of the merger with Concord and the sale of NYCE refer to Notes 3 and 18 to the Company’s Consolidated Financial Statements in Item 8, which is incorporated herein by reference.

Acquisitions and Dispositions

In April 2004 the Company acquired Cashcard Australia Limited (“Cashcard”), a provider of ATM services in the Australian marketplace. The transaction facilitated FDC’s entry into the Australian merchant ATM deployment market. The transaction creates opportunities for FDC and Cashcard clients, expanding the delivery of services such as credit and debit POS processing, deployment of merchant ATMs, check authorization and money transfer.

In July 2004 the Company acquired Delta Singular Outsourcing Services S.A. (subsequently renamed “First Data Hellas”), the former payment processing and outsourcing division of Delta Singular S.A. located in Greece. First Data Hellas provides payments processing and outsourcing services including card processing, ATM and POS driving and call center support. First Data Hellas will provide payment processing services and outsourcing services to existing First Data Hellas clients, the largest being Alpha Bank. The Company anticipates the acquisition will create additional opportunities to market other FDC services and products in the Greek, Middle Eastern and European markets.

Other acquisitions during 2004 include:

In March 2004 the Company sold its 67% interest in GCA Holdings, LLC, the parent holding company of Global Cash Access LLC (“GCA”). GCA is a supplier of cash access and customer relationship marketing technologies to the gaming industry.

First Data Products and Services Segment Information

The Company operates in three business segments: Payment Services, Merchant Services and Card Issuing Services. Financial information relating to each of the Company’s segments is set forth in Note 16 to the Company’s Consolidated Financial Statements in Item 8, which is incorporated herein by reference. A discussion of factors potentially affecting the Company’s operations is set forth in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which is incorporated herein by reference.

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Alignment of acquired operations

Concord’s operations were assigned to FDC’s existing segments based on the services provided and the customer bases served. Concord’s merchant acquiring business and its risk management services are included in the Merchant Services segment. Concord’s prepaid stored-value card and transportation-related payment services businesses are included in the Payment Services segment. The STAR services and related network businesses are allocated between the Merchant Services and Card Issuing Services segments based upon whether the service was provided in an acquiring or issuing capacity. Services provided to acquirers and merchants are included in the Merchant Services segment, and services provided to issuers, which primarily are financial institutions and their cardholders, are included in the Card Issuing Services segment. The following illustrative example is provided to assist in understanding the alignment of STAR network revenues between the Merchant Services and Card Issuing Services segments but does not represent the entirety of the services provided by the Company in either segment:

A POS personal identification number (“PIN”)-debit transaction occurs when a debit cardholder pays for merchandise from a merchant with a debit card and the cardholder enters a PIN as an electronic signature. When the merchant swipes the PIN-debit card through the POS terminal, a merchant acquirer (this could be FDC or one of its alliances) “acquires” the transaction and routes the transaction to the card issuer through a debit network (STAR or similar network) for transaction authorization and settlement. The debit network (STAR) will charge the merchant acquirer a fee (typically called a network acquirer switch fee) and also will charge the issuer a separate fee (typically called an issuer switch fee). In this circumstance, the fee obtained from the merchant and expenses incurred to acquire the transaction are recorded in the Merchant Services segment. Similarly, the fee obtained from the issuer and expenses incurred to route the transaction to the issuer and provide cardholder services are recorded in the Card Issuing Services segment.

The Cashcard and First Data Hellas operations are allocated to the Merchant Services and Card Issuing Services segments on the same basis as the Concord operations discussed above. A majority of Cashcard operations are included in the Merchant Services segment, with the remainder in the Card Issuing Services segment. A majority of First Data Hellas operations are included in the Card Issuing Services segment, with the remainder in the Merchant Services segment.

Realignment of historical FDC operations

In connection with the Concord merger the Company realigned the following operations:

Payment Services Segment

The Payment Services segment consists of the Company’s consumer-to-consumer money transfer, consumer-to-business bill payment, official check and money order, prepaid services, transportation-related payment services and other related product and service offerings. Payment Services revenues from external customers, operating profit, and assets represent the following percentages of FDC’s consolidated revenues, total reported segment and all other and corporate operating profit, and consolidated assets:

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A brief explanation of the segment’s businesses is presented below.

Description of Payment Services Segment Operations

In the Payment Services segment, revenue is derived from three primary sources: transaction fees charged to consumers and clients; investment income earned on the investment of funds received from the sale of payment instruments (primarily official checks and money orders); and in certain transactions the Company generates revenue by acquiring foreign currency at wholesale exchange rates and providing the currency to consumers at retail exchange rates.

Growth in the Payment Services business is derived from continued investment in the Western Union brand name, expansion of the agent network that closely follows immigration patterns, emphasis on ethnic locations and localized marketing, balancing send and receive locations, and new products and services. Western Union’s agent network includes banks, post offices, large merchants and independent agents. Growth is further supported by expansion of westernunion.com and the loyalty card program, improvements in the POS experience, same-store transaction growth, and corridor marketing and pricing strategies.

The majority of the segment’s revenues are derived from money transfer transactions. Consumer-to-consumer and consumer-to-business transactions generated 84%, 82% and 81% of the segment’s revenues for the years ended December 31, 2004, 2003 and 2002, respectively. The table below presents the components of consumer-to-consumer and consumer-to-business revenues as a percentage of the combined total:

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Consumer-to-consumer money transfer

As a provider of consumer-to-consumer nonbank money transfer services, Western Union and its subsidiaries have an agent network of more than 61,000 agent locations in North America (United States, Canada and Mexico) and more than 158,000 international agent locations that provide consumer-to-consumer money transfer services in more than 195 countries and territories. The primary users of this service are people who periodically need to send funds to family in other locations, or to send or receive cash quickly in emergency situations. Consumer-to-consumer money transfer transactions totaled 96.7 million in 2004 compared to 81.0 million in 2003 and 67.8 million in 2002.

