M & F Worldwide will host a conference call to discuss its second quarter and first half of 2009 results on August 12, 2009, at 9:00 a.m. (EDT). The conference call will be accessible by dialing (800) 230-1085 in the United States and (612) 234-9960 internationally. For those unable to listen live, a replay of the call will be available by dialing (800) 475-6701 in the United States and (320) 365-3844 internationally; Access Code: 108828. The replay will be available from 11:00 a.m. (EDT) Wednesday, August 12, 2009, through 11:59 p.m. (EDT) Wednesday, August 26, 2009.

   Second Quarter 2009 Highlights    --  Net revenues of $451.9 million, down 6.8% as compared to the second       quarter of 2008   --  Non-GAAP adjusted net income of $23.6 million, or $1.22 per non-GAAP       diluted share, excluding the impact of a gain on early extinguishment       of debt    --  Purchased $24.2 million principal amount of Harland Clarke Holdings       Corp. Senior Notes, resulting in a pre-tax gain of $8.9 million    Second Quarter 2009 Performance    Consolidated Results   

Consolidated net revenues decreased by $33.0 million, or 6.8%, to $451.9 million for the second quarter of 2009 from $484.9 million for the second quarter of 2008. The decrease was primarily due to a decrease in net revenues for the Harland Clarke segment of $22.7 million.

Non-GAAP adjusted net income was $23.6 million for the second quarter of 2009, or $1.22 per non-GAAP diluted share, excluding the impact of a gain on early extinguishment of debt. Net income increased by $9.8 million, or 50.8% to $29.1 million for the second quarter of 2009, or $1.50 per diluted share, from $19.3 million, or $0.92 per diluted share, for the second quarter of 2008. Net income for the second quarter of 2009 includes an $8.9 million ($5.5 million after tax) gain on early extinguishment of debt related to the purchase of $24.2 million principal amount of Harland Clarke Holdings Corp. Senior Notes for aggregate consideration of $14.6 million. The increase in net income and earnings per share also reflects a decrease in interest expense of $8.9 million ($5.4 million after tax), primarily due to lower interest rates on variable rate debt, and an increase in restructuring costs of $9.7 million ($5.9 million after tax). The increase in earnings per share also reflects fewer weighted average shares of common stock outstanding due to the Company's repurchase of 2.0 million shares in the second quarter of 2008.

Adjusted EBITDA decreased by $0.4 million, or 0.3%, to $125.9 million for the second quarter of 2009 from $126.3 million for the second quarter of 2008. Adjusted EBITDA is a non-GAAP measure that is defined in the footnotes to this release and reconciled to net income, the most directly comparable GAAP measure, in the accompanying financial tables.

Segment Results

Net revenues for the Harland Clarke segment decreased by $22.7 million, or 6.9%, to $306.3 million for the second quarter of 2009 from $329.0 million for the second quarter of 2008. The decrease in net revenues was primarily due to volume declines from check and related products, which the Company believes was partially affected by the economic downturn. Declines in volumes were partially offset by increased revenues per unit. Additionally, there was $0.1 million of revenue for contract termination fees for the second quarter of 2009 compared to $2.2 million for the second quarter of 2008. Operating income for the Harland Clarke segment decreased by $10.8 million, or 17.1%, to $52.3 million for the second quarter of 2009 from $63.1 million for the second quarter of 2008. The decrease in operating income was largely driven by a $10.7 million increase in restructuring costs and a $2.1 million reduction in contract termination fees. Volume declines and increases in delivery expenses were essentially offset by increased revenues per unit, labor cost reductions and a decrease in integration-related expenses. Operating income for the second quarter of 2009 and 2008 includes restructuring costs of $11.1 million and $0.4 million, respectively.

Net revenues for the Harland Financial Solutions segment decreased by $4.2 million, or 5.7%, to $69.7 million for the second quarter of 2009 from $73.9 million for the second quarter of 2008. Net revenues from the risk management product lines increased $0.6 million, primarily due to organic growth in lending products. Net revenues from the enterprise solutions product lines decreased $4.8 million, primarily due to declines in license, hardware, and professional services revenues, which the Company believes was partially affected by the economic downturn. Operating income for the Harland Financial Solutions segment increased by $4.8 million, or 75.0%, to $11.2 million for the second quarter of 2009 from $6.4 million for the second quarter of 2008. The increase in operating income was primarily due to labor cost reductions, a $2.1 million decrease in restructuring costs and a $1.5 million reduction in compensation expense related to an incentive agreement from an acquisition, partially offset by the decrease in net revenues. Operating income for the second quarter of 2009 includes charges of $1.1 million for compensation expense related to an incentive agreement from an acquisition and $0.8 million for restructuring costs. Operating income for second quarter of 2008 includes charges of $2.6 million for compensation expense related to an incentive agreement from an acquisition and $2.9 million for restructuring costs.

