8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

January 24, 2008 (January 23, 2008)
Date of Report (Date of Earliest Event Reported)

Total System Services, Inc.

(Exact Name of Registrant as Specified in its Charter)

Georgia	1-10254	58-1493818
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1600 First Avenue, Columbus, Georgia 31901

(Address of principal executive offices) (Zip Code)

(706) 649-2267

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On January 23, 2008, Total System Services, Inc. (“Registrant”) issued a press release and will hold an investor call and webcast on January 24, 2008 to disclose financial results for the year ended December 31, 2007. The press release and Supplemental Information for use at this investor call are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. This information shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934 except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

See Item 2.02 above.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit
No.	Description
99.1	Registrant’s press release dated January 23, 2008
99.2	Supplemental Information prepared for use with the press release

2

Signature

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	TOTAL SYSTEM SERVICES, INC. (“Registrant”)
Dated: January 24, 2008	By:	/s/ Kathleen Moates
		Kathleen Moates
		Senior Deputy General Counsel

3

EX-99.1

Exhibit 99.1

Total System Services, Inc.
1600 First Ave.	+1.706.649.2307
P.O. Box 2567	+1.706.649.5740
Columbus, GA 31902-2567	www.tsys.com

For immediate release.

Contacts:

James B. Lipham	Shawn Roberts
Chief Financial Officer	TSYS Investor Relations
+1.706.649.2262	+1.706.644.6081
	shawnroberts@tsys.com

TSYS REPORTS RESULTS FOR 2007 and INCREASES 2008 GUIDANCE

Columbus, Ga., January 23, 2008 — TSYS today announced the results for the fourth quarter and full year of 2007. On a generally accepted accounting principles (GAAP) basis, TSYS reported basic earnings per share of $1.21 for the year and $0.23 for the fourth quarter. On a non-GAAP basis excluding one-time spin costs of $0.11 for the year and $0.11 for the quarter, TSYS reported basic earnings per share of $1.32 for the year and $0.34 for the fourth quarter. Spin related costs are considered non-recurring by TSYS and were incurred in connection with the distribution of the 80.6% ownership of TSYS by Synovus Financial Corp. (Synovus) to its shareholders on December 31, 2007.

• Total revenues in 2007 were $1.806 billion representing a 1% increase over 2006 total revenues of $1.787 billion. Excluding the Bank of America termination fee of $65 million in 2006, revenues increased 5% in 2007 over the $1.722 billion in 2006.

• Operating income in 2007 was $354 million representing a 1% decline over 2006 operating income of $357 million. Excluding the $65 million Bank of America termination fee and $2 million of related amortization expense in 2006 and the one-time spin related operating costs of $14 million in 2007, operating income was $368 million in 2007 representing a 25% increase over 2006 operating income of $294 million.

• Net Income in 2007 was $237 million representing a decline of 5% over 2006 net income of $249 million. Excluding the net tax effect of the Bank of America termination fee of $41 million in 2006 and the one-time spin related costs and taxes of $23 million in 2007, net income for the year 2007 was $260 million representing a 25% increase over net income of $208 million in 2006.

          This press release includes pro forma financial information that is not in accordance with GAAP. A reconciliation of GAAP is included in this press release in the form of a table that should be read in conjunction with this information.

          “As we celebrate our 25th anniversary as a public company, we will certainly remember 2007 as the year of the ‘spin’ from Synovus Financial Corp. Synovus has been a wonderful majority owner for 25 years and we salute them. Our new independence gives us greater flexibility as we move forward with our long-term growth strategy. With passion and dedication, our team overcame many one-time obstacles in 2007 and once again highlighted our unique position in the industry,” said Philip W. Tomlinson, chairman of the board and chief executive officer.

Page 1 of 14

          “The year 2007 was an exceptional year for TSYS. Our international revenues grew 33% over 2006, and we expect strong growth to continue. We also generated 15% organic growth for the year in electronic payment processing revenues which contributed to our operating margin expanding to 25.7% of revenues before reimbursables,” said Tomlinson.

          “We are looking forward to 2008 and beyond as we continue to reach out across the globe as an international organization dedicated to being the best and most cost effective provider of payment processing services in the world. As indicated in our Guidance Table below, we expect TSYS’ total revenues to grow in the range of 7% to 9% in 2008, and now expect net income and basic earnings per share to grow in the range of 7% to 9%, up from the previously announced 4% to 6%,” said Tomlinson.

Recent Highlights

• TSYS successfully completed its spin-off from Synovus on December 31, 2007 and is now a fully independent, publicly-traded company.

• TSYS joined the S&P 500 Index upon being spun-off from Synovus.

• In connection with the spin-off, G. Sanders Griffith III, Synovus’ general counsel and secretary moved to TSYS to serve in the same capacity, and Paul Todd, Synovus’ executive vice president, was named executive vice president of mergers and acquisitions and strategic planning for TSYS.

