Western Union Reports Second Quarter Results

Revenue of $1.35 Billion, Up 12% and EPS of $0.31, Up 19%

EPS Excluding Restructuring Expenses was $0.33, Up 27%

Raises EPS Guidance on Improving Tax Rate
ENGLEWOOD, Colo.--(Business Wire)--
The Western Union Company (NYSE: WU) today reported financial
results for the second quarter.

Highlights for the second quarter include:

-- Revenue of $1.35 billion, up 12%

-- EPS of $0.31, up 19%; or $0.33, up 27% excluding restructuring
expenses

-- Operating income margin of 25%, or 27% excluding restructuring
expenses compared to 27% in last year's second quarter

-- Year-to-date cash provided by operating activities of $560
million

-- Consumer-to-consumer (C2C) revenue increased 14% on 13%
transaction growth

-- International C2C, which was 68% of total revenue, grew
revenue 19% and transactions 18%

-- Consumer-to-business (C2B) revenue up 3%

-- Quarter closed with more than 355,000 agent locations

-- Raised EPS guidance excluding restructuring expense by $0.04
to $1.29 to $1.33

-- Raised GAAP EPS guidance by $0.04 to $1.22 to $1.26

Western Union President and Chief Executive Officer Christina Gold
said, "The second quarter was a solid quarter for us. We posted robust
double-digit revenue growth in our international markets while, at the
same time, benefiting from improving trends in our U.S. and Mexico
businesses. The broad global diversification of our business is
enabling us to deliver consistent results in a challenging economy."

Second Quarter Results

Revenue was $1.35 billion, up 12%. Operating income, which
included $23 million of restructuring expenses, was $336 million up 4%
(up 11% excluding restructuring expenses) and operating income margin
was 25% (27% excluding restructuring expenses) compared to 27% in last
year's second quarter. Net income was $232 million up 13%. Net income
excluding restructuring expenses was $244 million up 19%. The tax rate
for the quarter was 25% compared to 31% in last year's second quarter.

Revenue included $38 million of benefit from currency translation
of the euro and the related operating income benefit was $5 million.

Outlook

Driven by changes in the outlook for the 2008 tax rate, Western
Union's projection for earnings per share has increased by $0.04. The
new non-GAAP EPS range is $1.29 to $1.33, up from $1.25 to $1.29.
Management expects to deliver 2008 earnings per share that will likely
be at the higher end of its new range. The non-GAAP range excludes the
estimated $80 million ($0.07 per share) of full-year restructuring
expenses and includes the $10 million ($0.01 per share) in estimated
savings. This represents growth of 14% to 18% over last year's $1.13
in non-GAAP earnings per share.

GAAP earnings per share will likely be at the higher end of the
new $1.22 to $1.26 range (up from $1.18 to $1.22) or 10% to 14% growth
over last year's GAAP earnings per share of $1.11. This range includes
the impact from the estimated $80 million ($0.07 per share) of
full-year restructuring expenses and the benefit from the estimated
$10 million ($0.01 per share) in cost savings.

The company now expects a full-year tax rate of 26.5% for the GAAP
EPS range, and estimates a tax rate of 27.5% for the non-GAAP earnings
per share range. The company continues to benefit from a higher
proportion of profits being foreign-derived, which are taxed at lower
rates than the U.S. statutory rate. Additionally, the company has
recently finalized and further implemented foreign tax efficient
strategies consistent with the company's overall tax planning. These
items also contributed to the lower second quarter 2008 tax rate
compared to last year's second quarter.

For 2008, the company continues to expect revenue growth at the
higher end of the 9% to 11% range, cash flow from operations of $1.2
billion and operating margins consistent with 2007 excluding the 2008
restructuring expenses.

Gold concluded, "Our leadership position in the growing money
transfer market and our ability to execute our growth strategy gives
me confidence in our ability to achieve our long-term objectives of
10% to 12% revenue growth and 15% to 18% EPS growth."

