Equifax Announces 12.5 Percent Revenue Growth for 1999

Second Quarter / Performance on Track with Long-Term Objectives ATLANTA (PROTEXT) - New Management Team, KnowledgeEngineering, Consumer Services and Equifax Secure Help PositionCompany for Future Equifax Inc. (NYSE: EFX) today reported record 1999 secondquarter results driven by double-digit revenue growth, keepingpace with the company's long-term business objectives. Second quarter highlights, led by the strong performance ofEquifax Payment Services, include: * Revenues for the quarter ending June 30, 1999, climbed 12.5

percent to $442.6 million compared with the prior yearperiod. * Operating income was $96.9 million versus $92.2 million in

second quarter 1998. * Second quarter earnings per share increased 6 percent from$.35

to $.37. "Equifax continued to demonstrate solid operating results inthe second quarter and first six months of 1999," said Thomas F.Chapman, Equifax's chairman and chief executive officer. "Weremain focused on delivering results to meet our long-termbusiness objectives even though certain business and marketfactors may impact our results during a particular quarter. Wecontinue to make strategic investments to expand ourcapabilities to other markets through Equifax KnowledgeEngineering, Equifax Secure and Equifax Consumer Services, ournewest business focused on delivering products and servicesdirectly to consumers." During the quarter, the company's stock repurchase programremained active, with the Company purchasing over 900,000 sharesof stock for $33.2 million. Approximately $217 million remainedavailable for repurchase as of June 30, 1999. Equifax hascontinued to repurchase its stock during the third quarter of1999. During the quarter Equifax incurred Year 2000 readinessexpenses of about $5.0 million after tax, or $.035 per share.The 1998 acquisitions in Brazil diluted earnings by about $.02per share. Revenue growth for the quarter, excluding acquisitionsand divestitures, was in the mid-single digits. "Equifax also announced several strategic initiatives toposition the company for the future," Chapman said. "Westrengthened our executive management team in key areas of ourbusiness and signed agreements with several new customers,including Fininvest and GE Capital in Brazil. We also enteredinto partnership with the Sun-Netscape Alliance and introducedserver certificates to help businesses secure their web sites fore-commerce over the Internet." BUSINESS RESULTS "Payment Services turned in a strong quarter with excellentperformance from Card Solutions and Check Solutions," said LeeKennedy, Equifax's president and chief operating officer. "Ourcore information business in the United States continues todemonstrate operating leverage and strong expense management. Weare pleased with the improved performance in Europe. The economyin Brazil is strengthening, and both our processing andinformation businesses are performing well. And we are committedto more than doubling the number of cards processed in Brazil byyear-end." Payment Services, which operates globally through CardSolutions and Check Solutions, increased revenue 23.5 percent to$163.6 million in the second quarter. Global Card Solutions isthe leading provider of third-party, full-service processingsolutions to credit unions and independent banks in the UnitedStates and commenced operations in the United Kingdom in June.The revenue increase in Payment Services was driven primarily bygrowth in new accounts, new customers and transactions processedin U.S. Card Solutions, as well as our card services business inBrazil which contributed revenue of $14 million for the quarter,and Check Solutions. Operating income of $30.6 million increased 27.7 percent as a result of continuedgrowth of both Card Solutions and Check Solutions. For the quarter, revenue in North American InformationServices of $196.8 million increased 1.4 percent versus second quarter lastyear. Revenue performance benefited from growth in U.S.Reporting Services, with increased sales across all industriesserved, partially offset by slightly lower revenue frommarketing services. One risk management services customer electedto take its collections business in-house which impacted revenueduring the quarter. Canadian revenue was down due to increasedcompetition within its reporting business as well as theexchange rate. North American Information Services had operatingincome of $71.7 million, increasing 5.3 percent versus secondquarter 1998. This group's operating income growth was in thelow double digits, excluding our investments for the future withKnowledge Engineering and Equifax Secure, the business thatenhances the security and privacy of Internet transactions. Revenue in Equifax Latin America (which does not include theCompany's Payment Services operation in Brazil) was $32.5million for the second quarter, with the recent acquisition ofSCI in Brazil contributing revenue of $16 million. Operatingincome of $5.0 million in the second quarter of 1999 increased16.1% versus second quarter 1998. The overall performance of theinformation business in Brazil exceeded expectations in localcurrency as Equifax is successfully integrating and managing theoperations of this 1998 acquisition. Operating income in Chileand Argentina declined versus 1998 results due to the exchangerate in Chile and lower revenue. Equifax Europe revenue was $47.2 million versus $46.5 millionin the second quarter 1998. This group's reported loss of $1.3million for the quarter, although impacted by severance costs,continues the improvement from fourth quarter 1998 and firstquarter 1999. Equifax is making progress in lowering the expensebase in the U.K. and expects continued improvement throughout1999 with a return to profitability in the third quarter. In addition, the sale of its minority interest in theBrazilian company Proceda, the sale of three small, non-strategic risk management offices in the United States, andinterest income from dollar denominated deposits in LatinAmerica resulted in a gain recorded as "Other Income" during thequarter which was partially offset by a higher effective taxrate associated with the sale of Proceda. Equifax (www.equifax.com), a worldwide leader in shapingglobal commerce, brings buyers and sellers together through itsinformation management, transaction processing and knowledge-based businesses. Atlanta-based Equifax serves the financialservices, retail, credit card, telecommunications/utilities,transportation, information technology and healthcare industriesand government. Equifax adds knowledge, expertise, convenienceand security to provide value-added solutions and processes forits customers wherever they do business, including the Internetand other networks. Entering its second century in business,Equifax employs about 13,000 associates in 18 countries withsales in almost 50 and has more than $1.7 billion in revenue. Statements in this press release that relate to Equifax'sfuture plans, objectives, expectations, performance, events andthe like are "forward-looking statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995 and the SecuritiesExchange Act of 1934. Future events, risks and uncertainties,individually or in the aggregate, could cause actual results todiffer materially from those expressed or implied in thesestatements. Those factors could include changes in worldwide andU.S. economic conditions that materially impact consumerspending and consumer debt, changes in demand for the Company'sproducts and services, risks associated with the integration ofacquisitions and other investments, and other factors discussedin the "Forward-looking Information" section in the management'sdiscussion and analysis included at Part II, Item 7 in theCompany's annual report on Form 10-K for the year ended December31, 1998, and in the "Year 2000 Information" section in themanagement's discussion and analysis included at Part I, Item 2in the Company's report on Form 10-Q for the first quarter of1999.

