Total adjusted revenue decreased 1 percent in the quarter to $954 million compared with the first quarter of 2009, due primarily to a decrease in project revenue in the company’s Output Solutions division, lower license and consulting revenue, and volume declines in check processing.

The company’s adjusted operating margin declined 20 basis points to 28.9 percent in the quarter compared to the first quarter of 2009, which was the company’s highest margin quarter of 2009. The slight decline in operating margin resulted primarily from decreases in higher margin revenue and planned investments in new products. Adjusted operating margin in the quarter increased 80 basis points sequentially.

Free cash flow increased 15 percent over the prior year period to a record quarterly level of $225 million.

On March 1, 2010, the company announced that its Board of Directors authorized the repurchase of an additional five million shares of the company’s common stock. During the quarter, the company repurchased 1.4 million shares for $67 million and has 5.8 million shares remaining under its existing repurchase authorizations as of March 31, 2010.

The company continued to expand its consumer payments footprint in the quarter by signing 93 electronic bill payment clients and 46 debit clients, of which the majority were competitive takeaways.

The company signed a number of new and expanded client relationships in the quarter:

American Bank of Texas, a $1.1 billion institution based in Sherman, Texas, selected Reservelink^® from Fiserv to fully automate its deposit reclassification processes and generate additional investment income by enhancing the management of reserve requirements and non-earning assets. The bank also utilizes Merchant Source Capture^TM and Consumer Source Capture™ solutions from Fiserv.

The Charles Schwab Corporation launched six new managed portfolios of exchange-traded funds in Schwab Managed Portfolios^TM ETFs, leveraging the Investment Services technology platform from Fiserv. Schwab services 7.8 million client brokerage accounts and $1.49 trillion in client assets from 300 offices globally.

Coastal Federal Credit Union, a $2.1 billion institution with 195,000 members headquartered in Raleigh, North Carolina, expanded their relationship with Fiserv to include the CheckFree^® RXP^® online bill payment and presentment solution. Coastal, which already utilizes account processing and online banking solutions from Fiserv, also plans to implement the financial overview experience which combines online banking and bill payment functionality into a single, integrated user portal.

First National Bank Alaska, the largest locally owned and operated bank in Alaska, expanded its relationship with Fiserv. With 30 branches in 18 communities throughout the state, First National will integrate Fiserv’s debit solutions into its account processing platform, Premier^® from Fiserv.

Home Federal Bank, headquartered in Nampa, Idaho, agreed to implement the Precision^TM bank platform from Fiserv. With 22 full-service banking offices and one commercial loan center, the bank also will use additional Fiserv solutions including the Fiserv Clearing Network, CheckFree RXP, WireXchange^®, Prologue^TM modules, EFT Processing and AML Manager.

Lambton Financial Credit Union Limited of Sarnia, Ontario chose the advanced Acumen™ account processing platform from Fiserv, citing its integrated loan processing capability as

essential to the credit union’s growth strategy. The state-of-the-art Canadian service bureau, and feature-rich functionality of Acumen, also were key considerations that led Lambton to become the 15^th Canadian credit union to choose Acumen for core banking since January 2008.

SunTrust Banks, Inc., headquartered in Atlanta and one of the nation’s largest banking organizations with $174 billion in assets, expanded its relationship with Fiserv. SunTrust selected Mobile Money™ from Fiserv to provide clients with a broader range of mobile account access options, supporting the bank’s overall mobile financial services strategy.

The Union Bank Company, located in Columbus Grove, Ohio, selected the Premier bank platform and outsourced processing services from Fiserv. Additionally, the bank chose a suite of complementary Fiserv solutions to introduce innovative new services to its customers. The suite includes eCom™ and eCorp ™ for Premier, CheckFree RXP, Mobile Money, Branch Source Capture™ and other solutions. The Union Bank Company is a subsidiary of United Bancshares, Inc. (NASDAQ: UBOH), which had $616 million in assets as of December 31, 2009.

United Central Bank (UCB), a $2.6 billion asset institution based in Garland, Texas selected the Premier bank platform from Fiserv for outsourced account processing. Recognized as the “2010 Large 7(a) Lender of the Year” by the Small Business Administration, UCB chose more than 15 complementary Fiserv solutions, including online banking, bill payment, EFT, item processing, anti-money laundering and Branch Source Capture for its 32 locations in 8 states.

United Prairie Bank, with $526 million in assets and 15 locations across Minnesota, has expanded a 25-year relationship with Fiserv by choosing the Premier bank platform and outsourced processing services from Fiserv. In addition, the bank selected solutions such as online banking and bill pay, EFT, the Fiserv Clearing Network and Merchant Source Capture.

U.S. Bancorp, with $282 billion in assets and the parent company of U.S. Bank, the fifth largest commercial bank in the United States, signed a multi-year renewal agreement with Fiserv for CheckFree RXP, the market leading bill payment and presentment solution.

