ATLANTA, October 2 /PRNewswire/ --

Global Payments Inc. (NYSE: GPN) today announced results for its fiscal first quarter ended August 31, 2008. For the first quarter, revenues grew 30 percent to US$405.8 million compared to US$311.0 million in the prior year. Excluding a prior period restructuring charge relating to a facility closure, diluted earnings per share grew 31 percent to US$0.71 compared to US$0.54 in the prior year quarter.

(Logo: http://www.newscom.com/cgi-bin/prnh/20010221/ATW031LOGO )

In accordance with GAAP, the prior year quarter included a restructuring charge (see attached reconciliation schedule). For the three months ended August 31, 2007, GAAP diluted earnings per share was US$0.53.

During the first quarter, the company began assessing its operating performance using a new segment structure. The segments are now defined as North America Merchant Services, International Merchant Services, and Money Transfer (see attached segment schedule for historical financial results). The company made this change as a result of its June 30, 2008 completion of a joint venture with HSBC in the United Kingdom, in addition to anticipated future international expansion.

Comments and Outlook

Chairman, President and CEO, Paul R. Garcia, stated, "We are delighted with our strong first quarter financial performance. Our North America segment reported strong revenue and earnings growth primarily driven by successful pricing initiatives in Canada and a favorable foreign currency exchange benefit. International merchant services results were primarily driven by the favorable impact of our June 30, 2008 U.K. acquisition, in addition to a continued benefit from our sales initiatives in our Asia-Pacific region and a favorable foreign currency benefit in the Czech Republic."

"Based on these results, we are raising our annual revenue guidance to a range of US$1,640 million to US$1,680 million. This revenue guidance reflects an expected 29 percent to 32 percent growth versus US$1,274.2 million in fiscal 2008. In addition, we are raising our annual diluted earnings per share guidance to a range of US$2.37 to US$2.45, or 20 percent to 24 percent growth versus US$1.98 in fiscal 2008(1). Our fiscal 2009 guidance excludes the impact of restructuring and other charges, as well as the impact of future acquisitions, such as our recently announced agreement to acquire ZAO United Card Service in the Russian Federation," said Garcia.

Conference Call

Global Payments will hold a conference call today, October 2, 2008 at 5:00 p.m. ET to discuss financial results and business highlights. Callers may access the conference call via the company's Web site at www.globalpaymentsinc.com by clicking the "Webcast" button; or callers may dial +1-877-681-3378 and callers outside U.S. and Canada may dial +1-719-325-4771. The pass code is "GPN." A replay of the call may be accessed through the Global Payments' Web site through October 15, 2008.

(1) Fiscal 2008 diluted earnings per share was US$2.01 on a GAAP basis, which includes restructuring and other charges, a favorable operating tax item, and an unfavorable foreign currency item. For more information, please see the company's quarterly earnings press releases for fiscal 2008.

Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, Latin America, Europe, and the Asia-Pacific region. Global Payments offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management. The company also provides consumer money transfer services from the United States and Europe to destinations in Latin America, Morocco, and the Philippines. For more information about the company and its services, visit www.globalpaymentsinc.com.

This announcement and comments made by Global Payments' management during the conference call contain certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including revenue and earnings estimates and management's expectations regarding future events and developments, are forward looking statements and are subject to significant risks and uncertainties. Important factors that may cause actual events or results to differ materially from those anticipated by such forward-looking statements include the following: foreign currency risks which become increasingly relevant as we expand internationally, development difficulties, the effect of economic conditions and consumer spending, costs of capital, the ability to consummate and integrate acquisitions, and other risks detailed in the company's SEC filings, including the most recently filed Form 10-Q or Form 10-K, as applicable. The company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

Contact: Jane M. Elliott +1-770-829-8234 Voice +1-770-829-8267 Fax investor.relations@globalpay.com

