Investors & Analysts:
John D. Emerick, Jr.
Marcy K. Oelhafen
Fair Isaac Corporation
(800) 213-5542
investorrelations@fairisaac.com

Fair Isaac Announces Third Quarter 2007 Results

Total revenues of $205.8 million;
Earnings per share of $0.42;
Revolving credit facility doubled to $600 million

MINNEAPOLIS—July 25, 2007—Fair Isaac Corporation (NYSE:FIC), which combines trusted advice, world-class analytics and innovative applications to help businesses make smarter decisions, today announced the financial results for its third quarter ended June 30, 2007.

Third Quarter Fiscal 2007 Results
The company reported third quarter revenues of $205.8 million in fiscal 2007 compared to $207.1 million reported in the prior year period. Net income for the third quarter of fiscal 2007 totaled $23.8 million, or $0.42 per diluted share, compared to $26.0 million, or $0.40 per diluted share, reported in the prior year period.

Third quarter fiscal 2006 results included $4.4 million in revenues from the mortgage product line, which was sold in March 2007. Third quarter fiscal 2006 results also included restructuring costs of $3.4 million after-tax, or $0.05 per diluted share.

Third Quarter Fiscal 2007 Revenues Highlights
Revenues for third quarter fiscal 2007 across each of the company’s four operating segments were as follows:

• Strategy Machine^® Solutions revenues were $113.2 million in the third quarter compared to $114.8 million in the prior year quarter, or a decrease of 1.4%, primarily due to the divestiture of the mortgage product line last quarter and a decline associated with customer management and originations products. The declines were offset by an increase in revenues derived from collections and recovery, consumer and fraud products.

• Scoring Solutions revenues increased to $47.2 million in the third quarter compared to $43.7 million in the prior year quarter, or by 8.0%, primarily due to an increase in revenues from risk scoring services at the credit reporting agencies and the FICO^® Expansion™ score.

• Professional Services revenues were $35.3 million in the third quarter compared to $36.7 million in the prior year quarter, or a decrease of 4.0%, primarily due to a decline associated with industry consulting, fraud, and collections and recovery implementation services, offset by an increase in revenues derived from customer management and Blaze Advisor™ implementation and consulting services.

• Analytic Software Tools revenues were $10.1 million in the third quarter compared to $11.9 million in the prior year quarter, or a decrease of 14.8%, due to a decrease in revenues generated from sales of the Blaze Advisor™ and Model Builder products.

“I am encouraged by our progress over the past several months toward building a solid strategic, organizational and operational foundation for renewed and sustainable growth,” said Mark Greene, Chief Executive Officer of Fair Isaac. “Our strategic focus on Enterprise Decision Management, product innovation and international development enable us to advance and expand our relationships with clients and prospects. Further, we continue to strengthen our leadership team with proven executives who are firmly committed to accelerating Fair Isaac’s growth and creating more value for our shareholders.”

Fiscal 2007 Year-to-date Results
The company reported year-to-date revenues of $615.0 million in fiscal 2007 compared to $618.1 million reported in the prior year period. Net income for year-to-date fiscal 2007 totaled $76.4 million, or $1.31 per diluted share, compared to $81.4 million, or $1.23 per diluted share, reported in the prior year period.

Year-to-date fiscal 2006 results included $15.0 million in revenues from the mortgage product line, as compared to $7.7 million in revenues for the year-to-date fiscal 2007 period. Year-to-date fiscal 2006 results also included restructuring costs of $4.4 million after-tax, or $0.07 per diluted share.

Fiscal 2007 Year-to-date Revenues Highlights
Revenues for fiscal 2007 year-to-date across each of the company’s four operating segments were as follows:

• Strategy Machine^® Solutions revenues were $335.6 million compared to $345.7 million in the prior year period, or a decrease of 2.9%, primarily due to a decline associated with originations and insurance bill review products, and the sale of the mortgage product line, offset by an increase in revenues derived from collections and recovery products.

• Scoring Solutions revenues were $134.5 million compared to $131.7 million in the prior year period, or an increase of 2.1%, primarily due to an increase in revenues derived from risk scoring services at the credit reporting agencies.

• Professional Services revenues increased to $111.2 million compared to $108.2 million in the prior year period, or by 2.7%, primarily due to an increase in revenues derived from customer management, Blaze Advisor™ implementation services and model development services, offset by a decline associated with collections and recovery implementation services, and industry consulting.

• Analytic Software Tools revenues increased to $33.7 million compared to $32.5 million in the prior year period, or by 3.8%, due to an increase in revenues generated from sales of the Blaze Advisor™ product.

Bookings Highlights
The bookings for the third quarter were $89.8 million compared to $94.5 million in the same period last year. The company defines “bookings” as estimated future contractual revenues, including agreements with perpetual, multi-year and annual terms. Management regards the volume of bookings achieved as one indicator of future revenues, but they are not comparable to, nor should they be substituted for, an analysis of the company’s revenues.

