Western Union Reports Second Quarter Results

  Western Union Reports Second Quarter Results

                             Revenue Increases 4%
                   2012 Full Year Revenue Outlook Affirmed
                    Increasing EPS Outlook for Tax Benefit
                   Company Executing Against Strategic Plan

Business Wire

ENGLEWOOD, Colo. -- July 24, 2012

The Western Union Company (NYSE: WU) today reported financial results for the
2012 second quarter.

Financial highlights for the quarter included:

  *Revenue of $1.4 billion, a reported increase of 4%, or 7% constant
    currency, compared to last year’s second quarter
  *Pro forma revenue increase of 2% constant currency, including Travelex
    Global Business Payments (TGBP) in the prior year period
  *Operating margin of 24.3% compared to 25.7% in the prior year. Operating
    margin was 25.3% excluding TGBP integration expenses of $14 million,
    compared to 26.3% excluding $9 million of restructuring expenses in the
    prior year period. Second quarter operating margin excluding TGBP
    integration expenses of 25.3% increased from 24.3% in the first quarter
  *Consumer-to-Consumer operating margins were consistent with prior year.
    The decrease in consolidated operating margin compared to prior year was
    primarily due to the acquisition of TGBP, including intangibles
    amortization, and incremental investments related to compliance and
    Ventures
  *EBITDA margin excluding TGBP integration expenses of 29.3%, compared to
    29.7% excluding restructuring expenses in the prior year period and 28.9%
    in the first quarter
  *Effective tax rate of 12.5%, compared to 21.1% in the prior year and 14.8%
    in the first quarter. The effective tax rate in the second quarter
    included a non-recurring benefit from favorable resolution of certain
    foreign and U.S. tax positions
  *EPS of $0.44, compared to $0.41 in the prior year. EPS excluding TGBP
    integration expense of $0.46, compared to $0.42 in the prior year
    excluding restructuring expenses. Prior year EPS included a gain of $0.03
    related to the Company’s previous 30% ownership position in Angelo Costa
    S.r.l.
  *Year-to-date cash provided by operating activities of $446 million,
    including the impact of tax payments of approximately $100 million
    relating to the agreement with the U.S. Internal Revenue Service announced
    December 15, 2011

Western Union President and Chief Executive Officer Hikmet Ersek commented,
“Overall we are on track for our full year financial outlook. In the quarter,
our core consumer money transfer business, which represents over 80% of
Company revenue, delivered solid 3% constant currency growth with consistent
margins. The Middle East and Africa, Asia Pacific, and Latin America regions
and on-line money transfer performed well, more than offsetting the impact of
consumer slowdowns in Southern Europe and some expected softness in certain
countries. The global diversification of our portfolio and resiliency of our
consumers continue to drive revenue growth and strong cash flow, even in a
challenging economic environment.”

Ersek continued, “We continue to invest for the future to support our
strategic growth areas of Global Consumer Financial Services, Business
Solutions, and Ventures. We are further expanding our consumer network, and
now have 510,000 agent locations across the world. Business Solutions global
expansion is on track and new customer acquisition is strong. In Ventures, our
westernunion.com on-line money transfer service continues to deliver strong
growth while we develop new capabilities, and our prepaid business will soon
benefit from a significant increase in distribution points in the U.S.”

Ersek added, “The long-term opportunities are strong, and we believe in our
growth strategies for the future. Our business continues to generate
significant free cash flow, and we have returned over $430 million to
shareholders through the combination of share repurchase and dividends in the
first half of the year. We remain committed to strong cash deployment for our
shareholders.”

Additional highlights for the quarter included:

  *Consumer-to-Consumer (C2C) revenue flat on a reported basis and an
    increase of 3% constant currency, on transaction growth of 4%

       *C2C represented 81% of Company revenue
       *North America region revenue flat with the prior year period
       *Europe and the CIS region revenue decrease of 8%, including a
         negative 5% impact from currency translation
       *Middle East and Africa (MEA) region revenue increase of 3%, including
         a negative 3% impact from currency translation
       *Asia Pacific (APAC) region revenue increase of 4%, including a
         negative 2% impact from currency translation
       *Latin America and the Caribbean (LACA) region revenue increase of 5%,
         including a negative 2% impact from currency translation
       *westernunion.com revenue increase of 23%, including a negative 4%
         impact from currency translation
       *C2C operating margin of 28.5% compared to 28.6% in the prior year

  *Consumer-to-Business (C2B) payments revenue decrease of 3% reported and
    flat constant currency

       *C2B represented 11% of Company revenue
       *C2B operating margin of 22.4% compared to 24.6% in the prior year

  *Business Solutions revenue of $92 million, compared to $31 million in the
    prior year

       *Business Solutions represented 6% of Company revenue
       *Pro forma revenue increase of 4% constant currency, including TGBP
         revenue in the prior year period
       *Operating loss of $15 million, including $15 million of depreciation
         and amortization and $14 million of TGBP integration expenses
         (integration expenses include approximately $1 million that is also
         included in depreciation and amortization), compared to an operating
         loss of $2 million in the prior year (prior year does not include
         TGBP)

  *Electronic channels revenue increase of 26%

       *Electronic channels, which include westernunion.com, account based
         money transfer, and mobile money transfer, represented 3% of total
         Company revenue (included in the various segments)

  *Prepaid revenue increase of 6%

       *Prepaid including third party top-up represented 1% of Company
         revenue

  *Agent locations of approximately 510,000 as of June 30
  *Share repurchases of $163 million (10 million shares at an average price
    of $16.87 per share) and dividends declared of $0.10 per share or $61
    million in the quarter

Additional Statistics

Additional key statistics for the quarter and historical trends can be found
in the supplemental tables included with this press release.

2012 Outlook

The Company affirms its full year 2012 revenue and EBITDA margin outlook
provided on April 24, and has increased its earnings per share outlook,
primarily due to the tax benefit recorded in the second quarter. The Company
has reduced its operating margin outlook due to increased compliance related
costs; reduced its Business Solutions revenue outlook; and increased its
outlook for cash flow from operations due to timing of tax payments.

