Operating cash flow from continuing operations was $459 million for the first nine months of 2007. Year-to-date free cash flow from continuing operations was up 16 percent to $340 million compared with 2006;

Performance in the Investment Support Services segment, which is reported as discontinued operations, contributed $0.03 of earnings per share in the quarter before $6.9 million of transaction-related expenses. The company announced the sale of the Fiserv ISS businesses in two separate transactions in May 2007. One transaction is expected to close by the end of 2007 and the other in early 2008;

Fiserv EFT completed 59 new sales in the quarter with 97 percent made within the Fiserv core processing client base;

The company signed 82 new clients in the quarter for its electronic bill payment services and now has nearly 640 electronic bill pay clients;

In the quarter, the company added 272 clients for its branch capture product and 172 clients for its merchant capture product. Fiserv now has more than 970 branch capture clients and more than 870 merchant capture clients;

Desert Schools Federal Credit Union, a $3.4 billion financial institution based in Arizona, signed a core processing agreement with Fiserv CBS Worldwide during the quarter. The agreement included a number of ancillary services, including NetEconomy risk management and WireXchange;

In the quarter, Urbana, Ill.-based First Busey Corporation, a $4 billion bank holding company, selected Fiserv to provide core account processing through Fiserv ITI Outsourcing as well as budgeting, planning and financial accounting tools through IPS-Sendero, a unit of Fiserv.

Revenues

Processing and services

Product

Total revenues

Expenses

Cost of processing and services

Cost of product

Selling, general and administrative ⁽²⁾

Total expenses

Operating income

Interest expense – net

Income from continuing operations before income taxes

Income tax provision

Income from continuing operations

Income from discontinued operations – net of tax ⁽¹⁾

Net income

Earnings per share

Continuing operations

Discontinued operations ⁽¹⁾

Total

Adjusted earnings per share – continuing operations

Earnings per share

Unusual item ⁽²⁾

Adjusted earnings per share – continuing operations

Diluted shares used in computing earnings per share

⁽¹⁾

In May 2007, the company signed agreements to sell its Investment Support Services businesses (Fiserv ISS). As a result, all periods presented reflect the Investment Support Services businesses as discontinued operations. The company recorded transaction-related expenses associated with the sale of Fiserv ISS of $6.9 million ($0.03 per share) for the three months ended and $8.6 million ($0.04 per share) for the nine months ended September 30, 2007. For the first nine months of 2006, earnings per share from discontinued operations included $0.04 related to the company’s securities clearing businesses, which were previously sold.

⁽²⁾

Included in selling, general and administrative expenses are pre-tax charges of $16.9 million recorded in the second quarter of 2007 related to ceasing an investment in a new technology platform ($13.1 million) in the health plan management business and other facility shutdown and severance expenses ($3.8 million) in the Insurance segment.

Assets

Cash and cash equivalents

Trade accounts receivable – net

Deferred income taxes

Prepaid expenses and other current assets

Assets of discontinued operations held for sale ⁽¹⁾

Total current assets

Property and equipment – net

Intangible assets – net

Goodwill

Other long-term assets

Total

Liabilities and Shareholders’ Equity

Trade accounts payable

Accrued expenses

Current maturities of long-term debt

Deferred revenues

Customer funds held

Liabilities of discontinued operations held for sale ⁽¹⁾

Total current liabilities

Long-term debt

Deferred income taxes

Other long-term liabilities

Total Liabilities

Shareholders’ Equity

Total

Cash flows from operating activities

Net income

Adjustment for discontinued operations

Adjustments to reconcile net income to net cash provided by operating activities:

Deferred income taxes

Share-based compensation

Excess tax benefit from exercise of options

Depreciation and amortization

Changes in assets and liabilities, net of effects from acquisitions and dispositions of businesses:

Trade accounts receivable

Prepaid expenses and other assets

Trade accounts payable and other liabilities

Deferred revenues

Net cash provided by operating activities

Cash flows from investing activities

Capital expenditures, including capitalization of software costs for external customers

Payment for acquisitions of businesses, net of cash acquired

Cash distributions received from discontinued operations

Other investing activities

Net cash used in investing activities

Cash flows from financing activities

Proceeds from long-term debt – net

Issuance of common stock and treasury stock

Purchases of treasury stock

Excess tax benefit from exercise of options

Customer funds held

Net cash used in financing activities

Change in cash and cash equivalents

Beginning balance

Ending balance

Segment

Revenues

Financial Institution Services (“Financial”) ⁽¹⁾

Insurance Services (“Insurance”) ^(2),(3)

Total

Operating income

Financial ⁽¹⁾

Insurance ^(2),(3)

Total

Operating margin

Financial ⁽¹⁾

Insurance ^(2),(3)

Total

⁽¹⁾

Included in the Financial segment results were early contract termination fees of $7.7 million for the three months ended and $29.6 million for the nine months ended September 30, 2007, respectively, compared with $6.8 million and $16.3 million for the comparable periods in 2006. This segment’s businesses generally enter into three- to five-year contracts that contain early contract termination fees. These fees are unpredictable and can vary significantly from period to period based on the number and size of terminated contracts and how early in the contract term a contract is terminated.