Balance Sheet and Cash Flow Highlights
Cash and cash equivalents and investments were $270.5 million at June 30, 2007, as compared to $267.8 million at September 30, 2006. Significant changes in cash and cash equivalents from September 30, 2006, include cash provided by operations of $129.2 million, $77.2 million received from the exercise of stock options and stock issued under an employee stock purchase plan, borrowings under the revolving credit facility of $70.0 million, and $13.9 million received on the sale of the mortgage product line. Cash used year-to-date during fiscal 2007 includes $282.4 million to repurchase common stock, $17.3 million related to purchases of property and equipment, and a $10.0 million minority investment in a company that operates in the healthcare market.

Increase in Revolving Credit Facility
The company today announced that it has doubled to $600 million its current revolving credit facility with a syndicate of eleven financial institutions. The company plans to use the proceeds of the revolving credit facility for working capital and general corporate purposes; the proceeds may also be used for refinancing of existing debt, acquisitions and the repurchase of common stock.

Operational Updates
Fair Isaac’s executive leadership team is guiding the company’s efforts to achieve accelerated and sustainable growth through strengthened client relationships, product innovation and focused global expansion. The company’s growth initiatives are designed to advance its leadership in Enterprise Decision Management (EDM), which combines the company’s world-class analytics and innovative applications to help clients automate, improve and connect decisions.

Since the second quarter of fiscal 2007, Fair Isaac has made several organizational and operational enhancements to further focus its sales initiatives, including:

• Simplification of the company’s sales structure by consolidating nine industry verticals to five;

• Addition of 37 client support and relationship positions to enhance industry coverage and client service;

• Successful launch of the company’s first intensive client satisfaction survey, which will influence future client service offerings and product innovation efforts; and

• Introduction of a comprehensive education program designed to increase the skills of the company’s sales and service teams.

Fair Isaac continues to invest in innovation and product development. The company recently announced the release of FICO^®08 as the newest update to the industry-standard FICO^® credit score, which has demonstrated an increase in the predictive power of the score by 5% to 15% in industry tests. In addition, since the end of the first quarter, the company has been conducting extensive analysis of its product portfolio and has divested the mortgage product line. The company will continue to evaluate its product portfolio in further support of its EDM strategy.

Fair Isaac also is focused on growth through international expansion of its products and service offerings. The company continues to capitalize on global market opportunities, as demonstrated by its formal entry into China with the opening of a Beijing office and the appointment of a new managing director for that market. Additionally, for the first time, the company will host its InterACT customer conference in both China and Japan in November 2007.

During the last five months, the company has made significant additions to its executive leadership team:

• Greg Corgan, formerly of IBM and Computer Associates, was named vice president of global sales;

• Holger Mueller, formerly of Oracle and SAP, was named vice president of product development;

• Bob Berini, formerly of IBM, was named vice president of alliances and partnerships;

• Dick Stewart, formerly of SAP, was named vice president of professional services;

• Mark Scadina, formerly of Liberate and InterTrust, was appointed vice president, general counsel and corporate secretary; and

• Larry Rosenberger, head of research, has now assumed the full-time role of analytic science fellow; while Fair Isaac product innovation veteran Andrew Jennings has assumed the research leadership role as vice president of research.

Outlook
The company expects revenues for fourth quarter fiscal 2007 to be approximately $200.0 million and earnings per diluted share to be approximately $0.40. The company expects revenues for fiscal 2007 to be approximately $815.0 million and earnings per diluted share to be approximately $1.71.

Company to Host Conference Call
The company will host a conference call today at 5:00 p.m. Eastern Time (4:00 p.m. Central Time/2:00 p.m. Pacific Time) to discuss its third quarter fiscal 2007 results, and outlook for the remainder of fiscal 2007. The call can be accessed live on the Investor Relations section of the company’s website at www.fairisaac.com, and a replay will be available approximately two hours after the completion of the call through August 22, 2007.

About Fair Isaac Corporation
Fair Isaac Corporation (NYSE:FIC) combines trusted advice, world-class analytics and innovative applications to help businesses make smarter decisions. Fair Isaac’s solutions and technologies for Enterprise Decision Management turn strategy into action and elevate business performance by giving organizations the power to automate more decisions, improve the quality of their decisions, and connect decisions across their business. Clients in 80 countries work with Fair Isaac to increase customer loyalty and profitability, cut fraud losses, manage credit risk, meet regulatory and competitive demands, and rapidly build market share. Fair Isaac also helps millions of individuals manage their credit health through the www.myFICO.com website. Learn more about Fair Isaac online at www.fairisaac.com.

Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to Fair Isaac or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the

Company’s Enterprise Decision Management strategy, its ability to recruit and retain key technical and managerial personnel, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, competition, regulatory changes applicable to the use of consumer credit and other data, the possibility that the anticipated benefits of acquisitions, including expected synergies, will not be realized and other factors that could affect the Company’s business and financial results that are described more fully under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Fair Isaac’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2006, and its quarterly report on Form 10-Q for the period ended March 31, 2007, which are on file with the SEC and available at the SEC’s website at www.sec.gov. All information, including forward-looking statements, set forth in this press release is as of July 25, 2007. Fair Isaac does not intend, and disclaims any obligation to update this information, including the forward-looking statements, to reflect future events or circumstances. Fair Isaac, however, reserves the right to update such information including forward-looking statements or any portion thereof at any time for any reason.

Fair Isaac, FICO, myFICO, FICO 08, Falcon, Blaze Advisor, TRIAD, Strategy Machine, FICO Expansion score, and PreScore are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other company names contained in this release may be trademarks of their respective owners.

-Financial tables follow-

FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Quarters and Nine Months Ended June 30, 2007 and 2006
(In thousands, except per share data)
(Unaudited)

	Quarter Ended				Nine Months Ended
	June 30,				June 30,
	2007		2006		2007			2006
Revenues	$	205,782	$	207,129	$	615,009		$	618,076
Operating expenses:
Cost of revenues		73,731		71,497		218,472			211,686
Research and development		17,275		21,370		52,775			65,794
Selling, general and administrative		72,476		66,338		209,139			193,878
Amortization of intangible assets		6,036		6,302		18,778			18,825
Restructuring and acquisition-related		—		5,290		—			6,800
Gain on sale of product line assets		—		—		(1,541	)		—
Total operating expenses		169,518		170,797		497,623			496,983
Operating income		36,264		36,332		117,386			121,093
Other income, net		184		2,713		1,221			5,053
Income before income taxes		36,448		39,045		118,607			126,146
Provision for income taxes		12,680		13,042		42,176			44,713
Net income	$	23,768	$	26,003	$	76,431		$	81,433
Earnings per share:
Basic	$	0.43	$	0.41	$	1.34		$	1.27
Diluted	$	0.42	$	0.40	$	1.31		$	1.23
Shares used in computing earnings per share:
Basic		55,776		63,664		56,928			64,303
Diluted		56,896		64,973		58,518			66,003

FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2007 and September 30, 2006
(In thousands)
(Unaudited)

	June 30,		September 30,
	2007		2006
ASSETS:
Current assets:
Cash and cash equivalents	$	90,242	$	75,154
Marketable securities		151,328		152,141
Receivables, net		179,443		165,806
Prepaid expenses and other current assets		22,162		20,209
Total current assets		443,175		413,310
Marketable securities and investments		28,888		40,479
Property and equipment, net		53,510		56,611
Goodwill and intangible assets, net		763,591		786,062
Other noncurrent assets		21,099		24,743
	$	1,310,263	$	1,321,205
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable and other accrued liabilities	$	55,229	$	53,809
Senior convertible notes		400,000		400,000
Revolving credit agreement		70,000		—
Accrued compensation and employee benefits		40,745		34,936
Deferred revenue		40,885		48,284
Total current liabilities		606,859		537,029
Other noncurrent liabilities		13,403		14,148
Total liabilities		620,262		551,177
Stockholders’ equity		690,001		770,028
	$	1,310,263	$	1,321,205

FAIR ISAAC CORPORATION
REVENUES BY SEGMENT
For the Quarters and Nine Months Ended June 30, 2007 and 2006
(In thousands)
(Unaudited)

	Quarter Ended				Nine Months Ended
	June 30,				June 30,
	2007		2006		2007		2006
Strategy machine solutions	$	113,200	$	114,820	$	335,585	$	345,658
Scoring solutions		47,229		43,745		134,482		131,669
Professional services		35,252		36,714		111,198		108,236
Analytic software tools		10,101		11,850		33,744		32,513
Total revenues	$	205,782	$	207,129	$	615,009	$	618,076

FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended June 30, 2007 and 2006
(In thousands)
(Unaudited)

	Nine Months Ended
	June 30,
	2007			2006
Cash flows from operating activities:
Net income	$	76,431		$	81,433
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		39,219			36,529
Changes in operating assets and liabilities, net of disposition		(23,619	)		4,081
Other, net		37,190			31,868
Net cash provided by operating activities		129,221			153,911
Cash flows from investing activities:
Purchases of property and equipment		(17,315	)		(24,321	)
Cash proceeds from disposition of product line assets		13,904			—
Net activity from marketable securities		24,747			(13,565	)
Other, net		(10,213	)		500
Net cash provided by (used in) investing activities		11,123			(37,386	)
Cash flows from financing activities:
Proceeds from revolving line of credit		70,000			—
Proceeds from issuances of common stock		77,245			56,221
Repurchases of common stock		(282,407	)		(124,107	)
Other, net		8,382			2,221
Net cash used in financing activities		(126,780	)		(65,665	)
Effect of exchange rate changes on cash		1,524			224
Increase in cash and cash equivalents		15,088			51,084
Cash and cash equivalents, beginning of period		75,154			82,880
Cash and cash equivalents, end of period	$	90,242		$	133,964