EXHIBIT 99.1

FOR IMMEDIATE RELEASE

HEARTLAND PAYMENT SYSTEMS REPORTS RECORD SECOND QUARTER

EARNINGS PER SHARE of $0.30

Network Services Acquisition helps increase Total Revenue by 18.3%, and

Net Revenues by 29.3%

Princeton, NJ – August 5, 2008 – Heartland Payment Systems, Inc. (NYSE: HPY), a leading provider of credit/debit/prepaid card processing, payroll, check management and payments services, today announced record second quarter net income of $11.5 million and fully diluted earnings per share of $0.30.

Highlights for the second quarter, which included the results of the acquisition of the Network Services (NWS) business of Alliance Data for one month, include:

• Total transaction processing volume of $17.1 billion, up 29%, $15.2 billion organic volume, up 14%

• Net Revenue up 29.3%, and excluding NWS increased by 17.7%

• Earnings per share up 15% and net income up 10.3% from the second quarter of 2007

• New margin installed increased by 12.2%

• Operating margin on net revenue of 19.4%

Robert Carr, Chairman and CEO, said, “Our record second quarter is a reflection of our ability to achieve solid current results while investing for the future, even in a challenging environment. In the near term we are clearly facing a difficult economy, which resulted in same store sales in the quarter declining 0.1%, the first such decline in our history. Nevertheless, this quarter we continued our string of double-digit growth in new margin installed while increasing our processing volume 14%, excluding NWS, as we continue to increase our market share. Although we are only two months into the process today, the integration of NWS is proceeding nicely, and we are enthusiastic about the long-term benefits the transaction will offer to Heartland’s growth and profitability. Through our organic growth, acquisitions, and investments in new verticals, products, and markets, Heartland’s “Fair Deal” is rapidly becoming the premier brand in the payment processing industry.”

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Total revenues in the second quarter were $395 million, an increase of 18.3% compared to $333 million in the second quarter of 2007. Card processing volume for the three months ended June 30, 2008 increased 29.0% to $17.1 billion, including $2.0 billion of volume from acquisitions. Transaction processing volume and net revenue growth continue to benefit from the installation of larger and more profitable merchants onto our platform. Mr. Carr continued, “In the quarter we accomplished many strategic objectives, achieving greater penetration of the broad payments space and setting the stage for our next growth phase. Our card business is very strong, growing faster than the industry, and is preparing to add incremental volume, processing Discover and American Express transactions along with the NWS volume already added. In addition, we are also making solid progress in the payroll, remote deposit, and campus card markets. The second half of the year should be an exciting time as we begin to realize the benefits of both the NWS integration and our various investments.”

SIX MONTH RESULTS:

For the first six months of 2008, net income was $20.4 million or $0.53 per fully diluted share, increases of 19% and 23%, respectively, from the first six months of 2007. Revenues for the first half of 2008 were $734 million, up 19% compared to the first half of 2007.

FULL YEAR 2008 GUIDANCE:

The Company is affirming guidance for fiscal 2008. For the year, we expect net revenue (total revenues less interchange, dues and assessments) to grow by 16% - 18% organically, and in excess of 35% including NWS; and earnings per share to be $1.13 - $1.17.

DIVIDEND:

The Company also announced that the Board of Directors has declared a third quarter dividend of $0.09 per common share. The dividend is payable to shareholders of record on August 22, 2008 and will be paid on September 15, 2008.

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Conference Call:

Heartland Payment Systems, Inc. will host a conference call on August 5, 2008 at 8:30 a.m. Eastern Time to discuss financial results and business highlights. Heartland Payment Systems invites all interested parties to listen to its conference call, broadcast through a webcast on the Company’s website. To access the call, please visit the Investor Relations portion of the Company’s website at: www.heartlandpaymentsystems.com. You may also participate by calling 610-228-2110 to request the dial-in information for the conference call.