Segment Results

The consumer-to-consumer segment, representing 85% of Western
Union revenue, continues to benefit from its extensive geographic
diversification. Revenue in the second quarter grew 14% to $1.1
billion on transaction growth of 13%. Operating income grew 17% and
operating income margin was 27%, up 70 basis points from second
quarter 2007.

The international portion of C2C, which was 68% of the company's
revenue in the second quarter, grew revenue 19% and transactions 18%.
A subset of the international business, those transactions that
originate outside of the United States and totaled 55% of Western
Union's second quarter revenue, posted revenue and transaction growth
of 26%.

In addition to segment reporting, Western Union also now presents
C2C revenue and transaction growth rates in a geographic view that
highlight the geographic diversification of the company's business.
The regions are:

-- Americas

-- Europe, Middle East, Africa and South Asia

-- Asia Pacific

The Americas region, which represents 34% of total revenue,
reported 1% revenue growth and 4% transaction growth year-over-year
and continues to be impacted by the challenging U.S. economy. In the
domestic money transfer business the improvement in westernunion.com
as well as a stable pricing environment resulted in continued
moderation of the revenue decline. Domestic revenue declined 7%, a 300
basis point improvement from second quarter 2007 and has improved for
five consecutive quarters.

The Mexico business continued to improve with transaction growth
rates that outpace the market, based on data released by the Banco de
Mexico. Revenue growth of 3% in the quarter outpaced transaction
growth of 1%. Pricing remains stable in this business.

In the Americas region, Western Union had significant agent
renewals. In the U.S., the company renewed its relationships with two
of its largest check cashing groups, PLS Check Cashers and Multi-State
Financial Services. In Brazil, Western Union extended its agent
agreement with Banco do Brazil for five additional years, building on
the 10-year successful relationship.

The Europe, Middle East, Africa and South Asia region represents
44% of total revenue and remains a growth engine for C2C. This region
posted revenue growth of 23% on transaction growth of 24%. India,
which according to The World Bank is the world's largest remittance
receive market, contributed to the success in this region with revenue
and transaction growth of 54% and 65%, respectively.

In the second quarter, the company renewed its agreement with the
State Bank of India (SBI) under which the bank offers Western Union
services through 4,700 SBI branches across the country including the
more rural parts of India. The company also signed an agreement with
the Sri Lanka Postal Department to offer Western Union money transfer
services.

The Asia Pacific region, which represents 7% of total revenue,
delivered 30% revenue growth and 25% transaction growth. Contributing
to the region's results was China's revenue and transaction growth of
27% and 18%, respectively. In Indonesia, the company signed an
agreement with Bank Danamon in which the bank will replace its
existing money transfer provider and begin offering Western Union
services in 400 locations.

Consumer-to-business revenue represents 13% of Western Union's
revenue and increased 3% to $179 million. Operating income was down
10% and operating margin was 28% compared to 32% in the second quarter
of 2007. Impacting the year-over-year operating income growth and
margin is the declining traditional U.S. cash bill payment business as
compared to the faster-growing U.S. electronic bill payment and Pago
Facil businesses, which have lower margins. The company plans to grow
this segment through expanding offerings and active global expansion.
This growth is expected to be generated both organically and through
acquisitions.

Buyback

During the second quarter, Western Union repurchased 17 million
shares for $385 million at an average cost of $23.32 per share. The
company is committed to returning capital to shareholders and has
repurchased more than $1.4 billion of its stock at an average price of
$21.65 since becoming a public company. In June, the Board of
Directors authorized an additional $1 billion for repurchases. As of
June 30, 2008 the company had $1.6 billion authorized for stock
repurchases through 2009.

Restructuring Expenses

In total, restructuring initiatives are expected to result in
full-year 2008 restructuring expenses of approximately $80 million,
which, in turn, should deliver estimated cost savings of $10 million
in 2008 and $35 million annually in 2009 and beyond.

Western Union incurred $23 million in restructuring expenses in
the second quarter for a total of $47 million year-to-date. Of the $23
million in second quarter restructuring expenses, $20 million was
included in cost of services and $3 million was included in selling,
general and administrative expense. For the first six months, of the
$47 million in restructuring expenses, $42 million was included in
cost of services and $5 million was included in selling, general and
administrative expense. The restructuring expenses were not included
in the operating segments results.

