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Full-Year Net Revenues Up 10% Over 2005 SCOTTSDALE, Ariz., Feb. 21 /PRNewswire-FirstCall/ -- eFunds Corporation (NYSE:EFD), the Company that delivers innovative payment processing and information intelligence solutions, today reported net revenue of $141 million for the quarter ended December 31, 2006. This amount represents an increase of 2% over revenue of $138 million reported in the fourth quarter of 2005. Reported operating income increased 70% to $31 million, or 22% of net revenue, compared to $18 million, or 13% of net revenue, reported in the prior year quarter. Fourth quarter net income increased 72% to $20 million, or $0.41 per diluted share, compared to $11 million, or $0.24 per diluted share, reported in the fourth quarter of 2005. For the year ended December 31, 2006, the Company reported net revenue of $552 million, an increase of 10% compared to net revenue of $502 million reported in 2005. Reported operating income for the full year 2006 was $83 million, or 15% of net revenue, compared to $67 million, or 13% of net revenue reported in the prior year. Net income for the year ended December 31, 2006 was $55 million, or $1.15 per diluted share, compared to net income of $50 million, or $1.06 per diluted share, report in 2005. "In 2006, we continued to focus on transforming eFunds into a global, customer-centric, innovative solutions company. This focus included improving our financial and operational performance, realigning our organizational structure including the recruitment of certain key executives, investing in our technical infrastructure and product development, and integrating our 2005 acquisition of WildCard Systems. We believe we have made significant progress over the course of the year towards building a strong platform for continued growth in 2007 and beyond," stated Paul Walsh, Chairman and CEO. Forward Looking Statements The Company reported that it expects full-year net revenues in 2007 to be between $591 million and $613 million, an increase of 7% - 11% over net revenue reported in 2006. Diluted earnings per share in 2007 are expected to be between $1.30 and $1.42, reflecting an increase of 13% - 23% over the diluted earnings per share of $1.15 reported in 2006. The foregoing expectations reflect the following assumptions: * An effective tax rate of approximately 35 percent for 2007; * Cash outlays for capital expenditures and product development activities will be somewhat higher than the amounts disbursed in 2006. Conference Call eFunds will hold a one-hour conference call today at 10:00 a.m. EST to discuss the Company's quarterly and year-to-date financial performance. To listen to the conference call, dial 800-399-5351 (International callers dial 706-643-1939) and provide the operator with the Conference ID number 7297261. The call will also be broadcast on the Company's Web site at http://www.efunds.com/ under the "Investor Relations" tab. Interested parties are encouraged to click on the web cast link 10 to 15 minutes prior to the start of the conference call. Replay Information A replay of the conference call will be available beginning two hours after the call's completion and will play through 11:59 p.m. ET on Mar. 7, 2007. You may access the replay by dialing 800-642-1687 (international callers dial 706-645-9291) and entering the Conference ID number 7297261. Additionally, a replay of the conference call will be available via the eFunds Web site at http://www.efunds.com/. About eFunds With more than 30 years of payment processing and information intelligence expertise, eFunds delivers flexible, innovative solutions to the world's leading businesses. Leveraging mission-critical business insight, we enable financial services companies, retailers and government organizations to grow their businesses while reducing transaction and infrastructure costs, detecting potential fraud and building long-term customer value. Our flexible delivery model means solutions can be run in-house, outsourced or anything in between, helping customers balance the need for control with operational efficiency and low cost of ownership. From the point of account opening to the settlement of every transaction -- debit, credit, or prepaid -- eFunds helps businesses win more of the right customers, serve them more efficiently and keep them. http://www.efunds.com/ Statements made in this release concerning the Company's or management's intentions, expectations, or predictions