Adjusted EPS of 64 cents per diluted share

JACKSONVILLE, Fla., April 29 /PRNewswire-FirstCall/ -- Lender Processing Services, Inc. (NYSE: LPS), a leading provider of integrated technology and services to the mortgage industry, today reported consolidated revenues of $529.8 million for the first quarter of 2009, an increase of 19.4% compared to the first quarter of 2008, and net earnings of $50.0 million or 53 cents per share.

Pro forma adjusted net earnings for the first quarter of 2009 were $60.6 million, or 64 cents per share, compared to $54.1 million, or 55 cents per share, in the first quarter of 2008. Pro forma adjusted net earnings in the current quarter include $2.6 million in after-tax incremental public company costs incurred as a result of LPS being spun-off on July 2, 2008. Also, these results exclude an after-tax charge of 6 cents per share primarily relating to the recent retirement of three members of LPS's Board and include an adjustment for purchase amortization of 5 cents per share for the first quarter of 2009 while adjustments for the prior year quarter included pro forma interest expense of 15 cents per share and purchase amortization of 6 cents per share.

"LPS is off to a strong start in 2009 despite a difficult macro- economic environment and challenging market conditions in some of its businesses. LPS, with its market leading presence and unique portfolio of services, remains well positioned to grow profitably in 2009 and beyond," said Lee A. Kennedy, Chairman of LPS. "First quarter earnings were solid across most of our businesses. Our Default Services business continued to deliver strong results which more than offset a decline in our Loan Facilitation Services. Also, our Mortgage Processing business had a strong quarter," added Jeff Carbiener, President and CEO of LPS.

Operating income was $103.9 million in the quarter compared to $100.1 million in the first quarter of 2008. Adjusting for certain unusual items including the retirement related charges noted earlier, operating income was $112.9 million compared to $101.1 million in the prior year quarter.

Pro forma adjusted free cash flow (net cash provided by operating activities including the pro forma interest expense noted earlier, minus additions to property and equipment, capitalized software and certain non-recurring charges) for the quarter of $57.1 million compared to $122.0 million in the first quarter of 2008, primarily due to the timing of $82 million in pass-through customer payments received in the prior year period that were subsequently paid out in the second quarter of 2008.

Technology, Data and Analytics

Revenues for the segment were $159.9 million compared to $135.8 million in the first quarter of 2008 while operating income of $53.4 million compared to $45.5 million in the prior year quarter. Mortgage Processing revenues of $91.2 million were 13.7% above the first quarter of 2008, primarily due to higher activity based fees. Other TD&A revenues increased by 23.5% to $68.7 million compared to the prior year quarter, mainly due to strong growth in our Desktop application and Data and Analytics services. Overall operating income for the segment was higher primarily due to higher activity based fees and higher contributions from Desktop.

Loan Transaction Services

Revenues for the segment increased by 20.4% to $374.5 million compared to the first quarter of 2008 while operating income of $78.2 million compared to $68.1 million in the prior year period. Loan Facilitation Services revenues of $119.2 million declined 16.1% compared to the same period last year, mainly due to decreased appraisal volumes and lower tax and other loan origination related revenues. Default Services, on the other hand, more than offset this decline with revenues of $255.3 million which increased 51.0% over the first quarter of 2008, primarily due to continued strength in the default market and our ability to gain market share. Overall operating income for the segment grew due to higher income in Default Services, partially offset by lower contributions from loan origination related services like appraisal.

Other Items

Net corporate expenses, excluding the charge primarily relating to the recent retirement of three directors, were $18.7 million compared to $12.4 million in the first quarter of 2008 and were higher primarily due to the incremental public company costs and higher incentive compensation expenses in the current quarter.

Outlook

"We are off to a solid start in 2009 and while the broader economy and some of our markets in general pose challenges, LPS has a strong presence in each of its businesses and remains in a good position to grow earnings in 2009," said Jeff Carbiener. "Building on the strong first quarter, we expect second quarter adjusted earnings to be in the range of $0.66-$0.68 per diluted share. For full year 2009, we now expect revenues to grow 13%-15% compared to 2008 and adjusted earnings to come in at the higher end of the $2.64- $2.74 per diluted share guidance."

