Euronet's second quarter 2008 financial highlights included:

• Consolidated revenues of $264.5 million, compared to $233.4 million for the second quarter 2007.
• Adjusted EBITDA of $34.6 million, compared to $29.9 million for the second quarter 2007.
• Operating income of $17.3 million, compared to $15.3 million in the second quarter 2007.
• Net income of $7.8 million, or $0.15 diluted earnings per share, compared to net income for the second quarter 2007 of $8.5 million, or $0.17 diluted earnings per share.
• Diluted cash earnings per share from continuing operations of $0.32, compared to $0.28 for the second quarter 2007 (see reconciliation of diluted cash earnings per share in the attached schedules).
• Transactions of 342.4 million, compared to 310.9 million for the second quarter 2007.

Segment and Other Results

The EFT Processing Segment reported the following results for the second quarter 2008:

• Revenues of $52.4 million, compared to $42.0 million for the second quarter 2007.
• Adjusted EBITDA of $14.0 million, compared to $12.7 million for the second quarter 2007.
• Operating income of $9.0 million, compared to $8.7 million for the second quarter 2007.
• Transactions of 168.6 million, compared to 146.9 million for the second quarter 2007.

The year-over-year increases in revenues, operating income and Adjusted EBITDA were primarily attributable to the expansion of our ATM network. The EFT Processing Segment ended the second quarter 2008 with 10,160 ATMs owned or operated compared to 9,858 ATMs at the end of the second quarter 2007. In the second quarter 2008, an ATM processing services agreement with a customer in the U.K. expired and was not renewed. The number of ATMs operated at the end of the second quarter 2008 reflects the decrease of these 2,376 ATMs. Moreover, in the second quarter the Company continued to incur significant expenses to develop and deploy its cross-border merchant acquiring business. Operating income and Adjusted EBITDA reflect a total reduction of $1.9 million and $1.8 million, respectively, when compared to the prior year related to the Company's net operating costs of the cross-border merchant acquiring business and the expiration of the U.K. customer contract. Excluding these two items, operating income margins would have improved in line with the increase in revenues.

Beginning in the second quarter 2008, we are classifying the operations of Euronet Essentis Limited ("Essentis"), a U.K. software entity previously included in the EFT Processing Segment, as discontinued operations because the Company has decided to sell the business. This is the result of the Company's decision to narrow the focus of its investments and resources on its transaction processing businesses. As required by U.S. GAAP, the results of the discontinued Essentis operations have been removed from the results from continuing operations for all periods presented.

As of June 30, 2008, Euronet owns and/or operates ATMs primarily in Hungary, Poland, Germany, Croatia, the Czech Republic, Greece, Romania, Slovakia, Albania, Serbia, Montenegro, Ukraine, Bulgaria, India and China.

The Prepaid Processing Segment reported the following results for the second quarter 2008:

• Revenues of $152.6 million, compared to $142.2 million for the second quarter 2007.
• Adjusted EBITDA of $15.6 million, compared to $13.7 million for the second quarter 2007.
• Operating income of $11.4 million, compared to $9.8 million for the second quarter 2007.
• Transactions of 169.5 million, compared to 160.2 million for the second quarter 2007.

The Prepaid Processing Segment processes electronic point-of-sale prepaid transactions at approximately 397,000 point-of-sale terminals across approximately 200,000 retailer locations in Europe, Asia Pacific and the U.S.

Growth in revenues, operating profits and operating margins in the Prepaid Processing Segment for the second quarter 2008 compared to the second quarter 2007 was primarily attributable to organic transaction growth and the containment of commensurate increases in other operating expenses, while allowing for investments in a number of new markets, including Italy.

The Money Transfer Segment reported the following results for the second quarter 2008:

• Revenues of $59.5 million, compared to $49.2 million for the second quarter 2007.
• Adjusted EBITDA of $7.7 million, compared to $6.2 million for the second quarter 2007.
• Operating income of $2.6 million, compared to $1.4 million for the second quarter 2007.
• Transactions of 4.3 million, compared to 3.8 million for the second quarter 2007.

The results for the second quarter 2007 include a charge of $0.9 million for integration and restructuring charges stemming from the combination of RIA Envia, Inc. ("RIA") with our previous money transfer business and exclude the results for the four days prior to the April 4, 2007 acquisition of RIA.

On a pro forma basis, the growth rate of revenues exceeded the transfer growth rate largely as a result of a 42% increase in transfers from non-US locations, offsetting a 7% decline in transfers to Mexico. While transfers to Mexico declined, gross profit on transfers to Mexico was the same as the prior year as a result of the Company's focus on higher margin transfers.

Corporate and other reported $5.7 million of operating expenses for the second quarter 2008, compared to $4.6 million for the second quarter 2007. This increase is primarily the result of increased share-based compensation related to awards made to new employees, including those in the Money Transfer Segment.

The Company's effective tax rate from continuing operations decreased to 26% for the second quarter 2008 from 36% for the second quarter 2007. The decrease was principally attributable to the resolution of uncertain tax positions resulting from the successful completion of tax audits and certain benefits stemming from planning and structuring of the RIA acquisition.

The Company's unrestricted cash on hand was $255.6 million as of June 30, 2008 as compared to $237.1 million at March 31, 2008. Euronet's total indebtedness was $487.1 million as of June 30, 2008, compared to $498.5 million as of March 31, 2008.

Euronet also announced that it expects diluted cash earnings per share from continuing operations for the third and fourth quarters 2008 to be approximately $0.33 and $0.36, respectively.

Read the consolidated statements here: