TSYS Reports 41.1% Increase in Net Income for Second Quarter

COLUMBUS, GA – TSYS® today announced that its financial results for the second quarter of 2005 exceeded its earnings per share expectations. As a result of the continued momentum, TSYS has increased its earnings guidance for 2005 from 22%-25% to 25%-28%.

“We are very excited with the results for the second quarter,” said Philip W. Tomlinson, chief executive officer. “The strength in the reported earnings for the quarter was the result of continued strong growth in our fundamental core business, the benefits gained through improved operating leverage, as well as the acquisition of Vital. As a result, we are increasing our earnings guidance from 22%-25% to 25%-28% for the year.”

Highlights for the quarter include:

• TSYS reached an agreement in principle with Capital One Financial Corporation to provide processing services for its North American portfolio of consumer and small business credit card accounts. TSYS continues its exclusive negotiations with Capital One.

• TSYS signed Fifth Third Bancorp and successfully converted its Visa and MasterCard consumer credit portfolio to TS2.

• TSYS approved a quarterly cash dividend of $0.06 per share, an increase of 50 percent from the previous dividend rate. TSYS has increased its dividend payment for 6 consecutive years.

• TSYS renewed its agreement with Navy Federal Credit Union, the world’s largest credit union, to continue processing more than 1 million credit card accounts for an additional five years.

“We continue to build momentum and long-term earnings visibility with the Chase Card Services conversion scheduled for the end of this month, as well as the upcoming opportunity with Capital One. We have experienced outstanding growth for the first two quarters of the year and are very excited about the prospects for the remainder of 2005 and beyond,” said Tomlinson.

Revised Projected Outlook for 2005
TSYS now expects its net income growth to be in the range of 25%-28%. TSYS’ net income forecast is based on the following assumptions:

1. Total revenues will increase 31%-33%
2. Vital Processing Services will add $225 – $235 million in annual revenue
3. Accounts on file at the end of 2005 will be between 430 and 435 million

Conference Call
TSYS will host its quarterly conference call at 8:30 a.m. EDT, July 20, 2005. The conference call can be accessed at www.tsys.com by clicking on the “Conference Call” icon on the homepage. The replay will be available approximately 30 minutes after the completion of the call.