Revenue

Processing and services

Product

Total revenue

Expenses

Cost of processing and services

Cost of product

Selling, general and administrative ⁽¹⁾

Total expenses

Operating income

Interest expense - net

Income from continuing operations before income taxes and income from investment in unconsolidated affiliate

Income tax provision

Income from investment in unconsolidated affiliate

Income from continuing operations

Loss from discontinued operations

Net income

GAAP earnings (loss) per share - diluted:

Continuing operations

Discontinued operations

Total

Diluted shares used in computing earnings (loss) per share

Selling, general and administrative expenses include a $15 million pre-tax charge ($0.06 per share) in the first quarter of 2009 for employee severance and related expenses.

GAAP income from continuing operations

Adjustments:

Merger costs and other adjustments ⁽¹⁾

Severance costs

Amortization of acquisition-related intangible assets

Tax benefit of adjustments

Adjusted income from continuing operations

GAAP earnings per share - continuing operations

Adjustments - net of income taxes:

Merger costs and other adjustments ⁽¹⁾

Severance costs

Amortization of acquisition-related intangible assets

Adjusted earnings per share - continuing operations

Merger costs and other adjustments in 2009 primarily include integration project management, retention bonuses and other expenses including deferred revenue adjustments primarily associated with the acquisition of CheckFree.

Total Company

Revenue

Output Solutions postage reimbursements

Deferred revenue adjustment

Adjusted revenue

Operating income

Merger costs and other adjustments

Severance costs

Amortization of acquisition-related intangible assets

Adjusted operating income

Operating margin

Adjusted operating margin

Payments and Industry Products (“Payments”)

Revenue

Output Solutions postage reimbursements

Adjusted revenue

Operating income

Operating margin

Adjusted operating margin

Financial Institution Services (“Financial”)

Revenue

Operating income

Operating margin

Corporate and Other

Revenue

Deferred revenue adjustment

Adjusted revenue

Operating loss

Merger costs and other adjustments

Severance costs

Amortization of acquisition-related intangible assets

Adjusted operating loss

Cash flows from operating activities

Net income

Adjustment for discontinued operations

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

Depreciation and other amortization

Amortization of acquisition-related intangible assets

Share-based compensation

Deferred income taxes

Other non-cash items

Changes in assets and liabilities:

Trade accounts receivable

Prepaid expenses and other assets

Accounts payable and other liabilities

Deferred revenue

Net cash provided by operating activities

Cash flows from investing activities

Capital expenditures, including capitalization of software costs

Other investing activities

Net cash used in investing activities

Cash flows from financing activities

Repayments of long-term debt

Issuance of common stock and treasury stock

Purchases of treasury stock

Other financing activities

Net cash used in financing activities

Change in cash and cash equivalents

Net cash transactions from discontinued operations

Beginning balance

Ending balance

Cash flows from discontinued operations are excluded from the above Condensed Consolidated Statements of Cash Flows.

Income from continuing operations

Depreciation and other amortization

Amortization of acquisition-related intangible assets

Share-based compensation

Capital expenditures

Free cash flow before changes in working capital

Changes in working capital-net

Other adjustments⁽¹⁾

Free cash flow

Net cash provided by operating activities

Capital expenditures

Other adjustments⁽¹⁾

Free cash flow

Free cash flow has been adjusted by $7 million and $10 million in 2010 and 2009, respectively, related to the net change in settlement assets and obligations and after-tax merger and severance costs. Management believes it is appropriate to exclude these items from the calculation of free cash flow because they may not be indicative of the future free cash flow of the company.

Assets

Cash and cash equivalents

Trade accounts receivable – net

Deferred income taxes

Prepaid expenses and other current assets

Total current assets

Property and equipment – net

Intangible assets – net

Goodwill

Other long-term assets

Total assets

Liabilities and Shareholders’ Equity

Accounts payable and accrued expenses

Deferred revenue

Current maturities of long-term debt

Total current liabilities

Long-term debt

Deferred income taxes

Other long-term liabilities

Total liabilities

Shareholders’ equity

Total liabilities and shareholders' equity

Adjusted Internal Revenue Growth ⁽¹⁾

Payments Segment

Financial Segment

Total Company

Fiserv 2.0 Metrics

(in millions)

Integrated Sales ^{( 2)}

Operational Effectiveness ^{( 3)}

Selected Electronic Payment Metrics

(in millions)

Bill Payment Transactions ^{( 4)}

Bill Payment Year-Over-Year Transaction Growth ^{( 4)}

e-Bills Delivered

e-Bill Year-Over-Year Growth

Adjusted internal revenue growth percentages are measured as the increase or decrease in adjusted revenue (see page 8), excluding acquired revenue, for the current period divided by adjusted revenue from the prior year. The company did not complete an acquisition in the first quarter of 2010.

Integrated Sales are exclusive of amounts included in the annual sales quota and include sales from a designated list of products sold to account processing clients. Dollar amounts represent the amount of estimated recurring annual revenue.

Operational Effectiveness is the amount of savings from our Fiserv 2.0 initiative, and the combination of CheckFree with Fiserv. Dollar amounts represent the targeted or actual savings in the measurement period, which are incremental to the amounts attained prior to 2010.

Bill Payment Transactions represent online bill payment transactions occurring through financial institutions, brokerage firms or portals. Transaction growth in the first quarter of 2010 excludes volume associated with a remittance only client acquired by a third party in 2008 for which we continued to process through the third quarter of 2009.