Concord EFS Signs Dillard's for Credit and Debit Payment Processing

Business Wire, July 25, 2002

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--July 25, 2002

Concord EFS, Inc. (Nasdaq:CEFT), a leading payments processor, announced today that Dillard's, Inc., a major department store chain, has selected Concord to provide payment processing in more than 300 Dillard's stores. The long-term agreement calls for Concord to acquire, authorize, and settle payments made with MasterCard or Visa credit and debit cards or PIN-secured debit cards, such as those from Concord's STAR(sm) network. Concord, which offers integrated systems designed for the high-volume needs of major retailers, currently provides payment processing for 31 of the top 100 retailers in the U.S.

John Hawkins, Dillard's vice president and treasurer, praised Concord's breadth of services and extensive experience with debit and other types of emerging payments as factors in Dillard's decision. "Concord is actively driving the shift to electronic payments, especially in debit transactions. Accordingly, Concord is uniquely positioned to help us manage our payment costs for optimum efficiency," said Mr. Hawkins. "In addition, as a diversified payments company providing a broad range of processing services, we feel that Concord will be a long-term partner and will be able to meet our needs well into the future."

"At Concord we're dedicated to working in partnership with both retailers and financial institution card issuers to improve the growth and profitability of electronic payments," said Concord president Edward A. Labry III. "We're honored to have been chosen by Dillard's to help them participate in and benefit from the nationwide shift toward paperless payments."

About Dillard's

Dillard's, Inc., based in Little Rock, Arkansas, is one of the most successful retail chains in the United States, with annual sales of more than $8.1 billion. With over 300 stores in 29 states, Dillard's offers a distinctive mix of name brand and private-label merchandise appealing to a broad spectrum of the population.

About Concord

Concord, based in Memphis, Tennessee, provides transaction authorization, data capture, settlement and funds transfer services to financial institutions, supermarkets, petroleum retailers, convenience stores, restaurants, and other independent retailers. Concord's primary activities include Network Services, providing ATM driving, PIN-secured and signature debit card processing, deposit risk management, and STARsm network access to the financial services industry; and Payment Services, providing credit, debit, check authorization, and electronic benefits transfer processing services to selected retail segments. Concord news releases, links to SEC filings, and other information are available on its corporate web site at www.concordefs.com.

This release may contain or incorporate by reference forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such statements are not guarantees of future performance and involve risks, uncertainties, and other factors which may cause our actual performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by those statements. Concord undertakes no obligation to publicly update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, or changes to future results over time. See the cautionary statements included as Exhibit 99.2 to our Annual Report on Form 10-K filed on February 26, 2002 for a more detailed discussion of certain of the factors that could cause our actual results to differ materially from those included in the forward-looking statements.