• Standard & Poor’s Rating Service assigned a ‘BBB’ investment grade corporate credit rating to TSYS with a stable outlook.

• TSYS entered into a credit agreement with Bank of America N.A., Royal Bank of Scotland plc, and other lenders which provides for a $252 million five year unsecured revolving credit facility and a $168 million unsecured term loan. The proceeds will be used for working capital and other corporate purposes, including to finance the repurchase by TSYS of its capital stock.

• China UnionPay Data Services Co., Ltd., TSYS’ joint venture with China UnionPay, successfully completed a bankcard conversion of over one million accounts for Shanghai Pudong Development Bank, one of the largest joint-stock commercial banks in China.

• TSYS reached an agreement with Discover Financial Services to process card payments on Discover’s network. The agreement gives TSYS access to each of the four payment processing platforms: American Express, MasterCard, Visa, and now Discover.

Page 2 of 14

Projected Outlook for 2008

TSYS’ 2008 earnings forecast is based on the following assumptions:

1. Expenses associated with the spin-off are expected to be in the amounts set forth below which are $2 million higher in 2008 than previously announced. In 2008, expenses associated with the spin-off are classified under GAAP as operating expenses and income taxes. These estimates are subject to change as operating expenses include estimates of services being provided on an ongoing basis during the transition period after the spin-off. These items are summarized as follows with, for the sake of clarity, a comparison to 2007:

	2008E			2007
Conversion of Synovus stock options to TSYS stock options	$	7			6
Other operating expenses		9			8
Total operating expenses	$	16			14
Tax impact*		(6	)		(2	)
Other operating expenses, net of tax impact	$	10			12
Income taxes related to deconsolidation		—			11
Total	$	10			23

*Note: Certain expenses in a re-organization, such as the spin-off, are not deductible for tax purposes. A majority of the expenses in 2007 are not deductible. A smaller amount of non-deductible expenses is expected in 2008.

2.	TSYS does not expect any significant movements in LIBOR, and does not expect significant draws on the revolving credit facility. TSYS closed a $420 million credit facility during the month of December 2007. At closing, the company received $168 million under the five year term portion of the facility. An additional $252 million will be available under a revolver that includes an annual undrawn fee of 10 basis points for the right to access those funds at anytime during the 5-year term of the facility.
3.	Estimated total revenues will increase 7% to 9% in 2008. Excluding the revenues associated with deconverted portfolios and reimbursable items, estimated pro forma total revenues will increase in the range of 12% to 14% over 2007 levels.
4.	Anticipated growth levels in employment, equipment and other expenses, which are included in 2008 estimates, will be accomplished.
5.	No significant movement in foreign currency exchange rates related to TSYS’ business.
6.	TSYS will not incur significant expenses associated with the conversion of new large clients or acquisitions, or any significant impairment of goodwill or other intangibles.

Page 3 of 14

     Presentation of revenues and earnings excluding the spin-related costs, revenues associated with deconverted portfolios, termination fee and reimbursable items are non-GAAP financial measures. The following table is a reconciliation of the range of changes from 2006 to 2007 and 2007 to 2008, comparing non-GAAP financial measures to GAAP financial measures for 2006 and 2007 and estimated financial measures for 2008.

	Range of Guidance
	($ in millions)					08 vs. 07				07 vs. 06
(Amounts in millions of dollars; certain amounts have	2008		2007			Percent	2006			Percent
been adjusted due to rounding)	Forecast		Actual			Change	Actual			Change
TOTAL REVENUES	$1,928 to $1,964		$	1,806		7% to 9%	$	1,787			1	%
Less: termination fee, net of related contract acquisition cost amortization*		—		—				($65	)
Revenues excluding termination fee	$1,928 to $1,964		$	1,806		7% to 9%	$	1,722			5	%
Less: reimbursable items	($391 to $399)			($378	)			($353	)
Revenues excluding reimbursable items and termination fee	$1,537 to $1,565		$	1,428		8% to 10%	$	1,369			4	%
Less: revenues associated with deconverted portfolios		—		($55	)			($243	)
Revenues excluding reimbursable items, termination fee and revenues associated with deconverted portfolios	$1,537 to $1,565		$	1,373		12% to 14%	$	1,126			22	%
NET INCOME	$254 to $259		$	237		7% to 9%	$	249			(5	%)
Add: interest, taxes and other nonoperating items	$142 to $144		$	117			$	108
OPERATING INCOME	$396 to $403		$	354		12% to 14%	$	357			(1	%)
Add: operating spin-related costs	$	16	$	14				—
Less: termination fee, net of amortization of contract acquisition costs*		—		—				($63	)
Operating income, excluding spin-related expenses	$412 to $419		$	368		12% to 14%	$	294			25	%
Add: depreciation and amortization	$	151	$	152			$	185
EBITDA – earnings before interest, taxes, depreciation and amortization, excluding spin-related costs	$563 to $570		$	520		8% to 10%	$	479			9	%

