First Data : First Data Commences Cash Tender Offers and Related Consent Solicitations for $2.2 Billion of its Outstanding Debt Securities

First Data Corporation (NYSE: FDC) announced today that it has commenced cash tender offers in respect of an aggregate of approximately $2.2 billion of its outstanding unsecured debt securities, which we refer to as the ?Notes.? The Notes that are the subject of the tender offers are identified in the table below. The tender offer for each series of Notes is being conducted concurrently with a related consent solicitation to amend the terms of such Notes and the indenture pursuant to which they were issued. The tender offers and consent solicitations are being conducted in connection with the previously announced agreement of First Data to be merged with an affiliate of Kohlberg Kravis Roberts & Co. (?KKR?). The completion of the tender offers and consent solicitations is not a condition to completion of such merger.

The offer for each series of Notes will expire at 8:00 a.m., New York City time, on September 4, 2007, unless extended or earlier terminated by First Data in its sole discretion (the ?Offer Expiration Date?). Holders who wish to receive the total consideration referred to below must validly tender and not validly withdraw their Notes at or prior to 5:00 p.m., New York City time, on August 16, 2007, unless extended or earlier terminated by First Data in its sole discretion (the ?Consent Payment Deadline?).

Holders tendering their Notes will be required to consent to proposed amendments to the Notes and to the indenture governing the Notes, which would eliminate or waive substantially all of the restrictive covenants contained in the indenture and the Notes, eliminate certain events of default, modify covenants regarding mergers and consolidations, and modify or eliminate certain other provisions, including certain provisions relating to defeasance, contained in the indenture and the Notes. Holders may not tender their Notes without also delivering consents and may not deliver consents without also tendering their Notes.

The total consideration for each $1,000 principal amount of Notes validly tendered and not validly withdrawn pursuant to the tender offer therefore is the price (calculated as described in the Offer to Purchase referred to below) equal to (i) the sum of (a) the present value, determined in accordance with standard market practice, on the payment date for purchased Notes of $1,000 on the applicable maturity date for the Notes plus (b) the present value on the scheduled payment date for purchased Notes of the interest that would be payable on, or accrue from, the last interest payment date prior to such scheduled payment date until the applicable maturity date for the Notes, in each case determined on the basis of a yield to such maturity date equal to the sum of (A) the yield to maturity on the applicable U.S. Treasury Security specified in the table below, as calculated by Citigroup Global Markets Inc. (?Citi?), as lead dealer manager, in accordance with standard market practice, based on the bid-side price of such reference security as of 2:00 p.m., New York City time, on August 29, 2007, unless modified by the Company in its sole discretion, as displayed on the page of the Bloomberg Government Pricing Monitor specified in the table below or any recognized quotation source selected by Citi in its sole discretion if the Bloomberg Government Pricing Monitor is not available or is manifestly erroneous plus (B) the Applicable Spread (as shown in the table below), minus (ii) accrued and unpaid interest to, but not including, the scheduled payment date.

The total consideration described above includes a consent payment of $30.00 per $1,000 principal amount of Notes, payable in respect of Notes validly tendered and not validly withdrawn and as to which consents to the proposed amendments are delivered at or prior to the Consent Payment Deadline, subject to the terms and conditions of the tender offers and consent solicitations. Holders of the Notes must validly tender and not validly withdraw Notes at or prior to the Consent Payment Deadline in order to be eligible to receive the applicable total consideration (which includes the consent payment described in the foregoing sentence) for such Notes purchased in the tender offers. Holders who validly tender their Notes after the Consent Payment Deadline and at or prior to the Offer Expiration Date will be eligible to receive the tender offer consideration which is an amount, paid in cash, equal to the applicable total consideration less the consent payment.

In each case, holders whose Notes are accepted for payment in the tender offers will receive accrued and unpaid interest in respect of such purchased Notes from the last interest payment date to, but not including, the payment date for Notes purchased in the tender offers.

The following table summarizes the material terms of the tender offers for the Notes:

CUSIP and ISIN Nos.

Principal Amount Outstanding

Security Description

Maturity Date

Applicable Spread

Reference Security

Relevant Bloomberg Page

Consent Payment per $1,000 Principal Amount

32006YAG7 US32006YAG70

$85,448,000

6-3/8% Notes due 2007

December 15, 2007

25 bps

4.25% UST due 11/30/07

PX3

$30.00

319963AG9 US319963AG92

$500,000,000

3.375% Notes due 2008

August 1, 2008

42 bps

5.00% UST due 07/31/08

PX3

$30.00

32006YAH5 US32006YAH53

$40,501,000

5.8% Medium-Term Notes due 2008

December 15, 2008

38 bps

3.375% UST due 12/15/08

PX4

$30.00

319963AJ3 US319963AJ32

$102,798,000

3.9% Notes due 2009

October 1, 2009

40 bps

4.625% UST due 07/31/09

PX1

$30.00

319963AL8 US319963AL87

$158,749,000

4.5% Notes due 2010

June 15, 2010

43 bps

4.50% UST due 05/15/10

PX1

$30.00

319963AF1 US319963AF10

$157,339,000

5.625% Senior Notes due 2011

November 1, 2011

44 bps

4.625% UST due 07/31/12

PX1

$30.00

319963AH7 US319963AH75

$447,594,000

4.7% Notes due 2013

August 1, 2013

64 bps

4.50% UST due 05/15/17

PX1

$30.00

319963AK0 US319963AK05

$344,951,000

4.85% Notes due 2014

October 1, 2014

68 bps

4.50% UST due 05/15/17

PX1

$30.00

319963AM6 US319963AM60

$371,959,000

4.95% Notes due 2015

June 15, 2015

72 bps

4.50% UST due 05/15/17

PX1

$30.00

Each tender offer and consent solicitation is being made independently of the other tender offers and consent solicitations. First Data reserves the right to terminate, withdraw or amend each tender offer and consent solicitation independently of the other tender offers and consent solicitations at any time from time to time.

