LEVERAGING FUNDAMENTALS TO EXTEND THE BRAND ACI WORLDWIDE TSA companies extended their brands into new markets, geographies and transaction types in 2004. More than  720 customers now rely on our software. From Brazil to Rwanda, these customers run over 1,700 TSA product  systems in 76 countries. Our operating units continue to win new business by leveraging their proven products,  experienced staff and global distribution networks.  TSA’s largest division added 39 new customers in 2004. Among the world’s top 500 banks, ACI now  commands nearly four times the market presence of its two closest competitors combined.  ACI’s proven track record fuels continued success for the company. Major clients such as Metavante  Corporation, TD Bank Financial Group and ANZ Bank New Zealand renewed their long-term commitments  to BASE24 software in 2004. ACI marked its 20th year as a solutions provider to Alliance & Leicester,  the eighth largest bank in the UK and one of several accounts where the company enjoys a long-term  partnership. In addition, ACI cross-sold new applications to existing customers nearly 50 times during the  year, extending the company’s reach and relevance in several key accounts. Customers continue to invite  ACI to participate in new payment initiatives. The growing need for real-time fraud prevention and enterprise-wide risk management helped ACI  Proactive Risk Manager achieve record customer growth in 2004. Twenty-eight new customers selected  the software to combat credit and debit card fraud or detect money laundering activity. ACI customers  have saved millions of dollars by using Proactive Risk Manager to protect accounts from losses.  Customers continue to leverage ACI software to comply with EMV (Europay, MasterCard, Visa) global standards  for smart credit and debit card systems. As the standards are adopted in more countries, more card issuers  and transaction acquirers will require EMV-ready systems. Several customers have also licensed ACI Smart  Chip Manager to automate the issuance and management of single- or multi-application smart cards. The  product is part of an award-winning solution used by the Hong Kong government to operate a national ID  system based on smart cards. ACI Smart Chip Manager and Proactive Risk Manager were commended by  The Banker  magazine in 2004 as part of their annual awards program recognizing IT solutions.  BASE24-es continued to attract new customers for its enhanced authorization capabilities in 2004.  The product adds a new level of flexibility to the strategies used by customers to authorize payment  transactions. With a powerful scripting engine, BASE24-es allows users to modify transaction processing  rules relatively easily, for example, to impose more stringent authorization requirements for certain card  types or customers. This helps our clients enhance their service levels and protect accounts from losses. 8818_Fnl.indd 4 1/6/05 1:44:22  AM AM As an example, customers are turning to ACI software to extend the capabilities  of their online payment systems by allowing mobile phone users to replenish air  time at ATMs. ACI software enables the transactions to be securely routed and  authorized while allowing ATM owners to drive new sources of fee-based income  for their business.