CERTEGY REPORTS SECOND QUARTER EARNINGS

DILUTED EPS OF $0.35, REVENUE OF $247.4 MILLION

ALPHARETTA, GA, July 22, 2003 - Certegy Inc. (NYSE:CEY) today reported second quarter 2003 diluted earnings per share of $0.35 on revenue of $247.4 million, operating income of $37.4 million and net income of $23.0 million.

“The second quarter results were in line with our expectations. Our domestic and international businesses, outside of South America, continue to generate strong growth,” stated Lee Kennedy, president, chairman and chief executive officer of Certegy. “The consolidated growth rates reflect the impact of previously reported customer deconversions, and will continue to do so through the first quarter of next year. Soft domestic consumer spending, which primarily impacts our check business, also affected our second quarter growth.”

SECOND QUARTER FINANCIAL HIGHLIGHTS

Highlights of the 2003 second quarter results as compared to 2002, are as follows:

--Revenue declined 3.1% to $247.4 million.
--Operating income of $37.4 million declined 2.4%.
--Interest expense declined 6.9% to $1.6 million.
--Net income increased by 0.1% to $23.0 million.
--Diluted earnings per share of $0.35 increased by 6.1%.
--Total debt outstanding was $185.0 million at June 30, 2003, and $175.0 million at July 24, 2003.

SEGMENT RESULTS

Card Services generated revenue of $160.3 million in the second quarter of 2003, or 7.1% below the 2002 quarter. Strong revenue growth of 9.3% in North American card issuing and double-digit growth in the U.K. and Australian operations was offset by declines in South American card issuing revenue and domestic merchant processing revenue. Card Services’ operating income of $31.9 million increased 2.3% compared to the prior-year quarter. Strong card issuing revenue growth outside South America and efficiency gains drove a 180 basis point improvement in Card Services’ margin.

Check Services generated revenue of $87.1 million in the second quarter of 2003, an increase of 5.1% over the 2002 quarter. Weakness in domestic retail sales continues to impact revenue growth. Check Services’ operating income of $9.0 million declined by $2.2 million compared to the corresponding 2002 quarter due to $0.6 million in incremental check cashing start-up costs, the write-off of a $0.9 million receivable and a $0.7 million, or approximately 6.2%, decline in core business profitability caused by soft retail sales volume.

Corporate expense of $3.5 million decreased by $0.6 million compared to the 2002 second quarter. The decrease is due to the timing of certain administrative costs and the $0.4 million market value recovery of collateral assignments in life insurance policies.

BUSINESS HIGHLIGHTS

Certegy’s global card base totaled 45.1 million at quarter-end. Domestic card issuing transaction volumes increased by 9.8% over the prior-year quarter, driven primarily by 18.2% growth in debit card transactions. The company recently expanded its product offering to include Visa branded pre-paid debit cards and is scheduled to introduce teen and payroll cards in August. This new product launch is consistent with the Company’s strategy to provide the most comprehensive range of products and services to its customer base of more than 6,000 financial institutions.

Sales of Certegy’s PayNet check products continue to gain traction. Recent signings for electronic check/ACH services for online and telephone orders include Walmart.com and Shop at Home Network.

THIRD QUARTER 2003 ACCOUNTING CHANGE

In January 2003, the Financial Accounting Standards Board issued Interpretation No. 46, “Consolidation of Variable Interest Entities, an Interpretation of Accounting Research Bulletin No. 51” (“FIN 46”). While we continue to evaluate the potential impact, we currently estimate the adoption of FIN 46 will result in a cumulative effect of accounting change expense of approximately $0.02 per diluted share in the third quarter of 2003. FIN 46 is not expected to have a material impact on the Company’s ongoing financial results. Item 11 of the supplemental information attached to this press release provides further detail.

OUTLOOK

Certegy reiterated its earnings per diluted share guidance of $1.52 to $1.55, excluding year-to-date charges of $0.12 per diluted share and the third quarter $0.02 per diluted share cumulative effect of accounting change. Certegy also provided third quarter 2003 diluted earnings per share guidance of $0.38 to $0.40, excluding the cumulative effect of accounting change.

TELECONFERENCE

Management will host a teleconference to discuss second quarter earnings on Thursday, July 24, 2003, at 9:00 a.m. Eastern Time. The live audio Webcast will be available at www.certegy.com. Please be advised that Microsoft’s Windows Media PlayerTM must be downloaded prior to accessing the presentation. It can be downloaded from www.microsoft.com/windows/mediaplayer. A replay of the Webcast will be available in the Investor Center section of the website one hour after the call ends through 10:00 p.m. Eastern time August 7, 2003.

The statements in this release include forward-looking statements that are based on current expectations, assumptions, estimates, and projections about Certegy and our industry. They are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Certegy’s control, that may cause actual results to differ significantly from what is expressed in those statements. The factors that could, either individually or in the aggregate, affect our performance include the following, which are described in greater detail in the section entitled "Certain Factors Affecting Forward-Looking Statements" in our 2002 Annual Report on Form 10-K filed with the SEC: Our ability to maintain or improve our competitive positions against current and potential competitors; the level of economic growth or other factors affecting demand for our products and services; loss of key customer contracts or strategic relationships; changes in regulation or industry standards applicable to our businesses or those of our customers; risks associated with investments and operations in foreign countries, including exchange rate fluctuations and local political, social, and economic factors, and those other risks listed in the above-referenced section of our Form 10-K.