First Data to Acquire Korea Mobile Payment Services

First Data Corp. (NYSE: FDC), a global leader in electronic commerce and payment services, today announced that it has signed an agreement to acquire approximately 80% interest in Korea Mobile Payment Services (KMPS), a leading provider of Value-Added Network (VAN) services. The acquisition is expected to complete by the end of 2005.

Under this agreement, First Data will acquire the majority shareholding in KMPS and lead the operations in the Korean market along with the KMPS management team, offering the full portfolio of First Data’s commerce and payment services to customers across the country.

A landmark move for First Data in the Korean payment service market, this strategic acquisition is another step in expanding First Data’s presence in the fast-growing Asian market. First Data sees this acquisition as further building its presence in other North Asian countries and the wider Asia Pacific region, and comes on the heels of a recently announced long-term managed services agreement with DBS in Singapore. The transaction also complements First Data’s existing data center operations in Shanghai.

Mr. Nigel Lee, President of China & North Asia of First Data International, said: “South Korea is a fast-growing credit card market with huge potential considering it is one of the top five countries in terms of transaction volume in the world with almost 100% merchant acceptance of payment cards. KMPS’ well-established merchant portfolio and transparent management philosophy are excellent complements to our current Asia business.”

Pam Patsley, president, First Data International, said: “We are excited about our expansion in Asia. It demonstrates our long-term commitment to Korea and the region and complements our existing data center and processing operations in Shanghai. With KMPS, we will provide Korean merchants and financial institutions with value-added, world-class commerce and payment services.”

Established in 2000, KMPS is a leader in Korea’s VAN service market, providing financial payment services including VAN services and terminal interface services to about 250,000 local merchants with focus on small and medium-size customers.

“We are glad that First Data has selected KMPS as its local partner for entering the South Korean market. By combining KMPS’ extensive customer network in the domestic VAN market with First Data’s global expertise in the electronic commerce and payment fields, the company will provide a diverse range of service and product offerings to financial institutions that bring customers significant value and better operational efficiency,” said Mr. Douglas Guen, CEO of KMPS.