eFunds Reports Fourth-Quarter and Full-Year 2004 Results

Fourth Quarter 2004 For the fourth quarter of 2004, the Company reported net income of $11.3 million, or $0.22 per diluted share, compared with net income of $10.1 million, or $0.21 per diluted share, in the fourth quarter of 2003. Operating income was $16.4 million, or 12.6 percent of net revenue, compared to operating income of $13.0 million, or 9.6 percent of net revenue, reported in the fourth quarter of 2003. Net revenue decreased $4.9 million to $130.5 million in the fourth quarter of 2004, compared to net revenue of $135.4 million reported in the fourth quarter of 2003. This decrease was principally due to the sale of the Companys ATM portfolio in November 2004. Full-Year 2004 For the year ended Dec. 31, 2004, net income increased to $40.8 million, or $0.83 per diluted share, compared to net income of $28.9 million, or $0.61 per diluted share, reported in 2003. Reported operating income increased $19.8 million to $58.5 million, or 10.6 percent of net revenue in 2004, as compared to operating income of $38.7 million, or 7.3 percent of net revenue, reported in 2003. eFunds recorded net revenue of $552.1 million for the year ended Dec. 31, 2004, compared to net revenue of $532.1 million recorded in 2003. The Company also announced that it has recently entered into a $100 million revolving credit facility with a syndicate of banks led by JP Morgan Chase Bank. This facility is designed to provide the Company with the liquidity needed to fund short-term settlement obligations and pursue its program of complementary acquisitions that support its solutions-based strategy. 2005 Guidance eFunds expects full-year net revenues for 2005 to increase approximately 8 to 12 percent on a combined organic and acquisitive basis over the $431 million baseline revenue achieved across eFunds three remaining segments -- electronic payments, risk management and outsourcing -- in 2004. The Company expects net income to increase 17 to 22 percent in 2005 over the net income of $40.8 million reported in 2004. The Company expects to generate operating cash flows in 2005 consistent with the level achieved in 2004.