about future results or events are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are necessarily subject to risks and uncertainties that could cause actual results to vary from stated expectations and such variations could be material and adverse. Factors that could result in such a variation include, but are not limited to, the inherent unreliability of earnings and revenue growth predictions due to numerous factors, including many beyond the Company's control, potential difficulties, delays and unanticipated expenses inherent in the development and marketing of new products and services, competitive factors, the unpredictability of merger and acquisition activity, and the numerous risks and potential additional costs, disruptions and delays associated with the establishment of new business initiatives. Additional information concerning these and other factors that could cause actual results to differ materially from the Company's current expectations is contained in the Company's Annual Report on Form 10-K for the period ending December 31, 2005 and its subsequent reports on Form 10-Q. EFUNDS CORPORATION CONSOLIDATED STATEMENTS OF INCOME Three Months Ended December 31, 2006 2005 (in thousands, except per share amounts) (revised) Net revenue $140,911 100.0% $138,026 100.0% Operating expenses Processing, communication and service costs 35,114 24.9% 31,748 23.0% Employee costs 45,413 32.2% 57,647 41.8% Depreciation and amortization 12,227 8.7% 11,741 8.5% Other operating costs 17,138 12.2% 18,655 13.5% Total operating expenses 109,892 78.0% 119,791 86.8% Income from operations 31,019 22.0% 18,235 13.2% Interest expense (1,736) -1.2% (1,918) -1.4% Other income - net 832 0.6% 894 0.6% Income before income taxes 30,115 21.4% 17,211 12.5% Provision for income taxes (10,540) -7.5% (5,851) -4.2% Net income $19,575 13.9% $11,360 8.2% Shares outstanding Basic 46,860 45,757 Diluted 47,759 47,122 Earnings per share Basic $0.42 $0.25 Diluted $0.41 $0.24 EFUNDS CORPORATION CONSOLIDATED STATEMENTS OF INCOME Twelve Months Ended December 31, 2006 2005 (in thousands, except per share amounts) (revised) Net revenue $552,414 100.0% $501,708 100.0% Operating expenses Processing, communication and service costs 138,156 25.0% 120,396 24.0% Employee costs 214,697 38.9% 215,625 43.0% Depreciation and amortization 47,732 8.6% 39,782 7.9% Other operating costs 68,588 12.4% 58,584 11.7% Total operating expenses 469,173 84.9% 434,387 86.6% Income from operations 83,241 15.1% 67,321 13.4% Interest expense (6,449) -1.2% (4,258) -0.8% Other income - net 3,586 0.6% 4,680 0.9% Income before income taxes 80,378 14.6% 67,743 13.5% Provision for income taxes (25,832) -4.7% (17,331) -3.5% Net income $54,546 9.9% $50,412 10.0% Shares outstanding Basic 46,561 46,508 Diluted 47,420 47,755 Earnings per share Basic $1.17 $1.08 Diluted $1.15 $1.06 EFUNDS CORPORATION CONSOLIDATED BALANCE SHEETS December 31, December 31, 2006 2005 (in thousands) (revised) Current assets: Cash and cash equivalents $126,740 $85,987 Short term investments 7,000 -- Restricted cash 3,730 28,183 Settlement assets 58,328 28,438 Accounts receivable - net 107,188 96,115 Deferred income taxes 12,781 27,422 Prepaid expenses and other current assets 26,115 18,341 Total current assets 341,882 284,486 Property and equipment - net 60,145 63,721 Intangibles-net 395,785 398,337 Other non-current assets 26,726 17,638 Total assets $824,538 $764,182 Current liabilities: Accounts payable $24,021 $23,902 Settlement liabilities 54,792 28,519 Accrued liabilities 50,577 56,011 Acquisition Holdbacks 6,053 25,052 Deferred revenue and gains 22,052 23,978 Long-term debt due within one year 4,438 5,030 Total current liabilities 161,933 162,492 Long-term deferred gains 18,078 27,637 Long-term debt 102,656 106,973 Other long-term liabilities 7,345 15,481 Total liabilities 290,012 312,583 Stockholders' equity: Common stock 517 505 Additional paid-in capital 524,980 498,939 Treasury stock at cost (100,000) (100,000) Retained earnings 105,690 51,144 Accumulated other comprehensive income 3,339 1,011 Stockholders' equity 534,526 451,599 Total liabilities and stockholders' equity $824,538 $764,182 EFUNDS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Twelve Months Ended December 31, 2006 2005 (in thousands) (revised) Cash flows from operating activities: Net income $54,546 $50,412 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 17,348 16,241 Amortization 30,384 23,541 Stock-based compensation 9,140 9,768 Excess tax benefit