Total System Services Execs Discuss Credit Cards in China

| About: Total System (TSS)

From this morning's Total System Services (NYSE:TSS) Q2 2006 earnings conference call:

David Parker - Merrill Lynch

Can you just provide an update on the business in China and your relationship with CUP Data?

Phil Tomlinson - Chief Executive Officer

As a matter of fact, we've just moved another key individual from Columbus to China. He's on his way there as we speak. We're very excited about where China is. Obviously as you know, they still have not issued millions and millions of cards there. But I think the latest stat that I saw is there are 30 to 32 card-issuing organizations in China today and CUP Data has got 26 of them.

It's going to take some time to build this thing up. We have said that. We continue to believe that you have to be in China if you're going to be in this business. We do have the strongest partner in the land; they are the national, they are the Visa and MasterCard all rolled into one. We are one of the largest shareholders of that.

I think our working relationship is really starting to happen now. One of the things they wanted from us is, how do you become a world-class processing organization? That's what we're trying to deal with in China right now.

We're very excited. We've had a couple of board meetings. Any time you go there, you cannot help but get excited about it. But we're still very bullish on our opportunities in China.

David Parker - Merrill Lynch

You're still set to increase your ownership in CUP Data at some point?

Phil Tomlinson - Chief Executive Officer

Well, we're certainly trying to. Anything that happens in China, it can change on the hour. Nothing is as simple as it seems on the surface. But we do fully expect to go forward with that. If anything were to change on that issue, we would certainly let you know.

David Parker - Merrill Lynch

Great, thank you, guys.

Comment: TSS's plans in China were presented at greater length on previous earnings conference calls. You can access transcripts of those calls here.