Western Union to Acquire the Money Transfer Business of European-Based FEXCO

The Western Union Company (NYSE: WU), a global leader in money transfer services, signed an agreement today to acquire the money transfer business of European-based FEXCO, one of the company’s largest Agents.

The transaction, expected to close the first half of 2009 and subject to customary regulatory approvals and closing conditions, is part of Western Union’s strategy to be closer to its consumer base and position its brand for continued growth. FEXCO currently manages and provides all services and support to more than 10,000 consumer-facing locations in seven European countries: the United Kingdom, Spain, Ireland, Sweden, Norway, Denmark and Finland. As a result of this transaction, Western Union will now:

• Directly manage more than 10,000 consumer-facing locations in seven European countries and provide direct training, marketing and operations support;
• Have greater influence over the consumer brand experience;
• Be better positioned in Europe following the implementation of the Payment Services Directive (PSD), scheduled to take place in November of 2009, to enter new markets, introduce new products and services, and expand the type of agents to new classes of trade in certain countries.

Western Union President and Chief Executive Officer Christina Gold said, “FEXCO has been a valued partner of Western Union for nearly two decades and has played an important role in the expansion of our business in Europe. This transaction will give us greater management of our distribution in these regions and create a more flexible and responsive operational structure as we anticipate the coming regulatory changes to the money transfer business in Europe. We believe the acquisition of FEXCO is timely and strategic. It will position us for margin expansion and growth over time.”

Brian McCarthy, FEXCO’s Founder and Executive Chairman, added, “A key to FEXCO’s success has been its entrepreneurial spirit to build ahead of market opportunities. We are proud of the trusted money transfer network we have built across Europe and the customers we have served for almost two decades. FEXCO is confident of Western Union’s ability to continue growing the business while expanding on our established consumer relationships and solid foundations.”

“We are pleased that the strong relationship forged between both companies will sustain into the future as we continue to provide Western Union with strategic support. We also believe that FEXCO can support Western Union’s Global Money Transfer business through targeted development of new and enhanced applications for their markets in the future,” McCarthy concluded.

Following and subject to regulatory approvals and satisfaction of closing conditions, Western Union will assume 100 percent ownership of FEXCO’s money transfer business. Approximately 300 FEXCO employees will join Western Union upon completion of the transaction. FEXCO will continue to support Western Union through the operation of FEXCO’s European call centers located in Killorglin and Cahirciveen, Ireland, and be responsible for those employees.

FEXCO has been a Western Union Agent since 1990, and in 2001 Western Union acquired a 25 percent stake in its overall business. As part of the deal, Western Union will surrender its stake in the non-money transfer business of FEXCO. The purchase of the FEXCO money transfer business and the surrender of Western Union’s stake in FEXCO’s other businesses will result in a net cash payment by Western Union to FEXCO of €123.1 million (US$159.5 million).

The transaction is expected to be $0.02 dilutive to Western Union’s earnings per share in 2009. The dilutive impact was included in the company’s 2009 earnings per share guidance of $1.18 to $1.28 provided on February 5, 2009.

About Western Union
The Western Union Company (NYSE:WU) is a leader in global money transfer services. Together with its affiliates, Orlandi Valuta and Vigo, Western Union provides consumers with fast, reliable and convenient ways to send and receive money around the world, as well as send payments and purchase money orders. It operates through a network of more than 375,000 Agent locations in over 200 countries and territories. Famous for its pioneering telegraph services, the original Western Union dates back to 1851. For more information, visit www.westernunion.com.

About FEXCO
FEXCO is a global payments company headquartered in Killorglin, Kerry County, Ireland with operations in Ireland, the UK, Spain, Scandinavia, Malta, Dubai, Australia and USA. The company was established in 1981 by its Executive Chairman, Brian McCarthy, and offers a range of Global Consumer Payments, Global Corporate Payments and Business Services. The company is privately owned, with Western Union currently holding a minority share in the business.