Visa and American Express Settle Legal Dispute

Visa and American Express Settle Legal Dispute

November 08, 2007

Settlement to be Funded by Visa USA Financial Institutions,
Not Visa Inc.

Settlement Addresses Claims Against Bank Defendants

    SAN FRANCISCO, Nov. 8 /Xinhua-PRNewswire/ -- Visa Inc.
announced today that the litigation with American Express
pending since 2004 has been settled. The settlement will
ultimately be funded by members of Visa USA 
-- not Visa Inc. -- through the company's retrospective
responsibility plan, a series of agreements with U.S.
financial institutions to fund financial obligations of
certain litigation, including this case.  The plan was
described in Visa Inc.'s recent S-4 filing.

    The settlement agreement, which is contingent upon Visa
USA member approval, ends all current litigation between
American Express and Visa USA, Visa International and their
members related to this issue.  By settling this litigation
Visa is not conceding any liability in the dispute.  In
addition, the settlement resolves American Express's actual
or potential claims against the named bank defendants in
this case: US Bank, Wells Fargo, Washington Mutual,
JPMorgan Chase & Co. and Capital One.  The agreement
covering the bank defendants absolves them of all
responsibility in this matter related to their
participation in the Visa and MasterCard networks. 

    "Visa is doing what is in the best interests of
its membership and the new organization," said Visa
Inc. CEO and Chairman Joseph W. Saunders. "Our
retrospective responsibility plan and these settlement
agreements reduce risk and uncertainty for our members and
Visa.  I believe this is a positive resolution for Visa and
its financial institutions."

    Under the proposed agreement, American Express will
receive $945 million from Visa and an additional payment
from the bank defendants by March 15 and no later than
March 31, 2008.  Beginning March 31, 2008, Visa will pay
American Express an additional amount of up to $70 million
a quarter for 16 quarters, for a maximum total of $1.12
billion.  Visa's nominal payout is $2.065 billion with an
accounting reserve of $1.9 billion and a net present value
to Visa of $1.8 billion.

    The member institutions of Visa USA - and not Visa Inc.
- bear the responsibility for funding the settlement through
the application of Visa's retrospective responsibility plan.
The plan includes a multi-step mechanism to fund financial
obligations of Visa USA and Visa International related to
certain litigation, including the American Express case.
Through this mechanism, any payments made by Visa Inc. as
part of this settlement ultimately will be reimbursed by
Visa USA member institutions. 

    "With this dispute behind us, Visa will remain
focused on being a global payments leader," Saunders
said. "We are confident in our competitive position
and the value we provide our customers with our
comprehensive suite of products, secure and reliable
payment system, and leading global brand and merchant
acceptance."

    ABOUT VISA: Visa operates the world's largest retail
electronic payments network providing processing services
and payment product platforms. This includes consumer
credit, debit, prepaid and commercial payments, which are
offered under the Visa, Visa Electron, Interlink and PLUS
brands. Visa enjoys unsurpassed acceptance around the world
and Visa/PLUS is one of the world's largest global ATM
networks, offering cash access in local currency in more
than 170 countries. For more information, visit
www.visa.com.

    FORWARD-LOOKING STATEMENTS: This press release contains
forward-looking statements. These statements may be
identified by the use of words such as "will,"
"believes," "anticipates,"
"intends," "estimates,"
"expects," "projects,"
"plans" or similar expressions. Such
forward-looking statements include, without limitation,
statements about the proposed settlement, our retrospective
responsibility plan, strategy, future operations, prospects,
plans and objectives of management and events or
developments that we expect or anticipate will occur. The
forward-looking statements reflect Visa's current views and
assumptions and are subject to risks and uncertainties,
which may cause actual and future results and trends to
differ materially from the forward-looking statements,
including but not limited to Visa's ability to achieve its
strategic objectives and the expected goals of the
settlement and our retrospective responsibility plan;
general market conditions; the outcome of legal
proceedings; uncertainties inherent in operating
internationally; and the impact of law and regulations.
Many of these factors are beyond Visa's ability to control
or predict. Given these factors, you should not place undue
reliance on the forward-looking statements.


    For more information, please contact: 

     Joseph Carberry
     Visa
     Tel:   [phone]
     Email: [e-mail]