from share-based compensation (2,288) (1,771) Deferred income taxes 18,436 5,089 Other - net 294 (206) Changes in assets and liabilities Restricted cash 1,956 3,289 Accounts receivable (11,267) (8,572) Accounts payable 110 (10,329) Accrued contract losses -- (1,162) Deferred revenue gains (11,218) (9,267) Accrued compensation and employee benefits (14,605) 487 Income taxes receivable/payable 3,933 (26,363) Other assets and liabilities (21,685) (8,514) Net cash provided by operating activities 75,084 42,643 Cash flows from investing activities: Capital expenditures (36,734) (29,406) Acquisitions -- (288,039) Purchases of short-term investments (24,600) (98,925) Proceeds from sale of short-term investments 17,600 187,065 Proceeds from dispositions 2,356 -- Other - net (6,332) (7,095) Net cash used in investing activities (47,710) (236,400) Cash flows from financing activities: Purchase of common stock -- (100,000) Issuance of common stock 15,907 14,999 Excess tax benefit from share-based compensation 2,288 1,771 Proceeds on long-term debt 92,062 295,110 Payments on long-term debt (96,990) (206,265) Other 112 (348) Net cash provided by financing activities 13,379 5,267 Net increase (decrease) in cash and cash equivalents 40,753 (188,490) Cash and cash equivalents at beginning of period 85,987 274,477 Cash and cash equivalents at end of period $126,740 $85,987 EFUNDS CORPORATION SEGMENT SUMMARY DATA Three Months Ended December 31, Change 2006 2005 $ % (in thousands) (revised) Net revenue: US Payments $75,359 $77,316 (1,957) -3% US Risk Management 44,600 44,035 565 1% International 20,952 16,675 4,277 26% Total net revenue 140,911 138,026 2,885 2% Operating expenses: Processing, employee and other costs -- US Payments 55,335 62,812 (7,477) -12% US Risk Management 24,910 29,113 (4,203) -14% International 17,149 13,714 3,435 25% Total processing, employee and other costs 97,394 105,639 (8,245) -8% Allocated overhead -- US Payments 3,295 4,130 (835) -20% US Risk Management 2,993 3,278 (285) -9% International 2,041 1,885 156 8% Corporate 4,169 4,859 (690) -14% Total allocated overhead 12,498 14,152 (1,654) -12% Income (loss) from operations: US Payments 16,729 10,374 6,355 61% US Risk Management 16,697 11,644 5,053 43% International 1,762 1,076 686 64% Corporate (4,169) (4,859) 690 14% Total income from operations $31,019 $18,235 12,784 70% EFUNDS CORPORATION SEGMENT SUMMARY DATA Twelve Months Ended December 31, Change 2006 2005 $ % (in thousands) (revised) Net revenue: US Payments $292,453 $260,661 $31,792 12% US Risk Management 189,104 188,601 503 -- International 70,857 52,446 18,411 35% Total net revenue 552,414 501,708 50,706 10% Operating expenses: Processing, employee and other costs -- US Payments 240,530 207,311 33,219 16% US Risk Management 107,186 121,210 (14,024) -12% International 65,243 50,586 14,657 29% Total processing, employee and other costs 412,959 379,107 33,852 9% Allocated overhead -- US Payments 14,266 16,207 (1,941) -12% US Risk Management 13,883 12,921 962 7% International 8,487 5,945 2,542 43% Corporate 19,578 20,207 (629) -3% Total allocated overhead 56,214 55,280 934 2% Income (loss) from operations: US Payments 37,657 37,143 514 1% US Risk Management 68,035 54,470 13,565 25% International (2,873) (4,085) 1,212 30% Corporate (19,578) (20,207) 629 3% Total income from operations $83,241 $67,321 $15,920 24% EFUNDS CORPORATION SUPPLEMENTAL REVENUE DATA Three Months Twelve Months Ended December 31, Ended December 31, % % 2006 2005 Change 2006 2005 Change (in millions) US Payments EFT processing $39.4 $33.3 18% $147.9 $125.1 18% Prepaid solutions 21.7 25.2 -14% 85.1 45.0 89% Government 10.6 10.5 1% 41.2 48.3 -15% Software sales 2.2 2.9 -24% 9.5 9.1 4% IT services -- 4.3 -100% 5.1 29.0 -82% ATM managed services 1.5 1.1 36% 3.7 4.2 -12% $75.4 $77.3 -2% $292.5 $260.7 12% US Risk Management Financial institution products $35.3 $33.3 6% $149.4 $136.7 9% Retail products 5.0 4.8 4% 19.3 20.9 -8% BPO 4.3 5.9 -27% 20.4 31.0 -34% $44.6 $44.0 1% $189.1 $188.6 -- International Software sales $10.9 $7.8 40% $33.8 $26.1 30% BPO 7.1 7.8 -9% 29.4 24.6 20% EFT processing 2.9 1.1 * 7.6 1.7 * $20.9 $16.7 25% $70.8 $52.4 35% * Represents an increase or decrease in excess of 100% DATASOURCE: eFunds Corporation CONTACT: Helen Johnson, Investor Relations, +1-480-629-7607, or George Gresham, Chief Financial Officer, +1-480-629-7662, both of eFunds Corporation Web site: http://www.efunds.com/

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