INTERNATIONAL

TSYS Entered Europe by signing two of the largest issuers in the United Kingdom, The Royal Bank of Scotland Group and Allied Irish Banks, giving TSYS a gateway into Europe, a card market growing at 15 percent a year. In order to increase our clients’ market share, it’s important for them to obtain adaptable systems. TS2 makes that possible and enables us to provide our clients’ cardholders with the highest standards of customer service.

Attracting and retaining card account customers is a universal challenge for issuers. To be effective, an institution must differentiate itself and strengthen the relationship with its customers. Therein lies the value of TSYS with its ability to treat each customer according to its individual needs. Our remarkable systems offer card issuers the widest array of features and functions, enabling them to compete more successfully. These technological advantages, coupled with the competitive strengths of a passionate team and quality service, gave The Royal Bank of Scotland Group the confidence to choose TSYS for its processing needs.

The Royal Bank of Scotland acquired National Westminster Bank (NatWest), Ulster Bank and Coutts banks in 2000. The Royal Bank of Scotland Group operates 2,000 branches in the UK and Ireland, serves more than 15 million customers and has more than 7 million consumer and commercial card accounts. Increasing the number of card customers is a major goal.

Additional accomplishments during 2000 included further strengthening the European operation. Roger Van Scoy, with extensive industry experience in the United States, Asia and Europe, was named senior director and chief operating officer, joining with managing director, Bruce Bacon; the staff expanded to 75 people, and our European data center became operational.

Another international goal, entry into the Asian market, was accomplished in 2000. We opened an office in Tokyo, Japan, purchased a 53 percent ownership in GP Net and began development analysis to accommodate localization requirements for the market to include the Asian languages. Hitoshi Kondo, an experienced card executive, was named president of GP Net and managing director of TSYS Japan. Japan is the world’s second largest card market, and conditions are excellent for entry. Economic recovery is taking place, and financial reform is underway, with banks restructuring and eager to find ways to compete more effectively.

The Company’s investment in GP Net represents a tremendous advantage. GP Net is the only EMV chip-capable processor in Japan. The Japan Credit Card Association has declared that by 2008 all cards issued must be chip-enabled. Already, TSYS processes chip cards for Providian, one of the few U.S. chip-card issuers. In fact, our capability with the full range of card categories gives us an important competitive advantage around the world. Through our ownership in GP Net and our presence in Japan, TSYS is a partner with some of the largest card issuers that collectively represent 61 percent of the card-issuing market in Japan.

With its new debit platform and chip capabilities, TSYS is prepared for explosive growth internationally.