The Company enters into agency agreements with third parties to provide its money transfer services. Outside North America, many of the agreements are with banks and national post offices. Certain agents of the Company maintain sub-agent networks within their territory. In a typical consumer-to-consumer money transfer transaction, a consumer goes to one of the Company’s third-party agent locations, completes a form and pays the agent a fee. The sending agent enters the transaction data into the Company’s data processing system, from which it is processed and made available for payment at agent locations throughout the Company’s network. The intended recipient of the money transfer can enter any Western Union agent location in the destination country and the agent pays out the transferred amount upon presentation of identification by the recipient. The fee paid by the sender generally is based on the principal amount of the transaction and the location to which the funds are to be transferred. This transaction fee is set by Western Union and is recorded as revenue. The Company derives additional revenue from currency exchange spreads in its international and Mexico money transfer business. These spreads are the difference between the retail currency exchange rate provided to the individual consumer and the wholesale rate received when Western Union trades in larger blocks of currencies in the international money market. Generally, there are two agent locations involved in a money transfer transaction, the agent initiating the transaction (the “send agent”) and the agent disbursing funds (the “receive agent”). The send and receive agents each earn a commission generally based on a percentage of the fee charged to the customer. These commissions are included in “cost of services” in the Consolidated Statements of Income. Some agents outside the U.S. also receive additional commissions based on a portion of the foreign exchange revenue associated with money transfer transactions.

Western Union settles with the vast majority of its agents in U.S. dollars and euros. The Company utilizes currency exchange contracts, primarily forward contracts, to hedge against the risks associated with currency fluctuations. Limited foreign currency risk arises with respect to the agent settlement process. The foreign currency exchange risk is limited because the majority of money transfer transactions are paid shortly after they are initiated and agent settlements occur daily in most instances.

Consumer-to-business bill payment services

Payment Services offers several bill payment services, including enabling transferring payments from consumers to utility companies, collection agencies, finance companies, mortgage lenders, and other billers; initiating e-commerce bill payments through multiple sources; and enabling mortgage payments from a customer’s account directly to their mortgage lender. Consumer-to-business transactions totaled 146.1 million in 2004, compared to 134.0 million in 2003 and 119.3 million in 2002. The consumer-to-business transactions for 2004, 2003 and 2002 include E Commerce Group and Paymap (both acquired in the second quarter 2002) as if they were consolidated subsidiaries as of January 1, 2002, to provide a more meaningful comparison.

Official checks and money orders

IPS issues official checks, which are sold primarily through financial institutions, and money orders, which are sold at financial institutions and Western Union agent locations. Official checks serve as an alternative to a bank’s own disbursement items such as cashiers or bank checks.

IPS’ money order and official check services generate revenue primarily through IPS’ ability to invest funds pending settlement. IPS invests these funds in high-quality investments to minimize its exposure to credit risks.

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These investments primarily are in high-quality, tax-free municipal bonds. In a money order transaction, a consumer purchases a money order from an agent. The agent selling the money order generally remits the funds collected from the consumer to IPS within a matter of days of the transaction date. An agent generally does not receive a commission on the sale of a money order, but is compensated by charging a fee to the consumer. In an official check transaction, a consumer will procure an official check from one of IPS’ agents, typically a financial institution. The official check agent generally is required to remit the funds collected from the consumer to IPS the following day. IPS pays its official check agents commissions based on short-term variable interest rates and the balance of outstanding official checks. IPS nets the commissions paid to official check agents against the revenues it earns from its investments.

Prepaid services

ValueLink develops, implements and manages prepaid stored-value card programs (i.e., gift cards) with brick and mortar, internet and international applications for national, regional and local retailers. The full-service stored value/gift card program offers transaction processing services, card acquisition and customer service for over 200 national brands.

Transportation-related payment services

EFSTS is a closed loop payment processing system for transportation companies in the United States. Its products offer transportation drivers a convenient way to purchase fuel, access cash and pay for repairs while on the road. Transportation companies use the processing system to manage their business daily through the internet or real time via a direct connection to a host. EFSTS also owns and operates ATM machines in truck stop locations across the United States.

Payment Services Seasonality

Payment Services segment revenues and earnings generally tend to be highest in the fourth quarter due to the holiday season in the United States and other countries and lowest in the first quarter. Seasonality does not have a significant impact on the results of operations.

Payment Services Agent Location Backlog

Western Union continued to expand its agent base through new signings domestically and internationally during the year. As of January 31, 2005, Western Union had a backlog of approximately 17,000 agent locations and plans to finish 2005 with approximately 250,000 worldwide agent locations.

Payment Services Geographic Mix and Revenues

No individual foreign country accounted for more than 7%, 6% and 6% of the segment’s revenues from external customers for the years ended December 31, 2004, 2003 and 2002, respectively. Revenues generated from foreign currency spreads represented 12%, 11% and 11%, respectively, of Payment Services revenues from external customers for the years ended December 31, 2004, 2003 and 2002, respectively.

Payment Services Significant Customers

No individual consumer makes up greater than 10% of the Payment Services segment revenue. Certain Western Union agents facilitate a large number of transactions; however, no individual agent accounts for greater than 5% of Payment Services revenue from external customers.

Merchant Services Segment

The Merchant Services segment is comprised of businesses that facilitate the acceptance of consumer transactions at the point of sale, whether it is transactions at a physical merchant location, over the internet or at an ATM.

