Processing Systems:

TSYS’ revolutionary software systems provide the architecture to move and manage massive volumes of data and present information in a way that gives our clients a superior advantage in the marketplace and their customers unparalleled access, service and convenience.

Consumer Credit
At every step in the account cycle, from initial credit evaluation through customer service, TSYS’ TS^1SM and TS^2® Processing Systems give issuers the most technologically advanced tools needed to compete in today’s competitive marketplace. From a spectrum of promotional and incentive programs to Internet and smart card access, our flexible systems can be highly customized to best serve the individual consumer.

Retail and Private Label
TSYS’ systems for retail and private-label issuers are uniquely designed for the competitive retail environment. Features include instant application decisioning for bricks and clicks, promotional terms, rebates, points tracking and redemption, SKU-level data itemization, billing options and extended processing hours.

Commercial
TSYS offers the most technologically advanced processing system specifically designed for business-to-business needs for successful, profitable global-scale government and small business programs. TSYS services travel and entertainment, and purchasing and fleet programs with features such as controlled authorizations, smart card functionality, merchant blocking options, flexible billing and detailed reporting via the Internet directly into corporate accounting software.

Merchant Processing
TSYS’ merchant processing systems provide international clients with complete acquiring portfolio services including merchant profitability analysis, management reporting, tools to control and prevent fraud and daily settlement. Domestic clients are serviced through Vital Processing Services^® L.L.C.

Electronic Commerce Services Leader:

Business-to-Consumer
The SureTransact^SM family of products, which includes premier products SureService^SM and SureApp^SM, enables clients to offer real-time, online credit applications, decisions, customer service, messaging, bill presentment and payment and digital wallets.

Business-to-Business
The TSYS Business Commerce^SM family of products enables clients to better serve their corporate customers with intelligent information by downloading transaction-level detail data directly into corporate general ledger accounts.The online, real-time, sophisticated reporting packages are designed to place control in the hands of business program managers.

Stored-Value Solutions:

With TSYS’ Stored-Value Solutions^SM suite of products including Your!Gift^SM, Your!Money^SM, and Your!Claim^SM, clients can confidently offer stored-value products such as gift, mall, employment or insurance claim cards with unparalleled functionality and proven product design.

Complementary Services:

Vital Processing Services
A joint venture between Visa U.S.A. and TSYS, Vital Processing Services offers financial institutions that work with merchants fully integrated outsourcing services such as electronic authorization and data capture; Web store-front designs; a secure Internet payment gateway; clearing; billing and reporting; and customer service.

TSYS Total Solutions^®
TSYS Total Solutions is a complete customer care provider that offers an array of services including inbound and outbound telemarketing, acquisition mailing, application processing, direct mail, correspondence fulfillment, back-office customer service and other mailing services such as laser printing and MICR, response processing and data entry.

Columbus Productions, Inc.^SM
Columbus Productions is a full-service commercial printer that provides exceptional services like inserts, mailers and high-quality printing for TSYS clients and the surrounding community.

TSYS Total Debt Management^SM
With the most sophisticated software applications in the industry, TSYS Total Debt Management (TDM), a wholly owned subsidiary of Synovus Financial Corp., provides clients with low-cost, high-value, early-out and recovery collections work, bankruptcy process management, legal account management, agency management and skip tracing. TDM sets the standard for the industry with its legal management unit, National Attorney Network, the largest legal collections network in the nation representing retailers, banks and finance companies.

Marketing

Rewards and Rebates
Transaction Special Processing^® (TSP^®) adds the flexibility that makes it simple to create promotional rebate and reward programs by identifying and processing transactions based on preset parameters. TSP gives our clients incentives and rewards for their consumers that increase marketing opportunities and improve customer loyalty.

Promotional and Performance Pricing
Account-Level Pricing allows unlimited finance rate options for special-rate promotions to attract new customers and stimulate usage with existing cardholders. Account-Level Pricing features include introductory and promotional pricing, performance-based pricing, same-as-cash, installment billing, deferred billing and special merchant purchase rates.

