Equifax Closes Acquisition Of CSG Card Services

St. Petersburg, Florida., and Madison, Wisconsin, December 3, 1996 -- Equifax Payment Services today announced it has completed its previously announced agreement to acquire the Card Services Division of CUNA Service Group Inc. (CSG).

The combination enhances Equifax's position as one of the world's leading card processing companies, particularly in credit union card processing. CSG provided card processing services to 2,500 credit unions representing more than 7 million cardholders. Now that the purchase has been finalized, Equifax is handling the processing services for 17 million cardholders and 5,000 financial institutions.

Equifax and CSG announced on Sept. 23, 1996, they had signed a letter of intent. At the time, the deal was still subject to the approval of CSG's Shareholders. That approval now has been obtained and all the conditions of the sale have been satisfied.

The financial terms of the transaction were not disclosed. "We were excited when we announced this deal and we're even more excited now," said Lee A. Kennedy, President of Equifax Payment Services. "This is a wonderful combination and the biggest winners of all are going to be the credit unions and their members. We have just strengthened Equifax Payment Services, an organization that already is the leader in serving the unique needs of credit unions."

"CSG has worked diligently for the past year to find a partner with the resources to keep our credit unions on the cutting edge of card processing technology," said CSG Chairman John Gallagher. "In working side by side with Equifax staff to present the package to credit unions and close the deal, it was clear that aligning our Card Services Division with Equifax would be in the best interests of our credit unions and CSG Shareholders."

Credit unions agreed. Over the past 60 days, nearly all CSG customers with processing contracts up for renewal chose to extend their contracts based on CSG's alliance with Equifax.

"Such a strong retention rate speaks volumes about the potential of this card processing arrangement," said Gallagher. "Credit unions have expressed the utmost confidence in Equifax's ability to provide them with an array of credit products and services unmatched in the credit union movement."

CUNA Service Group's Card Services Division was one of the nation's largest card processors for credit unions. It ranked fifth among credit card processors nationally, reporting about $72 million in revenue. In reporting that figure, however, CSG included certain pass-through expense items in revenue, which is not consistent with Equifax's reporting methodology. Equifax will lower reported revenues to about $47 million to treat these items as offsets to expense.

CUNA is the primary national trade association serving the country's 12,150 credit unions and leagues in the 50 states and the District of Columbia. CSG continues to offer other highly successful financial products and services such as credit union forms and supplies, IRA programs, student loan support and share draft printing.

Equifax Payment Services, headquartered in St. Petersburg, Fla., is a global leader in providing card services, issuing and managing credit and debit card accounts and in verifying or guaranteeing personal checks. Equifax Payment Services reported revenues of $235.6 million for the first nine months of 1996, up more than 16% over the comparable period in 1995. The Card Services unit within Equifax Payment Services is headed by Mike Bush, senior vice president and general manager.

Equifax Inc. (NYSE: EFX), committed to Global Information Leadership in the Information Age, was established in 1899 in Atlanta and today is a $1.7 billion corporation.