(All amounts in US Dollars unless otherwise specified) UNAUDITED CONSOLIDATED STATEMENTS OF INCOME GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except per share data) Three Months Ended August 31, 2008 2007 Revenues $405,757 $310,980 Operating expenses: Cost of service 144,177 116,309 Sales, general and administrative 168,483 127,436 Restructuring - 1,003 312,660 244,748 Operating income 93,097 66,232 Other income (expense): Interest and other income 3,371 5,137 Interest and other expense (2,404) (1,873) 967 3,264 Income before income taxes and minority interest 94,064 69,496 Provision for income taxes, net (28,216) (23,783) Minority interest, net of tax (8,321) (2,138) Net income $57,527 $43,575 Earnings per share: Basic $0.72 $0.54 Diluted $0.71 $0.53 Weighted average shares outstanding: Basic 79,462 80,501 Diluted 81,106 81,907 CONSOLIDATED BALANCE SHEETS GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) August 31, May 31, 2008 2008 (Unaudited) Assets Cash and cash equivalents $287,721 $456,060 Accounts receivable, net 138,884 100,179 Claims receivable, net 1,852 1,354 Settlement processing assets 19,532 24,280 Inventory, net 6,576 3,821 Deferred income taxes 4,187 4,119 Prepaid expenses and other current assets 25,968 27,597 Current assets 484,720 617,410 Property and equipment, net 153,533 141,415 Goodwill 762,493 497,136 Other intangible assets, net 285,590 175,636 Other assets 13,422 14,310 Total assets $1,699,758 $1,445,907 Liabilities and Shareholders' Equity Lines of credit $10,633 $1,527 Current portion of term loan 25,000 - Payable to money transfer beneficiaries 13,904 9,276 Accounts payable and other accrued liabilities 142,167 138,243 Settlement processing obligations 48,344 56,731 Income taxes payable 30,314 11,975 Current liabilities 270,362 217,752 Term loan 175,000 - Deferred income taxes 70,780 75,001 Other long-term liabilities 14,752 11,612 Total liabilities 530,894 304,365 Commitments and contingencies Minority interest in equity of subsidiaries 42,203 14,724 Preferred stock - - Common stock - - Paid-in capital 387,918 380,741 Retained earnings 677,806 621,875 Accumulated other comprehensive income 60,937 124,202 Total shareholders' equity 1,126,661 1,126,818 Total liabilities and shareholders' equity $1,699,758 $1,445,907

