Becoming the global solutions provider for all commerce extends our potential well beyond the horizons of "card processing." The systems of TSYS provide the most secure, reliable and efficient link between the world's buyers and sellers, anywhere at any time. TSYS collects and retains more transaction data per account than any other company. Then we return that information to clients in a meaningful way, so they can better serve every customer and maximize every commerce decision. It's our definition of knowledge management.

With three knowledge management initiatives - data and transaction processing, global markets and emerging technologies - TSYS will enable client companies to access commerce knowledge in a way that retains customers, reduces costs, manages risks and increases profits.

At its core, TSYS has been an e-commerce company for almost a quarter-century, moving electronic transactions by phone lines, satellites, and now, at the speed of light across fiber optic cables. The credit card remains the undisputed champion for Internet purchasing, and TSYS moves those transactions better than any other company. Every electronic transaction represents an opportunity for growth. TSYS has formulated a simple, logical strategy to capitalize on that opportunity. We are creating the pathways to fulfill every kind of transaction. We are increasing the velocity and value of every electronic transaction. We are enabling our core functions for service through Internet conduits, then expanding those services to new market sectors and extending our proven ability to manage massive volumes of data for clients.

E-commerce mania has shifted quickly to business-to-business spending. As more transactions between businesses are executed electronically through the Internet, the credit card remains the most viable spending vehicle. We service 86 percent of the Visa^® and MasterCard^® commercial accounts. Businesses and investors will continue to shift their dollars and attentions to the business-to-business arena, where TSYS is enabling companies to conduct commerce successfully and profitably. We are in the middle of the revolution.

All these things are made possible by our robust and flexible processing system, TS2^®, which outperforms any comparable product in the industry. We believe that TS2 will continue to be the industry's most sophisticated processing system because it was designed to evolve and to grow with the market.

TSYS will execute its three knowledge management initiatives through seven tactics.

• Capitalize on the e-commerce revolution
• Expand business-to-business offerings
• Expand merchant service offerings
• Capitalize on outsourcing trends for portfolio management
• Build a competitive advantage in evolving technology and markets
• Grow core processing
• Drive international expansion