Use of Non-GAAP Financial Information

LPS reports several non-GAAP measures, including pro forma adjusted net earnings and pro forma adjusted free cash flow. The adjusted results exclude acquisition related amortization costs and include pro forma debt related interest expenses. References to non- GAAP measures are included in order to provide a more meaningful presentation and comparison to prior periods. Non-GAAP measures should be considered in conjunction with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. A reconciliation of these non- GAAP measures to related GAAP measures is included in the attachments to this release.

Conference Call and Webcast

LPS will host a conference call to discuss these results on Wednesday, April 29, 2009, at 5:00 p.m. Eastern time. Interested parties are invited to listen to the live webcast by logging on to the Investor Relations section at www.lpsvcs.com. Supplemental materials will be available on the website. Those wishing to participate via the conference call may do so by calling 866-823- 5035. A replay of the webcast will be available on the website shortly after the call where it will be archived for one month. A replay of the conference call will be available through May 6, 2009 by dialing 888-203-1112 (access code: 7575445).

To access a printer friendly version of this release and accompanying exhibits, go to www.lpsvcs.com/investor.

About Lender Processing Services

Lender Processing Services, Inc. (LPS) is a leading provider of integrated technology and services to the mortgage industry. LPS offers solutions that span the mortgage continuum, including lead generation, origination, servicing, workflow automation (Desktop), portfolio retention and default, augmented by the company's award- winning customer support and professional services. Approximately 50 percent of all U.S. mortgages are serviced using LPS's Mortgage Servicing Package (MSP). In fact, many of the nation's top servicers rely on MSP, including eight of the top 10 and 14 of the top 20. LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries. For more information about LPS, please visit www.lpsvcs.com.

Forward Looking Statements

This press release contains forward-looking statements that involve a number of risks and uncertainties. Those forward-looking statements include all statements that are not historical facts, including statements about our beliefs and expectations. Forward- looking statements are based on management's beliefs, as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future economic performance and are not statements of historical fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to: changes in general economic, business and political conditions, including changes in the financial markets; the effects of our substantial leverage on our ability to make acquisitions and invest in our business; the elimination of existing and potential customers as a result of failures and consolidations in the banking and financial services industries; changes to the laws, rules and regulations that regulate our businesses as a result of the current economic and financial environment; the impact of adverse changes in the level of real estate activity on demand for certain of our services; our ability to adapt our services to changes in technology or the marketplace; risks associated with protecting information security and privacy; the impact of any potential defects, development delays, installation difficulties or system failures on our business and reputation; risks associated with our spin-off from Fidelity National Information Services, Inc. ("FIS"), including those relating to our new stand-alone public company status and limitations on our strategic and operating flexibility as a result of the tax-free nature of the spin-off; and other risks and uncertainties detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K and other filings with the Securities and Exchange Commission.

Exhibit A

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES AND AFFILIATES

Consolidated and Combined Statements of Earnings

(In thousands)

Three Months Ended

March 31,

2009__ 2008

(Unaudited)

Processing and services revenues__ $529,817__ $443,560

Cost of revenues__ 354,702__ 288,386

Gross profit__ 175,115__ 155,174

Selling, general and administrative expenses__ 71,178__ 55,098

Operating income__ 103,937__ 100,076

Other income (expense):

Interest income__ 524__ 260

Interest expense__ (21,914)__ (18)

Other expense, net__ (1)__ -

Total other income (expense)__ (21,391)__ 242

Earnings before income taxes, equity in losses of unconsolidated

entity, minority interest and

discontinued operation__ 82,546__ 100,318

Provision for income taxes__ 31,575__ 38,923

Earnings before equity in losses of unconsolidated entity,

minority interest and discontinued

operation__ 50,971__ 61,395

Equity in losses of unconsolidated entity__ (37)__ (1,957)

Minority interest__ (384)__ (312)

Net earnings from continuing operations__ 50,550__ 59,126

Discontinued operation, net of tax__ (504)__ 2,606

Net earnings__ $50,046__ $61,732

Exhibit B

LENDER PROCESSING SERVICES, INC.