Page 4 of 14

	Range of Guidance
	($ in millions)				08 vs. 07				07 vs. 06
(Amounts in millions of dollars; certain amounts have	2008		2007		Percent	2006			Percent
been adjusted due to rounding)	Forecast		Actual		Change	Actual			Change
NET INCOME	$254 to $259		$	237	7% to 9%	$	249			(5	%)
Add: spin related costs, net of tax	$	10	$	23			—
Net income, excluding spin related expenses	$264 to $269		$	260	1% to 3%	$	249			4	%
Less: termination fee, net of amortization of contract acquisition costs, net of tax		—		—			($ 41	)
Net income, excluding impact of termination fee, net of acceleration of amortization of contract acquisition costs	$264 to $269		$	260	1% to 3%	$	208			25	%
EARNINGS PER SHARE (EPS) — BASIC	$1.29 to $1.31		$	1.21	7% to 9%	$	1.27			(5	%)
Add: spin related costs, net of tax per share	$	0.05	$	0.11			—
EPS, excluding spin related expenses	$1.34 to $1.36		$	1.32	1% to 3%	$	1.27			5	%
Less: termination fee, net of amortization of contract acquisition costs, net of tax		—		—			($0.21	)
EPS, excluding impact of termination fee, net of acceleration of amortization of contract acquisition costs	$1.34 to $1.36		$	1.32	1% to 3%	$	1.06			25	%
Common shares outstanding		197.405		196.759			196.744

*Note: TSYS accelerated the amortization of approximately $6 million in contract acquisition costs (comprised of $4 million of amortization related to payments for processing rights, which was recorded as a reduction of revenues, and $2 million of amortization expense related to conversion costs).

     TSYS believes the table above presents meaningful information to assist investors in understanding the company’s changes in total revenues and net income from 2006 to 2007 and estimates in changes from 2007 to 2008 as a result of the Bank of America consumer portfolio deconversion and spin-related costs as the non-GAAP financial measures exclude amounts that the company does not consider part of ongoing operating results. The non-GAAP financial percentage changes should not be considered by themselves or as a substitute for the GAAP percentage changes year over year. The non-GAAP measures should be considered as an additional view of the way TSYS’ financial measures are affected by the one-time Bank of America contract termination fee, acceleration of amortization of contract acquisition costs and reimbursable items and spin-related costs; and should be used in conjunction with all publicly filed financial statements and reports.

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Conference Call

     TSYS will host its quarterly conference call at 8:30 a.m. EDT, Thursday, January 24. The conference call can be accessed via simultaneous Internet broadcast at tsys.com by clicking on the “Conference Call” icon on the homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call.

About TSYS

     TSYS (www.tsys.com) is one of the world’s largest companies for outsourced payment services, offering a broad range of issuer- and acquirer-processing technologies that support consumer-finance, credit, debit, healthcare, loyalty and prepaid services for financial institutions and retail companies in the Americas, EMEA and Asia-Pacific regions. For more information, contact news@tsys.com.

     This press release contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding TSYS’ expected continued strong international revenue growth, TSYS’ earnings forecast for 2008, 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, one or more of the assumptions upon which TSYS’ 2008 earnings forecast is based are incorrect, including no changes to the tax treatment of spin-related items. Additional 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 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-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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EX-99.2

Exhibit 99.2

TSYS Announces Earnings for 2007
Page 7 of 14

TSYS
Financial Highlights
(Unaudited)
(In thousands, except per share data)