The tender offers and consent solicitations relating to the Notes are made upon the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated August 3, 2007 (the ?Offer to Purchase?), and the related Consent and Letter of Transmittal. The tender offers and consent solicitations are subject to the satisfaction of certain conditions, including receipt of consents sufficient to approve the proposed amendments and the merger of First Data with an affiliate of KKR pursuant to the previously announced merger agreement having occurred, or such merger occurring substantially concurrent with the Offer Expiration Date. Further details about the terms and conditions of the tender offers and the consent solicitations are set forth in the Offer to Purchase.

First Data has retained Citi to act as the lead dealer manager for the tender offers and lead solicitation agent for the consent solicitations, and they can be contacted at [phone] (toll-free) or [phone] (collect). First Data has also retained Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Lehman Brothers Inc. to act as co-dealer managers for the tender offers and co-solicitation agents for the consent solicitations. Deutsche Bank Luxembourg SA has been appointed Luxembourg Tender Agent for the Offers and may be contacted at Deutsche Bank Luxembourg SA, Trust & Securities Services, 2 BLD Konrad Adenauer, L-1115 Luxembourg or by telephone at (00352) 421-22-460 or by facsimile at (00352) 421-22-426. The Offer to Purchase and other documents relating to the tender offers and consent solicitations are expected to be distributed to holders beginning today. Requests for documentation may be directed to Global Bondholder Services Corporation, the Information Agent, which can be contacted at [phone] (for banks and brokers only) or [phone] (for all others toll-free).

This release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell the Notes. The offer to buy the Notes is only being made pursuant to the tender offer and consent solicitation documents, including the Offer to Purchase that First Data is distributing to holders of Notes. The tender offers and consent solicitations are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the tender offers and consent solicitations to be made by a licensed broker or dealer, the tender offers and consent solicitations will be deemed to be made on behalf of First Data by one or more of the dealer managers, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.

About First Data

First Data Corporation (NYSE: FDC) is a leading provider of electronic commerce and payment solutions for businesses worldwide. Serving over 5 million merchant locations, 1,900 card issuers and their customers, First Data powers 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; 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 million ATM and retail locations.

Notice to Investors, Prospective Investors and the Investment Community; Cautionary Information Regarding Forward-Looking Statements

Statements in this press release regarding First Data Corporation's business which are not historical facts are ?forward-looking statements.? All forward-looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected. Important factors upon which the Company's forward-looking statements are premised include: (a) continued growth at rates approximating recent levels for card-based payment transactions and other product markets; (b) successful conversions under service contracts with major clients; (c) renewal of material contracts in the Company's business units consistent with past experience; (d) timely, successful and cost-effective implementation of processing systems to provide new products, improved functionality and increased efficiencies; (e) successful and timely integration of significant businesses and technologies acquired by the Company and realization of anticipated synergies; (f) continuing development and maintenance of appropriate business continuity plans for the Company's processing systems based on the needs and risks relative to each such system; (g) absence of further consolidation among client financial institutions or other client groups which has a significant impact on the Company's client relationships and no material loss of business from significant customers of the Company; (h) achieving planned revenue growth throughout the Company, including in the merchant alliance program which involves several joint ventures not under the sole control of the Company and each of which acts independently of the others, and successful management of pricing pressures through cost efficiencies and other cost-management initiatives; (i) successfully managing the credit and fraud risks in the Company's business units and the merchant alliances, particularly in the context of the developing e-commerce markets; (j) anticipation of and response to technological changes, particularly with respect to e-commerce; (k) attracting and retaining qualified key employees; (l) no unanticipated changes in laws, regulations, credit card association rules or other industry standards affecting the Company's businesses which require significant product redevelopment efforts, reduce the market for or value of its products or render products obsolete; (m) continuation of the existing interest rate environment so as to avoid increases in agent fees related to IPS' products and increases in interest on the Company's borrowings; (n) no unanticipated developments relating to previously disclosed lawsuits, investigations or similar matters; (o) no catastrophic events that could impact the Company's or its major customer's operating facilities, communication systems and technology or that has a material negative impact on current economic conditions or levels of consumer spending; (p) no material breach of security of any of our systems; and (q) successfully managing the potential both for patent protection and patent liability in the context of rapidly developing legal framework for expansive software patent protection. Additional risks and other factors, include but are not limited to: (a) the occurrence of any effect, event, development or change that could give rise to the termination of the Merger Agreement; (b) the outcome of any legal proceedings that have been or may be instituted against the Company and others in connection with the Merger Agreement; (c) the inability to complete the Merger due to the failure to satisfy conditions to completion of the Merger, including the receipt of certain foreign and domestic regulatory approvals; (d) the failure to obtain the necessary financing arrangements set forth in commitment letters received in connection with the proposed transactions; (e) risks that the proposed transactions disrupt current plans and operations and the potential difficulties in employee retention; (f) risks that the proposed transactions cause the Company's alliance partners, customers or service providers to terminate or reduce their relationship with the Company; (g) the amount of the costs, fees, expenses and charges related to the Merger and the actual terms of certain financings that will need to be obtained for the Merger; and (h) the impact of the substantial indebtedness that will need to be incurred to finance the consummation of the Merger.

FDC - 1

First Data Corporation
Investor Relations:
Silvio Tavares, 303-967-8276
[e-mail]
or
Media Relations:
Colin Wheeler, 303-967-6553
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