Euronet's consolidated second quarter 2010 financial highlights included:

* Revenues of $244.2 million, compared to $248.6 million for the second quarter 2009.
* Operating income of $16.5 million, compared to $18.0 million for the second quarter 2009.
* Adjusted EBITDA(1) of $32.6 million, compared to $33.7 million for the second quarter 2009.
* Net loss of $1.5 million, or $0.03 diluted loss per share, compared to net income of $15.6 million, or $0.30 diluted earnings per share, for the second quarter 2009.
* Adjusted cash earnings per share(2) of $0.30, compared to $0.30 for the second quarter 2009.
* Transactions of 406.4 million, compared to 373.0 million for the second quarter 2009.

See the reconciliation of non-GAAP items in the attached supplemental data.

"Cash earnings per share of $0.30 matches that of last year's second quarter results and is particularly noteworthy given the lower Poland interchange fees that took effect in the second quarter," said Euronet's Chairman and Chief Executive Officer, Mike Brown. "Foreign exchange rates have fluctuated significantly since April 2010, reducing our cash earnings per share by more than one cent per share compared to our guidance for the quarter. Aside from the lower interchange fees in Poland, the Company's EFT Segment delivered solid results and the Money Transfer Segment benefited from its global expansion in new markets and payout corridors, resulting in a 56% increase in operating income year-over-year. However, the epay segment experienced additional challenges as a result of continued global economic pressures."

Although foreign currency exchange rates fluctuated significantly between the first and second quarters of 2010, the net impact of foreign currency fluctuations was not significant when comparing year-over-year changes in revenues, operating income and adjusted EBITDA.

Segment and Other Results

The EFT Processing Segment reported the following results for the secon the for the secon the following results for the second quarter 2010:

* Revenues of $46.5 million, compared to $45.6 million for the second quarter 2009.
* Operating income of $8.2 million, compared to $9.8 million for the second quarter 2009.
* Adjusted EBITDA of $12.7 million, compared to $14.3 million for the second quarter 2009.
* Transactions of 197.3 million, compared to 174.3 million for the second quarter 2009.

The EFT Processing Segment's decrease in operating income and adjusted EBITDA was the result of the lower Poland interchange fees announced April 27, 2010. The Segment continued to benefit from higher transaction fees in Germany, add ATMs under management, grow its Cashnet network in India and effectively manage operating costs.

The EFT Processing Segment operated 10,408 ATMs as of June 30, 2010 compared to 9,336 ATMs as of June 30, 2009.

The epay Segment reported the following results for the second quarter 2010:

* Revenues of $137.6 million, compared to $145.2 million for the second quarter 2009.
* Operating income of $9.6 million, compared to $12.1 million for the second quarter 2009.
* Adjusted EBITDA of $13.4 million, compared to $15.7 million for the second quarter 2009.
* Transactions of 204.4 million, compared to 194.2 million for the second quarter 2009.

Revenues declined due to mobile operator rate decreases in certain markets, most of which were passed through to retailers, the impacts of volume declines in the U.K., Australia and Spain, due to economic pressures, and the mix of transactions. The epay Segment offers different levels of service with associated differences in revenue and costs per transaction. Typically, gross margin is higher for transactions with lower revenue. In the second quarter, the Segment's transactions increased year-over-year but a shift in the mix of transaction resulted in lower revenue. Due to the higher profit margin of these transactions, the epay Segment's gross profits remained constant.

The decline in operating income and adjusted EBITDA was primarily due to an increase of $2.3 million in operating costs related to professional fees and costs to support initiatives in growth markets, approximately $1.0 million of which is expected to be non-recurring.

As of June 30, 2010, the epay Segment processes electronic point-of-sale ("POS") transactions at approximately 515,000 POS terminals at 241,000 retailer locations in Europe, Asia Pacific and the U.S.

The Money Transfer Segment reported the following results for the second quarter 2010:

* Revenues of $60.1 million, compared to $57.8 million for the second quarter 2009.
* Operating income of $4.2 million, compared to $2.7 million for the second quarter 2009.
* Adjusted EBITDA of $9.2 million, compared to $7.8 million for the second quarter 2009.
* Transfer transactions of 4.7 million, compared to 4.5 million for the second quarter 2009.

Transaction growth of 18% from non-U.S. markets outpaced continued declines in money transfers from the U.S. to Mexico of 10%, resulting in 4% revenue growth. Transaction growth across the money transfer business was principally driven by expansion of the agent and correspondent payout networks in new and existing markets and the addition of new products. Operating income and adjusted EBITDA grew significantly more than revenues because growth occurred in more profitable markets and we continue to leverage fixed operating costs.

As of June 30, 2010, the Money Transfer Segment serves 120 countries and operates a network of approximately 104,400 locations, compared to 79,200 as of June 30, 2009.

Corporate and other had $5.5 million of operating expenses for the second quarter 2010 compared to $6.6 million for the second quarter 2009. The reduction in expenses is primarily attributable to lower incentive compensation accruals and professional fees.

Balance Sheet and Financial Position

The Company's unrestricted cash on hand was $202.6 million as of June 30, 2010 compared to $185.3 million as of March 31, 2010. Euronet's total indebtedness was $289.2 million as of June 30, 2010 compared to $289.1 million as of March 31, 2010.

Recently, Moody's upgraded the Company's corporate family rating to Ba3 from B1, and the ratings for its senior secured credit facilities to Ba1 from Ba2 citing Euronet's track record of steady deleveraging.

Guidance

The Company currently expects adjusted cash earnings per share for the third quarter 2010 to be approximately $0.33, assuming foreign currency rates remain stable through the end of the quarter.