Custom Statement Formatter
Custom Statement Formatter enables clients to economically and efficiently customize messages to individual cardholders and custom format statements with data layouts, fonts and graphics.

dbADVANTAGE 6.0
Developed with Dynamark and Fair, Isaac, dbADVANTAGE 6.0 is a customized relational database that combines information management with predictive technology. dbADVANTAGE 6.0 allows segmentation of multiple populations within a portfolio to determine profitability.

TOTAL ACCESS^®
TOTAL ACCESS is an online relational database that allows users to retrieve, manipulate, sort and compare data any way they wish by creating “what if ” scenarios to determine potential outcomes of actions before imple-menting them, thus saving time and money.

Photocards and Picturecards
With TSYS’ Picturecards and Photocards, clients enhance and customize cards by adding visual interest and security features.

Fraud Protection and Risk Management

TSYS CardGuard^SM
TSYS CardGuard, TSYS’ fraud detection system, transforms fraud analysis from rudimentary exception reporting into a timely, proactive weapon against deception. TSYS CardGuard features:
• TSYS Transaction Watch – a rules-based scoring engine
• HNC Software – Falcon, Falcon Debit and Falcon Retail
• Nestor – PRISM neural scoring engines
• Fair, Isaac – Fair, Isaac statistical scoring engines and CrediTable

TANDEM Fraud Authorization Strategy Table (F.A.S.T.)
F.A.S.T. treats authorizations in real-time and gives our issuers optimum control over high-risk transactions.

Card Activation
The TSYS Card Activation system is designed to fit our clients’ fraud strategies. Upon receipt of the card, cardholders can call anytime into the TSYS Voice Response Unit, where critical information will be verified automatically.

Portfolio Management

Fair, Isaac’s TRIAD
With TRIAD, consumer and commercial card clients gain a competitive edge in maximizing the profitability of their account portfolio by reducing delinquencies and overlimit accounts and encouraging use among low-risk accounts.

HNC Software Inc.’s ProfitMax
ProfitMax enhances our clients’ portfolio management capabilities by enabling portfolio managers to make accurate predictions about future account behavior and profitability using a transaction-based neural model suite.

HNC Software Inc.’s ProfitMax Bankruptcy
ProfitMax Bankruptcy predicts the likelihood of cardholder bankruptcy even before the cardholder is delinquent.

New Account Processing

ACE^®
TSYS’Automated Credit Evaluation System (ACE) gives our clients the most advanced solution to automatically evaluate and decision new credit applications online, at the point of sale and via the Internet in a real-time environment.

ACEadvantage^SM
Developed by TSYS, ACEadvantage, the optimum solution for credit evaluation and new account implementation, supports the receipt of customer information via the Internet, branch platform, or retail environment for the evaluation of multiple offerings for all products, installment and revolving, for both consumer and commercial business.

Determinator^SM
Setting no limits for application decisions, Determinator automates decisions often left to an individual by creating highly complex decision scripts to determine optimum product offerings, processing rules, credit limits and pricing for every credit card application.

Online Operation, Training and Documentation Support

TSeclipse^SM
TSeclipse is a graphical interface of detailed, real-time information from the mainframe delivered in a Windows format that uses client business policies to automate processes and decisions so that an operator can provide superior customer interaction and service.

Event Logging and Event Tracking
Event Logging and Event Tracking allow clients to view account maintenance information online in a consistent format and automate the account maintenance recording process.

TSROM^SM
TSROM allows clients to receive reports and statement data over the Internet or via compact disc as opposed to microfiche or hard copies.

TSYS Online Bookshelf and TSYS GlobalDoc
TSYS’ libraries of system documentation are available for viewing online via the mainframe and over the Internet and include the latest versions of system operation manuals and information bulletins.

TS^TutorSM
TS^Tutor is a family of Windows-based, multimedia tutorials used to train operators on system procedures and tasks and is available to clients via CD-ROM or computer network.

TSYS Online Help
TSYS Online Help consists of field-specific help windows on every screen in the TS² Processing System. Each help window includes definitions, possible values and examples relevant to the field for which help is requested.

Production Services

Statement Production
TSYS’ state-of-the-art statement production facility produces millions of fully customized statements for our clients every day using the most advanced technology available. In addition to custom statement formatting, TSYS also offers selective inserting, account messaging based on usage and status, duplicate statements and annual account summary statements to give clients a true marketing and communication tool.