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Merchant Services revenues from external customers, operating profit, and assets represent the following percentages of FDC’s consolidated revenues, total reported segment and all other and corporate operating profit, and consolidated assets:

A brief explanation of the segment’s businesses is presented below.

Description of Merchant Services Segment Operations

In the Merchant Services segment, the Company’s revenues are derived primarily from transaction and processing service fees collected from merchant credit and debit card transactions.

Merchant acquiring

FDMS provides merchant credit and debit card transaction processing services. Including the merchant alliances, TASQ and TeleCash, FDMS accounts for the majority of the Merchant Services segment’s revenue. FDMS’ processing services include authorization, transaction capture, settlement, chargeback handling, and internet-based transaction processing. The vast majority of these services pertain to transactions in which consumer payments to merchants are made through VISA or MasterCard.

FDMS’ revenues are generated from:

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The Company and its alliances provided merchant processing services to approximately 4.1 million merchant locations worldwide in 2004. The Company and its alliances provided full service merchant card processing primarily on VISA and MasterCard transactions and PIN-debit at the point of sale. The following table presents the North America merchant dollar volume and North America merchant transactions processed for the past three years:

Growth in the Merchant Services business is derived from acquiring new merchant relationships, new and enhanced product and service offerings, cross selling products and services into existing relationships, the shift of consumer spending to increased usage of electronic forms of payment and the strength of its alliance partnerships with banks and financial institutions. The Company’s alliance structures take on different forms, including being consolidated subsidiaries, equity method investments and revenue sharing arrangements. Under the alliance program, the Company and a bank form a joint venture, either contractually or through a separate legal entity. Merchant contracts are contributed to the venture by the Company and/or the bank. New merchant business is solicited by the alliance’s (and in some cases, the financial institution’s) sales force. Each alliance requires successful management of the relationship between the Company and the financial institution alliance partner. The Company benefits by providing processing services for the alliance and its merchant customers, while the financial institution partner benefits by maintaining the merchant banking relationship. Alliance financial institutions provide card association sponsorship, clearing, and settlement services. The Company provides transaction processing and related functions; both owners may provide management, marketing, and other administrative services. The alliance strategy could be affected by further consolidation among financial institutions.

There are a number of different entities involved in a merchant transaction including the cardholder, card issuer, merchant, merchant acquirer, electronic processor and card association for credit and signature debit transactions, and debit network for PIN-debit transactions. The card issuer is the financial institution that issues the credit or debit card, authorizes transactions after determining whether the cardholder has sufficient available credit or funds for the transaction, and provides funds for the transaction. Some of these functions may be performed by an electronic processor (such as First Data Resources) on behalf of the issuer. The card association is VISA or MasterCard or a debit network (such as STAR) that routes the transactions between the Company and the card issuer. The merchant is a business from which a product or service is purchased by a cardholder. The acquirer (such as the Company or one of its alliances) contracts with merchants to facilitate their acceptance of transaction cards. A merchant acquirer may do its own processing or, more commonly, may outsource those functions to an electronic processor such as the Company. The acquirer/processor serves as an intermediary between the merchant and the card issuer by:

A transaction occurs when a cardholder purchases something from a merchant who has contracted with the Company (for example former Concord merchant acquiring customers), an alliance or a processing customer. When the merchant swipes the card through the POS terminal (which is often sold or leased, and serviced by the

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Company), the Company obtains authorization for the transaction from the card issuer through the card association or debit network, verifying that the cardholder has sufficient credit or adequate funds for the transaction. Once the card issuer approves the transaction, the Company or the alliance “acquires” the transaction from the merchant and then transmits it to the applicable debit network or card association, which then routes the transaction information to the card issuer. Upon receipt of the transaction, the card issuer delivers funds to the Company via the card association or debit network. Generally, the Company funds the merchant after it receives the money from the card association or debit network. Each participant in the transaction receives compensation for processing the transaction. For example, in a transaction using a VISA or MasterCard for $500.00 with a merchant “discount rate” (i.e., fee) of 2%, the card issuer will fund the association $492.50 and bill the cardholder $500.00 on its monthly statement. The card association will retain assessment fees of $0.50 and forward $492.00 to the Company. The Company will retain $2.00 and pay the merchant $490.00. The $7.50 retained by the card issuer is referred to as interchange and it, like assessment fees, is set by the card association.

The Company and its alliances, as merchant acquirers, have certain contingent liabilities for the transactions acquired from merchants. This contingent liability arises in the event of a billing dispute between the merchant and a cardholder that is ultimately resolved in the cardholder’s favor. In such a case, the transaction is “charged back” to the merchant and the disputed amount is credited or otherwise refunded to the cardholder. If the Company or alliance is unable to collect this amount from the merchant, due to the merchant’s insolvency or other reasons, the Company or alliance will bear the loss for the amount of the refund paid to the cardholder. In most cases, this contingent liability situation is unlikely to arise because most products or services are delivered when purchased, and credits are issued on returned items. However, where the product or service is not provided until sometime following the purchase (e.g., airline or cruise ship tickets), the risk is greater. The Company mitigates its risk by obtaining collateral from merchants considered higher risk because they have a time delay in the delivery of services, operate in industries that experience chargebacks or are less creditworthy.

Network acquiring and processing services

In the merchant acquiring process flow described above, STAR represents a debit network. STAR’s fees differ from those presented in the example in that the debit network charges less for PIN-debit transactions than do the card associations for credit and signature debit since there is substantially less risk involved in the PIN-debit transaction because the transaction is not approved unless there are sufficient funds in the customer’s bank account. STAR’s revenues are primarily earned on a fee-per-transaction basis.

