CERTEGY REPORTS FOURTH QUARTER EARNINGS

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Contact:
Mary Waggoner
VP of Investor Relations
678-867-8004
mary.waggoner@certegy.com

DILUTED EPS OF $0.44, OR $0.46 BEFORE SEVERANCE AND OTHER CHARGES

ALPHARETTA, GA, January 24, 2003 - Certegy Inc. (NYSE:CEY) today reported fourth quarter 2002 diluted earnings per share of $0.44 on revenue of $263.3 million, operating income of $48.6 million and net income of $29.0 million. These results include a $2.9 million charge for severance and other charges. Excluding these charges, diluted earnings per share was $0.46, operating income was $51.4 million and net income was $30.8 million.

“We reported strong earnings per share growth in the fourth quarter despite a disappointing holiday shopping season. We are particularly pleased with a 7.2% revenue growth in our domestic card business and our success in managing costs,” said Lee Kennedy, chairman, president and chief executive officer of Certegy. “We have also taken positive actions to strengthen the quality of our merchant processing portfolio. While this has reduced our overall revenue growth, it has enhanced profitability.”

FOURTH QUARTER FINANCIAL HIGHLIGHTS
Highlights of the 2002 fourth quarter financial results, as compared to fourth quarter 2001, are as follows:
• Revenue increased 3.4% (4.6% in local currency) to $263.3 million.
• Operating income of $48.6 million ($51.4 million non-GAAP) grew 4.7% (6.0% non-GAAP).
• Interest expense declined to $1.8 million, driven by low interest rates and debt reductions.
• Net income increased 9.4% (8.6% non-GAAP) to $29.0 million ($30.8 million non-GAAP).
• Diluted earnings per share of $0.44 ($0.46 non-GAAP) increased by 15.8% (12.2% non-GAAP).
• Total debt outstanding as of December 31, 2002 was $214.2 million.
• 2,493,000 shares of common stock were repurchased at a cost of $53.6 million.
• Capital expenditures totaled $9.3 million, excluding $10.4 million for acquisitions.

Statement of Financial Accounting Standards (“SFAS”) No. 142 modifies accounting for business combinations, goodwill and identifiable intangible assets. As of January 1, 2002, all goodwill amortization ceased. In the fourth quarter of 2001, Certegy’s operating income included $2.2 million of goodwill amortization, or approximately $0.026 per diluted share. For comparative purposes, the non-GAAP results for the fourth quarter of 2001 include adjustments to reflect this accounting change, as if it had been effective January 1, 2001. Fourth quarter 2002 non-GAAP results exclude the $2.9 million charges for severance and other charges. Attachment Pages 3 and 5 of 9 provide detailed reconciliations of GAAP to non-GAAP financial results for the fourth quarter of 2002 and 2001.

SEGMENT RESULTS
Card Services generated revenue of $163.6 million in the fourth quarter of 2002, an increase of $1.0 million, or 0.6% (3.3% in local currency) over the prior-year quarter, driven by a 7.2% increase in North American card revenue and strong international card revenue growth outside of Latin America. International card revenue increased 2.2% in local currency, but declined by 11.6% in U.S. dollars due to unfavorable currency rates and volatile political and economic conditions in Brazil. Excluding Latin America, international revenue increased by 14.2 % in local currency and 24.3% in U.S. dollars. Merchant processing revenue declined by 4.7%, due to the previously announced deconversion of a large customer and the company’s focus on improving the overall quality and profitability of the portfolio.

Card Services’ operating income grew by 12.0% over the prior-year quarter. Excluding the severance and other charge, Card Services’ operating income grew by 11.2% (14.0% in local currency) to $40.8 million, as compared to non-GAAP fourth quarter 2001 results. The increase was driven by productivity gains in the card issuing business and a more favorable merchant processing customer mix and cost structure.

Check Services generated revenue of $99.7 million in the fourth quarter of 2002, an increase of $7.7 million, or 8.4% (6.9% in local currency) over the prior-year quarter. Revenue from new customer signings in 2002 partially offset weak consumer spending in the quarter.

Check Services’ operating income decreased by 2.0% to $15.2 million in the quarter. Excluding severance and other charges, Check Services’ operating income increased 0.9% to $15.9 as compared to non-GAAP fourth quarter 2001. Operating income growth was impacted by lower than expected holiday sales, check volume mix and investment in the check cashing business. Excluding check cashing operating losses in 2002 and 2001, Check Services’ non-GAAP operating income grew 2.9%.

Corporate non-GAAP expense increased $1.4 million to $5.3 million. The corporate expense in the fourth quarter of 2002 includes expenses driven by the conversion of administrative functions which were previously outsourced and by recruiting and relocation costs.