The Company now expects the following outlook for 2012:

Revenue

  *Constant currency revenue growth in a range of +6% to +8%, including a +4%
    benefit from the full year inclusion of TGBP
  *GAAP revenue growth 2% lower than constant currency
  *Business Solutions pro forma constant currency revenue growth of
    mid-single digits, including TGBP revenue in the prior year period

Operating Margins

  *GAAP operating margin of approximately 24.5%. The Company’s previous
    outlook for GAAP operating margin was approximately 25%
  *Operating margin of approximately 25.5% excluding TGBP integration costs.
    The Company’s previous outlook was approximately 26%
  *EBITDA margin excluding TGBP integration costs of approximately 30%
  *The operating margin outlook decrease is due to incremental compliance
    costs of approximately $15 million related to the Dodd-Frank Consumer
    Financial Protection Bureau remittance disclosure rules, and other
    incremental compliance costs primarily related to the Southwest Border
    agreement

Tax Rate

  *The Company anticipates an effective tax rate in a range of 15% to 16%,
    including the non-recurring benefit recorded in the second quarter. The
    Company’s previous outlook was 16% to 17%

Earnings Per Share

  *GAAP EPS in a range of $1.68 to $1.72, which compares to the previous
    outlook of $1.65 to $1.70
  *EPS excluding TGBP integration expenses in a range of $1.73 to $1.77,
    which compares to the previous outlook of $1.70 to $1.75

Cash Flow from Operations

  *Cash flow from operations in a range of $1.1 billion to $1.2 billion, or
    $1.2 billion to $1.3 billion excluding anticipated tax payments of
    approximately $100 million relating to the IRS agreement announced on
    December 15, 2011. The cash flow from operations increased due to timing
    of the anticipated tax payments

Non-GAAP Measures

Western Union presents a number of non-GAAP financial measures because
management believes that these metrics provide meaningful supplemental
information in addition to the GAAP metrics and provide comparability and
consistency to prior periods. These non-GAAP financial measures include
revenue change constant currency adjusted, pro forma revenue change TGBP and
constant currency adjusted, operating income margin excluding restructuring
expense, operating income margin excluding restructuring and TGBP integration
expense, EBITDA margin excluding restructuring and TGBP integration expense,
earnings per share restructuring and TGBP integration expense adjusted,
Consumer-to-Consumer segment revenue change constant currency adjusted,
Consumer-to-Business segment revenue change constant currency adjusted,
Business Solutions segment pro forma revenue change TGBP and constant currency
adjusted, 2012 revenue change outlook constant currency adjusted, 2012
operating income margin outlook TGBP integration expense adjusted, 2012 EBITDA
margin outlook TGBP integration expense adjusted, 2012 earnings per share
outlook TGBP integration expense adjusted, 2012 operating cash flow outlook
IRS Agreement adjusted, and additional measures found in the supplemental
schedule included with this press release.

Reconciliations of non-GAAP to comparable GAAP measures are available in the
accompanying schedules and in the “Investor Relations” section of the
Company’s website at www.westernunion.com.

EBITDA

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)
results from taking operating income and adjusting for depreciation and
amortization expenses. The 2012 EBITDA has been adjusted to exclude TGBP
integration expense, and the 2011 EBITDA has been adjusted to exclude
restructuring expenses and TGBP integration expense. EBITDA results provide an
additional performance measurement calculation which helps neutralize the
income statement effect of assets acquired in prior periods.

TGBP Integration

The Company expects approximately $50 million of integration expense for TGBP
in 2012, of which approximately $14 million was incurred in the second
quarter. TGBP integration expense consists primarily of severance and other
benefits, retention, direct and incremental expense consisting of facility
relocation, consolidation and closures; IT systems integration; amortization
of a transitional trademark license; and other expenses such as training,
travel, and professional fees. Integration expense does not include costs
related to the completion of the TGBP acquisition.

Restructuring

The Company did not incur any restructuring expenses in the second quarter of
2012. The Company recorded $9 million of restructuring charges in the second
quarter of 2011. Approximately $0.5 million was included in cost of services
and $8.4 million was included in selling, general, and administrative expense.
The restructuring charges relate primarily to organizational changes designed
to simplify business processes, move decision-making closer to the
marketplace, and create operating efficiencies. The Company realized pre-tax
savings from the initiatives of approximately $55 million in 2011, and expects
$70 million annualized beginning in 2012. Restructuring expenses are not
reflected in segment operating results.

Restructuring expenses include expenses related to severance, outplacement and
other related benefits; facility closure and migration of IT infrastructure;
and other expenses related to relocation of various operations to new or
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.

Currency

Constant currency results assume foreign revenues and expenses are translated
from foreign currencies to the U.S. dollar, net of the effect of foreign
currency hedges, at rates consistent with those in the prior year. Constant
currency results also assume any benefit or loss caused by foreign exchange
fluctuations between foreign currencies and the U.S. dollar, net of the effect
of foreign currency hedges, would have been consistent with the prior year.
Additionally, the measurement assumes the impact of fluctuations in foreign
currency derivatives not designated as hedges and the portion of fair value
that is excluded from the measure of effectiveness for those contracts
designated as hedges is consistent with the prior year.

Investor and Analyst Conference Call and Slide Presentation

The Company will host a conference call and webcast, including slides, at 8:30
a.m. Eastern Time today. To listen to the conference call live via telephone,
dial 866-450-8367 (U.S.) or +1-412-317-5427 (outside the U.S.) ten minutes
prior to the start of the call. The pass code is 6061472.

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

A replay of the call will be available approximately two hours after the call
ends through August 3, 2012, at 877-344-7529 (U.S.) or +1-412-317-0088
(outside the U.S.). The pass code is 6061472. A webcast replay will be
available at http://ir.westernunion.com 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,” “provides outlook” 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 in the “Risk Factors” section and throughout the Annual Report on
Form10-K for the year ended December31, 2011. 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: (i) events related to our business and industry, such as:
deterioration in consumers' and clients' confidence in our business, or in
money transfer and payment service providers generally; changes in general
economic conditions and economic conditions in the regions and industries in
which we operate, including global economic downturns and financial market
disruptions; political conditions and related actions in the United States and
abroad which may adversely affect our business and economic conditions as a
whole; interruptions of United States government relations with countries in
which we have or are implementing material agent contracts; changes in, and
failure to manage effectively exposure to, foreign exchange rates, including
the impact of the regulation of foreign exchange spreads on money transfers
and payment transactions; changes in immigration laws, interruptions in
immigration patterns and other factors related to migrants; our ability to
adapt technology in response to changing industry and consumer needs or
trends; our failure to develop and introduce new services and enhancements,
and gain market acceptance of such services; mergers, acquisitions and
integration of acquired businesses and technologies into our Company, and the
realization of anticipated financial benefits from these acquisitions;
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 our
business mix; failure to manage credit and fraud risks presented by our
agents, clients and consumers or non-performance by our banks, lenders, other
financial services providers or insurers; adverse movements and volatility in
capital markets and other events which affect our liquidity, the liquidity of
our agents or clients, or the value of, or our ability to recover our
investments or amounts payable to us; any material breach of security or
safeguards of or interruptions in any of our systems; our ability to attract
and retain qualified key employees and to manage our workforce successfully;
our ability to maintain our agent network and business relationships under
terms consistent with or more advantageous to us than those currently in
place; adverse rating actions by credit rating agencies; failure to compete
effectively in the money transfer industry with respect to global and niche or
corridor money transfer providers, banks and other money transfer services
providers, including telecommunications providers, card associations,
card-based payment providers and electronic and Internet providers; our
ability to protect our brands and our other intellectual property rights; our
failure to manage the potential both for patent protection and patent
liability in the context of a rapidly developing legal framework for
intellectual property protection; changes in tax laws and unfavorable
resolution of tax contingencies; cessation of various services provided to us
by third-party vendors; material changes in the market value or liquidity of
securities that we hold; restrictions imposed by our debt obligations;
significantly slower growth or declines in the money transfer market and other
markets in which we operate; and changes in industry standards affecting our
business; (ii) events related to our regulatory and litigation environment,
such as: the failure by us, our agents or their subagents to comply with laws
and regulations designed to detect and prevent money laundering, terrorist
financing, fraud and other illicit activity; changes in United States or
foreign laws, rules and regulations including the Internal Revenue Code,
governmental or judicial interpretations thereof and industry practices and
standards; liabilities resulting from a failure of our agents or subagents to
comply with laws and regulations; increased costs due to regulatory
initiatives and changes in laws, regulations and industry practices and
standards affecting our agents; liabilities and unanticipated developments
resulting from governmental investigations and consent agreements with, or
enforcement actions by, regulators, including those associated with compliance
with, or a failure to comply with the settlement agreement with the State of
Arizona; the impact on our business of the Dodd-Frank Wall Street Reform and
Consumer Protection Act, the rules promulgated there-under and the creation of
the Consumer Financial Protection Bureau; liabilities resulting from
litigation, including class-action lawsuits and similar matters, including
costs, expenses, settlements and judgments; failure to comply with regulations
regarding consumer privacy and data use and security; effects of unclaimed
property laws; failure to maintain sufficient amounts or types of regulatory
capital to meet the changing requirements of our regulators worldwide; and
changes in accounting standards, rules and interpretations; and (iii) other
events, such as: adverse consequences from our spin-off from First Data
Corporation; 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 payment services.
Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business
Solutions branded payment services, Western Union provides consumers and
businesses with fast, reliable and convenient ways to send and receive money
around the world, to send payments and to purchase money orders. As of June
30, 2012, the Western Union, Vigo and Orlandi Valuta branded services were
offered through a combined network of approximately 510,000 agent locations in
200 countries and territories. In 2011, The Western Union Company completed
226 million consumer-to-consumer transactions worldwide, moving $81 billion of
principal between consumers, and 425 million business payments. For more
information, visit www.westernunion.com.