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Three Months Ended August 31, 2008 2007 Cash flows from operating activities: Net income $57,527 $43,575 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property and equipment 9,553 6,663 Amortization of acquired intangibles 7,243 3,566 Share-based compensation expense 3,291 3,147 Provision for operating losses and bad debts 5,614 5,926 Minority interest in earnings 8,357 2,050 Deferred income taxes 934 (1,089) Other, net (266) (20) Changes in operating assets and liabilities, net of the effects of acquisitions: Accounts receivable (41,189) (12,116) Claims receivable (5,445) (6,265) Settlement processing assets and obligations, net (4,206) (569) Inventory (2,500) (589) Prepaid expenses and other assets 2,502 (11,573) Payables to money transfer beneficiaries 4,628 1,355 Accounts payable and accrued liabilities 3,392 (1,044) Income taxes payable 18,339 5,122 Net cash provided by operating activities 67,774 38,139 Cash flows from investing activities: Business and intangible asset acquisitions (442,123) (2,625) Capital expenditures (7,663) (9,605) Proceeds from sale of investment and contractual rights 5,737 - Net cash used in investing activities (444,049) (12,230) Cash flows from financing activities: Net borrowings on lines of credit 9,106 133 Proceeds from term loan 200,000 - Proceeds from stock issued under share-based compensation plans 2,910 2,321 Tax benefit from share-based compensation plans 976 2,831 Repurchase of common stock - (67,873) Dividends paid (1,596) (1,622) Contribution from minority interest holder 8,857 - Distributions to minority interests, net (2,469) (2,372) Net cash provided by (used in) financing activities 217,784 (66,582) Effect of exchange rate changes on cash (9,848) 2,345 Decrease in cash and cash equivalents (168,339) (38,328) Cash and cash equivalents, beginning of period 456,060 308,872 Cash and cash equivalents, end of period $287,721 $270,544 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME GLOBAL PAYMENTS INC. AND SUBSIDIARIES Reconciliation to Exclude Restructuring Charges from Normalized Results (In thousands, except per share data) Three Months Ended August 31, 2007 2008 Restruct- GAAP Normalized uring(1) GAAP Revenues $405,757 $310,980 $- $310,980 Operating expenses: Cost of service 144,177 116,309 - 116,309 Sales, general and administrative 168,483 127,436 - 127,436 Restructuring - - 1,003 1,003 312,660 243,745 1,003 244,748 Operating income 93,097 67,235 (1,003) 66,232 Other income(expense): Interest and other income 3,371 5,137 - 5,137 Interest and other expense (2,404) (1,873) - (1,873) 967 3,264 - 3,264 Income before income taxes and minority interest 94,064 70,499 (1,003) 69,496 Provision for income taxes, net (28,216) (24,126) 343 (23,783) Minority interest, net of tax (8,321) (2,138) - (2,138) Net income $57,527 $44,235 $(660) $43,575 Diluted shares 81,106 81,907 - 81,907 Diluted earnings per share $0.71 $0.54 $(0.01) $0.53 (1) Restructuring charges consist of employee termination benefits relating to a facility closure. Also reflects the related income tax benefit. DILUTED EARNINGS PER SHARE GUIDANCE RECONCILIATION GLOBAL PAYMENTS INC. AND SUBSIDIARIES Low End of Fiscal High End of Fiscal 2009 Guidance 2009 Guidance Q1 Q2-Q4 Total Q1 Q2-Q4 Total Guid- Fore- Guid- Actual Forecast ance Actual cast ance Fiscal 2009 diluted earnings per share Constant currency(1) $0.68 $1.73 $2.41 $0.68 $1.81 $2.49 Foreign currency impact(2) 0.03 (0.07) (0.04) 0.03 (0.07) (0.04) GAAP/Normalized(3) $0.71 $1.66 $2.37 $0.71 $1.74 $2.45 Growth compared to fiscal 2008 Constant currency(1) 26% 20% 22% 26% 26% 26% Foreign currency impact(2) 5% (5%) (2%) 5% (5%) (2%) Normalized 31% 15% 20% 31% 21% 24% Restructuring and other items(4) 3% (3%) (2%) 3% (3%) (2%) GAAP 34% 12% 18% 34% 18% 22% Fiscal 2008 Q1 Q2-Q4 Total Actual Actual Actual Fiscal 2008 diluted earnings per share Normalized $0.54 $1.44 $1.98 Restructuring and other items (4) (0.01) 0.04 0.03 GAAP $0.53 $1.48 $2.01 (1) Reflects current period results on a pro forma basis as if foreign currency rates did not change from the comparable prior year period. The company added this disclosure in light of the recent volatility in the foreign exchange markets. (2) Reflects the impact of actual and forecasted changes in foreign currency rates from the comparable prior year period. (3) For fiscal 2009, GAAP results and Normalized results are assumed to equal each other. This assumption is subject to change based on the incurrence of unexpected non-recurring items during fiscal 2009. (4) For more information, please see our earnings press releases for each of these periods, which were included as exhibits to our respective Form 8-Ks furnished to the SEC.

