MERCATOR SIGNS PROCESSING AGREEMENT WITH  FIRST DATA

Ljubljana, January 15, 2008

First Data Corp., a global leader in electronic commerce and payment services, has signed a processing agreement with Mercator, a leading retail chain in Southeastern Europe, headquartered in Ljubljana, Slovenia. Mercator operates hypermarkets, supermarkets and grocery stores in Slovenia, Croatia, Serbia, Bosnia and Herzegovina and Montenegro.

First Data will work with Mercator to provide solutions to the challenges posed by the technical requirements of Mercator’s card business. First Data’s services will encompass issuing processing for Mercator's popular loyalty payment scheme, Pika, including real-time redemption. This sophisticated loyalty scheme is driven by a number of demographic and behavioural dimensions, allowing for the development of tailor-made reward schemes that boost Mercator's brand loyalty and ensure a consistent experience for Mercator’s customers.

First Data will also act as a network service provider and acquiring processor to Mercator, integrating all of Mercator’s point of sale (POS) terminals into First Data’s systems. As a part of this process, Mercator’s POS network will be configured to meet EMV standards, ensuring that every transaction is capable of using the popular Chip & PIN framework.

The solution provided by First Data encompasses on-line data analytics, ensuring that services can be tailor-made for Mercator’s customers, and fraud management services.

This co-operation with a leading merchant in Southeastern Europe is indicative of First Data's commitment to developing its merchant business across the region. The contract covers all countries where Mercator currently operates and allows for support in additional territories as Mercator expands its reach.

Stefan Klestil, President of First Data's Central Europe region, commented: “As a leading payments processor, First Data is striving to apply its leading edge technology to  support multinational merchants in the countries in which they operate. I am delighted about our new relationship with Mercator, which further strengthens our presence providing retail services in Southeastern Europe.”

First Data’s cross-border processing solution is aimed at helping Mercator’s payment systems to flow seamlessly. Mr. Žiga Debeljak, MA, the President of Mercator management, confirms “Mercator strives to provide the best quality, cost-effective offerings and services to its customers. Secure and cutting-edge processing of the Mercator Pika Card is exceptionally important for the development of our loyalty solution and, working with First Data, we will further extend the Pika Loyalty System to provide additional loyalty benefits suited to individual customers. This is a key competitive advantage that we intend to offer to millions of potential new customers as we enter new markets.”

Mr. Matija Vojsk, MA, Mercator Project Manager, continued: “With Mercator Pika Cards, we will be able to tailor our offerings to meet customer needs. There will be more than a thousand sales outlets for Mercator franchises and partners in the near future, making it easy, safe and cost effective to make the purchases with Mercator Pica Card.”

About First Data
First Data Corp. is a leading provider of electronic commerce and payment solutions for businesses worldwide. With operations in 38 countries, First Data serves over 5 million merchant locations, 1,900 card issuers and their customers. We power the global economy by making it easy, fast and secure for people and businesses around the world to buy goods and services using virtually any form of payment. The company's portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; receivables management solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at 2.1 million ATM and retail locations. For more information, visit www.firstdata.com.

About Mercator Group
Mercator Group is one of the largest and most successful commercial chains in Southeast Europe, the leading commercial chain in Slovenia and has increasingly established presence in Serbia, Croatia, and Bosnia and Herzegovina. In 2005 Mercator entered the Macedonian market, and in 2007 Montenegro. These are all rapidly growing markets, in which Mercator builds shopping malls in the capitals and in regional centers with the largest potential due to the number of residents and purchasing power. Mercator aims to become the first or second largest merchant with a market program on each country.

Mercator Pika Card
Mercator’s loyalty system, the Pika Card, brings customers a benefit of 3 – 6% of the purchasing volume, in the form of bonuses and other benefits in Mercator stores and partner outlets. In December 2007, the number of Mercator Pika Card holders was more than 1 million.

Mercator Pika Card was established by forming the Mercator Club in September 1986. In 1999 Mercator issued the Green Credit and Blue Payment Mercator Pika Card; in 2004 the Gold Mercator Pika Card and in 2007 the Business Mercator Pika Card intended for companies.

Mercator Pika Card can be obtained free of any membership fee and other additional costs. Holders of the Mercator Pika Card are entitled to a large number of benefits: savings with any purchase over EUR4, discount on the purchased goods, monthly settlement at the cashiers in Mercator’s outlets free of commission (Green, Gold), bonuses generated with a family card (Green, Gold), payment in 12 installments net of interest and other costs for purchases exceeding  EUR100; health programmes, M Mobile Club, prize draws, etc. Mercator Pika Card can also be used at a continuously growing network of strategic partners, with benefits including monthly promotional discounts of up to 50 percent. Mercator’s loyalty scheme also includes targetted surprises and customised offers. The loyalty program provides Mercator with additional data and allows better awareness of our customers, gaining experience and better efficiency and providing great pleasure to satisfy the purchase demands of our customers, place adequate goods on shelves and offer suitable prices and promotions.

For further information
Andrea Pansegrau
First Data International
Phone.: +49 69 7933 1686
Email: andrea.pansegrau@firstdata.de