Check verification and guarantee services

TeleCheck revenues are earned primarily by charging merchant fees for check verification or guarantee services. The majority of TeleCheck’s business involves providing check guarantee services for checks received by merchants. Under the guarantee service, when a merchant receives a check in payment for goods and services, the transaction is submitted to and analyzed by TeleCheck. TeleCheck either accepts or declines the check for warranty coverage under its guarantee service. If TeleCheck approves the check for warranty coverage and the merchant accepts the check, the merchant will deposit the check in its bank account. If the check is returned unpaid by the merchant’s bank and the returned check meets the requirements for warranty coverage, TeleCheck is required to purchase the check from the merchant at its face value. TeleCheck then owns the purchased check and pursues collection of the check from the check writer. As a result, TeleCheck bears the risk of loss if it is unable to collect the returned check from the check writer. TeleCheck earns a fee for each check it guarantees, which generally is determined as a percentage of the check amount. TeleCheck guarantee services also are offered utilizing TeleCheck’s Electronic Check Acceptance ^® service (“ECA ^® ”), which converts a paper check written at the point of sale into an electronic item, enabling funds to be deposited electronically to the merchant’s account and deducted electronically from the check writer’s account.

Under the verification service, when a merchant receives a check in payment for goods or services, the transaction is submitted to and analyzed by TeleCheck, which will either recommend the merchant accept or

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decline the check. If the merchant accepts the check, the merchant will deposit the check in its bank account. If the check is returned unpaid by the merchant’s bank, TeleCheck is not required to purchase the check from the merchant and the merchant bears all risk of loss on the check. TeleCheck earns a fee for each check submitted for verification, which is generally a fixed amount per check.

PPS provides software, information and analysis to assist in deposit, payment and identity fraud prevention and reduction.

Merchant Services Seasonality

Merchant Services revenues and earnings are impacted by the volume of consumer usage of credit cards, debit cards and checks written at the point of sale. Merchant Services experiences increased POS activity during the traditional holiday shopping period in the fourth quarter, the back-to-school buying period in the third quarter, and around other nationally recognized holidays.

Merchant Services Geographic Mix and Revenues

Revenues from external customers attributable to transactions originating in the United States accounted for 92%, 93% and 97% of Merchant Services’ revenues for the years ended December 31, 2004, 2003 and 2002, respectively. The balance of the segment’s revenues from external customers is attributable to transactions originating primarily in the United Kingdom, Germany, Greece and Australia. No individual foreign country accounted for more than 3% of the segment’s revenues for any of the three years in the period ended December 31, 2004.

Merchant Services Significant Customers

The Company has three significant merchant alliance relationships with two financial institutions, one being JPMorgan Chase, in the Merchant Services segment, of which two were accounted for under the equity method of accounting and the other was consolidated. Revenues associated with the alliance relationships with these two institutions combined represent approximately 21% of the Merchant Services segment revenues. Upon termination of these alliance relationships, the Company has certain rights to acquire all or a portion of the applicable merchant portfolios, depending on the circumstances of such termination. In July of 2004, JPMorgan Chase (part owner of the Company’s Chase Merchant Services alliance) merged with Bank One (part owner of the Company’s Paymentech alliance). The Company and the combined bank are in discussions regarding the possible restructuring of those alliances.

Card Issuing Services Segment

The Card Issuing Services segment primarily encompasses domestic and international card processing and debit network services. Growth in the Card Issuing Services business is derived from an increase in debit card usage, retail card outsourcing, expansion beyond core processing, and leveraging core processing capabilities into other markets such as healthcare. Growth is provided by the shift in payment methods from cash and check to card-based payments, consumer card penetration, growth in private label card outsourcing, growth in PIN-debit transactions, growth in loyalty programs and increased personal consumption expenditures.

Card Issuing Services revenues from external customers, operating profit, and assets represent the following percentages of FDC’s consolidated revenues, total reported segment and all other and corporate operating profit, and consolidated assets:

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A brief explanation of the segment’s businesses is presented below.

Description of Card Issuing Services Segment Operations

Card issuing and processing services

The Card Issuing Services segment provides products and processing services to card issuers, including financial institutions, retailers, oil companies, consumer finance companies and other card issuers. Financial institution clients include a wide variety of banks, savings and loan associations and credit unions. Processing services provided include account maintenance, transaction authorization and posting, statement generation and printing, embossing, fraud and risk management services and settlement. The Company’s card accounts on file were 406.0 million at December 31, 2004 and 347.8 million at December 31, 2003.

The Company provides a full array of services throughout the period of each card’s use, starting from the moment a card-issuing client processes an application for a transaction card. The Company’s in-house embossing facility produces cards for new accounts and at renewal dates (established by the client) for existing card accounts. FDR’s fraud management services monitor the unauthorized use of cards which have been reported to be lost, stolen, or which exceed credit limits. The Company’s fraud detection systems help identify fraudulent transactions by monitoring each cardholder’s purchasing patterns and flagging unusual purchases. Transactions are processed and posted to the cardholder’s account. Cardholder statements are prepared and mailed directly to cardholders using the Company’s in-house mail facilities. Other services provided include cardholder database analysis, cardholder behavior scoring, customized communications to cardholders, information verification associated with granting credit, debt collection, customer service, and proprietary oil card processing services.

The Company provides STAR network access, ATM/debit and signature debit card processing services, such as transaction routing, authorization, card embossing and settlement for issuers. When a merchant acquirer acquires a STAR transaction, it sends the transaction to the network switch, which in turn routes the transaction to the appropriate financial institution for authorization. To be routed through the STAR network switch, a transaction must be initiated with a card carrying the STAR mark at an ATM or POS terminal also displaying the STAR mark.