	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
							Percentage									Percentage
	2007			2006			Change			2007			2006			Change
Revenues
Electronic payment processing services*	$	240,509			303,525			(20.8	)%	$	955,926			989,062			(3.4	)%
Merchant acquiring services		63,950			64,957			(1.6	)		254,069			260,275			(2.4	)
Other services*		56,938			51,269			11.1			218,128			185,096			17.8
Revenues before reimbursables		361,397			419,751			(13.9	)		1,428,123			1,434,433			(0.4	)
Reimbursable items		97,116			84,149			15.4			377,713			352,738			7.1
Total revenues		458,513			503,900			(9.0	)		1,805,836			1,787,171			1.0
Expenses
Salaries & other personnel expense*		145,689			141,312			3.1			576,655			522,256			10.4
Net occupancy & equipment expense*		67,813			92,802			(26.9	)		273,154			317,916			(14.1	)
Spin related expenses*		11,834			—		nm				13,526			—		nm
Other operating expenses*		55,364			57,401			(3.5	)		211,277			237,179			(10.9	)
Expenses before reimbursable items		280,700			291,515			(3.7	)		1,074,612			1,077,351			(0.3	)
Reimbursable items		97,116			84,149			15.4			377,713			352,738			7.1
Total operating expenses		377,816			375,664			0.6			1,452,325			1,430,089			1.6
Operating income		80,697			128,236			(37.1	)		353,511			357,082			(1.0	)
Other income:
Interest income		8,295			4,817			72.2			26,925			14,113			90.8
Interest expense		(1,641	)		(209	)	nm				(3,133	)		(573	)		(446.8	)
(Loss) gain on foreign currency translation, net		(703	)		1,037			(167.8	)		41			1,232			(96.7	)
Dividend income		268			—		nm				347			—		nm
Other income		6,219			5,645			10.2			24,180			14,772			63.7
Income before income taxes, minority interest and equity in income of equity investments		86,916			133,881			(35.1	)		377,691			371,854			1.6
Income taxes		42,226			47,689			(11.5	)		143,668			126,182			13.9
Income before minority interest and equity in income of equity investments		44,690			86,192			(48.2	)		234,023			245,672			(4.7	)
Minority interest		(541	)		(304	)		(78.0	)		(1,976	)		(752	)		(162.8	)
Equity in income of equity investments		1,531			1,169			31.0			5,396			4,243			27.2
Net income	$	45,680			87,057			(47.5	)%	$	237,443			249,163			(4.7	)%
Basic earnings per share	$	0.23			0.44			(47.7	)%	$	1.21			1.27			(4.7	)%
Diluted earnings per share	$	0.23			0.44			(47.7	)%	$	1.20			1.26			(4.8	)%
Dividend declared per share	$	3.10			0.07					$	3.31			0.27
Average common shares outstanding		197,109			196,307						196,759			196,744
Average common and common equivalent shares outstanding		197,379			196,663						197,165			197,077

* Certain amounts have been previously reclassed to conform with the presentation adopted in 2007.

nm = not meaningful

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TSYS Announces Earnings for 2007
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TSYS
Segment Breakdown
(Unaudited)
(In thousands)

	Three Months Ended December 31, 2007															Three Months Ended December 31, 2006
							Merchant															Merchant
	Domestic-based			International-based			acquiring			Spin-Related						Domestic-based			International-based			acquiring			Spin-Related
	support services			support services			services			Costs			Consolidated			support services			support services			services			Costs		Consolidated
Revenues before reimbursables	$	243,041			68,072			56,916			—			368,029			316,918			49,430			59,056			—		425,404
Intersegment revenues		(5,983	)		(486	)		(163	)		—			(6,632	)		(4,660	)		(956	)		(37	)		—		(5,653	)
Revenues before reimbursables from external customers	$	237,058			67,586			56,753			—			361,397			312,258			48,474			59,019			—		419,751
Total revenues	$	324,302			70,585			72,426			—			467,313			385,941			55,263			70,448			—		511,652
Intersegment revenues		(8,151	)		(486	)		(163	)		—			(8,800	)		(6,759	)		(956	)		(37	)		—		(7,752	)
Revenues from external customers	$	316,151			70,099			72,263			—			458,513			379,182			54,307			70,411			—		503,900
Depreciation and amortization	$	25,305			6,451			6,498			—			38,254			41,334			6,388			6,866			—		54,588
Intersegment expenses	$	3,068			(4,203	)		(7,665	)		—			(8,800	)		3,526			(3,336	)		(7,927	)		—		(7,737	)
Segment operating income	$	63,972			11,381			17,203			(11,859	)		80,697			104,515			6,676			17,045			—		128,236
Income before income taxes, minority interest and equity income of equity investments		70,933			10,284			17,558			(11,859	)		86,916			109,133			7,240			17,508			—		133,881
Income tax expense	$	23,560			3,696			5,870			9,100			42,226			38,860			3,357			5,472			—		47,689
Equity in income of equity investments	$	(120	)		1,651			—			—			1,531			—			1,169			—			—		1,169
Net Income	$	46,816			8,134			11,688			(20,958	)		45,680			70,342			4,679			12,036			—		87,057
Identifiable assets		1,320,055			319,279			192,454			—			1,831,788
Intersegment eliminations		(305,847	)		(1,526	)		(1,245	)		—			(308,618	)
Total assets		1,014,208			317,753			191,209			—			1,523,170