Card Production
TSYS’ card production facility exceeds the highest industry standards for security and quality. We offer full card packaging services to include card embossing with ultra graphics, color photos and pictures, die cut and adhesive card mailers and separate PIN mailers. TSYS also offers immediate emergency card replacement services.

Correspondence
TSYS provides full-service customer correspondence from account solicitation and welcome kits with convenience checks to general correspondence for promotions, marketing, change in terms and delinquency.

Technology for the Future

In the future,TSYS will offer our clients the most sophisticated processing systems for debit and pre-funded programs and global processing and settlement for issuing and acquiring clients.

• TSYS Debit Card Processing System
TSYS’ Debit Services will offer single-point connectivity for ATM/POS switching, gateway processing, ATM driving, PIN and nonPIN-based card management programs. Our system will integrate seamlessly with our clients’ current DDA environments while providing security from the moment of issue through the point of sale—and after.

• TSYS Stored-Value Solutions Processing System
The TSYS Stored-Value Processing System will allow clients to utilize magnetic stripe technology or computer microchips with association-branded or private-label solutions for gift, mall, employment, insurance, medical and other general purpose cards.

• International
TSYS’ international capabilities will meet the processing and settlement requirements for issuing and acquiring clients’ global needs. TSYS InterAct^SM, our interchange settlement system, and TS² master the multicurrency, multilanguage, postal, smart card and other requirements of the ever-changing international society. Our systems will meet Europay MasterCard and Visa specifications and precertification by American Express’ Global Network Services to process American Express transactions. TSYS will allow clients to focus on product differentiation while entering multiple countries with ease.

This annual report contains forward-looking statements that involve risks and uncertainties that could cause the results of TSYS to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements contained in this annual report include the intent, belief or current expectations of TSYS and members of its senior management team with respect to the success of new products and services and the percentage increase in earnings of TSYS expected for the year 2000, as well as the assumptions upon which such statements are based. These risks include, but are not limited to, the timely development and acceptance of new products and services, the difficulty of keeping expense growth at modest levels while increasing revenues, lower than anticipated internal growth rates for TSYS' existing customers, the inability of TSYS to grow its business through acquisitions, adverse developments with respect to entering into contracts with new clients and retaining current clients, adverse developments with respect to the successful conversion of clients, adverse developments with respect to the credit card industry in general and overall market conditions. Additional factors that could cause actual results to differ materially from those contemplated in this annual report can be found in TSYS' Securities and Exchange Commission reports, including but not limited to, the quarterly report on 10-Q for the quarter ended September 30, 1999.

Total System Services, Inc.^®, TSYS^®, its logo, TSYS Total Solutions^®, Total Solutions^®, THE TOTAL SYSTEM^®, TS^2®, TOTAL ACCESS^®, ACE^®, Partnership Card Services^®, Transaction Special Processing^® and TSP^® are federally registered trademarks of Total System Services, Inc. in the U.S. Total System Services de México S.A. de C.V.^®, TSYS de México^®, Total System Services, Inc.^®, TSYS^®, its logo, and THE TOTAL SYSTEM^® are registered trademarks of Total System Services, Inc. in Mexico. Total System Services, Inc.^®, its logo, THE TOTAL SYSTEM^®, and ACE^® are registered trademarks in Canada. The TSYS Total Solutions logo, TSYS CardGuard^SM, TSROM^SM, TS^TutorSM, its logo, SureTransact^SM, SureApp^SM, SureService^SM, Determinator^SM, its logo, There’s Always A Solution^SM, its logo, The Single Source Solution^SM, TSYS Canada^SM, its logo, TSeclipse^SM, TS^1SM, Columbus Productions, Inc.^SM, TSYS Total Commerce^SM, TS¹ Event Logging^SM, TS² Commercial Card^SM, TS² Debit Card^SM, ACEadvantage^SM, TSYS Total Debt Management^SM, its logo, TSYS Business Commerce^SM, TSYS Stored-Value Solutions^SM, Your!Gift^SM, Your!Money^SM, and Your!Claim^SM, Your!Stored-Value Solution and its logo are service marks of Total System Services, Inc. in the U.S. All other products and company names are trademarks or registered trademarks of their respective companies.