EQUIFAX INC.

FINANCIAL HIGHLIGHTS

(In thousands, except per shareamounts)

2nd Quarter (Unaudited)

Six Months(Unaudited)

1999

1998

19991998 Operating revenue

$442,586

$393,464

$864,090$746,558 Income before provision for income taxes:

Operating income

$96,880.

$92,183

$185,690$173,177

Other income, net(1) 8,540

649

9,0221,370

Interest expense

(15,291)

(8,222)

(30,426)(15,254) Income before income taxes

90,129

84,610

164,286159,293 Provision for income taxes

38,023

33,978

68,27963,926 Net income

$52,106

$50,632

$96,007$95,367 Net income per common share (diluted) $0.37

$0.35

$0.68$0.66 Shares used in computing diluted earnings per share

140,528

144,430

141,086144,545 (1) - In the second quarter of 1999, the Company sold its 34%interest in Proceda in Brazil and also sold three Risk Managementoffices in the U.S. The resulting gain of $7,095 has beenincluded in Other income, net ($2,888 after tax, or $.02 pershare). Operating revenue and operating income of the Company'sreportable segments for the second quarter and first six monthsof 1999 and 1998 are as follows (1998 information has beenrestated to conform with the 1999 presentation):

2nd Quarter (Unaudited) Six months (Unaudited) Operating revenue:

1999

1998

1999

1998 North American Information Services $196,835 $194,127 $388,827 $374,434 Payment Services

163,602 132,504 314,731 250,467 Equifax Europe

47,220

46,458

93,273

83,204 Equifax Latin America 32,520

17,966

62,441

33,635 Other

2,409

2,409

4,818

4,818

$442,586 $393,464 $864,090 $746,558 Operating income: North American Information Services $71,696 $68,069 $137,375 $129,933 Payment Services

30,607 23,970

59,244

43,205 Equifax Europe

(1,289) 4,732

(2,977)

7,887 Equifax Latin America

5,047

4,346

9,234

8,532 Other

2,217

2,217

4,434

4,432 Operating Contribution 108,278 103,334 207,310 193,989 General Corporate Expense

(11,398) (11,151) (21,620) (20,812)

$96,880 $92,183 $185,690 $173,177 CONTACT: Marietta Edmunds Zakas, Corp. VP, Communications ofEquifax

Inc., 404-885-8304 ots Original Text Service:Equifax Inc. Internet: http://www.newsaktuell.de Contact:Marietta Edmunds Zakas, Corp. VP, Communications of Equifax Inc.,404-885-8304 Web site: http://www.equifax.com

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