	Twelve Months Ended December 31, 2007															Twelve Months Ended December 31, 2006
							Merchant															Merchant
	Domestic-based			International-based			acquiring			Spin-Related						Domestic-based			International-based			acquiring			Spin-Related
	support services			support services			services			Costs			Consolidated			support services			support services			services			Costs	Consolidated
Revenues before reimbursables	$	981,754			243,226			228,609			—			1,453,589			1,057,257			158,608			237,786				1,453,651
Intersegment revenues		(23,479	)		(1,187	)		(800	)		—			(25,466	)		(18,130	)		(956	)		(132	)			(19,218	)
Revenues before reimbursables from external customers	$	958,275			242,039			227,809			—			1,428,123			1,039,127			157,652			237,654				1,434,433
Total revenues	$	1,297,434			253,498			288,780			—			1,839,712			1,349,797			183,425			282,108				1,815,330
Intersegment revenues		(31,889	)		(1,187	)		(800	)		—			(33,876	)		(27,071	)		(956	)		(132	)			(28,159	)
Revenues from external customers	$	1,265,545			252,311			287,980			—			1,805,836			1,322,726			182,469			281,976				1,787,171
Depreciation and amortization	$	101,611			24,213			26,644			—			152,468			137,093			20,489			27,312				184,894
Intersegment expenses	$	12,965			(16,163	)		(30,673	)		—			(33,871	)		22,476			(18,784	)		(31,791	)			(28,099	)
Segment operating income	$	258,769			44,181			64,112			(13,551	)		353,511			283,396			16,236			57,450				357,082
Income before income taxes, minority interest and equity income of equity investments		282,653			42,944			65,645			(13,551	)		377,691			295,303			16,958			59,593				371,854
Income tax expense	$	97,297			14,137			23,134			9,100			143,668			97,497			5,818			22,867				126,182
Equity in income of equity investments	$	(120	)		5,516			—			—			5,396			—			4,243			—				4,243
Net Income	$	187,133			30,449			42,511			(22,650	)		237,443			198,694			13,743			36,726				249,163

Note: Revenues from domestic-based services include electronic payment processing services and other services provided from the United States to clients domiciled in the United States or other countries. Revenues from international-based services include electronic payment processing services and other services provided from outside the United States to clients based mainly outside the United States. Revenues from merchant processing services include TSYS Acquiring’s merchant acquiring and related services.

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TSYS Announces Earnings for 2007
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TSYS
Segment Breakdown
(Unaudited)
(In thousands)

	Three Months Ended March 31, 2007														Three Months Ended June 30, 2007
							Merchant														Merchant
	Domestic-based			International-based			acquiring			Spin-Related					Domestic-based			International-based			acquiring			Spin-Related
	support services			support services			services			Costs		Consolidated			support services			support services			services			Costs		Consolidated
Revenues before reimbursables	$	240,969			52,963			54,818			—		348,750			254,340			58,044			58,234			—		370,618
Intersegment revenues		(4,781	)		(223	)		(135	)		—		(5,139	)		(5,754	)		(372	)		(397	)		—		(6,523	)
Revenues before reimbursables from external customers	$	236,188			52,740			54,683			—		343,611			248,586			57,672			57,837			—		364,095
Total revenues	$	314,458			55,400			66,884			—		436,742			333,872			60,734			74,114			—		468,720
Intersegment revenues		(6,781	)		(223	)		(135	)		—		(7,139	)		(7,795	)		(372	)		(397	)		—		(8,564	)
Revenues from external customers	$	307,677			55,177			66,749			—		429,603			326,077			60,362			73,717			—		460,156
Depreciation and amortization	$	25,966			5,800			6,830			—		38,596			25,748			5,507			6,755			—		38,010
Intersegment expenses	$	3,407			(3,239	)		(7,301	)		—		(7,133	)		2,984			(3,727	)		(7,821	)		—		(8,564	)
Segment operating income	$	62,505			11,211			11,963					85,679			69,684			10,048			16,184					95,916
Income before income taxes, minority interest and equity income of equity investments		67,693			11,478			12,485					91,656			75,275			9,053			16,580					100,908
Income tax expense	$	26,249			4,172			4,471					34,892			27,404			2,235			5,964					35,603
Equity in income of equity investments	$	—			860			—			—		860			—			985			—			—		985
Net Income	$	41,564			7,696			8,014					57,274			48,172			6,900			10,616					65,688

	Three Months Ended September 30, 2007															Three Months Ended December 31, 2007
							Merchant															Merchant
	Domestic-based			International-based			acquiring			Spin-Related						Domestic-based			International-based			acquiring			Spin-Related
	support services			support services			services			Costs			Consolidated			support services			support services			services			Costs			Consolidated
Revenues before reimbursables	$	243,403			64,148			58,641			—			366,192			243,041			68,072			56,916			—			368,029
Intersegment revenues		(6,961	)		(106	)		(105	)		—			(7,172	)		(5,983	)		(486	)		(163	)		—			(6,632	)
Revenues before reimbursables from external customers	$	236,442			64,042			58,536			—			359,020			237,058			67,586			56,753			—			361,397
Total revenues	$	324,802			66,779			75,356			—			466,937			324,302			70,585			72,426			—			467,313
Intersegment revenues		(9,162	)		(106	)		(105	)		—			(9,373	)		(8,151	)		(486	)		(163	)		—			(8,800	)
Revenues from external customers	$	315,640			66,673			75,251			—			457,564			316,151			70,099			72,263			—			458,513
Depreciation and amortization	$	24,592			6,455			6,561			—			37,608			25,305			6,451			6,498			—			38,254
Intersegment expenses	$	3,505			(4,995	)		(7,884	)		—			(9,374	)		3,068			(4,203	)		(7,665	)		—			(8,800	)
Segment operating income	$	62,608			11,542			18,761			(1,692	)		91,219			63,972			11,381			17,203			(11,859	)		80,697
Income before income taxes, minority interest and equity income of equity investments		68,751			12,130			19,022			(1,692	)		98,211			70,933			10,284			17,558			(11,859	)		86,916
Income tax expense	$	20,084			4,033			6,830						30,947			23,560			3,696			5,870			9,100			42,226
Equity in income of equity investments	$	—			2,020			—			—			2,020			(120	)		1,651			—			—			1,531
Net Income	$	50,580			7,720			12,193			(1,692	)		68,801			46,816			8,134			11,688			(20,958	)		45,680