WU-F, WU-G


THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)
                                                                                               
                       Notes*   2Q11        3Q11        4Q11        FY2011      1Q12        2Q12        YTD 2Q12
                                                                                                        
Consolidated Metrics
Consolidated
revenues (GAAP) -               7       %   6       %   5       %   6       %   9       %   4       %   6       %
YoY % change
Consolidated
revenues (constant     a        5       %   5       %   6       %   5       %   9       %   7       %   8       %
currency) - YoY %
change
Agent locations                 470,000     485,000     485,000     485,000     495,000     510,000     510,000
                                                                                                        
Consumer-to-Consumer
(C2C) Segment
Revenues (GAAP) -               8       %   6       %   3       %   5       %   4       %   0       %   2       %
YoY % change
Revenues (constant
currency) - YoY %      e        5       %   4       %   3       %   4       %   5       %   3       %   4       %
change
Operating margin                28.6    %   29.0    %   28.0    %   28.6    %   27.7    %   28.5    %   28.1    %
                                                                                                        
Transactions (in                56.31       57.64       59.00       225.79      56.37       58.49       114.86
millions)
Transactions - YoY%             6       %   5       %   5       %   6       %   7       %   4       %   5       %
change
                                                                                                        
Total principal ($ -            20.6        21.1        20.6        81.3        19.5        20.1        39.6
billions)
Principal per
transaction ($ -                365         366         349         360         346         344         345
dollars)
Principal per
transaction - YoY %             4       %   3       %   (2)     %   1       %   (4)     %   (6)     %   (5)     %
change
Principal per
transaction            f        0       %   0       %   (1)     %   0       %   (3)     %   (3)     %   (3)     %
(constant currency)
- YoY % change
                                                                                                        
Cross-border
principal ($ -                  18.6        19.0        18.5        73.2        17.5        18.2        35.7
billions)
Cross-border
principal - YoY %               10      %   8       %   2       %   7       %   2       %   (2)     %   0       %
change
Cross-border
principal (constant    g        6       %   5       %   3       %   5       %   3       %   1       %   2       %
currency) - YoY %
change
                                                                                                        
Europe and CIS
region revenues -      t, u     8       %   3       %   (1)     %   3       %   0       %   (8)     %   (4)     %
YoY % change
Europe and CIS
region transactions    t, u     3       %   0       %   (1)     %   1       %   1       %   (2)     %   (1)     %
- YoY % change
                                                                                                        
North America region
revenues - YoY %       t, v     3       %   5       %   2       %   3       %   5       %   0       %   2       %
change
North America region
transactions - YoY %   t, v     7       %   6       %   5       %   7       %   6       %   2       %   4       %
change
                                                                                                        
Middle East and
Africa region          t, w     6       %   5       %   2       %   4       %   6       %   3       %   5       %
revenues - YoY %
change
Middle East and
Africa region          t, w     3       %   3       %   4       %   3       %   9       %   9       %   9       %
transactions - YoY %
change
                                                                                                        
APAC region revenues   t, x     14      %   10      %   6       %   10      %   7       %   4       %   5       %
- YoY % change
APAC region
transactions - YoY %   t, x     10      %   7       %   9       %   9       %   6       %   5       %   6       %
change
                                                                                                        
LACA region revenues   t, y     8       %   5       %   3       %   7       %   2       %   5       %   3       %
- YoY % change
LACA region
transactions - YoY %   t, y     5       %   5       %   5       %   5       %   8       %   5       %   6       %
change
                                                                                                        
westernunion.com
region revenues -      t, z     40      %   43      %   39      %   37      %   39      %   23      %   30      %
YoY % change
westernunion.com
region transactions    t, z     29      %   33      %   35      %   29      %   41      %   35      %   38      %
- YoY % change
                                                                                                        
International
revenues (GAAP) -      aa       8       %   5       %   2       %   5       %   4       %   0       %   2       %
YoY % change
International
revenues (constant     h, aa    5       %   4       %   3       %   4       %   4       %   3       %   4       %
currency) - YoY %
change
International
transactions - YoY %   aa       5       %   4       %   5       %   5       %   6       %   4       %   5       %
change
International
principal per          aa       399         401         381         393         378         378         378
transaction ($ -
dollars)
International
principal per          aa       6       %   4       %   (1)     %   3       %   (3)     %   (5)     %   (4)     %
transaction - YoY %
change
International
principal per
transaction            i, aa    1       %   1       %   (1)     %   1       %   (2)     %   (2)     %   (2)     %
(constant currency)
- YoY % change
                                                                                                        
International
revenues excl. US      bb       10      %   6       %   2       %   6       %   4       %   (1)     %   2       %
origination (GAAP) -
YoY % change
International
revenues excl. US
origination            j, bb    5       %   4       %   3       %   4       %   4       %   3       %   4       %
(constant currency)
- YoY % change
International
transactions excl.     bb       6       %   5       %   5       %   6       %   7       %   5       %   6       %
US origination - YoY
% change
                                                                                                        
Electronic channels
revenues - YoY %       cc       39      %   40      %   36      %   35      %   38      %   26      %   32      %
change
                                                                                                        