Restructuring expenses include expenses related to severance,
outplacement and other employee-related benefits; facility closure and
migration of IT infrastructure; and other expenses related to
relocation of various operations to existing company facilities and
third-party providers, including hiring, training, relocation, travel,
and professional fees. Also, included in the facility closure expenses
are non-cash expenses related to fixed asset and leasehold improvement
write-offs, and the acceleration of depreciation and amortization.

Non-GAAP Measures

Western Union's management presents earnings per share and
earnings per share growth excluding restructuring expenses; operating
income growth and margin excluding restructuring expenses; net income
and net income growth excluding restructuring expenses; 2008 earnings
per share guidance excluding restructuring expenses; 2008 earnings per
share growth guidance excluding restructuring expenses compared to
2007 earnings per share excluding the accelerated non-cash stock
compensation vesting charge; and 2008 full-year estimated effective
tax rate guidance excluding the impact of restructuring expenses,
which are non-GAAP measures, because management believes they provide
more meaningful information.

Reconciliations of non-GAAP to comparable GAAP measures are
available in the accompanying schedules and in the "Investor
Relations" section of the company's web site at www.westernunion.com.

Investor and Analyst Conference Call and Slide Presentation

Western Union President and Chief Executive Officer Christina Gold
will host a conference call and webcast including slides, at 8:30 a.m.
Eastern Time today. Joining Christina Gold on the conference call will
be Scott Scheirman, Executive Vice President and Chief Financial
Officer. To listen to the conference call live via telephone, dial
888-679-8018 (U.S.) or +1-617-213-4845 (outside the U.S.) ten minutes
prior to the start of the call. The pass code is 64554317.

The conference call and accompanying slides will be available via
webcast at http://ir.westernunion.com/investor. Registration for the
event is required, so please allow at least five minutes to register
prior to the scheduled start time.

A replay of the call will be available one hour after the call
ends through July 29, 2008 at 5:00 p.m. Eastern Time at 888-286-8010
(U.S.) or +1-617-801-6888 (outside the U.S.). The pass code is
53718844. A webcast replay will be available at
http://ir.westernunion.com/investor for the same time period.

Please note: All statements made by Western Union officers on this
call are the property of Western Union and subject to copyright
protection. Other than the replay, Western Union has not authorized,
and disclaims responsibility for, any recording, replay or
distribution of any transcription of this call.

Safe Harbor Compliance Statement for Forward-Looking Statements

This press release contains certain statements that are
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are not guarantees of
future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Actual outcomes and results
may differ materially from those expressed in, or implied by, our
forward-looking statements. Words such as "expects," "intends,"
"anticipates," "believes," "estimates," "guides," "provides guidance"
and other similar expressions or future or conditional verbs such as
"will," "should," "would" and "could" are intended to identify such
forward-looking statements. Readers of this press release by The
Western Union Company (the "Company," "Western Union," "we," "our" or
"us") should not rely solely on the forward-looking statements and
should consider all uncertainties and risks discussed under "Risk
Factors" included within the Annual Report on Form 10-K for the year
ended December 31, 2007. The statements are only as of the date they
are made, and the Company undertakes no obligation to update any
forward-looking statement.

