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“First Data Commercial Services is focusing on merchant processing that builds upon First Data’s unmatched industry knowledge. Our sales-oriented and customer-focused culture delivers innovative value-added products to the marketplace. Delivering these products through our partners will accelerate our transaction growth and position Commercial Services to achieve its short-term and long-term financial objectives.” This segment had revenue and operating profit of approximately $3.8 billion and $893 million, respectively, in 2005 presented in the new segment format. This business includes domestic merchant acquiring and processing, debit network acquiring and processing, check verification and guarantee, and prepaid services. As the shift from paper to electronic transactions continues, financial institutions, Independent Sales Organizations (ISO) and merchants of all sizes rely on First Data to provide a competitive edge by acting as a single source for a complete portfolio of services to meet the growing demand for electronic payment solutions. First Data Commercial Services powered approximately 23 billion merchant transactions in 2005, representing approximately $1.2 trillion in dollar volume. 
“Financial Institution Services is on the offensive in 2006. We will revitalize revenue growth through aggressive product innovation and acute focus on our clients, while improving our cost structure. By leveraging the combined strengths of our best-in-class system functionality and our leading STAR Network brand, we will participate in all segments of the financial institution value chain.” This segment had revenue and operating profit of approximately $1.9 billion and $378 million, respectively, in 2005 presented in the new segment format. This business includes domestic customer account management; transaction processing and remittance services for credit, retail and debit accounts; and output services. First Data offers a wide range of products and services that enable card issuers to better serve their customers and to provide them with a seamless, consistent experience, wherever and whenever they do business. This business has world-class functionality across multiple product offerings, which is equal to or better than that of any competitor. It has more than 415 million domestic accounts on file and processed more than 7.9 billion issuer transactions in 2005. 
“First Data International is continuing to drive significant growth for First Data and our valued partners in the expanding global payments market. We’ve built a strong, profitable international business focused on executing a global strategy with local impact—bringing the full breadth of First Data’s capabilities to our customers, and adapting them specifically to local market needs in nearly 70 countries.” This segment had revenue and operating profit of approximately $915 million and $113 million, respectively, in 2005 presented in the new segment format. This business includes international credit, debit and prepaid card processing and ATM and point-of-sale processing, driving, acquiring and switching. The First Data global footprint continues to expand as a result of leveraging existing platforms, building issuing and acquiring relationships, and strategic acquisitions. First Data International serves about 1.2 million point-of-sale locations. First Data International powered 2.6 billion transactions in 2005, as well as 15,600 ATMs and 45 million accounts on file. 
“Western Union continues to deliver on its proven strategy of building a global brand, expanding the Western Union network and delivering high-quality products and services to customers in over 200 countries and territories. Our talented team of professionals is focused on our mission to become the financial services provider of choice to our global customers. 2006 will be a significant milestone in Western Union’s 155-year history as the opportunities presented by the spin-off from First Data are numerous. Our customers, our agent partners and our employees around the world will continue to deliver outstanding results for our shareholders.” Western Union had revenue and operating profit of approximately $4.0 billion and $1.3 billion, respectively, in 2005 presented in the new segment format. This business includes Western Union, Orlandi Valuta and the recently acquired Vigo business. Western Union is a global leader in money transfer services, with a history of pioneering service dating back more than 150 years. Western Union continues today to help consumers and businesses transfer money. Western Union together with Orlandi Valuta and Vigo makes up one of the world’s largest money transfer networks with more than 271,000 agent locations in more than 200 countries and territories. In 2005, Western Union completed 119 million consumer-to-consumer money transfers and 160 million consumer-to-business transactions.
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