First Data Inks Processing Pact WithDiscover

DENVER - (07/17/06) – First Data Corp. announcedFriday it has signed a contract to process millions of accounts forsmall and medium-sized business customers of Discover FinancialServices, including restaurants, retailers and specialty stores.First Data said it expects to begin pilot programs with merchantsin certain geographic areas this summer, and to offer the serviceon a wider scale beginning in the fourth quarter. Financial termsof the deal were not disclosed. Discover Financial is the owner ofthe PULSE EFT network and a wholly owned unit of MorganStanley.