Fidelity National Information Services (FIS)

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Fidelity National Information Services, Inc. (FIS) is a provider of core financial institution processing, card issuer and transaction processing services, mortgage loan processing and related information products, and outsourcing services to financial institutions, retailers, mortgage lenders, and real estate professionals. FIS is a member of Standard and Poor's (S&P) 500 Index. Headquartered in Jacksonville, Florida, FIS maintains a strong global presence, serving more than 7,800 financial institutions in more than 60 countries worldwide. FIS has processing and technology relationships with 35 of the top 50 global banks, including nine of the top. Nearly 50% of all U.S. residential mortgages are processed using FIS software. On February 1, 2006, FIS merged with Certegy Inc. (CEY), a provider of credit card, debit card, other transaction processing and check risk management services to financial institutions.

FIS currently has two reporting segments, Transaction Processing Services (TPS) and Lender Processing Services (LPS), comprising approximately 59% and 41% of 2006 revenue, respectively. TPS includes enterprise solutions (including large banks, international, retail, and gaming) and integrated financial solutions (including smaller financial institutions, North American card processing, e-banking, and bill pay). LPS includes original FIS businesses of mortgage processing, mortgage origination, default management, and information services.

Transaction Processing Services include Certegy's former Card and Check Services segments as well as the financial institution processing component of the Financial Institution Software and Services segment of the original FIS. Included in this segment is the Integrated Financial Solutions business, which serves over 8,000 customers in commercial banks, savings institutions, and credit union markets. This business generates revenue by charging recurring fees for outsourced services on a per account basis as well as up front license fees with annual maintenance charges. Services provided by Integrated Financial Solutions include: Core processing - serving customers that tend to be smaller community-based institutions where FIS processes deposits, loans, mortgages, general ledger, CRM, origination, and back-office support. Credit Processing - customers include financial institutions and associations where FIS provides cardholder services and loyalty programs, collections and risk management, and merchant processing for financial institutions and associations. The Item processing business which provides image capture of deposited items, Check 21 image clearing and settlement, branch and merchant capture, check image archival, and related image services. ATM/ETF Processing - provides ATM and debit processing and fraud detection and prevention. Finally, the eBanking business - provides Internet banking, bill payment, and voice response solutions to domestic financial institutions. Also included in Transaction Processing is the Enterprise Solutions Business. This business provides deposit solutions and lending platforms to large bank customers, loan processing to auto lenders, lending solutions to commercial lenders, and check risk management. Customers of the Enterprise Solutions business include major banks and financial institutions, such as Bank of America, Citibank, J.P. Morgan Chase, Wells Fargo, and other well known institutions.

Lender Processing Services includes Mortgage Processing Services and Lender Information and Outsourcing Solutions businesses. Mortgage Processing provides specialized software and portfolio processing services to mortgage companies affiliated with retail banks and thrifts, traditional mortgage servicing companies, mortgage sub-services and sub-prime lenders. The division provides professional services, including training, consulting and conversions services and FIS' InterChange platform provides for the exchange and delivery of data between different service providers. The Lender Information and Outsourcing Solutions business includes both Lender Outsourcing Services and Information Services. Included in these services are Fidelity's default solutions, which provide services to lenders foreclosing on properties, settlement solution services that help automate the real estate closing process, and mortgage information services that provides mortgage market participants with data that assist in making decisions and managing risk. In October 2007, the Board of Directors approved a plan to spin-off the LPS division into a separate publicly traded company. The proposed separation, expected to occur in mid-2008, will provide more company flexibility and dedicated management focus to ultimately improve shareholder value for Fidelity.

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