The webcast will be archived on the Company’s website within two hours of the live call and will remain available through Friday, August 29, 2008.

About Heartland Payment Systems

Heartland Payment Systems, Inc., a NYSE company trading under the symbol HPY, delivers credit/debit/prepaid card processing, payroll, check management and payment solutions to more than 250,000 businesses nationwide.

Heartland is the founding supporter of The Merchant Bill of Rights, a public advocacy initiative that educates merchants about fair credit and debit card processing practices. For more information, visit www.heartlandpaymentsystems.com and www.MerchantBillOfRights.com.

Forward-looking Statements

This press release may contain statements of a forward-looking nature which represent our management's beliefs and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors. Information concerning these factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to, the Company's annual report on Form 10- K for the year ended December 31, 2007. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

CONTACT:

Joe Hassett

Gregory FCA Communications

27 West Athens Ave.

Ardmore, PA 19003

Tel: 610-228-2110

Email: Heartland_ir@gregoryfca.com

TABLES FOLLOW

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Heartland Payment Systems, Inc. and Subsidiaries

Consolidated Statements of Income

(In thousands, except per share data)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Total Revenues	$	394,554		$	333,445		$	734,173		$	617,657
Costs of Services:
Interchange		282,377			245,225			527,654			450,562
Dues and assessments		14,152			12,398			26,494			22,857
Processing and servicing		45,953			32,764			82,882			64,094
Customer acquisition costs		12,274			11,383			23,724			21,774
Depreciation and amortization		2,465			1,661			4,375			3,385
Total costs of services		357,221			303,431			665,129			562,672
General and administrative		18,289			13,735			35,463			28,034
Total expenses		375,510			317,166			700,592			590,706
Income from operations		19,044			16,279			33,581			26,951
Other income (expense):
Interest income		169			517			469			976
Interest expense		(751	)		(233	)		(1,097	)		(345	)
Loss on investment		—			—			(103	)		—
Other, net		1			5			24			(90	)
Total other income (expense)		(581	)		289			(707	)		541
Income before income taxes		18,463			16,568			32,874			27,492
Provision for income taxes		6,994			6,166			12,428			10,238
Net income	$	11,469		$	10,402		$	20,446		$	17,254
Net income	$	11,469		$	10,402		$	20,446		$	17,254
Other comprehensive income: Unrealized gains on investments, net of income tax of $(3), $(4), $9 and $(2)		(6	)		(7	)		15			(4	)
Foreign currency translation adjustment, net of income tax of $37 and $(124)		54			—			(205	)		—
Comprehensive income	$	11,517		$	10,395		$	20,256		$	17,250
Earnings per common share:
Basic	$	0.31		$	0.28		$	0.55		$	0.46
Diluted	$	0.30		$	0.26		$	0.53		$	0.43
Weighted average number of common shares outstanding:
Basic		37,387			37,653			37,464			37,580
Diluted		38,688			39,863			38,755			39,919

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Heartland Payment Systems, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(unaudited)