Note: With the spin-off by Synovus, TSYS has created a separate segment to track spin-related costs. Certain items have also been reclassified between segments.

The amounts for previous periods have been restated to reflect the change.

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TSYS Announces Earnings for 2007
Page 10 of 14

TSYS
Segment Breakdown
(Unaudited)
(In thousands)

	Three Months Ended March 31, 2006														Three Months Ended June 30, 2006
							Merchant														Merchant
	Domestic-based			International-based			acquiring			Spin-Related					Domestic-based			International-based			acquiring			Spin-Related
	support services			support services			services			Costs		Consolidated			support services			support services			services			Costs		Consolidated
Revenues before reimbursables	$	244,443			30,713			58,862			—		334,018			253,313			34,145			60,144			—		347,602
Intersegment revenues		(4,434	)		—			(32	)		—		(4,466	)		(4,778	)		—			(33	)		—		(4,811	)
Revenues before reimbursables from external customers	$	240,009			30,713			58,830			—		329,552			248,535			34,145			60,111			—		342,791
Total revenues	$	312,830			36,246			70,332			—		419,408			325,106			40,326			70,736			—		436,168
Intersegment revenues		(7,086	)		—			(32	)		—		(7,118	)		(6,970	)		—			(33	)		—		(7,003	)
Revenues from external customers	$	305,744			36,246			70,300			—		412,290			318,136			40,326			70,703			—		429,165
Depreciation and amortization	$	31,910			3,978			7,273			—		43,161			31,692			4,795			6,499			—		42,986
Intersegment expenses	$	8,690			(7,575	)		(8,219	)		—		(7,104	)		6,591			(5,531	)		(8,046	)		—		(6,986	)
Segment operating income	$	61,759			86			10,012			—		71,857			67,599			2,385			14,747			—		84,731
Income before income taxes, minority interest and equity income of equity investments		63,479			728			10,390			—		74,597			70,001			2,389			15,318			—		87,708
Income tax expense	$	20,471			567			3,927			—		24,965			23,443			1,926			5,779			—		31,148
Equity in income of equity investments	$	—			852			—			—		852			—			1,019			—			—		1,019
Net Income	$	42,819			1,111			6,463			—		50,393			46,712			1,155			9,539			—		57,406

	Three Months Ended September 30, 2006														Three Months Ended December 31, 2006
							Merchant														Merchant
	Domestic-based			International-based			acquiring			Spin-Related					Domestic-based			International-based			acquiring			Spin-Related
	support services			support services			services			Costs		Consolidated			support services			support services			services			Costs		Consolidated
Revenues before reimbursables	$	242,584			44,320			59,723			—		346,627			316,918			49,430			59,056			—		425,404
Intersegment revenues		(4,257	)		—			(31	)		—		(4,288	)		(4,660	)		(956	)		(37	)		—		(5,653	)
Revenues before reimbursables from external customers	$	238,327			44,320			59,692			—		342,339			312,258			48,474			59,019			—		419,751
Total revenues	$	325,919			51,591			70,592			—		448,102			385,941			55,263			70,448			—		511,652
Intersegment revenues		(6,255	)		—			(31	)		—		(6,286	)		(6,759	)		(956	)		(37	)		—		(7,752	)
Revenues from external customers	$	319,664			51,591			70,561			—		441,816			379,182			54,307			70,411			—		503,900
Depreciation and amortization	$	32,157			5,328			6,674			—		44,159			41,334			6,388			6,866			—		54,588
Intersegment expenses	$	3,670			(2,343	)		(7,599	)		—		(6,272	)		3,526			(3,336	)		(7,927	)		—		(7,737	)
Segment operating income	$	49,523			7,089			15,645			—		72,257			104,515			6,676			17,046			—		128,237
Income before income taxes, minority interest and equity income of equity investments		52,689			6,602			16,377			—		75,668			109,133			7,240			17,508			—		133,881
Income tax expense	$	14,722			(31	)		7,689			—		22,380			38,860			3,357			5,472			—		47,689
Equity in income of equity investments	$	—			1,203			—			—		1,203			—			1,169			—			—		1,169
Net Income	$	38,822			6,797			8,688			—		54,307			70,342			4,679			12,036			—		87,057

Note: With the spin-off by Synovus, TSYS has created a separate segment to track spin-related costs. Certain items have also been reclassified between segments.