SEGMENT INFORMATION GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Fiscal 2007 Fiscal 2008 Total Q1 Q2 Q3 Revenues: United States $604,899 $179,450 $176,115 $182,038 Canada 224,570 66,677 65,772 61,256 North America Merchant Services 829,469 246,127 241,887 243,294 Europe 51,224 13,775 14,135 14,455 Asia-Pacific 48,449 16,064 18,426 18,977 International Merchant Services 99,673 29,839 32,561 33,432 United States 115,416 29,581 28,415 28,007 Europe 16,965 5,433 5,913 5,908 Money Transfer 132,381 35,014 34,328 33,915 Total Revenues $1,061,523 $310,980 $308,776 $310,641 Operating Income: North America Merchant Services - Normalized $241,082 $70,970 $66,245 $60,744 Non-Recurring Item(1) - - - 7,048 North America Merchant Services - GAAP 241,082 70,970 66,245 67,792 International Merchant Services 18,588 5,136 4,847 4,326 Money Transfer 14,476 3,722 1,239 1,156 Corporate (52,969) (12,593) (13,586) (13,363) Restructuring and Other(2) (3,088) (1,003) (314) - Operating Income $218,089 $66,232 $58,431 $59,911 SEGMENT INFORMATION GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Fiscal 2009 Q4 Total Q1 Revenues: United States $193,612 $731,215 $200,696 Canada 73,544 267,249 85,944 North America Merchant Services 267,156 998,464 286,640 Europe 17,413 59,778 61,602 Asia-Pacific 18,900 72,367 20,718 International Merchant Services 36,313 132,145 82,320 United States 33,016 119,019 29,380 Europe 7,347 24,601 7,417 Money Transfer 40,363 143,620 36,797 Total Revenues $343,832 $1,274,229 $405,757 Operating Income: North America Merchant Services - Normalized $70,349 $268,308 $83,069 Non-Recurring Item(1) - 7,048 - North America Merchant Services - GAAP 70,349 275,356 83,069 International Merchant Services 3,365 17,674 20,402 Money Transfer 7,518 13,635 4,478 Corporate (14,447) (53,989) (14,852) Restructuring and Other(2) - (1,317) - Operating Income $66,785 $251,359 $93,097 (1) Relates to the favorable impact of a non-recurring, non-cash operating tax item of $7.0 million in the third quarter of fiscal 2008. (2) For more information, please see our earnings press releases for each of these periods, which were included as exhibits to our respective Form 8-Ks furnished to the SEC. EFFECTIVE TAX RATE INFORMATION GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Fiscal 2007 Fiscal 2008 Total Q1 Q2 Q3 Effective Tax Rate Calculation - GAAP Income before income taxes and minority interest $226,331 $69,496 $61,902 $62,480 Minority interest, net (9,910) (2,138) (2,566) (3,160) Tax provision (benefit) on minority interest 696 88 (524) 506 Income before income taxes $217,117 $67,446 $58,812 $59,826 Provision for income taxes, net $73,436 $23,783 $21,023 $19,265 Tax provision (benefit) on minority interest 696 88 (524) 506 Provision for income taxes $74,132 $23,871 $20,499 $19,771 Effective tax rate 34.1% 35.4% 34.9% 33.0% Effective Tax Rate Calculation - Normalized(1) Income before income taxes and minority interest $229,419 $70,499 $62,216 $55,432 Minority interest, net (9,910) (2,138) (2,566) (3,160) Tax provision (benefit) on minority interest 696 88 (524) 506 Income before income taxes $220,205 $68,449 $59,126 $52,778 Provision for income taxes, net $74,438 $24,126 $21,129 $16,936 Tax provision (benefit) on minority interest 696 88 (524) 506 Provision for income taxes $75,134 $24,214 $20,605 $17,442 Effective tax rate 34.1% 35.4% 34.8% 33.0% EFFECTIVE TAX RATE INFORMATION GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Fiscal 2009 Q4 Total Q1 Effective Tax Rate Calculation - GAAP Income before income taxes and minority interest $67,525 $261,403 $94,064 Minority interest, net (197) (8,061) (8,321) Tax provision (benefit) on minority interest (770) (700) (35) Income before income taxes $66,558 $252,642 $85,708 Provision for income taxes, net $26,517 $90,588 $28,216 Tax provision (benefit) on minority interest (770) (700) (35) Provision for income taxes $25,747 $89,888 $28,181 Effective tax rate 38.7% 35.6% 32.9% Effective Tax Rate Calculation - Normalized(1) Income before income taxes and minority interest $69,195 $257,342 $94,064 Minority interest, net (197) (8,061) (8,321) Tax provision (benefit) on minority interest (770) (700) (35) Income before income taxes $68,228 $248,581 $85,708 Provision for income taxes, net $26,868 $89,059 $28,216 Tax provision (benefit) on minority interest (770) (700) (35) Provision for income taxes $26,098 $88,359 $28,181 Effective tax rate 38.3% 35.5% 32.9% (1) For a reconciliation of GAAP to Normalized results, please see our earnings press releases for each of these periods, which were included as exhibits to our respective Form 8-Ks furnished to the SEC.

Web site: http://www.globalpaymentsinc.com

Jane M. Elliott, +1-770-829-8234, or Fax, +1-770-829-8267, investor.relations@globalpay.com. Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010221/ATW031LOGO , AP Archive: http://photoarchive.ap.org , PRN Photo Desk, photodesk@prnewswire.com