ATLANTA, Oct. 2 /PRNewswire-FirstCall/ -- Global Payments Inc. (NYSE: GPN) today announced results for its fiscal first quarter ended August 31, 2008. For the first quarter, revenues grew 30 percent to $405.8 million compared to $311.0 million in the prior year. Excluding a prior period restructuring charge relating to a facility closure, diluted earnings per share grew 31 percent to $0.71 compared to $0.54 in the prior year quarter.

(Logo: http://www.newscom.com/cgi-bin/prnh/20010221/ATW031LOGO )

In accordance with GAAP, the prior year quarter included a restructuring charge (see attached reconciliation schedule). For the three months ended August 31, 2007, GAAP diluted earnings per share was $0.53.

During the first quarter, the company began assessing its operating performance using a new segment structure. The segments are now defined as North America Merchant Services, International Merchant Services, and Money Transfer (see attached segment schedule for historical financial results). The company made this change as a result of its June 30, 2008 completion of a joint venture with HSBC in the United Kingdom, in addition to anticipated future international expansion.

Comments and Outlook

Chairman, President and CEO, Paul R. Garcia, stated, 'We are delighted with our strong first quarter financial performance. Our North America segment reported strong revenue and earnings growth primarily driven by successful pricing initiatives in Canada and a favorable foreign currency exchange benefit. International merchant services results were primarily driven by the favorable impact of our June 30, 2008 U.K. acquisition, in addition to a continued benefit from our sales initiatives in our Asia-Pacific region and a favorable foreign currency benefit in the Czech Republic.'

'Based on these results, we are raising our annual revenue guidance to a range of $1,640 million to $1,680 million. This revenue guidance reflects an expected 29 percent to 32 percent growth versus $1,274.2 million in fiscal 2008. In addition, we are raising our annual diluted earnings per share guidance to a range of $2.37 to $2.45, or 20 percent to 24 percent growth versus $1.98 in fiscal 2008(1). Our fiscal 2009 guidance excludes the impact of restructuring and other charges, as well as the impact of future acquisitions, such as our recently announced agreement to acquire ZAO United Card Service in the Russian Federation,' said Garcia.

Conference Call

Global Payments will hold a conference call today, October 2, 2008 at 5:00 p.m. ET to discuss financial results and business highlights. Callers may access the conference call via the company's Web site at www.globalpaymentsinc.com by clicking the 'Webcast' button; or callers may dial 1-877-681-3378 and callers outside U.S. and Canada may dial 1-719-325- 4771. The pass code is 'GPN.' A replay of the call may be accessed through the Global Payments' Web site through October 15, 2008.

    (1) Fiscal 2008 diluted earnings per share was $2.01 on a GAAP basis,
        which includes restructuring and other charges, a favorable operating
        tax item, and an unfavorable foreign currency item.  For more
        information, please see the company's quarterly earnings press
        releases for fiscal 2008.

Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi- national corporations located throughout the United States, Canada, Latin America, Europe, and the Asia-Pacific region. Global Payments offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management. The company also provides consumer money transfer services from the United States and Europe to destinations in Latin America, Morocco, and the Philippines. For more information about the company and its services, visit www.globalpaymentsinc.com.

This announcement and comments made by Global Payments' management during the conference call contain certain forward-looking statements within the meaning of the 'safe-harbor' provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including revenue and earnings estimates and management's expectations regarding future events and developments, are forward looking statements and are subject to significant risks and uncertainties. Important factors that may cause actual events or results to differ materially from those anticipated by such forward- looking statements include the following: foreign currency risks which become increasingly relevant as we expand internationally, development difficulties, the effect of economic conditions and consumer spending, costs of capital, the ability to consummate and integrate acquisitions, and other risks detailed in the company's SEC filings, including the most recently filed Form 10-Q or Form 10-K, as applicable. The company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

    Contact: Jane M. Elliott
             770-829-8234 Voice
             770-829-8267 Fax
             investor.relations@globalpay.com

    UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    (In thousands, except per share data)
                                                 Three Months Ended August 31,
                                                     2008              2007
    Revenues                                       $405,757          $310,980
    Operating expenses:
         Cost of service                            144,177           116,309
         Sales, general and administrative          168,483           127,436
         Restructuring                                    -             1,003
                                                    312,660           244,748
    Operating income                                 93,097            66,232
    Other income (expense):
         Interest and other income                    3,371             5,137
         Interest and other expense                  (2,404)           (1,873)
                                                        967             3,264
    Income before income taxes and
     minority interest                               94,064            69,496
    Provision for income taxes, net                 (28,216)          (23,783)
    Minority interest, net of tax                    (8,321)           (2,138)
              Net income                            $57,527           $43,575
    Earnings per share:
              Basic                                   $0.72             $0.54
              Diluted                                 $0.71             $0.53
    Weighted average shares outstanding:
              Basic                                  79,462            80,501
              Diluted                                81,106            81,907

    CONSOLIDATED BALANCE SHEETS
    GLOBAL PAYMENTS INC.