Possible events or factors that could cause results or performance
to differ materially from those expressed in our forward-looking
statements include the following: changes in general economic
conditions and economic conditions in the geographic regions and
industries in which we operate; changes in immigration laws, patterns
and other factors related to immigrants; technological changes,
particularly with respect to e-commerce; the failure by us, our agents
or subagents to comply with our business and technology standards and
contract requirements or applicable laws and regulations, especially
laws designed to prevent money laundering and terrorist financing; our
ability to attract and retain qualified key employees and to
successfully manage our workforce; changes in foreign exchange rates,
including the impact of the regulation of foreign exchange spreads on
money transfers; adverse movements and volatility in debt and equity
capital markets; political conditions and related actions by the
United States and abroad which may adversely affect our businesses and
economic conditions as a whole; failure to maintain sufficient amount
or types of regulatory capital to meet the changing requirements of
our various regulators worldwide; growth in the money transfer market
and other markets in which we operate at rates materially lower than
recent levels; failure to implement agent contracts according to
schedule; our ability to maintain our agent network and biller
relationships under terms consistent with those currently in place;
interruptions of United States government relations with countries in
which we have or are implementing material agent contracts;
deterioration in consumers' and clients' confidence in our business,
or in money transfer providers generally; failure to successfully
manage credit and fraud risks presented by our agents and consumers;
adverse rating actions by credit rating agencies; liabilities and
unanticipated developments resulting from litigation and regulatory
investigations and similar matters, including costs, expenses,
settlements and judgments; changes in United States or foreign laws,
rules and regulations including the Internal Revenue Code, and
governmental or judicial interpretations thereof; our ability to
favorably resolve tax matters with the Internal Revenue Service and
other tax jurisdictions; changes in industry standards affecting our
business; changes in accounting standards, rules and interpretations;
failure to compete effectively in the money transfer industry with
respect to global and niche or corridor money transfer providers,
banks and other nonbank money transfer services providers, including
telecommunications providers, card associations and card-based
payments providers; our ability to grow our core businesses; our
ability to develop and introduce new products, services and
enhancements, and gain market acceptance of such products; our ability
to protect our brands and our other intellectual property rights; our
ability to manage the potential both for patent protection and patent
liability in the context of a rapidly developing legal framework for
intellectual property protection; any material breach of security of
or interruptions in any of our systems; mergers, acquisitions and
integration of acquired businesses and technologies into our company
and the realization of anticipated synergies from these acquisitions;
adverse consequences from our spin-off from First Data Corporation
("First Data"), including resolution of certain ongoing matters;
decisions to downsize, sell or close units, or to transition operating
activities from one location to another or to third parties,
particularly transitions from the United States to other countries;
decisions to change the business mix; cessation of various services
provided to us by third-party vendors; catastrophic events; and
management's ability to identify and manage these and other risks.

About Western Union

The Western Union Company (NYSE: WU) is a leader in global money
transfer services. Together with its affiliates, Orlandi Valuta and
Vigo, Western Union provides consumers with fast, reliable and
convenient ways to send and receive money around the world, as well as
send payments and purchase money orders. It operates through a network
of more than 355,000 Agent locations in over 200 countries and
territories. Famous for its pioneering telegraph services, the
original Western Union dates back to 1851. For more information, visit
www.westernunion.com.

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THE WESTERN UNION COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)

Three Months Ended Six Months Ended
June 30, June 30,
------------------------- --------------------------
2008 2007 Change 2008 2007 Change
--------- -------- ------ --------- --------- ------
Revenues:
Transaction
fees $1,081.3 $981.4 10% $2,102.1 $1,911.5 10%
Foreign
exchange
revenue 232.3 185.8 25% 442.3 352.4 26%
Commission and
other revenues 33.5 35.7 -6% 68.6 70.0 -2%
--------- -------- --------- ---------
Total revenues 1,347.1 1,202.9 12% 2,613.0 2,333.9 12%

Expenses:
Cost of
services (a) 799.4 687.9 16% 1,558.0 1,333.5 17%
Selling,
general and
administrative
(a) 211.5 192.3 10% 409.5 373.1 10%
--------- -------- --------- ---------
Total expenses 1,010.9 880.2 15% 1,967.5 1,706.6 15%

Operating income 336.2 322.7 4% 645.5 627.3 3%

Other income/
(expense):
Interest income 12.7 19.1 -34% 30.4 38.6 -21%
Interest expense (43.3) (46.8) -7% (88.3) (94.8) -7%
Derivative (b)
(losses)/gains,
net (2.4) 1.4 4.4 3.1 42%
Other income, net 4.8 1.8 (b) 8.5 6.1 39%
--------- -------- --------- ---------
Total other
expense, net (28.2) (24.5) 15% (45.0) (47.0) -4%
--------- -------- --------- ---------

