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TSYS(R) NEWS RELEASE
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For Immediate Release
Contacts: Danita Gibson-Lloyd Kimberly Knight
Corporate Communications Mgr. Corporate Communications Spec.
(706) 649-5578 (706) 644-1218
[email protected] [email protected]
TSYS(R)Signs Letter of Intent with The Royal Bank of Scotland Group
Columbus, Ga., May 31, 2000 - Total System Services, Inc.(R) (TSYS(R)) (NYSE:
"TSS"), today announced the signing of a letter of intent with The Royal Bank of
Scotland Group plc ("Royal Bank Group"), to complete a definitive agreement for
the processing of its 7 million consumer and commercial card accounts over a
10-year period. Earlier this year while TSYS was independently in negotiations
with National Westminster Bank Plc (NatWest) and The Royal Bank of Scotland, The
Royal Bank of Scotland acquired NatWest. Since the acquisition, TSYS continued
negotiations with the combined entity.
The Royal Bank Group is the second-largest credit card issuer in the
United Kingdom with one of the fastest growing card portfolios in all of Europe.
TSYS will provide complete processing services for The Royal Bank of Scotland,
NatWest, Ulster Bank and Coutts portfolios, all of which are part of the Royal
Bank of Scotland Group. The Royal Bank Group chose TSYS for its leading-edge
processing systems which provide optimum flexibility, superior portfolio
management and speed to market.
TSYS President Philip W. Tomlinson said, "Total System Services
identified Europe as key to its global expansion, and we are delighted that the
Royal Bank Group, a preeminent European bank and market leader, has entrusted
its business to us. The fact that we were selected speaks to the importance and
value of our customer service and innovation. We are prepared to provide
unparalleled services in the European marketplace, and we look forward to a long
and supportive relationship with the Royal Bank of Scotland." TSYS opened its
European office in September 1999 and will commission its European data center
by year-end 2000.
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TSYS Signs Letter of Intent With The Royal Bank of Scotland/p.2
"Total System Services' commitment to customer service and innovative
processing solutions makes them the obvious choice for us. It is very important
for us to obtain adaptable systems so that we may expand our market share. TS2
delivers this to us in a state-of-the-art system that will allow us to provide
our cardholders with the highest standards of customer service, " said Stephen
Brannan, Managing Director, Card Businesses, Royal Bank of Scotland Group.
Card usage and credit are projected to grow significantly in Europe.
Credit cards account for 29 percent of all cards in Europe. The European Card
Review reported that credit card growth was up 8.3 percent in 1999. Transaction
volumes are growing at approximately 20 percent per year, according to Payment
Cards in Europe 1999.
About The Royal Bank of Scotland Group
The Royal Bank of Scotland Group, founded in 1727, is one of Europe's
leading financial services companies, and one of the largest banks in the UK,
operating in Britain and throughout the world.
In March 2000 it acquired National Westminster Bank plc, creating an
enlarged group which ranks first in the UK in corporate banking, private
banking, offshore banking, and private motor insurance, and second in retail
banking. The enlarged group has more than 2,000 branches throughout the UK and
Ireland, and serves more than 15 million customers.
About Total System Services, Inc.
TSYS provides global commerce solutions. With more than 181 million
accounts on file, TSYS facilitates the payment exchange between buyers and
sellers for approximately 253 million consumers. TSYS' TS2 Processing System,
the most technologically advanced transaction processing software built in the
1990's, captures and delivers more of the right information to our clients
allowing them to make wiser business decisions, currently yielding portfolio
growth more than twice the industry average. TSYS and its family of companies
offer a full range of business services from credit application to collections,
allowing our clients to focus on building their brands and managing their
portfolios. Based in Columbus, Ga., TSYS (www.totalsystem.com) (NYSE: "TSS") is
an 80.8 percent-owned subsidiary of Synovus Financial Corp. (NYSE: "SNV")
(www.synovus.com), No. 5 on FORTUNE magazine's list of "The 100 Best Companies
To Work For" in 2000.
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