Consumer-to-Business
(C2B) Segment
Revenues (GAAP) -               2       %   2       %   2       %   1       %   1       %   (3)     %   (1)     %
YoY % change
Revenues (constant
currency) - YoY %      k        2       %   3       %   3       %   2       %   3       %   0       %   1       %
change
Operating margin                24.6    %   21.0    %   27.3    %   23.9    %   26.5    %   22.4    %   24.5    %
                                                                                                        
Business Solutions
(B2B) Segment
Revenues (GAAP) -               15      %   31      %   **          **          **          **          **
YoY % change
Revenues (constant
currency) - YoY %      l        7       %   22      %   **          **          **          **          **
change
Operating margin                (5.7)   %   (4.8)   %   (2.8)   %   (6.0)   %   (17.0)  %   (15.7)  %   (16.3)  %
                                                                                                        
% of Total Company
Revenue
Consumer-to-Consumer            84      %   84      %   83      %   84      %   81      %   81      %   81      %
segment revenues
Europe and CIS         t, u     24      %   24      %   23      %   24      %   22      %   22      %   22      %
region revenues
North America region   t, v     22      %   22      %   21      %   22      %   21      %   21      %   21      %
revenues
Middle East and
Africa region          t, w     15      %   16      %   16      %   15      %   15      %   15      %   15      %
revenues
APAC region revenues   t, x     12      %   12      %   12      %   12      %   12      %   12      %   12      %
LACA region revenues   t, y     9       %   8       %   9       %   9       %   9       %   9       %   9       %
westernunion.com       t, z     2       %   2       %   2       %   2       %   2       %   2       %   2       %
region revenues
Consumer-to-Business            12      %   12      %   11      %   11      %   11      %   11      %   11      %
segment revenues
Business Solutions              2       %   2       %   5       %   3       %   6       %   6       %   6       %
segment revenues
Electronic channels    cc       3       %   3       %   3       %   3       %   3       %   3       %   3       %
revenues
Prepaid revenues       dd       1       %   1       %   1       %   1       %   1       %   1       %   1       %
Marketing expense      ee       4.1     %   4.5     %   4.4     %   4.1     %   3.8     %   3.7     %   3.7     %
                                                                                                        
* See page 15 of the press release for the applicable Note references and the reconciliation of non-GAAP
financial measures.
                                                                                                        
** Calculation of growth percentage is not meaningful due to the impact of the TGBP acquisition in November 2011.
                     

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

                    Three Months Ended                   Six Months Ended
                                                      
                    June 30,                             June 30,
                    2012         2011         Change   2012         2011         Change
Revenues:
Transaction fees    $ 1,059.4     $ 1,057.0     -        $ 2,100.3     $ 2,055.0     2    %
Foreign exchange      334.6         279.2       20   %     657.2         535.3       23   %
revenues
Other revenues       31.1        30.1       3    %    61.0        59.0       3    %
Total revenues        1,425.1       1,366.3     4    %     2,818.5       2,649.3     6    %
                                                                                     
Expenses:
Cost of services      797.5         764.2       4    %     1,580.5       1,509.6     5    %
Selling, general
and                  281.7       251.4      12   %    559.6       476.1      18   %
administrative
Total expenses       1,079.2     1,015.6    6    %    2,140.1     1,985.7    8    %
(a)
                                                                                     
Operating income      345.9         350.7       (1)  %     678.4         663.6       2    %
                                                                                     
Other
income/(expense):
Interest income       1.2           1.3         (8)  %     2.7           2.5         8    %
Interest expense      (45.1   )     (44.2   )   2    %     (89.5   )     (87.6   )   2    %
Derivative
gains/(losses),       (0.7    )     (1.3    )   (46) %     0.9           0.6         50   %
net
Other income, net    8.8         26.9       (67) %    7.7         29.0       (73) %
Total other          (35.8   )    (17.3   )   (b   )    (78.2   )    (55.5   )   41   %
expense, net
                                                                                     
Income before         310.1         333.4       (7)  %     600.2         608.1       (1)  %
income taxes
Provision for        38.9        70.2       (45) %    81.7        134.7      (39) %
income taxes
                                                                                     
Net income          $ 271.2      $ 263.2      3    %   $ 518.5      $ 473.4      10   %
                                                                                     
Earnings per
share:
Basic               $ 0.44        $ 0.42        5    %   $ 0.84        $ 0.74        14   %
Diluted             $ 0.44        $ 0.41        7    %   $ 0.84        $ 0.74        14   %
                                                                                     
Weighted-average
shares
outstanding:
Basic                 610.9         631.1                  615.0         639.0
Diluted               613.1         635.8                  617.5         644.0
                                                                                     
Cash dividends
declared per        $ 0.10        $ 0.08        25   %   $ 0.20        $ 0.15        33   %
common share:
                                                                                     
_______
(a) Total expenses includes TGBP integration expense of $3.4 million and $3.6 million in
cost of services and $11.1 million and $17.3 million in selling, general and administrative
for the three and six months ended June 30, 2012, respectively, and restructuring and
related expenses of $0.5 million and $7.4 million in cost of services and $8.4 million and
$25.5 million in selling, general and administrative for the three and six months ended
June 30, 2011, respectively.
(b) Calculation not meaningful.
                                                     

THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)
                                                            
                                              June 30,          December 31,
                                              2012              2011
Assets
Cash and cash equivalents (a)                 $  1,403.8        $  1,370.9
Settlement assets                                3,103.3           3,091.2
Property and equipment, net of accumulated
depreciation
of $391.0 and $429.7, respectively               196.4             198.1
Goodwill                                         3,174.1           3,198.9
Other intangible assets, net of
accumulated amortization
of $473.2 and $462.5, respectively               861.6             847.4
Other assets                                    426.8           363.4    
Total assets                                  $  9,166.0       $  9,069.9  
                                                                
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable and accrued liabilities      $  496.0          $  535.0
Settlement obligations                           3,103.3           3,091.2
Income taxes payable                             189.6             302.4
Deferred tax liability, net                      388.8             389.7
Borrowings                                       3,673.1           3,583.2
Other liabilities                               262.4           273.6    
Total liabilities                                8,113.2           8,175.1
                                                                
Stockholders' equity:
Preferred stock, $1.00 par value; 10
shares
authorized; no shares issued                     -                 -
Common stock, $0.01 par value; 2,000
shares authorized;
604.5 shares and 619.4 shares issued and
outstanding as of
June 30, 2012 and December 31, 2011,             6.0               6.2
respectively
Capital surplus                                  311.0             247.1
Retained earnings                                842.8             760.0
Accumulated other comprehensive loss            (107.0   )       (118.5   )
Total stockholders' equity                      1,052.8         894.8    
Total liabilities and stockholders' equity    $  9,166.0       $  9,069.9  
                                                                
_______
(a) Approximately $710 million was held by entities outside of the United
States as of June 30, 2012.


THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)
                                                        
