Exhibit 99.1

NEWS RELEASE

CARREKER CORPORATION REPORTS FISCAL THIRD QUARTER

2005 RESULTS

DALLAS (December 7, 2005) — Carreker Corporation (Nasdaq: CANI), a leading provider of payments technology and consulting solutions for the financial services industry, today reported results for its fiscal third quarter ended October 31, 2005.

Total revenue for the third quarter of 2005 was $28.4 million compared to revenue of $29.9 million in the second quarter of 2005. The Company reported an operating loss of $1.2 million for the third quarter of 2005, compared to operating income of $968,000 for the second quarter of 2005. The operating loss for the third quarter included a restructuring charge of $780,000, or ($0.03) per diluted share, associated with the personnel reductions discussed in the 2005 second quarter earnings conference call. The net loss for the third quarter of 2005 was $950,000, or ($0.04) per diluted share, as compared to net income of $1.1 million, or $0.04 per diluted share, for the second quarter of 2005.

“Our third quarter results were mixed.  Strong license revenue was offset by declines in both contingency-related and traditional consulting revenue with the latter being negatively impacted by the Gulf South hurricanes.  We are encouraged by the increase in software license revenue over the first and second quarters of 2005 and anticipate that our investments in new products and increased sales capacity will result in future revenue growth,” said J. D. (Denny) Carreker, Chairman and Chief Executive Officer of Carreker Corporation.  Mr. Carreker continued, “We are starting to see demand for our new products, which are generally on schedule, and believe the combination of new product and services sales and cost reduction initiatives will set the stage for attractive future growth and profitability.”

Business Outlook

The Company expects fourth quarter revenue to be the highest of any quarter of the 2005 fiscal year due primarily to stronger consulting revenues and continued strength in license revenues.  Fourth quarter operating income is expected to increase over all other quarters in fiscal 2005

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primarily as a result of revenue growth and decreased costs associated with expense reduction initiatives.

Conference Call

Carreker’s management will host a conference call and live Web cast today, Wednesday, December 7, 2005, at 11:00 a.m. Eastern Time to discuss the Company’s third quarter fiscal year 2005 financial results and provide an overview of business conditions, industry trends and other points of interest.  To join the conference call, Domestic participants dial 866-348-8664; International participants dial 706-679-0430.  All participants enter code 2615093.  Additionally, a live Web cast of the conference call will be available through the investor relations section of the Company’s Web site at http://ir.carreker.com. A replay of the call will be available on Wednesday, December 7 from 2:00 p.m. Eastern Time through 11:59 p.m. Wednesday, December 14, 2005.  To access the replay, Domestic participants dial 800-642-1687; International participants dial 706-645-9291. All replay participants enter code 2615093.  An archived version of the Web cast will be available through the investor relations section of the Company’s web site at http://ir.carreker.com.

About Carreker Corporation

Carreker Corporation improves earnings for financial institutions around the world.  The Company’s integrated consulting and software solutions are designed to increase clients’ revenues and reduce their expenses, while improving security and increasing the value of their customer relationships.  Carreker provides products and services to more than 250 clients in the United States, Canada, the United Kingdom, Ireland, continental Europe, Australia, New Zealand, South Africa, South America, Mexico, and the Caribbean.  Clients include the full range of community, regional and large banks, among them more than 75 of the largest 100 banks in the United States. Headquartered in Dallas, Texas since 1978, Carreker Corporation has offices in London and Sydney.  For more information, visit www.carreker.com.

Forward Looking Statements - Except for historical information, the statements in this release, including statements regarding future financial performance, constitute forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially, including but not limited to customer acceptance of new product introductions, the timing of revenue from contracted sales, the timing of expected sales of products and the volatility in the Company’s common stock price, as well as the risks and uncertainties arising out of economic, competitive, governmental and technological factors affecting the Company’s operations, markets, services, products, sales, potential sales and prices. For further information concerning certain of these

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risks and uncertainties, see under the caption “Business-Forward Looking Statements and Risk Factors” in the Company’s most recent Form 10-K for the year ended January 31, 2005 and subsequent quarterly reports on From 10-Q. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Lisa Peterson, Executive Vice President
and CFO
(972) 371-1454 PH
(972) 458-2567 FX
Email: lpeterson@carreker.com Gary Samberson, SVP, Treasury, Risk
Management and Investor Relations
(972) 371-1590 PH
(972) 458-2567 FX
Email: gsamberson@carreker.com

