TSYS Enters Asia
TSYS Japan Opens With Majority Purchase in a Japanese Payments Network Company
Columbus, Ga., August 22, 2000 – Total System Services, Inc.® (TSYS®) (NYSE: "TSS"), today announced its purchase of a 51 percent ownership in GP Network Corporation (GP Net), a payments gateway for more than 100,000 merchants in Japan. GP Net has an estimated 20 percent market share of acquired transactions and is the only chip-capable acquiring processor currently operating in Japan. TSYS also announced the opening of a Japanese office in pursuit of processing services for card-issuing financial institutions and retailers.
TSYS named Hitoshi Kondo President of GP Net and Managing Director of TSYS Japan, responsible for business development and client relations. "Kondo has managed the GP Net operation since its inception and works closely with the Japanese credit card companies who have equity interests in GP Net," said Philip W. Tomlinson, president of TSYS. "The Asia/Pacific region is a key market for card growth and one to which we feel our processing experience in both the acquiring and issuing arena will easily transfer."
Industry consultant Bill Stewart, formerly of Visa International, said, "TSYS has done a superb job within the United States with the introduction and management of its state-of-the-art processing system, TS2®, and Vital Processing Services®, its merchant processing arm Within the past year, TSYS has made a commitment to expanding its payments expertise, first in Europe and now in Japan."
"I am excited about the commitment of TSYS to the Asian market," Kondo said. "Card use is increasingly becoming the primary payments method for clicks-and-bricks. TSYS’ commitment to customer service and its technologically advanced systems will serve our market well." Initially, GPNet will have 12 to 15 full-time employees and expects to increase to 20 by the end of 2001.
A graduate of Keio University, Kondo joined Visa International in 1984, where he was responsible for membership acquisition; the team effort led by him helped Visa gain major Japanese financial institutions as principal members. As Secretary General of Visa International’s Visa SuperSmart Card Association, formed in conjunction with major Japanese corporations, Kondo assumed overall administration responsibility of the VISTA project, one of the most advanced integrated chip (IC) card experiments at that time. A member of the Japan IC Standardization Committee, Kondo played a major role in launching two other large-scale chip card projects in association with Visa member financial institutions and leading manufacturers -- Smart Commerce Japan and Shibuya SmartCard Society. As a result of these projects, Japan is now ready to move toward the chip migration stage from the existing magnetic stripe-based technology.
In recent years, the Japanese credit card industry has enjoyed higher than average growth primarily as a result of the changes in the payment practices of today’s young adults. Because of this continuing trend, it is expected that the number of transactions processed through GP Net will grow nearly 20 percent per year. In addition, the Japanese credit card industry has announced that by 2008 all transactions must be chip-enabled. GP Net is the only payments network that supports smart card transactions today.
About GP Network Corporation
Established in November 1995 by Visa International and eight other card companies, GP Net’s current 11 shareholders represent 116 million credit card accounts. GP Net serves as a payment gateway or "switch" for more than 100,000 merchants and their banking partners. With an estimated 20 percent market share of acquired electronic transactions, GP Net provides front-end data capture and network services and is the only chip-capable acquiring processor currently operating in Japan.
About Total System Services, Inc.
TSYS provides global commerce solutions. With more than 182 million accounts on file, TSYS facilitates the payment exchange between buyers and sellers. TSYS and its family of companies offer a full range of acquiring and issuing business services from credit application to collections for credit, debit, commercial, stored value and retail accounts. TSYS has offices in the United States, Europe, Mexico, Canada and Japan, and processes in 20 countries and 11 currencies. Based in Columbus, Ga., TSYS (NYSE: "TSS") (www.totalsystem.com) 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. For more information, contact news@totalsystem.com.
Contacts:
Danita Gibson-Lloyd
Corporate Communications Manager
ph. (706) 649-5578
Dglloyd@totalsystem.com
Leo Berard Leo Berard
Investor Relations Manager
ph. (706) 644-6081
Leoberard@synovus.com
This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. "Forward-looking" statements contained in this press release include the intent, belief or current expectations of TSYS and members of its senior management team with respect to the yearly percentage increases in the number of transactions processed through GP Net, as well as the assumptions upon which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release include, but are not limited to, lower than anticipated internal growth rates for GP Net's existing customers, adverse developments with respect to new product offerings, adverse developments with respect to entering into contracts with new clients and retaining current clients, adverse developments with respect to the successful conversion of clients, adverse developments with respect to the credit card industry in general and overall market conditions. Additional factors that could cause actual results to differ materially from those contemplated in this press release can be found in TSYS' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.