	June 30, 2008			December 31, 2007
Assets
Current assets:
Cash and cash equivalents	$	40,142		$	35,508
Funds held for payroll customers		22,651			24,201
Receivables, net		156,276			122,613
Investments held to maturity		1,141			1,119
Inventory		7,721			5,383
Prepaid expenses		4,653			3,478
Current tax asset		4,739			5,449
Current deferred tax assets, net		835			690
Total current assets		238,158			198,441
Capitalized customer acquisition costs, net		76,376			70,498
Deferred tax assets, net		1,517			3,878
Property and equipment, net		59,403			50,248
Goodwill		58,774			5,489
Intangible assets, net		34,352			481
Deposits and other assets, net		202			154
Total assets	$	468,782		$	329,189
Liabilities and stockholders’ equity
Current liabilities:
Due to sponsor banks	$	98,182		$	49,798
Accounts payable		26,138			20,495
Deposits held for payroll customers		22,651			24,201
Current portion of borrowings		56,250			—
Current portion of accrued buyout liability		11,006			11,521
Merchant deposits and loss reserves		19,028			14,757
Accrued expenses and other liabilities		22,045			15,266
Total current liabilities		255,300			136,038
Reserve for unrecognized tax benefits		1,391			1,230
Long-term portion of borrowings		18,750			—
Long-term portion of accrued buyout liability		29,015			26,252
Total liabilities		304,456			163,520
Commitments and contingencies		—			—
Stockholders’ equity
Common Stock, $0.001 par value, 100,000,000 shares authorized, 37,448,752 and 39,804,322 shares issued at June 30, 2008 and December 31, 2007; 37,448,752 and 37,989,622 shares outstanding at June 30, 2008 and December 31, 2007		38			40
Additional paid-in capital		165,155			173,346
Accumulated other comprehensive loss		(252	)		(62	)
(Accumulated deficit) Retained earnings		(615	)		36,729
Treasury stock, at cost (1,814,700 shares at December 31, 2007)		—			(44,384	)
Total stockholders’ equity		164,326			165,669
Total liabilities and stockholders’ equity	$	468,782		$	329,189

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Heartland Payment Systems, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flow

(In thousands)

(unaudited)

	Six Months Ended June 30,
	2008			2007
Cash flows from operating activities
Net income	$	20,446		$	17,254
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of capitalized customer acquisition costs		25,822			21,253
Other depreciation and amortization		5,882			4,254
Addition to loss reserves		3,262			1,122
Provision for doubtful receivables		1,395			216
Stock-based compensation		775			801
Deferred taxes		2,292			90
Loss on investment		103			—
Other		4			172
Changes in operating assets and liabilities:
Increase in receivables		(15,686	)		(11,558	)
Decrease (increase) in inventory		899			(625	)
Payment of signing bonuses, net		(24,053	)		(21,639	)
Increase in capitalized customer acquisition costs		(7,647	)		(6,729	)
Increase in prepaid expenses		(600	)		(711	)
Decrease in current tax asset		1,286			5,284
Increase in deposits and other assets		(43	)		(9	)
Excess tax benefits on options exercised under SFAS No. 123R		(811	)		(3,820	)
Increase in reserve for unrecognized tax benefits		160			476
Increase in due to sponsor bank		48,383			25,284
Increase in accounts payable		4,697			3,165
(Decrease) increase in accrued expenses and other liabilities		(824	)		1,917
Decrease in merchant deposits and loss reserves		(1,201	)		(1,161	)
Payouts of accrued buyout liability		(3,250	)		(4,746	)
Increase in accrued buyout liability		5,498			7,250
Net cash provided by operating activities		66,789			37,540
Cash flows from investing activities
Purchase of investments held to maturity		(46	)		(1,330	)
Maturities of investments held to maturity		250			265
Decrease (increase) in funds held for payroll customers		1,245			(3,930	)
(Decrease) increase in deposits held for payroll customers		(1,549	)		3,828
Acquisition of business, net of cash acquired		(102,544	)		(300	)
Purchases of property and equipment		(12,375	)		(13,993	)
Net cash used in investing activities		(115,019	)		(15,460	)
Cash flows from financing activities
Proceeds from borrowings		95,000			—
Principal payments on borrowings and financing arrangements		(20,000	)		(146	)
Proceeds from exercise of stock options		1,783			4,546
Excess tax benefits on options exercised under SFAS No. 123R		811			3,820
Repurchase of common stock		(17,995	)		(15,307	)
Dividends paid on common stock		(6,724	)		(3,757	)
Net cash provided by (used in) financing activities		52,875			(10,844	)
Net increase in cash and cash equivalents		4,645			11,236
Effect of exchange rates on cash		(11	)		—
Cash and cash equivalents at beginning of year		35,508			16,054
Cash and cash equivalents at end of period	$	40,142		$	27,290

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