Currently, FDC’s operations in the United Kingdom, Australia and Greece are the Company’s principal processing facilities located outside the United States. FDC had 36.1 million international card accounts on file at December 31, 2004 compared to 31.2 million at December 31, 2003 . Services provided generally mirror the Company’s domestic services. The Company also provides third-party bankcard processing to customers in

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Canada and portions of Latin America. In Australia, FDC operates the largest independent electronic funds transfer network in that country, providing ATM, Electronic Funds Transfer (“EFT”), POS, smartcard, pay-by-phone and internet payment processing and acquiring services to more than 400 financial institutions, card issuers and merchant clients, as well as providing credit and merchant account processing services similar to the domestic operations.

Revenues for credit and retail card issuing and processing services are derived from fees payable under contracts that primarily depend on the number of cardholder accounts on file. More revenue is derived from active accounts (those accounts on file with monetary transactions posted or a monetary balance in the current period) than inactive accounts. Revenue related to STAR debit network issuing and processing services are also derived from fees payable under contracts but are driven more by monetary transactions processed rather than the account on file. FDR provides a multitude of services which are driven by client transactions and are separately priced and negotiated with clients. Most FDR contracts provide for the payment of minimum annual processing fees, payable without regard to the number of accounts. In some instances, the Company may make an advance payment to a client upon the signing or extension of a processing contract with the Company. FDR makes these payments primarily to compensate new clients for dedicating the resources to change service providers or to outsource an internal service function.

Card processing software

The Company sells its VisionPLUS credit card transaction processing software to international financial institutions, retailers and third party processors. Additionally, the Company is beginning to use this software as its platform to provide processing services to international financial institutions. The Company also generates revenue from custom programming services for certain customers and from software licensing and maintenance fees from its VisionPLUS software. Most of the revenues are earned internationally.

Card Issuing Services Pipeline

During January 2005, the Company converted approximately 31 million accounts leaving a pipeline of approximately 20 million accounts at January 31, 2005. The Company expects to convert 12 million of these accounts in 2005 and the remainder in 2006.

Card Issuing Services Seasonality

A majority of Card Issuing Services results of operations are driven by the number of accounts on file, both active and inactive, that remain fairly constant and are not materially affected by seasonality. STAR debit processing revenues and earnings are impacted by the volume of consumer usage of debit cards, and STAR experiences increased POS activity during the traditional holiday shopping period in the fourth quarter, the back-to-school buying period in the third quarter, and around other nationally recognized holidays.

Card Issuing Services Geographic Mix and Revenues

Revenues from external customers attributable to transactions originating in the United States accounted for 80%, 82% and 83% of Card Issuing Services revenues for each of the years ended December 31, 2004, 2003 and 2002. Revenues derived from external customers of the Company’s processing subsidiary in the United Kingdom represented 11%, 12% and 10% of Card Issuing Services revenues from external customers for the years ended December 31, 2004, 2003 and 2002, respectively. Other than the United Kingdom, no individual foreign country accounted for more than 4% of the segment’s revenues from external customers for any of the three years in the period ended December 31, 2004.

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Card Issuing Services Significant Customers

During 2004, the Company had a significant relationship with one client, JPMorgan Chase, whose revenues represented approximately 10% of the Card Issuing Services segment revenue. JPMorgan Chase has announced its intention to deconvert its accounts on file in the third quarter 2005.

All Other and Corporate

The remainder of the Company’s business units are grouped in the All Other and Corporate category, which includes eONE, Teleservices, First Data Voice Services and corporate operations.

eONE is focused on identifying, developing, commercializing and operating emerging payment systems and related technologies in two areas: government payments and mobile payments. In the government payments area, the Company provides electronic tax processing services for the Electronic Federal Tax Payment System (“EFTPS”).

Teleservices is a provider of voice-center services to the telecommunications and financial services industries. The Company operates two voice operations centers in the United States that provide a full range of high-volume, inbound telephone operator services, including customer support, directory assistance and multilingual customer service. First Data Voice Services offers customized toll-free telephone interactive voice services that gather, process and distribute information for client needs for both promotional and long-term projects. Revenues from these services consist of fees paid by clients, which are generally based on call volume, duration and the number of transactions.

Corporate operations include administrative and shared service functions such as the executive group, acquisitions group, legal, tax, treasury, human resources, information technology, and procurement. Costs incurred by corporate that are directly related to a segment are allocated to the respective segment. Overhead costs, including shared services, are allocated to the segments based on a percentage of the segment’s revenue.

All Other and Corporate Significant Customers

All Other and Corporate has a significant customer relationship with one customer that represents approximately 22% of All Other and Corporate’s revenue from external customers. Through FDGS, a subsidiary of eONE, the Company provides electronic tax processing services as a subcontractor for a partner bank, which has contracted with the U.S. Department of the Treasury Financial Management Service (“FMS”), to be a provider of the EFTPS. Historically, FDGS has been one of two providers of such services. In March 2004, FDGS and its partner bank were informed that FMS intended to contract with them to be the single provider of EFTPS services based on proposed new terms submitted by FDGS and its partner bank. FDGS completed the transition of the services from the other provider in the fourth quarter 2004.

Marketing

FDC markets its services through a variety of channels including direct solicitation and general advertising. Generally, each business unit has a separate dedicated sales force that, in addition to its own product offerings may also cross sell services of the other business units to provide a full suite of product offerings. The Company markets on a worldwide and nationwide basis for Card Issuing Services products and a combination of worldwide, nationwide and regionally for its Payment Services products. Most of the Merchant Services businesses are marketed regionally by sales forces associated with the merchant alliances.

The most significant marketing and advertising program supports the Western Union brand name and consumer awareness of Western Union’s services. These marketing programs include the use of television, radio, print media and internet.