Income before
income taxes 308.0 298.2 3% 600.5 580.3 3%
Provision for
income taxes 76.5 93.7 -18% 161.9 182.6 -11%
--------- -------- --------- ---------

Net income $231.5 $204.5 13% $438.6 $397.7 10%
========= ======== ========= =========

Earnings per
share:
Basic $0.31 $0.27 15% $0.59 $0.52 13%
Diluted $0.31 $0.26 19% $0.58 $0.51 14%

Weighted-average
shares
outstanding:
Basic 736.5 764.8 741.6 766.5
Diluted 747.5 779.0 752.2 781.1

-----------------
(a) Cost of services and selling, general and administrative expenses
include estimated restructuring and related expenses of $19.5 million
and $3.4 million for the three months ended June 30, 2008,
respectively, and $41.9 million and $5.2 million in estimated
restructuring and related expenses for the six months ended June 30,
2008, respectively. Such restructuring and related expenses impacted
earnings per share by $0.02 and $0.04 for the three and six months
ended June 30, 2008, respectively.

(b) Calculation not meaningful
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THE WESTERN UNION COMPANY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)

June 30, December 31,
2008 2007
--------- ------------
Assets
Cash and cash equivalents $1,874.6 $1,793.1
Settlement assets 1,442.4 1,319.2
Property and equipment, net of accumulated
depreciation of $278.4 and $251.5,
respectively 199.5 200.3
Goodwill 1,640.1 1,639.5
Other intangible assets, net of accumulated
amortization of $245.9 and $236.8,
respectively 349.8 334.1
Other assets 517.9 498.0
--------- ------------
Total assets $6,024.3 $5,784.2
========= ============

Liabilities and Stockholders' Equity
Liabilities:
Accounts payable and accrued liabilities $407.5 $350.1
Settlement obligations 1,441.6 1,319.2
Income tax payable 310.8 279.7
Deferred tax liability, net 272.5 263.6
Borrowings 3,368.7 3,338.0
Other liabilities 197.7 182.9
--------- ------------
Total liabilities 5,998.8 5,733.5

Stockholders' equity:
Preferred stock, $1.00 par value; 10 shares
authorized; no shares issued - -
Common stock, $0.01 par value; 2,000 shares
authorized; 732.4 shares and 749.8 shares
issued, respectively 7.3 7.5
Capital deficiency (113.5) (341.1)
Retained earnings 209.5 453.1
Accumulated other comprehensive loss (77.8) (68.8)
--------- ------------
Total stockholders' equity 25.5 50.7
--------- ------------
Total liabilities and stockholders' equity $6,024.3 $5,784.2
========= ============
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THE WESTERN UNION COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)

Six Months Ended
June 30,
-------------------
2008 2007
--------- ---------

CASH FLOWS FROM OPERATING ACTIVITIES
Net income $438.6 $397.7
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 69.3 61.3
Stock compensation expense 13.5 15.9
Other non-cash items, net 12.0 17.4
Increase (decrease) in cash, resulting from
changes in:
Other assets (34.3) 24.6
Accounts payable and accrued liabilities 28.4 5.1
Income tax payable 37.4 (22.9)
Other liabilities (4.6) (12.0)
--------- ---------
Net cash provided by operating activities 560.3 487.1

CASH FLOWS FROM INVESTING ACTIVITIES
Capitalization of contract costs (40.7) (9.7)
Capitalization of purchased and developed software (11.3) (15.2)
Purchases of property and equipment (28.5) (43.8)
Notes receivable issued to agents (1.0) (5.6)
Repayments of notes receivable issued to agents 13.7 10.9
--------- ---------
Net cash used in investing activities (67.8) (63.4)

CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds/(repayments of) commercial paper 30.8 (164.6)
Repayments of borrowings under credit facilities - (3.0)
Proceeds from exercise of options 214.2 90.5
Common stock repurchased (656.0) (280.5)
--------- ---------
Net cash used in financing activities (411.0) (357.6)