                                     Six Months Ended

                                     June 30,
                                     2012                    2011
                                                             
Cash Flows From Operating
Activities
Net income                           $    518.5              $   473.4
Adjustments to reconcile net
income to net cash provided by
operating
activities:
Depreciation                              31.3                   30.4
Amortization                              91.6                   60.9
Gain on revaluation of equity             -                      (29.4     )
interest
Other non-cash items, net                 1.2                    3.6
Increase/(decrease) in cash,
excluding the effects of
acquisitions,
resulting from changes in:
Other assets                              (19.8      )           (3.4      )
Accounts payable and accrued              (45.3      )           (48.4     )
liabilities
Income taxes payable (a)                  (111.1     )           42.4
Other liabilities                        (20.7      )          (23.2     )
Net cash provided by operating            445.7                  506.3
activities
                                                             
Cash Flows From Investing
Activities
Capitalization of contract                (78.3      )           (44.8     )
costs
Capitalization of purchased and           (15.6      )           (4.0      )
developed software
Purchases of property and                 (27.4      )           (26.6     )
equipment
Acquisition of businesses                (4.8       )          (135.7    )
Net cash used in investing                (126.1     )           (211.1    )
activities
                                                             
Cash Flows From Financing
Activities
Proceeds from exercise of                 45.0                   91.6
options
Cash dividends paid                       (122.3     )           (95.0     )
Common stock repurchased                  (302.4     )           (658.5    )
Net proceeds from commercial              93.0                   -
paper
Net proceeds from issuance of            -                    299.0     
borrowings
Net cash used in financing               (286.7     )          (362.9    )
activities
                                                             
Net change in cash and cash               32.9                   (67.7     )
equivalents
Cash and cash equivalents at             1,370.9              2,157.4   
beginning of period
Cash and cash equivalents at         $    1,403.8           $   2,089.7   
end of period
                                                             
_______
(a) The Company made tax payments of approximately $100 million through the
second quarter of 2012 due to the December 2011 agreement with the United
States Internal Revenue Services ("IRS") resolving substantially all of the
issues related to the restructuring of our international operations in 2003
("IRS Agreement").


THE WESTERN UNION COMPANY
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)
                                                                                    
                        Three Months Ended                     Six Months Ended

                        June 30,                               June 30,
                        2012          2011          Change     2012          2011          Change
Revenues:
Consumer-to-Consumer
(C2C):
Transaction fees        $ 893.6       $ 898.0       -          $ 1,765.6     $ 1,737.8     2     %
Foreign exchange          248.9         245.4       1      %     488.3         472.8       3     %
revenues
Other revenues           12.5        11.7       7      %    25.7        22.6       14    %
Total                     1,155.0       1,155.1     -            2,279.6       2,233.2     2     %
Consumer-to-Consumer:
                                                                                           
Consumer-to-Business
(C2B):
Transaction fees        $ 142.1       $ 144.1       (1)    %   $ 289.8       $ 288.8       -
Foreign exchange          0.9           2.3         (61)   %     1.7           3.2         (47)  %
revenues
Other revenues           6.4         7.1        (10)   %    13.0        14.7       (12)  %
Total                     149.4         153.5       (3)    %     304.5         306.7       (1)   %
Consumer-to-Business:
                                                                                           
Business Solutions
(B2B) (a):
Transaction fees        $ 10.0        $ 1.1         (d     )   $ 16.5        $ 2.0         (d    )
Foreign exchange          82.5          30.1        (d     )     162.6         56.9        (d    )
revenues
Other revenues           -           0.2        (d     )    0.3         0.4        (d    )
Total Business            92.5          31.4        (d     )     179.4         59.3        (d    )
Solutions:
                                                                                           
Other:
Total revenues:         $ 28.2        $ 26.3        7      %   $ 55.0        $ 50.1        10    %
                                                                          
Total consolidated      $ 1,425.1    $ 1,366.3    4      %   $ 2,818.5    $ 2,649.3    6     %
revenues
                                                                                           
Operating
income/(loss):
Consumer-to-Consumer    $ 328.9       $ 329.8       -          $ 640.2       $ 638.4       -
Consumer-to-Business      33.5          37.7        (11)   %     74.6          72.3        3     %
Business Solutions        (14.5   )     (1.8    )   (d     )     (29.3   )     (6.1    )   (d    )
(b)
Other                    (2.0    )    (6.1    )   (67)   %    (7.1    )    (8.1    )   (12)  %
Total segment             345.9         359.6       (4)    %     678.4         696.5       (3)   %
operating income
Restructuring and        -           (8.9    )   (d     )    -           (32.9   )   (d    )
related expenses (c)
Total consolidated      $ 345.9      $ 350.7      (1)    %   $ 678.4      $ 663.6      2     %
operating income
                                                                                           
                                                                                           
Operating income
margin:
Consumer-to-Consumer      28.5    %     28.6    %   (0.1)  %     28.1    %     28.6    %   (0.5) %
Consumer-to-Business      22.4    %     24.6    %   (2.2)  %     24.5    %     23.6    %   0.9   %
Business Solutions        (15.7)  %     (5.7)   %   (10.0) %     (16.3)  %     (10.3)  %   (6.0) %
Total consolidated
operating income          24.3    %     25.7    %   (1.4)  %     24.1    %     25.0    %   (0.9) %
margin
                                                                                           
Depreciation and
amortization:
Consumer-to-Consumer    $ 37.9        $ 35.1        8      %   $ 80.7        $ 68.3        18    %
Consumer-to-Business      3.8           5.1         (25)   %     7.7           10.3        (25)  %
Business Solutions        15.4          4.6         (d     )     30.6          9.0         (d    )
Other                    1.9         1.1        73     %    3.9         2.4        63    %
Total segment
depreciation and          59.0          45.9        29     %     122.9         90.0        37    %
amortization
Restructuring and        -           0.7        (d     )    -           1.3        (d    )
related expenses (c)
Total consolidated
depreciation and        $ 59.0       $ 46.6       27     %   $ 122.9      $ 91.3       35    %
amortization
_______
(a) The significant change in Business Solutions revenues for the three and six months ended June
30, 2012 was primarily the result of the acquisition of Travelex Global Business Payments on
November 7, 2011.
(b) Business Solutions operating loss includes $14.5 million and $20.9 million related to TGBP
integration expense for the three and six months ended June 30, 2012, respectively.
(c) Restructuring and related expenses are excluded from the measurement of segment operating
profit provided to the Chief Operating Decision Maker for purposes of assessing segment
performance and decision making with respect to resource allocation.
(d) Calculation not meaningful.


THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(in millions, unless indicated otherwise)
(Unaudited)
                                                                                                      
Western Union's management believes the non-GAAP financial measures presented 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
financial measures to the most directly comparable GAAP financial measures is included below.
                                                                                                               
All adjusted year-over-year changes were calculated using prior year reported amounts, unless indicated otherwise.
                                                                                                               
                                                                                                               
                           2Q11          3Q11          4Q11          FY2011        1Q12          2Q12          YTD 2Q12
    Consolidated Metrics
(a)    Revenues, as        $ 1,366.3     $ 1,410.8     $ 1,431.3     $ 5,491.4     $ 1,393.4     $ 1,425.1     $ 2,818.5
       reported (GAAP)
       Foreign currency
       translation          (32.5   )    (18.2   )    10.4        (38.0   )    8.1         34.6        42.7    
       impact (m)
       Revenues,
       constant currency   $ 1,333.8    $ 1,392.6    $ 1,441.7    $ 5,453.4    $ 1,401.5    $ 1,459.7    $ 2,861.2 
       adjusted
       Prior year
       revenues, as        $ 1,273.4     $ 1,329.6     $ 1,357.0     $ 5,192.7     $ 1,283.0     $ 1,366.3     $ 2,649.3
       reported (GAAP)
       Pro forma prior
       year revenues,        N/A           N/A           N/A           N/A         $ 1,338.0     $ 1,426.0     $ 2,764.0
       TGBP adjusted (n)
       Revenue change,
       as reported           7       %     6       %     5       %     6       %     9       %     4       %     6       %
       (GAAP)
       Revenue change,
       constant currency     5       %     5       %     6       %     5       %     9       %     7       %     8       %
       adjusted
       Pro forma revenue
       change, TGBP          N/A           N/A           N/A           N/A           4       %     0       %     2       %
       adjusted
       Pro forma revenue
       change, TGBP and      N/A           N/A           N/A           N/A           5       %     2       %     4       %
       constant currency
       adjusted (m)
                                                                                                               
       Operating income,
(b)    as reported         $ 350.7       $ 363.0       $ 358.4       $ 1,385.0     $ 332.5       $ 345.9       $ 678.4
       (GAAP)
       Reversal of
       restructuring and     8.9           13.9          -             46.8          N/A           N/A           N/A
       related expenses
       (o)
       Reversal of TGBP
       integration          N/A         N/A         4.8         4.8         6.4         14.5        20.9    
       expense (p)
       Operating income,
       excl.
       restructuring and   $ 359.6      $ 376.9      $ 363.2      $ 1,436.6    $ 338.9      $ 360.4      $ 699.3   
       TGBP integration
       expense
       Operating income
       margin, as            25.7    %     25.7    %     25.0    %     25.2    %     23.9    %     24.3    %     24.1    %
       reported (GAAP)
       Operating income
       margin, excl.         26.3    %     26.7    %     25.0    %     26.1    %     23.9    %     24.3    %     24.1    %
       restructuring
       Operating income
       margin, excl.
       restructuring and     N/A           N/A           25.4    %     26.2    %     24.3    %     25.3    %     24.8    %
       TGBP integration
       expense
                                                                                                               
       Operating income,
(c)    as reported         $ 350.7       $ 363.0       $ 358.4       $ 1,385.0     $ 332.5       $ 345.9       $ 678.4
       (GAAP)
       Reversal of
       depreciation and     46.6        45.9        55.4        192.6       63.9        59.0        122.9   
       amortization (q)
       EBITDA (q)          $ 397.3       $ 408.9       $ 413.8       $ 1,577.6     $ 396.4       $ 404.9       $ 801.3
       Reversal of
       restructuring and     8.2           13.9          -             45.5          N/A           N/A           N/A
       related expenses
       (o)
       Reversal of TGBP
       integration
       expense excluding    N/A         N/A         4.8         4.8         6.4         13.0        19.4    
       trademark
       amortization (p)
       EBITDA, excl.
       restructuring and   $ 405.5      $ 422.8      $ 418.6      $ 1,627.9    $ 402.8      $ 417.9      $ 820.7   
       TGBP integration
       expense
       EBITDA margin         29.1    %     29.0    %     28.9    %     28.7    %     28.4    %     28.4    %     28.4    %
       EBITDA margin,
       excl.
       restructuring and     29.7    %     30.0    %     29.2    %     29.6    %     28.9    %     29.3    %     29.1    %
       TGBP integration
       expense
                                                                                                               
(d)    Net income, as      $ 263.2       $ 239.7       $ 452.3       $ 1,165.4     $ 247.3       $ 271.2       $ 518.5
       reported (GAAP)
       Reversal of
       restructuring and
       related expenses,    5.9         9.7         -           32.0        N/A         N/A         N/A     
       net of income tax
       benefit (o)
       Net income,
       restructuring       $ 269.1       $ 249.4       $ 452.3       $ 1,197.4     $ 247.3       $ 271.2       $ 518.5
       adjusted
       Reversal of IRS
       Agreement tax        N/A         N/A         (204.7  )    (204.7  )    N/A         N/A         N/A     
       provision benefit
       (r)
       Net income,
       restructuring and   $ 269.1       $ 249.4       $ 247.6       $ 992.7       $ 247.3       $ 271.2       $ 518.5
       IRS Agreement
       adjusted
       Reversal of TGBP
       integration
       expense, net of      N/A         N/A         3.1         3.1         4.3         10.2        14.5    
       income tax
       benefit (p)
       Net income,
       restructuring,
       IRS Agreement and   $ 269.1      $ 249.4      $ 250.7      $ 995.8      $ 251.6      $ 281.4      $ 533.0   
       TGBP integration
       expense adjusted
       Diluted earnings
       per share
       ("EPS"), as         $ 0.41        $ 0.38        $ 0.73        $ 1.84        $ 0.40        $ 0.44        $ 0.84
       reported (GAAP)
       ($ - dollars)
       Impact from
       restructuring and
       related expenses,    0.01        0.02        -           0.05        N/A         N/A         N/A     
       net of income tax
       benefit (o) ($ -
       dollars)
       Diluted EPS,
       restructuring       $ 0.42        $ 0.40        $ 0.73        $ 1.89        $ 0.40        $ 0.44        $ 0.84
       adjusted ($ -
       dollars)
       Impact from IRS
       Agreement tax        N/A         N/A         (0.33   )    (0.32   )    N/A         N/A         N/A     
       provision benefit
       (r) ($ - dollars)
       Diluted EPS,
       restructuring and
       IRS Agreement       $ 0.42        $ 0.40        $ 0.40        $ 1.57        $ 0.40        $ 0.44        $ 0.84
       adjusted ($ -
       dollars)
       Impact from TGBP
       integration
       expense, net of      N/A         N/A         -           -           -           0.02        0.02    
       income tax
       benefit (p) ($ -
       dollars)
       Diluted EPS,
       restructuring,
       IRS Agreement and   $ 0.42       $ 0.40       $ 0.40       $ 1.57       $ 0.40       $ 0.46       $ 0.86    
       TGBP integration
       expense adjusted
       ($ - dollars)
       Diluted
       weighted-average      635.8         627.1         621.7         634.2         621.9         613.1         617.5
       shares
       outstanding
                                                                                                               