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CARREKER CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

ASSETS

	October 31,			January 31,
	2005			2005
Current assets
Cash and cash equivalents	$	24,162		$	34,516
Marketable securities	4,500			—
Accounts receivable, net of allowance of $569 and $529 at October 31, 2005 and January 31, 2005, respectively	13,284			11,144
Prepaid expenses and other current assets	3,060			2,595
Total current assets	45,006			48,255
Property and equipment, net of accumulated depreciation of $22,297 and $20,194 at October 31, 2005 and January 31, 2005, respectively	6,022			6,604
Capitalized software costs, net of accumulated amortization of $13,313 and $12,426 at October 31, 2005 and January 31, 2005, respectively	3,049			3,245
Acquired developed technology, net of accumulated amortization of $19,238 and $15,773 at October 31, 2005 and January 31, 2005, respectively	6,462			9,927
Goodwill, net of accumulated amortization of $3,405 at October 31, 2005 and January 31, 2005	20,765			20,765
Customer relationships, net of accumulated amortization of $6,183 and $5,133 at October 31, 2005 and January 31, 2005, respectively	2,217			3,267
Deferred loan costs, net of accumulated amortization of $1,503 and $1,300 at October 31, 2005 and January 31, 2005, respectively	204			407
Other assets	804			835
Total assets	$	84,529		$	93,305
Current liabilities
Accounts payable	$	1,061		$	992
Accrued compensation and benefits	5,986			7,818
Other accrued expenses	3,928			3,609
Income tax payable	182			339
Deferred revenue	16,960			22,181
Accrued merger and restructuring costs	629			1,004
Total current liabilities	28,746			35,943
Commitments and Contingencies
Stockholders’ equity
Preferred stock, $.01 par value: 2,000 shares authorized; no shares issued or outstanding	—			—
Common stock, $.01 par value: 100,000 shares authorized; 25,338 and 24,852 shares issued at October 31, 2005 and January 31, 2005, respectively	254			249
Additional paid-in capital	112,034			110,992
Accumulated deficit	(53,274		)	(53,876		)
Less treasury stock, at cost	(3,231		)	(3		)
Total stockholders’ equity	55,783			57,362
Total liabilities and stockholders’ equity	$	84,529		$	93,305

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CARREKER CORPORATION

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

	Three Months Ended October 31,						Nine Months Ended October 31,
	2005			2004			2005			2004
Revenues:
Consulting	$	6,720		$	7,930		$	24,540		$	27,501
Software license	5,322			5,701			12,463			16,134
Software maintenance	10,822			11,491			32,710			32,807
Software implementation and other services	4,585			4,622			13,611			11,143
Outsourcing service	220			50			718			60
Out-of-pocket expense reimbursements	701			813			2,446			2,365
Total revenues	28,370			30,607			86,488			90,010
Cost of revenues:
Consulting	4,369			4,555			12,887			14,166
Software license	2,155			2,503			5,519			5,771
Software maintenance	3,588			3,765			10,999			10,949
Software implementation and other services	3,562			4,002			10,217			11,181
Outsourcing service	424			222			1,437			236
Out-of-pocket expenses	701			738			2,299			2,333
Total cost of revenues	14,799			15,785			43,358			44,636
Gross profit	13,571			14,822			43,130			45,374
Operating costs and expenses:
Selling, general and administrative	11,191			11,320			33,688			35,483
Research and development	2,444			2,520			7,481			6,102
Amortization of customer relationships	350			350			1,050			1,050
Restructuring and other charges	780			266			903			2,978
Total operating costs and expenses	14,765			14,456			43,122			45,613
Income (loss) from operations	(1,194		)	366			8			(239		)
Other income (expense):
Interest income	185			92			495			207
Interest expense	(122		)	(106		)	(334		)	(336		)
Other income	283			275			718			732
Total other income, net	346			261			879			603
Income (loss) before provision for income taxes	(848		)	627			887			364
Provision for income taxes	102			114			285			464
Net income (loss)	$	(950	)	$	513		$	602		$	(100	)
Basic earnings (loss) per share	$	(0.04	)	$	0.02		$	0.03		$	0.00
Diluted earnings (loss) per share	$	(0.04	)	$	0.02		$	0.03		$	0.00
Shares used in computing basic earnings (loss) per share	23,906			24,821			24,152			24,623
Shares used in computing diluted earnings (loss) per share	23,906			25,589			24,553			24,623

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