Equifax Payment Services to Acquire CSG Card Services

St. Petersburg, Fla., and Madison, Wis., September 23, 1996 -- Equifax Payment Services, a global leader in card processing, and the CUNA Service Group Inc. (CSG), a leading card processor for credit unions, today announced an agreement by which Equifax will acquire CSG's Card Services Division.

The combination enhances Equifax's position as one of the world's leading card processing companies, particularly in credit union card processing. CSG provides card processing services to 2,500 credit unions representing more than 4.5 million accounts.

Executives of both organizations said they anticipated closing the transaction before the end of 1996.

Once the agreement is consummated, Equifax will be handling the processing services for 17 million cardholders and 5,000 financial institutions.

The agreement, reflected in a letter of intent approved over the weekend by the CSG Board of Directors, is subject to the approval of CSG's shareholders and Equifax's Board of Directors.

Financial details were not disclosed.

"This deal offers significant opportunities and makes tremendous sense," said Thomas F. Chapman, executive vice president, Equifax. "Our Payment Services unit and its Card Services operations have the extensive knowledge and experience necessary to serve the unique needs of credit unions.

"The biggest winners of all are going to be the credit unions and their members," Chapman continued. "We can offer them an unprecedented level of service and a wide array of products unparalleled in the credit union movement."

"CSG has worked diligently for the past year to find a partner with the resources to keep its credit unions on the cutting edge of card processing technology," said CSG Chairman John Gallagher. "By aligning our Card Services Division with Equifax, we form a team that can combine that technology with credit union service. The relationship will also provide for the continued involvement of state credit union leagues and league service corporations in marketing and promoting the cards program."

CSG Card Services is one of the nation's largest card processors for credit unions, with more than $72 million in revenues. CSG ranks fifth among credit card processors nationally. CUNA is the primary national trade association serving the country's 12,150 credit unions through leagues in the 50 states and the District of Columbia.

Equifax Payment Services, headquartered in St. Petersburg, Fla., and led by Lee A. Kennedy, president, 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 $150.9 million for the first six months of 1996, up more than 16% over the comparable period in 1995, and just recently completed the acquisition of the United Kingdom's largest check guarantee company, Transax p lc. 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.