S1 Corporation, a leading global provider of customer interaction financial and payment solutions, announced that the Board of Directors has appointed Johann Dreyer, former Group President of S1's Postilion Business Unit, as CEO, President and Director of S1 Corporation. Additionally, the company announced financial results for the third quarter ended September 30, 2006.

Revenue for the third quarter was $51.9 million compared to $46.7 million in the quarter ended June 30, 2006, an 11 percent increase. Income from continuing operations was $1.9 million, including approximately $1.1 million in SFAS 123R stock-based compensation expense and $400,000 of restructuring costs in the third quarter. Excluding stock-based compensation and restructuring charges,the Company generated income from continuing operations of $3.4 million in the third quarter.

Adjusted EBITDA for the quarter was $5.7 million. The Company ended the quarter with $139 million in cash and short-term investments. Adjusted EBITDA is described and reconciled to our GAAP operating income below (1).

Third quarter net income includes a $31.5 million gain on sale of the FRS business in discontinued operations. The Company expects to file its previously announced tender offer for share buy-back in mid-November.

"The positive third quarter results reflect the continued progress S1 is making against its stated business goals for the year," said John Spiegel, Chairman of the Board for S1 Corporation. "The Board is also pleased to announce the appointment of Johann Dreyer as CEO and believes that his strong track record of profitably growing software companies, along with his extensive knowledge of S1's operations and customers make him the ideal person to lead S1."

According to Johann Dreyer, CEO of S1 Corporation, "I am excited about the opportunity to further my leadership role within S1. As we execute against the plan for both our Enterprise and Postilion customers, we will do so in a highly efficient and profitable manner that will generate value for our shareholders, customers and employees. I am proud to be associated with such a great group of people and a compelling suite of front-office financial and payments solutions."

For the past year, Johann Dreyer has been group president of S1's Postilion business unit, which includes the ATM/POS, community financial, and international operations that represent nearly 40 percent of the company's revenue. Dreyer came to S1 nearly two years ago when S1 acquired Mosaic Software, where he was founder and served as CEO of that business. He has 20 years of experience in the banking technology and electronic funds transfer field. Dreyer and the Board will work closely together over the next eight months to further build independent business units that are equipped to service the needs of the various markets the Company addresses.