TSYS Reports Third Quarter 2011 EPS Up 30.6%, Raises Guidance and Increases Quarterly Dividend by 42.9%

COLUMBUS, Ga., October 25, 2011 — TSYS (NYSE: TSS) today reported results for the third quarter 2011 with total revenues of $459.7 million, an increase of 6.1% over 2010. Basic earnings per share (EPS) were $0.30, an increase of 30.6% over 2010. Total issuer cardholder transactions increased 12.7% for the quarter, the seventh consecutive quarter of increased growth and the fourth straight quarter with double digit growth. Accounts on file were 392.4 million, an increase of 15.7% over last year.

For the nine months ended September 30, 2011, total revenues increased 4.6% over 2010 and were up 7.4% excluding 2010 termination fees. Basic EPS were $0.83, a 12.1% increase over 2010, and increased 30.8% excluding 2010 termination fees.

TSYS today also announced that its Board of Directors approved a 42.9% increase in the regular quarterly dividend payable on TSYS common stock from $0.07 per share to $0.10 per share, payable on January 3, 2012 to shareholders of record as of the close of business on December 15, 2011.

“Given the resiliency of the card market, the increase in transactions, addition of new accounts from our sales pipeline and associated fees, we are raising our revenue guidance to a range of 4% to 5% for total revenues and 5% to 6% for revenues before reimbursable items. As a result of improved operations, lower effective tax rates and share repurchases, which are partially offset by negative currency impact, we are raising our guidance for income from continuing operations to a range of $219 to $221 million, and our EPS guidance to a range of $1.14 to $1.15,” said Philip W. Tomlinson, chairman and chief executive officer of TSYS.

“In the third quarter, we purchased 2.2 million shares for $37.2 million, bringing the year-to-date total to 4.2 million shares for $72.9 million. During the year, we returned $40.6 million to shareholders through dividends. We are pleased to announce an increase to shareholder return by raising our quarterly dividend 42.9%, to $0.10 per share. We believe this demonstrates our ongoing confidence in the long-term strength of our business and rewards our shareholders,” said Tomlinson.

TSYS’ revised guidance for 2011 is as follows: 

* EPS Calculations reflect the impact of TSYS’ share repurchase program

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, October 25. The conference call can be accessed via simultaneous Internet broadcast at tsys.com by clicking on the link under "Webcasts" on the main homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call. A slide presentation to accompany the call will be available by clicking on the link under "Webcasts" on the main homepage of tsys.com.

Non-GAAP Measures

This press release and the financial highlights section of this release contain the non-GAAP financial measures of revenues and basic EPS excluding revenues from termination fees and revenues and operating results on a constant currency basis, respectively, to describe TSYS’ performance. Management uses these non-GAAP financial measures to better understand and assess TSYS’ operating results and financial performance. TSYS believes these non-GAAP financial measures provide meaningful additional information about TSYS to assist investors in understanding and evaluating its operating results.

Additional information about non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 10 and 11 of this release.

About TSYS

TSYS (NYSE: TSS) is reshaping a new era in digital commerce, connecting consumers, merchants, financial institutions, businesses and governments. Through unmatched customer service and industry insight, TSYS creates a better experience for buyers and sellers, supporting cross-border payments in more than 85 countries. Offering merchant payment-acceptance solutions as well as services in credit, debit, prepaid, mobile, chip, healthcare, installments, money transfer and more, TSYS makes it possible for those in the global marketplace to conduct safe and secure electronic transactions with trust and convenience.

TSYS’ headquarters are located in Columbus, Georgia, with local offices spread across the Americas, EMEA and Asia-Pacific. TSYS provides services to more than half of the top 20 international banks. For more information, please visit us at www.tsys.com.

Forward-Looking Statements

This press release contains “forward-looking statements” – that is, statements related to future, not past, events. Forward-looking statements often address our expected future business and financial performance and often contain words such as “expect,” “anticipate,” “intend,” “believe,” “should,” “plan,” “will,” “could,” and similar expressions. These forward-looking statements include, among others, statements regarding TSYS’ earnings guidance for 2011 total revenues, revenues before reimbursable items, income from continuing operations and EPS from continuing operations, and the assumptions underlying such statements. These statements are based on the current beliefs and expectations of TSYS' management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond TSYS' ability to control or predict. These factors include, but are not limited to: continued consolidation and turmoil in the financial services and other industries during 2011, including the merger of TSYS clients with entities that are not TSYS processing clients, the sale of portfolios by TSYS clients to entities that are not TSYS processing clients and the nationalization or seizure by banking regulators of TSYS clients; TSYS is unable to control expenses and increase market share both domestically and internationally; TSYS is unable to manage the impact of slowing economic conditions and consumer spending; the material breach of security of any of TSYS' systems; the impact of potential and completed acquisitions, including the costs associated therewith and their being more difficult to integrate than anticipated; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on TSYS and on our clients; changes occur in laws, rules, regulations, credit card association rules or other industry standards affecting TSYS and our clients that may result in costly new compliance burdens on TSYS and our clients and lead to a decrease in the volume and/or number of transactions processed; the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto; adverse developments with respect to the credit card industry in general, including a decline in the use of credit cards as a payment mechanism; and internal growth rates of TSYS’ existing clients are lower than anticipated whether as a result of unemployment rates, card delinquencies and charge-off rates or otherwise. Additional risks and other factors that could cause actual results to differ materially from those contemplated in this release can be found in TSYS' filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.

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Slide Presentation

Contacts
Shawn Roberts
TSYS Investor Relations
+1.706.644.6081
shawnroberts@tsys.com