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In the Merchant Services segment direct sales efforts by Company employees, bank alliances and independent sales organizations have been effective in signing new merchant clients. Additionally, alliance partners provide referrals to their respective alliance’s dedicated sales force from their bank branches. This often occurs when a merchant opens a new account at a bank and the bank refers the merchant to the alliance to obtain transaction-processing services.

Intellectual Property

FDC owns many trademarks, patents and other intellectual property that are important to its future success. The only intellectual property rights which are individually material to the Company or any of its business segments are the Western Union trademark and the STAR tradename. The Western Union trademark is widely recognized and is associated with quality and reliable service. Loss of the proprietary use of the Western Union trademark or a diminution in the perceived quality associated with that name could harm the Company’s growth in the money transfer business. Similarly, financial institutions associate the STAR tradename with quality and reliable debit network processing services. Loss of the proprietary use of the STAR tradename or a diminution in the perceived quality associated with that name could harm the Company’s growth in the debit network business.

Most of the segments’ services and products are based on proprietary software that is updated to meet customer needs and remain competitive. Protecting the Company’s rights to its proprietary software and the patents related to them is critical, as it allows the Company to offer distinctive services and products to customers, which differentiates it from competitors. The patent protection associated with the Company’s systems and software expires at different times over the next one to 20 years.

Regulation

Various aspects of the Company’s service areas are subject to U.S. federal, state and local regulation, as well as regulation by foreign jurisdictions. Failure to comply with regulations may result in the suspension or revocation of any license or registration at issue, limitation, suspension or termination of service, as well as the imposition of civil and criminal penalties, including fines. Certain of the Company’s services also are subject to rules promulgated by various payment networks, such as VISA and MasterCard, as more fully described below.

Banking Regulation

The Company’s subsidiary First Financial Bank (“FFB”) is a Colorado industrial bank, which conducts limited banking functions in connection with affiliated Company businesses. It is subject to regulation and examination by the Federal Deposit Insurance Corporation and the Division of Banking of the Colorado Department of Regulatory Agencies. First Data Loan Company Canada (“FDLCC”), through which the Company conducts some of its merchant acquiring activities in Canada, is a Canadian loan company subject to regulation and examination by the Office of the Superintendent of Financial Institutions and to various provincial registration and licensing requirements. These financial institution subsidiaries are also subject to various national and local banking and consumer protection laws and regulations that apply to the activities they conduct in their respective jurisdictions.

Because the Company’s card issuing, merchant processing and STAR debit network businesses provide data processing services for financial institutions, they are subject to regulations under the Electronic Funds Transfer Act and to examination by the Federal Financial Institutions Examination Council, an interagency body comprised of the federal bank and thrift regulators and the National Credit Union Association.

In October 2004, Western Union’s subsidiary, Western Union International Bank GmbH (“WUIB”) was granted a banking license by Finanzmarktaufsicht Behoerde (FMA), the Austrian Financial Market Authority, which allows WUIB to offer a range of financial products and services to European consumers in the 25 Member

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States of the European Union. The banking license subjects WUIB to the Austrian Banking Act and the Austrian Financial Market Authority Act. It is anticipated that WUIB will commence operations in 2005.

Association and Network Rules

FFB is a member of VISA and MasterCard and is subject to the rules of those associations, including a capital requirement based on the merchant credit card processing volume and risk profile of the merchant transactions cleared through FFB. FFB is also a member of numerous debit and EBT networks in connection with its sponsorship of merchants, financial institutions, independent sales organizations, ATMs and cards into such networks. FDLCC is a member of MasterCard in Canada and subject to MasterCard rules. FDR, FDMS and STAR are registered with VISA and MasterCard as service providers for member institutions. Two STAR entities, Star Networks, Inc. and Star Processing Inc., are also processor level members of numerous debit and EBT networks in connection with processing services and other services they provide to their customers. As such, the Company is subject to applicable card association and network rules, which could subject it to a variety of fines or penalties that may be levied by the card associations for certain acts and/or omissions on the part of the Company, its sponsorees, acquirer customers, processing customers and/or merchants. The Company mitigates this risk by maintaining an extensive card association and network compliance function. The Company is also subject to network operating rules promulgated by the National Automated Clearing House Association relating to payment transactions processed by the Company using the Automated Clearing House Network and to various state laws regarding such operations, including laws pertaining to EBT.

Credit Reporting Regulations

TeleCheck and the Company’s majority-owned subsidiary PPS are subject to the Federal Fair Credit Reporting Act and various similar state laws based on TeleCheck’s maintenance of a database containing the check-writing histories of consumers and the use of that information in connection with its check verification and guarantee services and PPS’ risk management services, including its information databases used to mitigate losses associated with deposit, payment and identity fraud.

The collection business within TeleCheck is subject to the Fair Debt Collection Practices Act and various similar state laws. TeleCheck may become subject to further regulation in the future as legislatures, both federal and state, enact additional legislation aimed at regulating the collection, storage and use of data and databases regarding consumers. In particular, legislation reducing or eliminating access to and use of information on drivers licenses, requiring blocking of access to credit reports or scores, mandating score or scoring methodology disclosure and proscribing the maintenance or use of consumer databases, including a consumer’s rights to effect the usable content of databases, could reduce the effectiveness of TeleCheck’s risk management tools or otherwise increase its costs of doing business.

Money Transfer and Payment Instrument Licensing and Regulation

The Company is subject to various U.S. federal, state and foreign laws and regulations governing money transmission and the sale of payment instruments, such as official checks and money orders.

In the United States, most states license money transfer services providers and issuers of payment instruments. Many states exercise authority over the operations of the Company’s services related to money transmission and the sale of payment instruments and, as part of this authority subject the Company to periodic examinations. Many states require, among other things, that proceeds from the sales of such instruments and money transfers be invested in high-quality marketable securities prior to the settlement of the transactions. Such licensing laws also may cover matters such as regulatory approval of agent locations, consumer forms, consumer disclosures and the filing of periodic reports by the licensee, and require the licensee to demonstrate and maintain levels of net worth. Many states also require money transmitters, issuers of payment instruments, and their agents to comply with federal and/or state anti-money laundering laws and regulations.