Net change in cash and cash equivalents 81.5 66.1
Cash and cash equivalents at beginning of period 1,793.1 1,421.7
--------- ---------
Cash and cash equivalents at end of period $1,874.6 $1,487.8
========= =========
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THE WESTERN UNION COMPANY
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)

Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- --------------------------
2008 2007 Change 2008 2007 Change
--------- --------- ------- --------- --------- ------
Revenues:
Consumer-to-
Consumer:
Transaction
fees $905.0 $811.8 11% $1,739.6 $1,563.0 11%
Foreign
exchange
revenue 231.5 185.4 25% 440.8 351.7 25%
Other
revenues 8.9 9.6 -7% 18.8 18.4 2%
--------- --------- --------- ---------
Total
Consumer-to-
Consumer: 1,145.4 1,006.8 14% 2,199.2 1,933.1 14%

Consumer-to-
Business:
Transaction
fees 166.4 160.4 4% 343.0 329.2 4%
Other
revenues 13.0 14.5 -10% 26.2 27.9 -6%
--------- --------- --------- ---------
Total
Consumer-to-
Business: 179.4 174.9 3% 369.2 357.1 3%

Other:
Revenue 22.3 21.2 5% 44.6 43.7 2%
--------- --------- --------- ---------
Total Other: 22.3 21.2 5% 44.6 43.7 2%

--------- --------- --------- ---------
Total
consolidated
revenues $1,347.1 $1,202.9 12% $2,613.0 $2,333.9 12%
========= ========= ========= =========

Operating
income:
Consumer-to-
Consumer $305.8 $262.0 17% $579.1 $500.7 16%
Consumer-to-
Business 49.7 55.1 -10% 105.9 116.0 -9%
Other 3.6 5.6 -36% 7.6 10.6 -28%
--------- --------- --------- ---------
Total segment
operating
income $359.1 $322.7 11% $692.6 $627.3 10%
Restructuring
and related
expenses (22.9) - (a) (47.1) - (a)
--------- --------- --------- ---------
Total
consolidated
operating
income $336.2 $322.7 4% $645.5 $627.3 3%
========= ========= ========= =========

Operating
income
margin:
Consumer-to- 70 bp 40 bp
Consumer 26.7% 26.0% 26.3% 25.9%
Consumer-to- (380) (380)
Business 27.7% 31.5% bp 28.7% 32.5% bp
Other (1030) (730)
16.1% 26.4% bp 17.0% 24.3% bp
Total (180) (220)
consolidated bp bp
operating
income margin 25.0% 26.8% 24.7% 26.9%

Depreciation
and
Amortization:
Consumer-to-
Consumer $27.2 $24.4 11% $53.3 $47.8 12%
Consumer-to-
Business 5.6 5.5 2% 10.7 11.7 -9%
Other 1.1 1.0 10% 2.2 1.8 22%
--------- --------- --------- ---------
Total segment
depreciation
and
amortization $33.9 $30.9 10% $66.2 $61.3 8%
Restructuring
and related
expenses 2.6 - (a) 3.1 - (a)
--------- --------- --------- ---------
Total
consolidated
depreciation
and
amortization $36.5 $30.9 18% $69.3 $61.3 13%
========= ========= ========= =========

--------------
(a) Calculation not meaningful
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THE WESTERN UNION COMPANY
KEY INDICATORS
(in millions)
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2008 2007 Change 2008 2007 Change
-------- -------- ------ -------- -------- ------

Transactions
Consumer-to-
Consumer 47.1 41.7 13% 90.2 79.5 13%
Consumer-to-
Business 101.5 99.3 2% 205.0 199.7 3%

Revenue
Consumer-to-
Consumer $1,145.4 $1,006.8 14% $2,199.2 $1,933.1 14%
Consumer-to-
Business $179.4 $174.9 3% $369.2 $357.1 3%

Three Months Ended Six Months Ended
June 30, 2008 June 30, 2008
------------------------ ------------------------
Consumer-to-Consumer
Transaction Growth
(a)
EMEASA 24% 25%
Americas 4% 4%
APAC 25% 24%
Consumer-to-
Consumer 13% 13%

