CyberSource Signs Letter of Intent to Acquire Assets of CardSystems Solutions

CyberSource Corporation, a leading provider of electronic payment and risk management solutions, today announced that on September 20, 2005, it signed a non-binding letter of intent to acquire the assets of privately held CardSystems Solutions, Inc. of Atlanta, Georgia. CyberSource intends to acquire substantially all of the assets of CardSystems, including CardSystems’ advanced payment processing platform with direct connections to major credit card association networks and banks, contracts to process credit card transactions on behalf of more than 120,000 merchants representing over $18 billion in annual processing volume, and a network of Independent Sales Organizations (ISOs). The transaction is subject to further due diligence, execution of a purchase agreement, satisfaction of closing conditions and may also be subject to governmental or other regulatory approvals. The transaction is expected to close in the fourth quarter of 2005. The letter of intent provides for an exclusivity period during which CardSystems is not permitted to engage any other entity regarding the sale of its business. Additional terms were not disclosed pending execution of the purchase agreement.

“We are excited about this acquisition,” said Bill McKiernan, chairman and CEO of CyberSource. “It will mean a strategic expansion of CyberSource’s payment platform, and allow current CardSystems customers and partners to continue processing without interruption. The addition of the CardSystems technology extends CyberSource’s capability to offer innovative, end-to-end payment solutions to its customers.”

Integrating the CardSystems processing platform with CyberSource’s existing payment services would mean CyberSource could significantly enhance its core business serving sophisticated eCommerce merchants, through capabilities such as retail point-of-sale processing for multi-channel merchants, and automated chargeback management. The prospective acquisition would also accelerate CyberSource’s growth in the small business segment by providing a new sales channel through CardSystems’ established network of ISOs, and a market-leading platform for ISO support and reporting.

Due to a data security breach reported in May 2005, CardSystems has been notified that it will not be authorized to process credit card transactions through selected card association networks after October 31, 2005. CyberSource and CardSystems are working with the card associations and banks to provide uninterrupted processing for CardSystems merchants and channel partners. There are no assurances that the parties will be able to negotiate and enter into a definitive agreement concerning the sale of CardSystems’ business or consummate the transaction.