1365135--2/26/2010--Western_Union

related topics

{system, service, information}

{financial, litigation, operation}

{regulation, change, law}

{debt, indebtedness, cash}

{condition, economic, financial}

{capital, credit, financial}

{operation, international, foreign}

{product, market, service}

{property, intellectual, protect}

{tax, income, asset}

{acquisition, growth, future}

Current difficult conditions in the global financial markets, the global economic crisis and continued financial market disruptions could adversely affect our business, financial condition and results of operations. Risks associated with operations outside the United States and foreign currencies could adversely affect our business, financial position and results of operations. Changes in tax laws and unfavorable resolution of tax contingencies could adversely affect our tax expense. Acquisitions and integration of new businesses create risks and may affect operating results. Our consolidated balance sheet may not contain sufficient amounts or types of regulatory capital to meet the changing requirements of our various regulators worldwide, which could adversely affect our business, financial position and results of operations. If we are unable to maintain our agent, subagent or global business payments networks under terms consistent with those currently in place, or if our agents or subagents fail to comply with Western Union business and technology standards and contract requirements or applicable laws and regulations, our business, financial position and results of operations would be adversely affected. If consumers confidence in our business or in traditional money transfer providers generally deteriorates, our business, financial position and results of operations could be adversely affected. We face credit, liquidity and fraud risks from our agents, consumers and businesses that could adversely affect our business, financial position and results of operations. Interruptions in our systems or disruptions in our workforce may have a significant effect on our business. Our business, financial position and results of operations could be harmed by adverse rating actions by credit rating agencies. Western Union has been the subject of class-action litigation, and remains the subject of other litigation as well as consent agreements with or enforcement actions by regulators. We face competition from global and niche or corridor money transfer providers, United States and international banks, card associations, card-based payments providers and a number of other types of service providers, including electronic and internet providers. Our continued growth depends on our ability to compete effectively in the industry. Our ability to remain competitive depends in part on our ability to protect our brands and our other intellectual property rights and to defend ourselves against potential patent infringement claims. We receive services from third-party vendors that would be difficult to replace if those vendors ceased providing such services which could cause temporary disruption to our business. Breaches of our information security policies or safeguards could adversely affect our ability to operate and could damage our reputation, business, financial position and results of operations. Material changes in the market value or liquidity of the securities we hold may adversely affect our results of operations and financial condition. We have substantial debt obligations that could restrict our operations. Risks Relating to the Spin-Off If the Spin-off does not qualify as a tax-free transaction, First Data and its stockholders could be subject to material amounts of taxes and, in certain circumstances, we could be required to indemnify First Data for material taxes pursuant to indemnification obligations under the tax allocation agreement.

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1365135--2/26/2010--Western_Union_CO