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The Company’s money transfer and payment services businesses also are subject to regulation by the United States, including anti-money laundering laws and regulations, including the Bank Secrecy Act, as amended by the USA PATRIOT Act of 2001 (collectively, the “BSA”). In addition, certain economic and trade sanctions programs that are administered by the Treasury Department’s Office of Foreign Assets Control (“OFAC”), prohibit or restrict transactions to or from or dealings with specified countries, their governments, and in certain circumstances, their nationals, and with individuals and entities that are specially-designated nationals of those countries, narcotics traffickers, and terrorists or terrorist organizations. The BSA, among other things, requires money transfer companies and the issuers and sellers of money orders and official checks, to develop and implement risk-based anti-money laundering programs, report large cash transactions and suspicious activity, and to maintain transaction records. These requirements also apply to the agent network maintained by the Company’s Payment Services segment. The Treasury Department has interpreted these requirements to include due diligence and risk based monitoring of agents.

In addition, the money transfer business is subject to some form of regulation in each of the 195 countries and territories in which such services are offered. These regulations may include limitations on what types of entities may offer money transfer services, limitations on the amount of principal that can be moved into or out of a country, limitations on the number of money transfers that may be sent or received by a customer, agreements on the rates of exchange between currencies, and laws and regulations intended to help detect and prevent money laundering and criminalize money laundering activity.

The Company has developed and is enhancing global compliance programs to monitor and address legal and regulatory requirements and developments. The Company’s money transfer network operates through independent agents in most countries, and the Company’s ability to directly control such agents’ compliance activities is limited. To assist in managing and monitoring the money laundering risks, the Company has developed and continues to enhance an anti-money laundering compliance program comprised of policies, procedures, systems and internal controls which address potential money laundering risks. Such programs include dedicated compliance personnel, training and monitoring programs, as well as support and guidance to the agent network on effective compliance programs.

Foreign and domestic governments may impose new or additional rules on money transfers and sales of payment instruments, including regulations which (i) prohibit transactions in, to or from certain countries, governments, nationals and individuals and entities; (ii) impose additional identification, reporting or recordkeeping requirements; (iii) limit the entities capable of providing money transfer services and sales of payment instruments; (iv) limit or restrict the revenue which may be generated from money transfers, including revenue derived from foreign exchange; (v) require additional consumer disclosures; or (vi) limit the number or principal amount of money transfers which may be sent to or from the jurisdiction.

Escheat Regulations

The Company is subject to escheat laws which require the Company to turn over to certain government authorities the property of others held by the Company that has been unclaimed for a specified period of time, such as, in the Payment Services segment, money orders and other payment instruments that have not been presented for payment or, in the Merchant Services segment, account balances that cannot be returned to a merchant following discontinuation of its relationship with the Company. A number of the Company’s subsidiaries hold property subject to state escheat laws and the Company has an ongoing program to comply with those laws. The Company is subject to audit by the states with regard to its escheatment practices. Twenty states have notified the Company of their intent to audit the Company’s escheatment practices and the Company has entered into a voluntary agreement with another state under which the Company will conduct an internal examination of its escheatment practices utilizing third party experts. The Company expects to complete its internal examination in 2005. No state has formally initiated an audit of the Company’s escheatment practices; however, the Company is in discussions with the states to obtain their agreement to use the Company’s internal examination in place of an audit by the states.

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Privacy Regulations

Each of the Company’s segments provides services that may be subject to various state, federal and foreign privacy laws and regulations. Relevant federal privacy laws include the Gramm-Leach-Bliley Act, which applies directly to a broad range of financial institutions and indirectly to companies that provide services to financial institutions, and the Health Insurance Portability and Accountability Act, which applies directly to certain healthcare-related businesses and indirectly to companies that provide services to such businesses. Relevant foreign privacy laws include Directive 95/46 EC of the European Parliament and of the Council of 24 October 1995, as such directive is implemented in each member state of the European Union; the Australian Privacy Act 1988; and the Personal Information Protection and Electronic Documents Act in Canada. Each of these laws restricts the use and disclosure of sensitive personal information, requires notice to consumers of privacy practices and provides consumers certain rights to prevent use and disclosure of protected information. These laws also impose requirements for safeguarding sensitive information through the issuance of data security standards or guidelines. Certain state laws impose similar privacy obligations, as well as obligations to provide notification of security breaches in certain circumstances.

Other

The Company also provides other services that are subject to United States and foreign anti-money laundering and anti-terrorist laws and regulations such as the BSA, and various consumer protection laws. The Company’s merchant processing services are also subject to sanction programs administered by OFAC. Additionally, the Company and its subsidiaries are subject to various state, federal and foreign laws that regulate competition. The Company continues to implement policies and programs as well as adapt its business practices and strategies to help it comply with these laws and regulations.

Competition

First Data has a strong competitive position in each of the three segments in which it competes: Payment Services, Merchant Services and Card Issuing Services. FDC faces significant competition in each of its business segments. The Company also competes with companies that internally perform processing or other related services offered by FDC. In addition, the Company believes that changes in enacted regulations and other legislation as well as other new technologies related to electronic commerce may impact the competitive environment in which the Company operates.

