Standard Chartered PLC ("Standard Chartered") and First Data Corp. a leader in electronic commerce and payment services around the world announced they have entered into an agreement to jointly establish a new company to provide merchant acquiring services to merchants across Asia.

Headquartered in Singapore, the new company called 'Merchant Solutions Pte Ltd.', with its local subsidiaries in seven initial markets across Asia, will support Standard Chartered merchant clients with an expanded range of First Data products and services for debit and credit cards, as well as additional forms of electronic payments such as contactless and prepaid card acceptance. In addition, Merchant Solutions will provide sales support with First Data supplying front-end and back-end switching services.

Merchant Solutions aims to deliver enhanced payments capabilities to Standard Chartered merchant clients from seven initial markets in Asia including Bangladesh, Brunei, Hong Kong, India, Macau, Singapore and Sri Lanka by converting to First Data's global merchant processing platform, OmniPay, in approximately 9-12 months. China and Malaysia are also priority markets. Standard Chartered and First Data intend to rollout the alliance to other Asian and Middle East markets.

"This is both a new and very significant relationship for us," said Pam Patsley, President, First Data International. "This agreement is the first of its kind for First Data in Asia, and we are both proud and pleased to build on the solid foundation we've established and to extend our footprint even deeper into Asia."

"Standard Chartered is the perfect partner to grow our mutual capabilities in Asia," said Nigel Lee, President, First Data International, Asia. "Standard Chartered is a strong well-known brand with an established network in more than 50 countries, and we look forward to exploring additional opportunities and delivering a broad range of product and service enhancements to Standard Chartered's customers over time."

For Standard Chartered's commercial banking clients, the creation of 'Merchant Solutions' will provide enhanced functionality with a suite of world-class payments products and services, such as a 24/7 Web-based transaction-reporting tool for both existing and new clients. Standard Chartered selected First Data as its regional merchant services partner for First Data's ability to create a defined and differentiated product offering for Standard Chartered's existing premier business-banking clients.

"We are excited by this opportunity to support the organic growth of our credit card business and increase our market presence in Asia," said Sherazam Mazari, Global Product Head, Credit Cards and Personal Loans, Standard Chartered Bank. "The new alliance will build on Standard Chartered's strong existing customer relationships in the region, and First Data's extensive global merchant acquiring expertise to form one of the world's leading merchant alliances."

Sherazam added, "This exciting cooperation will provide a best-in-class payment network for our credit/debit card users and leading-edge point-of-sale capabilities for our merchants."

Under the terms of the agreement, Merchant Solutions, will comprise 56 percent ownership held by First Data and 44 percent by Standard Chartered, through its wholly-owned subsidiary, Standard Chartered Bank (Hong Kong) Limited. A Board of Directors consisting of individuals from both organizations will help lead the alliance including a Managing Director. The key transaction documents were signed by Sherazam Mazari, Standard Chartered Bank, Global Product Head, Credit Cards and Personal Loans, and Nigel Lee, President, First Data International, Asia.

This transaction is subject to certain regulatory approvals, and is expected to complete by October 2007. The new company is expected to begin its operations by the end of 2007.