Net revenues for the Scantron segment decreased by $4.0 million, or 7.3%, to $50.7 million for the second quarter of 2009 from $54.7 million for the second quarter of 2008. The decrease in net revenues was primarily due to sales declines in hardware and forms products, which the Company believes was partially affected by the economic downturn. Declines were partially offset by organic growth in software products. Operating income for the Scantron segment increased by $2.2 million, or 48.9%, to $6.7 million in the second quarter of 2009 from $4.5 million in the second quarter of 2008. The increase in operating income was primarily due to cost reductions related to the Data Management acquisition, partially offset by volume declines and a $1.1 million increase in restructuring costs. Operating income for the second quarter of 2009 and 2008 includes restructuring costs of $1.7 million and $0.6 million, respectively.

Net revenues for the Licorice Products segment, operated by Mafco Worldwide, decreased by $2.0 million, or 7.3%, to $25.5 million for the second quarter of 2009 from $27.5 million for the second quarter of 2008. The decline in net revenues was due to lower shipment volumes for all of Mafco Worldwide's products, primarily from order shipment timing, continued worldwide consumption declines in tobacco products using licorice and the rationalization of inventories by Altria Inc. ("Altria") and Philip Morris International, Inc. ("PMI") subsequent to Altria's spin-off of PMI last year. Operating income for the Licorice Products segment decreased by $2.3 million, or 22.5%, to $7.9 million for the second quarter of 2009 from $10.2 million for the second quarter of 2008. The decrease in operating income was primarily due to the decline in net revenues and increased raw material costs.

   First Half 2009 Performance    Consolidated Results   

Consolidated net revenues decreased by $40.7 million, or 4.3%, to $916.2 million for the six months ended June 30, 2009 from $956.9 million for the six months ended June 30, 2008. The decrease was primarily due to a decrease in net revenues for the Harland Clarke segment of $39.7 million, partially offset by an increase in net revenues of $14.6 million due to the acquisition of Data Management I LLC by Scantron on February 22, 2008.

Non-GAAP adjusted net income was $42.4 million for the six months ended June 30, 2009, or $2.19 per non-GAAP diluted share, excluding the impact of a gain on early extinguishment of debt. Net income increased by $48.6 million, or 152.8%, to $80.4 million, or $4.14 per diluted share, for the six months ended June 30, 2009 from $31.8 million, or $1.50 per diluted share, for the six months ended June 30, 2008. Net income for the six months ended June 30, 2009 includes a $61.5 million ($38.0 million after tax) gain on early extinguishment of debt related to the purchase of $114.7 million principal amount of Harland Clarke Holdings Corp. Senior Notes for aggregate consideration of $49.7 million. The increase in net income and earnings per share also reflects a decrease in interest expense of $21.8 million ($13.3 million after tax), primarily due to lower interest rates on variable rate debt and an increase in restructuring costs of $19.4 million ($11.8 million after tax). The increase in earnings per share also reflects fewer weighted average shares of common stock outstanding due to the Company's repurchase of 2.0 million shares in the second quarter of 2008.

Adjusted EBITDA increased by $4.8 million, or 2.0%, to $248.2 million for the six months ended June 30, 2009 from $243.4 million for the six months ended June 30, 2008. Adjusted EBITDA is a non-GAAP measure that is defined in the footnotes to this release and reconciled to net income, the most directly comparable GAAP measure, in the accompanying financial tables.

Segment Results

Net revenues for the Harland Clarke segment decreased by $39.7 million, or 6.0%, to $621.4 million for the six months ended June 30, 2009 from $661.1 million for the six months ended June 30, 2008. The decrease in net revenues was primarily due to volume declines from check and related products, which the Company believes was partially affected by the economic downturn, as well as one less production day in the 2009 period. Declines in volumes were partially offset by increased revenues per unit. Additionally, there was $0.4 million of revenue from contract termination fees for the six months ended June 30, 2009 compared to $2.2 million for the six months ended June 30, 2008. Operating income for the Harland Clarke segment decreased by $13.2 million, or 11.3%, to $103.2 million for the six months ended June 30, 2009 from $116.4 million for the six months ended June 30, 2008. The decrease in operating income was largely driven by a $17.6 million increase in restructuring costs and a $1.8 million reduction in contract termination fees. Volume declines and increases in delivery expenses were essentially offset by increased revenues per unit, labor cost reductions and a decrease in integration-related expenses. Operating income for the six months ended June 30, 2009 and 2008 includes restructuring costs of $18.4 million and $0.8 million, respectively.

Net revenues for the Harland Financial Solutions segment decreased by $6.2 million, or 4.3%, to $138.9 million for the six months ended June 30, 2009 from $145.1 million for the six months ended June 30, 2008. Net revenues from the risk management product lines increased $0.4 million, primarily due to organic growth in lending products, partially offset by declines in mortgage products. Net revenues from the enterprise solutions product lines decreased $6.6 million, primarily due to a decline in license, hardware, and professional services revenues, which the Company believes was partially affected by the economic downturn.