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Fidelity Opens Outsourcing Service for Banks in Brazil

Fidelity National Information Services, a global provider of technology services to financial institutions, announced that it has established a back-office outsourcing and item processing operation in Brazil. 

This new outsourcing operation, which will be named Fidelity BPO Brazil Ltda., will provide a comprehensive range of back office processing and support services, check imaging, check clearing and custody, and consumer loan processing through more than 40 processing centers in Brazil.

Two of Brazil’s top four non-government banks, including Unibanco, have signed new 10-year contracts with Fidelity BPO Brazil Ltda. for these services. 

To support the outsourcing operation, FIS has acquired Proservvi Empreendimentos e Serviços Ltda. ("Proservvi") for US$ 2.8 million in cash and the assumption of US$ 13.3 million in debt.  Additionally, FIS anticipates investing approximately US$ 13.6 million to support the working capital needs of the new operation.

Revenues from Proservvi clients transferring to Fidelity as part of the transaction totaled approximately US$ 16 million in 2005.  The cumulative revenue for new and existing processing contracts is estimated at more than US$ 1 billion over the next 10 years.

"This agreement, which includes contract relationships with three of the top five private banks in Brazil, greatly increases our market presence," said Michael Sanchez, president of the FIS International division.

"Today’s announcement, coupled with the recent announcement of the creation of Fidelity Processadora e Serviços S.A., for card and payment services, will position FIS as the leading credit card processor and back-office outsourcing provider in Brazil."

In March of this year, FIS announced that it had formed a joint venture with leading banks in Brazil to provide end-to-end outsourced credit and prepaid card processing services to Brazilian card issuers.

Once the existing portfolios are fully converted, Fidelity will process more than 20 million cards in Brazil, and more than 63 million cards worldwide.

"We have established a significant and growing international footprint," said Lee Kennedy, president and chief executive officer for FIS.

"This transaction and the associated new contracts further strengthen our global competitive position and illustrate our ability to leverage the multi-product capabilities of our company with new and existing customers."

FIS expects the transaction to be neutral to diluted earnings per share in 2006 and accretive to diluted earnings per share beginning in 2007. Additional details regarding the financial impact of the transaction will be provided with the company’s second quarter earnings report.

Fidelity National Information Services, Inc. is a leading provider of core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage-related information products; and outsourcing services to financial institutions, retailers, mortgage lenders and real estate professionals. 

FIS has processing and technology relationships with 35 of the top 50 global banks, including nine of the top ten. Nearly 50 percent of all U.S. residential mortgages are processed using FIS software.

Headquartered in Jacksonville, Florida, FIS maintains a strong global presence, serving over 7,800 financial institutions in more than 60 countries worldwide. 

Unibanco is the oldest and the third-largest Brazilian private bank, with more than 80 years of history. The bank is present in every segment of the Brazilian financial market, offering a broad and complete range of services to a diversified customer base.

Its activities comprise all the major financial industry segments: retail, wholesale, consumer finance, auto financing, credit cards, insurance, pension plans and wealth management. Unibanco and its associated companies offer a network composed of more than 17,000 points of service.

Unibanco is listed on the São Paulo Stock Exchange (Bovespa) since 1968. In 1997, Unibanco was the first Brazilian bank to list its shares on the New York Stock Exchange (NYSE:UBB).

FIS – www.fidelityinfoservices.com

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