First Data, Bank One Merchant Processing Alliance Combines with Paymentech to Become Number Two in Nation

Paymentech will process 2.5 billion transactions annually

ATLANTA - July 27, 1999 - Banc One Payment Services, L.L.C., First Data Corp.'s (NYSE: FDC) merchant bank alliance with Chicago-based BANK ONE CORPORATION (NYSE: ONE), is combining today with Paymentech to create the nation's second largest merchant processor based on number of transactions, with 2.5 billion transactions annually.

The new entity comes as the result of First Data's acquisition yesterday of the publicly-traded outstanding shares of Paymentech.

First Data has a 47.5 percent stake in the combined entity, while Bank One owns the remaining 52.5 percent. Pamela H. Patsley, who served as president and chief executive officer of Paymentech, will direct the operations of the new organization, which will operate under the name of Paymentech.

"We're thrilled with this new venture for several reasons," said Ric Duques, chairman and chief executive officer of First Data. "First, our relationship with Bank One, which we value tremendously, is even stronger. Second, First Data/Bank One and Paymentech together bring expanded resources, state-of-the-art reporting tools, greater efficiencies and new opportunities to serve Paymentech and Banc One Payment Services merchants. Finally, as part owners, First Data's leadership in electronic commerce solutions is strengthened," he added.

"By leveraging several distinct advantages - including an advanced merchant accounting system and the strong channel relationship with Bank One's lines of business - the new entity becomes one of the most powerful electronic payment providers today," said Patsley. "In addition, we will continue to capitalize on Paymentech's market niche products and expertise in direct marketing, Internet, hospitality and specialty retail, as well as our point-of-sale transaction processing."

"This alliance strengthens Bank One's investment in the merchant processing industry," said John B. McCoy, president and chief executive officer of Bank One. "Furthermore, our relationship with First Data and Paymentech, recognized leaders for processing Internet transactions, is a strategic fit with Bank One's Internet efforts."

"The growth potential for Internet transaction processing is endless, as more and more merchants are getting linked and more and more consumers are buying. The Paymentech/Banc One Payment Services combination has both the infrastructure in place and the relationships to continue its progress," said Duques. "First Data's strategic objective is to process every electronic payment from the point of occurrence to the point of settlement. We're moving further in that direction everyday; alliances such as Paymentech are very important components to our growth strategy," added Duques.

Atlanta-based First Data Corp. helps move the world's money. As a leader in electronic commerce and payment services, First Data serves more than two million merchant locations, 1,400 card issuers and millions of consumers, making it easier, faster and more secure for people and businesses to buy goods and services. With more than 32,000 employees worldwide, the company provides credit, debit and stored-value card issuing and processing services; Internet commerce solutions; wire transfers and money orders; and check processing and verification services throughout the United States, United Kingdom, Australia, Mexico, Spain and Germany. In addition, First Data's Western Union network includes approximately 74,000 locations with operations in 172 countries. For more information, please visit the company's web site at www.firstdatacorp.com.

Paymentech, founded in 1985 and headquartered in Dallas, provides full-service electronic payment solutions for merchants and third-party transaction processing. The consummation of this merger creates the second largest processor of bankcard transactions in the United States. Paymentech was formerly traded on the New York Stock Exchange under the symbol PTI. For more information about Paymentech, please visit the company's Internet site at www.paymentech.com.

Paymentech
First Data Corp.