    Consumer-to-Consumer
    Segment
(e)    Revenues, as        $ 1,155.1     $ 1,193.3     $ 1,181.9     $ 4,608.4     $ 1,124.6     $ 1,155.0     $ 2,279.6
       reported (GAAP)
       Foreign currency
       translation          (31.4   )    (17.9   )    8.0         (39.1   )    5.2         30.1        35.3    
       impact (m)
       Revenues,
       constant currency   $ 1,123.7    $ 1,175.4    $ 1,189.9    $ 4,569.3    $ 1,129.8    $ 1,185.1    $ 2,314.9 
       adjusted
       Prior year
       revenues, as        $ 1,073.1     $ 1,128.3     $ 1,151.8     $ 4,383.4     $ 1,078.1     $ 1,155.1     $ 2,233.2
       reported (GAAP)
       Revenue change,
       as reported           8       %     6       %     3       %     5       %     4       %     0       %     2       %
       (GAAP)
       Revenue change,
       constant currency     5       %     4       %     3       %     4       %     5       %     3       %     4       %
       adjusted
                                                                                                               
       Principal per
(f)    transaction, as     $ 365         $ 366         $ 349         $ 360         $ 346         $ 344         $ 345
       reported ($ -
       dollars)
       Foreign currency
       translation          (14     )    (11     )    2           (6      )    3           11          7       
       impact (m) ($ -
       dollars)
       Principal per
       transaction,
       constant currency   $ 351        $ 355        $ 351        $ 354        $ 349        $ 355        $ 352     
       adjusted ($ -
       dollars)
       Prior year
       principal per
       transaction, as     $ 351         $ 355         $ 356         $ 355         $ 360         $ 365         $ 363
       reported ($ -
       dollars)
       Principal per
       transaction           4       %     3       %     (2)     %     1       %     (4)     %     (6)     %     (5)     %
       change, as
       reported
       Principal per
       transaction           0       %     0       %     (1)     %     0       %     (3)     %     (3)     %     (3)     %
       change, constant
       currency adjusted
                                                                                                               
       Cross-border
(g)    principal, as       $ 18.6        $ 19.0        $ 18.5        $ 73.2        $ 17.5        $ 18.2        $ 35.7
       reported ($ -
       billions)
       Foreign currency
       translation          (0.8    )    (0.6    )    0.2         (1.2    )    0.2         0.6         0.8     
       impact (m) ($ -
       billions)
       Cross-border
       principal,
       constant currency   $ 17.8       $ 18.4       $ 18.7       $ 72.0       $ 17.7       $ 18.8       $ 36.5    
       adjusted ($ -
       billions)
       Prior year
       cross-border
       principal, as       $ 16.8        $ 17.6        $ 18.1        $ 68.6        $ 17.1        $ 18.6        $ 35.7
       reported ($ -
       billions)
       Cross-border
       principal change,     10      %     8       %     2       %     7       %     2       %     (2)     %     0       %
       as reported
       Cross-border
       principal change,     6       %     5       %     3       %     5       %     3       %     1       %     2       %
       constant currency
       adjusted
                                                                                                               
       International
(h)    revenues, as        $ 962.9       $ 995.7       $ 995.5       $ 3,855.8     $ 936.9       $ 964.3       $ 1,901.2
       reported (GAAP)
       Foreign currency
       translation          (30.7   )    (17.4   )    7.5         (38.0   )    4.9         29.2        34.1    
       impact (m)
       International
       revenues,           $ 932.2      $ 978.3      $ 1,003.0    $ 3,817.8    $ 941.8      $ 993.5      $ 1,935.3 
       constant currency
       adjusted
       Prior year
       international       $ 890.8       $ 944.0       $ 972.4       $ 3,669.2     $ 901.7       $ 962.9       $ 1,864.6
       revenues, as
       reported (GAAP)
       International
       revenue change,       8       %     5       %     2       %     5       %     4       %     0       %     2       %
       as reported
       (GAAP)
       International
       revenue change,       5       %     4       %     3       %     4       %     4       %     3       %     4       %
       constant currency
       adjusted
                                                                                                               
       International
       principal per
(i)    transaction, as     $ 399         $ 401         $ 381         $ 393         $ 378         $ 378         $ 378
       reported ($ -
       dollars)
       Foreign currency
       translation          (18     )    (13     )    3           (8      )    4           14          9       
       impact (m) ($ -
       dollars)
       International
       principal per
       transaction,        $ 381        $ 388        $ 384        $ 385        $ 382        $ 392        $ 387     
       constant currency
       adjusted ($ -
       dollars)
       Prior year
       international
       principal per       $ 376         $ 384         $ 386         $ 382         $ 390         $ 399         $ 394
       transaction, as
       reported ($ -
       dollars)
       International
       principal per
       transaction           6       %     4       %     (1)     %     3       %     (3)     %     (5)     %     (4)     %
       change, as
       reported
       International
       principal per
       transaction           1       %     1       %     (1)     %     1       %     (2)     %     (2)     %     (2)     %
       change, constant
       currency adjusted
                                                                                                               
       International
       excl. US
(j)    origination         $ 788.6       $ 822.2       $ 815.5       $ 3,158.5     $ 759.6       $ 784.1       $ 1,543.7
       revenues, as
       reported (GAAP)
       Foreign currency
       translation          (30.7   )    (17.4   )    7.5         (38.0   )    4.9         29.2        34.1    
       impact (m)
       International
       excl. US
       origination         $ 757.9      $ 804.8      $ 823.0      $ 3,120.5    $ 764.5      $ 813.3      $ 1,577.8 
       revenues,
       constant currency
       adjusted
       Prior year
       international
       excl. US            $ 719.2       $ 774.3       $ 797.6       $ 2,990.9     $ 732.2       $ 788.6       $ 1,520.8
       origination
       revenues, as
       reported (GAAP)
       International
       excl. US
       origination           10      %     6       %     2       %     6       %     4       %     (1)     %     2       %
       revenues change,
       as reported
       (GAAP)
       International
       excl. US
       origination           5       %     4       %     3       %     4       %     4       %     3       %     4       %
       revenues change,
       constant currency
       adjusted
                                                                                                               
    Consumer-to-Business
    Segment
(k)    Revenues, as        $ 153.5       $ 155.3       $ 153.9       $ 615.9       $ 155.1       $ 149.4       $ 304.5
       reported (GAAP)
       Foreign currency
       translation          1.1         1.5         2.5         6.4         2.9         3.5         6.4     
       impact (m)
       Revenues,
       constant currency   $ 154.6      $ 156.8      $ 156.4      $ 622.3      $ 158.0      $ 152.9      $ 310.9   
       adjusted
       Prior year
       revenues, as          N/A           N/A           N/A         $ 610.7       $ 153.2       $ 153.5       $ 306.7
       reported (GAAP)
       Revenue change,
       as reported           2       %     2       %     2       %     1       %     1       %     (3)     %     (1)     %
       (GAAP)
       Revenue change,
       constant currency     2       %     3       %     3       %     2       %     3       %     0       %     1       %
       adjusted
                                                                                                               
