Key questions and answers from the fourth quarter earnings call conducted by Mastercard Inc. on January 31, 2008.

Adam Frisch (UBS): What are your near-term expectations for Europe, and can you maintain your growth and margins in that part of the world?

Robert W. Selander: We have great opportunities in that marketplace. We are beginning to see some of the things that the financial institutions and MasterCard have been working on for years come to fruition with some of these debit deals as we begin the plastic branded cards.

Mystro is now cross-border brand, enabling us not only to capture some additional business when they convert completely to Mystro, but also to capture what otherwise would have been other types of process transactions.

Anurag Rana (Keybanc Capital Markets): We have observed a divergence between GDV growth rates and the overall revenue growth rates. As we look ahead, how should we model this relationship between the two?

Robert W. Selander: One of our strategies has been to broaden our offerings to our customers, and that means that we may go in and provide services, which do not necessarily generate an incremental dollar volume. At the end of the day, those things derive revenue, but do not necessarily drive GDV.

Martina Hund-Mejean: When you look at year-over-year, 2006 to 2007, you can put it all together that the underpinning is the local GDV growth, the process transaction, but the increased rate was really driven mostly by cross-border volume, and that was a little bit over lower incentive growth.

Anurag Rana (Keybanc Capital Markets): Could you please give us some more details regarding the number of transactions that you processed on your own network in Europe?

Robert W. Selander: It was $5.2 billion globally and over $18 billion globally for the year. We have opportunities for faster growth rates in Europe. We did a lot of domestic processing in USA, Canada, Brazil, Australia and most of the other markets around the world have very small proportion of our own branded transactions that we process.

Moshe Katri (Cowen & Co.): Was there any major change in gross dollar volume growth during the month of December given the slowdown in consumer spending?

Robert W. Selander: We had a strong fourth-quarter and in particular within the U.S., we saw a higher growth rate in the fourth quarter versus the prior year than we had seen in the third quarter. We do not track or report the monthly GDV numbers, but we do have through MasterCard advisors our spending pulse data, which we do report out.

In the month of October we had about a 7.5% year-over-year growth rate, November about 8.2%, and December was about 6.4% versus the prior year. So those were all good numbers, but there was a downturn from November to December.

Moshe Katri (Cowen & Co.): How much can a decline in GDV growth be offset by declining contra-revenues from payment incentives?

Martina Hund-Mejean: There are a number of factors that I hear being in place of being implied on GDV versus our net revenue, obviously the growth of the GDV in fact is rebase pricing actions that we do. And we really try to capture this overall in the concept of the revenue yield.

In 2006, our revenue yield was 17.3 basis points. In 2007 our revenue yield was 17.9 basis points. When you close a piece apart, it was really driven by two major factors, foreign exchange and cross-border volume.

Elizabeth W. Grausam (Goldman Sachs & Co.): Do you still feel that the underlying card growth in your business in the US is going to support positive total volume growth on your network?

Robert W. Selander: We are going to see positive result because at the end of the day you have that secular movement, which were sort of riding that wave. And then from a transaction standpoint, we went back and we did look at the data back in the 2001-2002 period.

Although we did see some slow down what was then still a very robust gross dollar volume growth. Transaction growth actually accelerated beyond, it was faster than the volume growth. And that was driving at that time lower ticket sizes, although we nevertheless continued to see transactions.

Tien-Tsin Huang (J.P. Morgan): What is driving the growth in number of cards outside the US?

Robert W. Selander: Looking outside the US, we have more rapid growth in dollar volume as well as cards being issued into the marketplace. It takes a while once a card is issued to get it fully utilized by the new cardholder. The other dimension is what we are doing in terms of broadening acceptance, that is new acceptance channels or better penetration.