This summary is based on the second quarter fiscal 2007 earnings call conducted by Global Payments Inc. (GPN: chart) on Jan. 5, 2007.

Key Investors Issues:

- Revenue grew 19% from a year ago to $260.7 million and the normalized diluted earnings per share grew 16% to 44 cents.
- HSBC joint venture contributed $14.8 million in revenue and is estimated to contribute $55 million to $60 million on an annual basis.
- Money transfer segment operating margin declined 260 basis points to 12% in the current quarter as compared to 14% to 14.6% in last year’s quarter.

Fiscal 2007 Outlook:

-The annual fiscal 2007 revenue guidance has been modified to a range of 1.57 billion to 1.69 billion or 16% to 18% growth over $908 million achieved in fiscal 2006.
- In addition, reaffirming full year fiscal 2007 diluted earnings per share guidance to a range of $1.79 to $1.85, excluding the impact of stock option expense which would reflect growth of 16% to 20% over fiscal 2006 normalized diluted EPS of $1.54.
- Including fiscal 2007 stock option expense, the fiscal 2007 diluted earnings per share guidance is $1.69 to $1.75

Fiscal Year 2007 Second Quarter Highlights:

Revenue grew 19% to $260.7 million and the normalized diluted earnings per share grew 16% to 44 cents.

- In consumer money transfer segment the firm reported strong revenue growth in the quarter, as the money transfer earnings growth continues to be impacted by an increasingly competitive pricing environment.
- The firm experienced a normalized operating margin at 21.3% which represents a decline over prior year’s quarter

[The firm achieved outstanding growth in the domestic direct channel, driven by growth from ISOs.

- Card transactions grew 26% with revenue growth of 16%.
- In Canada, card transactions grew 4% while revenue grew 6%, primarily driven by a favorable Canadian currency exchange rate in addition to a moderate impact for pricing initiatives.

GPN forecasts a decrease in Canadian growth expectations in the second half of
the fiscal year.

- Canadian revenue growth expectations have been lowered to the mid to high single digit range for fiscal year 2007 due to past trends of Canadian exchange rate movements.
- The revenue guidance includes an expected benefit during our third quarter from card association’s incentives relating to various programs.

Progress on the HSBC joint venture:

- The firm rolled out new products in selected markets such as EMP card acceptance.
-The joint venture contributed $14.8 million in revenue and the firm continues to expect the joint venture to contribute between 47 million and 51 million in revenue from July 24, ’06 through the end of fiscal 2007. The joint venture is estimated to contribute $55 million to $60 million on an annual basis.
– The venture which has a lower margin than the company average has also impacted operating margin and a 30 basis point unfavorable impact for fiscal 2007 is forecasted on a consolidated basis expected to normalize once it annualizes.

Central and Eastern European merchant channel recorded revenue growth of 16%.

- The growth is largely due to a favorable year-over-year Czech currency exchange rate and growth in credit and debit card transactions of 16%.
- The estimates for the annual fiscal 2007 revenue has been raised for this channel to a range of high single digit to low double digit increase. This can be attributed to a stronger than expected Czech currency rate, and a modest impact from the Diginet acquisition.

Domestic indirect and other revenue declined 14% with the 7% decline in credit and debit card transactions.

- The money transfer segment achieved solid revenue growth of 17%.
- US transactions grew 22% with revenue growth of 13%.

Branch Growth.

- The US branch count was 855 locations with 10 newly acquired branches located primarily in Florida and New Jersey.
- This branch count reflects the 13% increase over the prior year quarter, on a sequential basis however this amount was relatively stable with the first quarter of fiscal ’07 primarily due to additional branch closings..

- In Europe, the firm opened six new branches during the quarter and had a total of 53 locations at the end of the quarter.
- The firm’s European branch expansion GNP achieved 85% transaction growth and 63% revenue growth in this channel.