The competitive environments in which each segment operates are described below:

Payment Services Segment —In the Payment Services segment, Western Union’s money transfer and bill payment businesses compete with established financial institutions, international and regional money transfer providers and numerous niche or corridor providers as well as couriers, mail services and informal networks that deliver money. The Company also competes with bank wire transfer services. Companies using emerging technology associated with the internet, ATMs and other media are also providing money transfer services in ways that compete with Western Union. In addition, the Company faces several smaller established competitors in providing commercial money transfer and bill payment services. FDC’s official check and money order businesses compete primarily with financial institutions with in-house check products and with postal money orders and official checks and money orders of other providers, respectively.

The most significant competitive factors in the Payment Services segment relate to brand, price, distribution network, POS customer experience, and, in various forms, customer relationship management. The Payment Services business is further impacted by new technologies that expand consumer choices and changes in the regulatory landscape regarding governmental initiatives focused on know-your-customer and other related programs.

Merchant Services Segment —The Company’s Merchant Services business and its alliances compete with several smaller national service providers and financial institutions that provide these services to their merchant

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customers. In many cases, the merchant alliances also compete against each other for the same business. FDC’s check guarantee and verification business competes principally with two other national companies. The Company also faces significant competition from regional, national and international operators of debit networks.

The most significant competitive factors relate to price, brand, strength of financial institution partnership, breadth of features and functionality, scalability and servicing capability. The Merchant Services business is further impacted by large merchant and large bank consolidation, card association business model expansion, and the expansion of new payment methods and devices.

Card Issuing Services Segment —FDC’s Card Issuing Services segment competes with several other third-party cardholder processors in the United States, certain international processors as well as financial institutions that possess in-house operations to manage card issuance and maintenance.

The most significant competitive factors are price, system performance and reliability, breadth of features and functionality, disaster recovery capabilities and business continuity preparedness, data security, scalability and flexibility of infrastructure and servicing capability. The Card Issuing Services business is further impacted by financial institution consolidation and ongoing regulatory scrutiny of the subprime issuers.

In both the Merchant Services and Card Issuing Services segments, the card associations—VISA and MasterCard—are increasingly offering products and services that compete with those of the Company. As discussed more fully in Item 3 (“Legal Proceedings”) below, in 2003 the Company counter sued VISA for using its market power and rule making ability to prevent the Company from competing with VISA for certain network services.

Within the All Other and Corporate category, FDGS has historically had one competitor of similar size in connection with the EFTPS contract; however, in March 2004, FDGS and its partner bank were informed that FMS intended to contract with them to be the single provider of EFTPS services. FDGS completed the transition of the services from the other provider in the fourth quarter 2004. The remaining All Other and Corporate operations have numerous competitors and no competitor is considered dominant.

Significance of Certain Customer Relationships

The Company does not have any significant customers that account for 10% or more of total consolidated revenues. Refer to the above segment discussions, which address significant customer relationships within the segments.

Industry Trends

Technological capabilities required for the rapid and efficient creation, processing, handling, storage and retrieval of information are becoming increasingly complex. These capabilities require significant development efforts, capital expenditures and processing expertise, and have contributed to a trend toward the outsourcing of processing services, which benefits the Company. The evolution of these capabilities is creating new competitors with innovative solutions, and also is driving an industry-wide consolidation, which is creating more established competitors. The Company is involved with payment solutions technologies, such as wireless paperless products, stored-value cards and other custom payment solutions. These technologies will continue to be a significant factor when considering the growth of the Company with respect to the continued conversion from paper processing to electronic transaction processing.

The Merchant Services segment expects that the shift from cash and check transactions to electronic and card transactions will continue to create growth opportunities. Bank industry consolidation impacts existing and potential clients in FDC’s service areas, primarily in Card Issuing Services and Merchant Services. In addition, the Company’s alliance strategy could be negatively impacted as a result of consolidations, especially where the

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banks involved are committed to merchant processing businesses that compete with the Company. Conversely, if an existing alliance bank partner acquires new merchant business this could result in such business being contributed to the alliance. The Company has been in discussions with JPMorgan Chase since its merger with Bank One to determine how those alliance relationships will be structured in the future.

The Check Clearing for the 21 ^st Century Act, commonly known as Check 21, took effect October 28, 2004. This federal law is designed to enable financial institutions to handle more checks electronically in an effort to make check processing faster and more efficient. It is too early to determine the impact of faster and more efficient check processing on the Company’s investable float balance.

Employees and Labor Relations

At January 31, 2005, the Company employed approximately 32,000 employees, approximately 95% of which were full-time employees. A wholly owned subsidiary of FDC has approximately 2,400 employees in the United Kingdom, the majority of whom are members of UNIFI Trade Union (formerly the Banking Insurance & Finance Union). Employees of FDC subsidiaries in Paris, France; Nürnberg, Germany; and Stüttgart, Germany are also represented by local works councils. Western Union has two four-year labor contracts (expiring August 6, 2008) with the Communications Workers of America, AFL-CIO representing employees in the United States, which accounts for approximately 1,200 Western Union employees primarily located in Dallas, Texas, Bridgeton and St. Charles, Missouri. The majority of the Company’s employees are not otherwise represented by any labor organization in the United States. The Company believes that its relations with its employees and the labor organizations identified above are good.

Available Information

FDC’s principal executive offices are located at 6200 S. Quebec Street, Greenwood Village, CO 80111, telephone (303) 967-8000, internet address www.firstdata.com. The Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports are available free of charge through the “Invest” portion of the Company’s web site, www.firstdata.com, as soon as reasonably practical after they are filed with the Securities and Exchange Commission. The Company’s Audit Committee Charter, Compensation and Benefits Committee Charter, Corporate Governance Committee Charter, Executive Committee Charter, Oversight Committee Charter, Corporate Governance Guidelines and codes of conduct are available without charge through the “Governance” portion of the Company’s web site, listed above, or by writing to the attention of Investor Relations at the address listed above.