⁽²⁾

Included in the Insurance segment results was a decline of $31.7 million in higher-margin flood claims processing revenues from $34.6 million in the first nine months of 2006 to $2.9 million in 2007, and $16.9 million in charges recorded in the second quarter of 2007 related to ceasing an investment in a new technology platform ($13.1 million) and other facility shutdown and severance expenses ($3.8 million).

⁽³⁾

Supplemental financial information for the health plan management business that is included in the Insurance segment is as follows:

Revenues

Operating income ⁽²⁾

Operating margin ⁽²⁾

Net income

Adjustment for discontinued operations

Share-based compensation

Depreciation and amortization

Capital expenditures

Free cash flow before changes in working capital

Changes in working capital-net

Free cash flow

Segment

Adjusted operating income ⁽¹⁾

Financial

Insurance ^{(2), (3)}

Total

Adjusted operating margin ⁽¹⁾

Financial

Insurance ^{(2), (3)}

Total

Customer reimbursements ⁽¹⁾

Financial

Insurance

Total

Prescription product costs in Insurance segment ⁽¹⁾

⁽¹⁾

Adjusted operating income and margin excludes customer reimbursements and prescription product costs which are included in revenues and expenses. Customer reimbursements consist primarily of pass-through costs such as postage and data communication expenses. Prescription product costs are incurred in the health plan management business that is included in the Insurance segment. Adjusted operating income and margin for 2007 excluded pre-tax charges of $16.9 million recorded in the second quarter of 2007 related to ceasing an investment in a new technology platform ($13.1 million) in the health plan management business and other facility shutdown and severance expenses ($3.8 million) in the Insurance segment. Total charges related to the health plan management business included in the Insurance segment are $14.0 million.

⁽²⁾

Included in the Insurance segment results is a decline of $31.7 million in higher-margin flood claims processing revenues from $34.6 million in the first nine months of 2006 to $2.9 million in 2007.

⁽³⁾

Supplemental financial information for the health plan management business that is included in the Insurance segment is as follows:

Adjusted operating income ⁽¹⁾

Adjusted operating margin ⁽¹⁾

Segment

Financial

Insurance

Total

Adjusted ⁽²⁾

Three Months Ended
September 30,

Adjusted ⁽²⁾

Nine Months Ended
September 30,

Financial

Insurance

Total

⁽¹⁾

Internal revenue growth percentages are measured as the increase in total revenues for the current period less “acquired revenue from acquisitions” divided by total revenues from the prior year period plus “acquired revenue from acquisitions.” “Acquired revenue from acquisitions” was $11.5 million ($1.5 million in the Financial segment and $10.1 million in the Insurance segment) for the third quarter of 2007 and $84.4 million ($38.0 million in the Financial segment and $46.4 million in the Insurance segment) for the nine months ended September 30, 2007 and represents pre-acquisition adjusted revenue of acquired companies, less dispositions, for the comparable prior year period. Acquired revenues in the Financial segment for the nine months ended September 30, 2006, include customer reimbursement pass-through costs of $22.7 million.

⁽²⁾

The adjusted internal revenue growth percentages exclude the impact of customer reimbursements and prescription product costs, which are included in revenues and expenses under GAAP. See footnote 1 to the Adjusted Operating Income and Margin Information table.

⁽³⁾

Flood claims processing revenue was $2.9 million, $34.6 million and $12.6 million in the first nine months of 2007, 2006 and 2005, respectively. Flood claim processing revenue negatively impacted adjusted internal revenue growth in the Insurance segment by 5 percentage points in the first nine months of 2007 and positively impacted adjusted internal revenue growth in the segment by 4 percentage points in the first nine months of 2006. Excluding flood claim processing revenue, the adjusted internal revenue growth (decline) rate for the company and the Insurance segment would have been 3 percent and (2) percent in the first nine months of 2007, respectively, and 4 percent and (2) percent in the first nine months of 2006, respectively. The health plan management business that is included in the Insurance segment had adjusted internal revenue growth (decline) of (3) percent and 2 percent in the third quarter of 2007 and 2006, respectively, and 0 percent and 2 percent in the first nine months of 2007 and 2006, respectively.

Metric

Integrated Sales ⁽¹⁾

Operational Effectiveness ⁽²⁾

⁽¹⁾

Integrated sales targets are exclusive of amounts within normal sales quota and only include sales from a designated list of additional products. Dollar value is the amount of recurring annual revenue which excludes any one-time revenue.

⁽²⁾

Operational effectiveness targets represent cost savings associated with Fiserv 2.0 initiatives. Dollar value is the amount of savings targeted to be attained in the measurement period.

Metric

Overall Sales Quota ⁽³⁾

⁽³⁾

Overall sales quota is the traditional Fiserv sales quota system used across the enterprise, and excludes incremental sales included in the Integrated Sales metric. Quarterly sales quota attainment represents the percentage attainment of quarterly sales targets.