    Business Solutions
    Segment
(l)    Revenues, as        $ 31.4        $ 33.6        $ 68.2        $ 161.1       $ 86.9        $ 92.5        $ 179.4
       reported (GAAP)
       Foreign currency
       translation          (2.2    )    (2.1    )    (0.1    )    (5.7    )    (0.1    )    0.9         0.8     
       impact (m)
       Revenues,
       constant currency   $ 29.2       $ 31.5       $ 68.1       $ 155.4      $ 86.8       $ 93.4       $ 180.2   
       adjusted
       Prior year
       revenues, as          N/A           N/A           N/A         $ 106.7       $ 27.9        $ 31.4        $ 59.3
       reported (GAAP)
       Pro forma prior
       year revenues,        N/A           N/A           N/A           N/A         $ 82.9        $ 91.1        $ 174.0
       TGBP adjusted (n)
       Revenue change,
       as reported           15      %     31      %   **            **            **            **            **
       (GAAP)
       Revenue change,
       constant currency     7       %     22      %   **            **            **            **            **
       adjusted
       Pro forma revenue
       change, TGBP          N/A           N/A           N/A           N/A           5       %     2       %     3       %
       adjusted
       Pro forma revenue
       change, TGBP and      N/A           N/A           N/A           N/A           4       %     4       %     4       %
       constant currency
       adjusted (m)
                                                                                                               
    2012 Outlook Metrics
                           Range
       Revenue change        4       %     6       %
       (GAAP)
       Foreign currency
       translation          2       %    2       %
       impact (s)
       Revenue change,
       constant currency    6       %    8       %
       adjusted
                                                                                                               
                                                                                                               
       Operating income      24.5    %
       margin (GAAP)
       TGBP integration
       expense impact       1.0     %
       (p)
       Operating income
       margin, TGBP         25.5    %
       integration
       expense adjusted
                                                                                                               
                                                                                                               
       Operating income      24.5    %
       margin (GAAP)
       Depreciation and
       amortization          4.5     %
       impact (q)
       TGBP integration
       expense impact       1.0     %
       (p)
       EBITDA margin,
       TGBP integration     30.0    %
       expense adjusted
                                                                                                               
                           Range
       EPS guidance
       (GAAP) ($ -         $ 1.68        $ 1.72
       dollars)
       TGBP integration
       expense impact,
       net of tax           0.05        0.05    
       benefit (p) ($ -
       dollars)
       EPS guidance,
       TGBP integration    $ 1.73       $ 1.77    
       expense adjusted
       ($ - dollars)
                                                                                                               
                           Range
       Operating cash
       flow (GAAP) ($ -    $ 1.1         $ 1.2
       billions)
       Payments on IRS
       Agreement (r) ($     0.1         0.1     
       - billions)
       Operating cash
       flow, IRS
       Agreement           $ 1.2        $ 1.3     
       adjusted ($ -
       billions)
                                                                                                               

Non-GAAP related notes:
       Represents the impact from the fluctuation in exchange rates between
       all foreign currency denominated amounts and the United States dollar.
       Constant currency results exclude any benefit or loss caused by foreign
       exchange fluctuations between foreign currencies and the United States
(m)   dollar, net of foreign currency hedges, which would not have occurred
       if there had been a constant exchange rate. In pro forma calculations,
       also includes the currency impact of $(1.6) million and $(1.3) million
       for the three and six months ended June 30, 2012 associated with the
       acquisition of Travelex Global Business Payments ("TGBP").
       
       Represents the pro forma incremental impact of TGBP on Consolidated and
       Business Solutions segment revenues. Pro forma revenues presents the
       results of operations of the Company and its Business Solutions segment
       as they may have appeared had the acquisition of TGBP occurred as of
(n)    January 1, 2011. The pro forma information is provided for illustrative
       purposes only and does not purport to present what the actual results
       of operations would have been had the acquisition actually occurred on
       the date indicated. The results of operations for TGBP have been
       included in Consolidated and Business Solutions segment revenues from
       November 7, 2011, the date of acquisition.
       
       Restructuring and related expenses consist of direct and incremental
       expenses including the impact from fluctuations in exchange rates
       associated with restructuring and related activities, consisting of
       severance, outplacement and other related benefits; facility closure
       and migration of the Company's IT infrastructure; and other expenses
(o)    related to the relocation of various operations to new or 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. Restructuring and related expenses were
       not allocated to the segments.
       
       TGBP integration expense consists primarily of severance and other
       benefits, retention, direct and incremental expense consisting of
       facility relocation, consolidation and closures; IT systems
(p)    integration; amortization of a transitional trademark license; and
       other expenses such as training, travel and professional fees.
       Integration expense does not include costs related to the completion of
       the TGBP acquisition.
       
       Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)
(q)    results from taking operating income and adjusting for depreciation and
       amortization expenses.
       
       Represents the impact from the tax benefit in December 2011 due to the
       agreement with the IRS resolving substantially all issues related to
(r)    the restructuring of our international operations in 2003 of $204.7
       million. The Company made tax payments of approximately $100 million
       through the second quarter of 2012 and expects to pay the majority of
       the remaining tax payments of approximately $90 million in 2013.
       
       Represents the estimated impact from the fluctuation in exchange rates
       between all foreign currency denominated amounts and the United States
(s)    dollar. Constant currency results exclude any estimated benefit or loss
       caused by foreign exchange fluctuations between foreign currencies and
       the United States dollar, net of foreign currency hedges, which would
       not have occurred if there had been a constant exchange rate.
       
Other notes:
       
       Geographic split is determined based upon the region where the money
       transfer is initiated and the region where the money transfer is paid.
       For transactions originated and paid in different regions, the Company
       splits the transaction count and revenue between the two regions, with
(t)    each region receiving 50%. For money transfers initiated and paid in
       the same region, 100% of the revenue and transactions are attributed to
       that region. For money transfers initiated through the Company’s
       websites (“westernunion.com”), 100% of the revenue and transactions are
       attributed to that business.
       
(u)    Represents the Europe and the Commonwealth of Independent States
       ("CIS") region of our Consumer-to-Consumer segment.
       
(v)    Represents the North America region, including the United States,
       Mexico, and Canada, of our Consumer-to-Consumer segment.
       
(w)    Represents the Middle East and Africa region of our
       Consumer-to-Consumer segment.
       
(x)    Represents the Asia Pacific ("APAC") region of our Consumer-to-Consumer
       segment, including India, China, and South Asia.
       
(y)    Represents the Latin America and the Caribbean ("LACA") region of our
       Consumer-to-Consumer segment.
       
       Represents transactions initiated on westernunion.com which are
(z)    primarily paid out at Western Union agent locations in the respective
       regions.
       
       Represents transactions between and within foreign countries (excluding
       Canada and Mexico), transactions originated in the United States or
(aa)   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.
       
       Represents transactions between and within foreign countries (excluding
(bb)   Canada and Mexico). Excludes all transactions originated in the United
       States and all transactions to and from Mexico.
       
       Represents revenue generated from electronic channels, which include
(cc)   westernunion.com, account based money transfer and mobile money
       transfer (included in the various segments).
       
(dd)   Represents revenue from prepaid services. This revenue is included
       within Other.
       
       Marketing expense includes advertising, events, costs to administer
(ee)   loyalty programs, and the cost of employees dedicated to marketing
       activities.

Contact:

Western Union
Media
Tom Fitzgerald, 720-332-4374
tom.fitzgerald@westernunion.com
or
Investors
Mike Salop, 720-332-8276
mike.salop@westernunion.com

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