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Certegy And IBM Sign Ten-Year On Demand IT Services Agreement

Agreement Offers Significant Cost Savings and Operational Flexibility

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Alpharetta, GA - 21 Mar 2003: Certegy Inc. (NYSE:CEY) today announced a ten-year, $150 million agreement with IBM to provide on demand technology services for its United States' operations. IBM currently provides IT services to Certegy's United Kingdom and Australian operations.

The agreement, which replaces an existing arrangement with EDS, can provide Certegy significant cost savings and future operational flexibility through IBM's on demand technology services. IBM will improve Certegy's IT operations by consolidating, automating and managing a large portion of its mainframe operating systems and hardware operations in the U.S. With the IBM on demand services model, Certegy will pay IBM according to the volume of services it consumes.

Certegy will record a pre-tax provision of up to $10 million in the first quarter of 2003 for early exit costs associated with severing the current EDS services agreement. The conversion to IBM is scheduled to be completed by the end of the third quarter of 2003 and is expected to add $0.03 per diluted share to annual earnings beginning in 2004.

"We are very pleased to announce this agreement with IBM," stated Lee Kennedy, Chairman and Chief Executive Officer of Certegy. "IBM offers best-in-class computer operations support and has a proven track record with Certegy as a trustworthy business partner. The early exit costs to be recognized in connection with terminating the EDS agreement represent an investment in our future that is projected to generate an internal rate of return of more than 20% over the next ten years," he concluded.

Certegy is the world's leading provider of check risk management solutions serving over 329,000 retail outlets in North America, Europe and Asia Pacific.

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