Consumer-to-Consumer
Revenue Growth (a)
EMEASA 23% 24%
Americas 1% 1%
APAC 30% 31%
Consumer-to-
Consumer 14% 14%

Three Months Ended Six Months Ended
June 30, 2008 June 30, 2008
------------------------ ------------------------
Consumer-to-Consumer
Transaction
Growth/(Decline)
International
(b) 18% 19%
Domestic (c) (3)% (3)%
Mexico (d) 1% 2%
Consumer-to-
Consumer 13% 13%

Consumer-to-Consumer
Revenue
Growth/(Decline)
International
(b) 19% 19%
Domestic (c) (7)% (7)%
Mexico (d) 3% 2%
Consumer-to-
Consumer 14% 14%

(a) In determining the revenue and transaction growth rates under this
regional view, the geographic split is determined based upon the
region where the money transfer is initiated and the region where the
money transfer is paid, with each transaction and the related revenue
being split 50% between the two regions. For those money transfer
transactions that are initiated and paid in the same region, 100% of
the revenue is attributed to that region.

(b) Represents transactions between and within foreign countries
(excluding Canada and Mexico), transactions originated in the United
States or Canada and paid elsewhere, and transactions originated
outside the United States or Canada and paid in the United States or
Canada. Excludes all transactions between or within the United States
and Canada and all transactions to and from Mexico as reflected in
(b) and (c) below.

(c) Represents all transactions between and within the United States
and Canada.

(d) Represents all transactions to and from Mexico.
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THE WESTERN UNION COMPANY
RECONCILIATION OF NON-GAAP MEASURES
(in millions)
(unaudited)

Western Union's management has presented earnings per share, earnings
per share growth, net income and net income growth, 2008 full year
estimated effective tax rate guidance, and 2008 earnings per share
guidance and 2008 earnings per share growth guidance, excluding
restructuring and related expenses. In addition, Western Union's
management has presented operating income margin and operating income
growth, excluding restructuring and related expenses. In presenting
Western Union's 2008 earnings per share growth guidance excluding
restructuring and related expenses, Western Union's management has
excluded from the Company's 2007 earnings per share, the accelerated
non-cash SFAS No. 123R accounting for stock-based compensation
charge, resulting from the acquisition of First Data Corporation
("First Data") by an affiliate of Kohlberg, Kravis, Roberts & Co.
("KKR") in the third quarter of 2007. Western Union's management
believes these non-GAAP measures provide meaningful supplemental
information regarding our operating results to assist management,
investors, analysts, and others in understanding our financial
results and to better analyze trends in our underlying business,
because they provide consistency and comparability to prior periods.

A non-GAAP financial measure should not be considered in isolation or
as a substitute for the most comparable GAAP financial measure. A
non-GAAP financial measure reflects an additional way of viewing
aspects of our operations that, when viewed with our GAAP results and
the reconciliation to the corresponding GAAP financial measure,
provide a more complete understanding of our business. Users of the
financial statements are encouraged to review our financial
statements and publicly-filed reports in their entirety and not to
rely on any single financial measure. A reconciliation of non-GAAP
measures to the most directly comparable GAAP financial measures is
included below.

Three Months Ended
June 30,
------------------
2008 2007
--------- --------

Net income as reported (GAAP) $231.5 $204.5

Adjustment:
Restructuring and related expenses, net of
income tax benefit of $10.2 million (a) 12.7 -
--------- --------

Net income adjusted $244.2 $204.5
========= ========

Earnings per share ("EPS"):
As reported (GAAP) $0.31 $0.26
Restructuring and related expenses (a) 0.02 -
--------- --------
Adjusted $0.33 $0.26
========= ========

Growth:
Net income, as reported (GAAP) 13%
Net income, adjusted 19%

EPS, as reported (GAAP) 19%
EPS, adjusted 27%

-------
Refer to footnote explanations at the end of this "Reconciliation of
Non-GAAP Measures" section.
*T