BUSINESS HIGHLIGHTS
During the fourth quarter, domestic card issuing transaction volumes increased by 6.8%, driven primarily by growth in debit card transactions. Certegy added approximately 0.5 million cards, increasing its international card base to 24.2 million and its global card base to 46.7 million. For the full year 2002, the number of cards processed globally increased by approximately 5.0 million, or 11.9% over 2001.

Check guaranty volumes increased 6.8% over prior fourth quarter, driven by the continued success of new customer signings throughout 2002. Incremental annualized revenue from new customer signings in 2002 totaled approximately $60 million.

Also during the quarter, Certegy announced a long-term contract with Suncorp-Metway Ltd. to process Suncorp’s new Visa card program, which is scheduled to launch in 2003. Suncorp is Australia’s sixth largest bank and second largest insurance company. Significant card processing contract renewals include Losango and Pan Americano in Brazil, and Ikano in the United Kingdom.

On December 31, 2002, Certegy completed the acquisition of substantially all the assets of Netzee, Inc., a leading provider of integrated Internet banking and bill payment product and services to community banks and credit unions.

FULL YEAR FINANCIAL HIGHLIGHTS
For the year ended December 31, 2002, the company reported diluted earnings per share of $1.30 on revenue of $1.0 billion, operating income of $151.9 million and net income of $90.0 million. These results include a $12.2 million, or $0.11 per diluted share, charge to cover an asset impairment charge and severance, litigation settlement and other costs. Excluding this charge, diluted earnings per share was $1.41, operating income was $164.2 million and net income was $97.7 million. Highlights for the full year 2002 are as follows:
• Revenue grew 7.7% to $1.0 billion.
• Operating income of $151.9 million ($164.2 million non-GAAP) increased 0.4% (4.8% non-GAAP).
• Interest expense totaled $7.1 million.
• Net income increased by 3.3% (12.0% non-GAAP) to $90.0 million ($97.7 million non-GAAP).
• Diluted earnings per share of $1.30 ($1.41 non-GAAP) increased by 3.2% (11.9% non-GAAP).
• 3.4 million shares of common stock were repurchased at a cost of $79.5 million.
• Capital expenditures totaled $48.9 million, excluding $10.4 for acquisitions.

Statement of Financial Accounting Standards (“SFAS”) No. 142 modifies accounting for business combinations, goodwill and identifiable intangible assets. As of January 1, 2002, all goodwill amortization ceased. For the full year of 2001, Certegy’s operating income included $8.6 million of goodwill amortization, or approximately $0.10 per diluted share. For comparative purposes, the non-GAAP results for 2001 include adjustments to reflect this accounting change, as if it had been effective January 1, 2001. Certegy was established as a separate public company through a tax-free distribution to Equifax Inc. shareholders on July 7, 2001. For comparative purposes, non-GAAP results for full year 2001 include non-GAAP adjustments to reflect $8.4 million of interest expense and $3.3 million of corporate expenses that would have been incurred had the distribution occurred at the beginning of 2001. Full year 2002 non-GAAP results exclude the $12.2 million charge to cover severance, asset impairment and other charges. Attachment Pages 4 and 6 of 9 provide detailed reconciliations of GAAP to non-GAAP results for full year 2002 and 2001.

OUTLOOK
When commenting on the company’s expectations for 2003, Kennedy stated, “Our outlook for the coming year is based on continued slow economic growth. Projected revenue growth rates also reflect the impact of customer reductions in our Brazilian card operation and merchant processing business. Certegy’s fundamental business model remains strong, and we believe we are well positioned to return to historical revenue growth rates in 2004.”

Compared to 2002 non-GAAP results:
• Revenue of $1.0 billion is expected to increase 3 to 5%.
• Operating income of $164.2 million is expected to increase 5 to 7%.
• Diluted earnings per share of $1.41 is expected to increase to $1.52 to $1.55.

The above guidance excludes an anticipated charge of approximately $2.0 to $3.0 million for severance and related costs associated with the downsizing of operations in Brazil during the first quarter of 2003.

TELECONFERENCE
Management will host a teleconference to discuss fourth quarter earnings on Friday, January 24, 2003, at 9:00 a.m. Eastern Time. The live audio Webcast and replay of the speakers’ presentations 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.

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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 2001 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.

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Certegy (NYSE:CEY) provides credit and debit card processing, check risk management and check cashing services, and merchant processing to over 6,000 financial institutions, 117,000 retailers and 100 million consumers worldwide. Headquartered in Alpharetta, Georgia, Certegy maintains a strong global presence with operations in the United States, Canada, United Kingdom, Ireland, France, Chile, Brazil, Australia and New Zealand. As a leading payment services provider, Certegy offers a comprehensive range of transaction processing services, check risk management solutions and integrated customer support programs that facilitate the exchange of business and consumer payments. Certegy generated $1.0 billion in revenue in 2002. For more information on Certegy, please visit www.certegy.com.