The amounts for previous periods have been restated to reflect the change.

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TSYS Announces Earnings for 2007
Page 11 of 14

TSYS
Balance Sheet
(In thousands)

	Dec 31, 2007			Dec 31, 2006
	(unaudited)			(audited)
Assets
Current assets:
Cash and cash equivalents	$	210,518			389,123
Restricted cash		29,688			31,568
Accounts receivable, net		256,970			246,637
Deferred income tax assets		45,245			21,556
Prepaid expenses and other current assets		89,050			55,832
Total current assets		631,471			744,716
Property and equipment, net		283,138			271,321
Computer software, net		205,830			216,450
Contract acquisition costs, net		151,599			167,449
Goodwill, net		142,545			133,337
Equity investments, net		80,162			62,064
Other intangible assets, net		13,462			21,314
Other assets		14,963			17,590
Total assets	$	1,523,170			1,634,241
Liabilities and Shareholders’ Equity
Current liabilities:
Accrued salaries and employee benefits	$	85,142			80,697
Accounts payable		41,817			31,589
Current portion of notes payable		8,648			—
Current portion of obligations under capital leases		3,080			3,156
Other current liabilities		149,797			180,345
Total current liabilities		288,484			295,787
Notes payable, excluding current portion		252,659			—
Deferred income tax liabilities		97,631			75,019
Obligations under capital leases, excluding current portion		3,934			3,625
Other long-term liabilities		28,152			36,221
Total liabilities		670,860			410,652
Minority interests in consolidated subsidiaries		8,580			6,229
Shareholders’ Equity:
Common stock		19,966			19,868
Additional paid-in capital		104,019			66,677
Accumulated other comprehensive income, net		28,322			20,641
Treasury stock		(34,138	)		(35,233	)
Retained earnings		725,561			1,145,407
Total shareholders’ equity		843,730			1,217,360
Total liabilities and shareholders’ equity	$	1,523,170			1,634,241

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TSYS Announces Earnings for 2007
Page 12 of 14

TSYS
Cash Flow
(Unaudited)
(In thousands)

	Twelve Months Ended December 31,
	2007			2006
Cash flows from operating activities:
Net income	$	237,443			249,163
Adjustments to reconcile net income to net cash provided by operating activities:
Minority interests in consolidated subsidiaries’ net income		1,976			752
Equity in income of equity investments		(5,396	)		(4,243	)
Dividends received from equity investments		2,994			2,371
Gain on currency translation adjustments, net		(41	)		(1,232	)
Depreciation and amortization		152,468			184,894
Share-based compensation		18,620			9,157
Asset impairments		1,158			—
Provisions for bad debt expense and billing adjustments		(568	)		1,614
Charges for transaction processing provisions		35			10,981
Deferred income tax benefit		7,399			(23,288	)
Loss on disposal of equipment, net		500			147
(Increase) decrease in:
Accounts receivable		(8,997	)		(47,056	)
Prepaid expenses, other current assets and other long-term assets		(32,437	)		12,342
Increase (decrease) in:
Accounts payable		10,080			673
Accrued salaries and employee benefits		4,445			(5,416	)
Excess tax benefit from share-based payment arrangements		(8,526	)		(2,984	)
Other current liabilities and other long-term liabilities		(47,077	)		(2,116	)
Net cash provided by operating activities		334,076			385,759
Cash flows from investing activities:
Purchases of property and equipment, net		(55,274	)		(26,506	)
Additions to licensed computer software from vendors		(33,382	)		(11,858	)
Additions to internally developed computer software		(17,785	)		(13,972	)
Cash acquired in acquisitions		—			8,150
Cash used in acquisitions and equity investments		(12,552	)		(77,541	)
Additions to contract acquisition costs		(22,740	)		(42,452	)
Net cash used in investing activities		(141,733	)		(164,179	)
Cash flows from financing activities:
Proceeds from borrowings of long-term debt		263,946			—
Principal payments on long-term debt borrowings and capital lease obligations		(4,816	)		(2,691	)
Proceeds from exercise of stock options		11,672			4,253
Excess tax benefit from share-based payment arrangements		8,526			2,984
Repurchase of common stock		—			(22,874	)
Dividends paid on common stock		(655,246	)		(51,269	)
Net cash used in financing activities		(375,918	)		(69,597	)
Effect of exchange rate changes on cash and cash equivalents		4,970			(429	)
Net (decrease) increase in cash and cash equivalents		(178,605	)		151,554
Cash and cash equivalents at beginning of year		389,123			237,569
Cash and cash equivalents at end of period	$	210,518			389,123

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TSYS Announces Earnings for 2007
Page 13 of 14

Geographic Area Data:

The following geographic area data represents revenues for the three months ended December 31 based on where the client is domiciled:

	Three Months Ended December 31,
(dollars in millions):	2007		%			2006		%			% Chg
United States	$	347.8		75.8	%	$	412.4		81.8	%		(15.7	)%
Europe		60.7		13.2			46.2		9.2			31.4
Canada		33.6		7.3			30.5		6.1			10.1
Japan		6.8		1.5			5.2		1.0			31.8
Mexico		3.9		0.8			3.7		0.7			3.7
Other		5.7		1.4			5.9		1.2			(2.1	)
	$	458.5		100.0	%	$	503.9		100.0	%		(9.0	)%

The following geographic area data represents revenues for the twelve months ended December 31 based on where the client is domiciled:

	Twelve Months Ended December 31,
(dollars in millions):	2007		%			2006		%			% Chg
United States	$	1,400.3		77.5	%	$	1,482.1		82.9	%		(5.5	)%
Europe		211.8		11.7			158.8		8.9			33.4
Canada		126.7		7.0			102.0		5.7			24.2
Japan		24.5		1.4			18.6		1.0			31.9
Mexico		14.0		0.8			12.3		0.7			14.3
Other		28.5		1.6			13.4		0.8			113.3
	$	1,805.8		100.0	%	$	1,787.2		100.0	%		1.0	%

Geographic Area Revenue by Operating Segment:

The following table reconciles segment revenues to revenues by reporting segment for the three months ended December 31:

	Three Months Ended December 31,
	Domestic-based				International-based					Merchant acquiring
	support services				support services					services
(dollars in millions):	2007		2006		2007			2006		2007		2006
United States	$	275.9		342.2		(0.1	)		—		71.9		70.1
Europe		0.4		0.4		60.3			45.8		—	—
Canada		33.4		30.4		—			—		0.2		0.1
Japan		—		—		6.8			5.2		—	—
Mexico		3.9		3.7		—			—		—	—
Other		2.5		2.5		3.1			3.3		0.2		0.2
	$	316.1		379.2		70.1			54.3		72.3		70.4

The following table reconciles segment revenues to revenues by reporting segment for the twelve months ended December 31:

	Twelve Months Ended December 31,
	Domestic-based				International-based				Merchant acquiring
	support services				support services				services
(dollars in millions):	2007		2006		2007		2006		2007		2006
United States	$	1,113.1		1,201.3		0.5		—		286.6		280.8
Europe		1.7		1.5		210.1		157.3		—		—
Canada		126.2		101.5		—		—		0.6		0.5
Japan		—		—		24.5		18.6		—		—
Mexico		14.0		12.3		—		—		—		—
Other		10.5		6.1		17.2		6.6		0.8		0.7
	$	1,265.5		1,322.7		252.3		182.5		288.0		282.0

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TSYS Announces Earnings for 2007
Page 14 of 14

Supplemental Information:

	Accounts on File at December 31,
(in millions)	2007		%			2006		%			% Change
Consumer		201.5		53.7	%		262.7		63.0	%		(23.3	)%
Retail		56.8		15.1			55.3		13.3			2.7
Commercial		39.0		10.4			32.1		7.7			21.6
Government services/EBT		23.7		6.3			21.2		5.1			11.8
Stored Value		49.2		13.1			40.7		9.8			20.8
Debit		5.3		1.4			4.4		1.1			19.3
		375.5		100.0	%		416.4		100.0	%		(9.8	)%

(in millions)	December 31, 2007		December 31, 2006		% Change
QTD Average Accounts on File		368.6		421.7		(12.6	)%
YTD Average Accounts on File		401.2		415.6		(3.5	)

	Accounts on File at December 31,
(in millions)	2007		%			2006		%			% Change
Domestic		301.3		80.2	%		348.5		83.7	%		(13.6	)%
International		74.2		19.8			67.9		16.3			9.3
		375.5		100.0	%		416.4		100.0	%		(9.8	)%

Note: The accounts on file between domestic and international is based on the geographic domicile of processing clients.

	December 2006 to			December 2005 to
Growth in Accounts on File (in millions):	December 2007			December 2006
Beginning balance		416.4			437.9
Change in accounts on file due to:
Internal growth of existing clients		40.3			36.6
New clients		24.2			91.2
Purges/Sales		(11.8	)		(16.4	)
Deconversions		(93.6	)		(132.9	)
Ending balance		375.5			416.4

Number of Employees (FTEs):	2007		2006
At December 31,		6,921		6,749
Quarterly average for period ended December 31,		6,910		6,743
YTD average for period ended December 31,		6,799		6,642

RECONCILIATION OF GAAP TO NON-GAAP

	Three Months Ended December 31,
	2007		2006		% Change
EARNINGS PER SHARE (EPS) — Basic
Basic earnings per share	$	0.23		0.44		(47.7	)%
Add: spin-related costs, net of tax per share		0.11		—
Basic EPS, excluding spin related expenses	$	0.34	$	0.44		(23.8	)%
Common Shares outstanding		197.109		196.307

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