-0-
*T
THE WESTERN UNION COMPANY
RECONCILIATION OF NON-GAAP MEASURES
(in millions)
(unaudited)

Three Months Ended
June 30,
------------------
2008 2007
--------- --------

Revenues $1,347.1 $1,202.9
========= ========

Operating income as reported (GAAP) $336.2 $322.7

Adjustment:
Restructuring and related expenses (a) 22.9 -
--------- --------

Operating income adjusted $359.1 $322.7
========= ========

Operating income growth, as reported (GAAP) 4%
Operating income growth, adjusted 11%

Operating income margin, as reported (GAAP) 25.0%
Operating income margin, adjusted 26.7%

--------
Refer to footnote explanations at the end of this "Reconciliation of
Non-GAAP Measures" section.
*T

-0-
*T
THE WESTERN UNION COMPANY
RECONCILIATION OF NON-GAAP MEASURES
(in millions)
(unaudited)

EPS Guidance
Range
------------------

2008 EPS Guidance GAAP basis $1.22 $1.26

Adjustment:
Estimated restructuring and related expenses, net
of income tax benefit (a) 0.07 0.07

--------- --------
Adjusted 2008 EPS Guidance, excluding estimated
restructuring and related expenses $1.29 $1.33
========= ========

2007 EPS as reported (GAAP) $1.11 $1.11

Adjustment:
Accelerated non-cash stock compensation vesting
charge, net of income tax benefit (b) 0.02 0.02

--------- --------
Adjusted 2007 EPS $1.13 $1.13
========= ========

Earnings per share growth:
2008 EPS guidance (GAAP) compared to 2007 EPS as
reported (GAAP) 10% 14%

Non-GAAP EPS guidance, excluding estimated 2008
restructuring and related expenses, compared to
adjusted 2007 EPS, excluding accelerated non-cash
stock compensation vesting charge 14% 18%

-
Refer to footnote explanations at the end of this "Reconciliation of
Non-GAAP Measures" section.
*T

-0-
*T
THE WESTERN UNION COMPANY
RECONCILIATION OF NON-GAAP MEASURES
(in millions)
(unaudited)

2008 Full Year Estimated Effective Tax Rate Guidance ("ETR")

2008
----------

Estimated ETR (GAAP Basis) 26.5%
Estimated ETR benefit for restructuring and related
expenses (a) 1.0
----------
Adjusted Estimated ETR 27.5%
==========
*T

(a) Restructuring and related expenses incurred in the three
months ended June 30, 2008 include $22.9 million of expenses and an
estimated $79 million of expenses for 2008. These expenses relate to
severance, outplacement and other employee related benefits; facility
closure and migration of our IT infrastructure; and other expenses
related to relocation of various operations to existing Company
facilities and third party providers, including hiring, training,
relocation, travel, and professional fees. Also, included in the
facility closure expenses are non-cash expenses related to fixed asset
and leasehold improvement write-offs, and acceleration of depreciation
and amortization. For purposes of calculating the "Adjusted 2008 EPS
guidance, excluding estimated restructuring and related expenses," the
EPS impact of $0.07 is net of an estimated income tax benefit of $31
million. The restructuring and related expenses are included in cost
of services and selling, general and administrative expense lines of
the income statement, and are not allocated to the segments.

(b) In the third quarter of 2007, the Company recognized a $22
million or a $0.02 per share non-cash charge in accordance with SFAS
No. 123R accounting for stock-based compensation resulting from the
previously announced acceleration of vesting in Western Union stock
options and awards granted to current Western Union employees prior to
the spin-off from First Data. Under the terms of the plan, vesting was
accelerated for these options and awards as a result of the change of
control that occurred when an affiliate of KKR acquired First Data,
Western Union's former parent company, on September 24, 2007.

WU-G, WU-F

The Western Union Company
Media
Eric Jackson, +1-720-332-2001
Mobile: +1-303-330-2639
eric.jackson@westernunion.com
or
Investors
Gary Kohn, +1-720-332-8276
gary.kohn@westernunion.com

Copyright Business Wire 2008