1. Stock Recommendation Western Union (WU) by Gautam Guruprasad and Dang Le

2. Background Spun off from First Data Corporation Last September Card Issuing Services ATM Solutions Loyalty Solutions Bill Payment Services

3. Business Model Global Leader in Money Transfer Services (150 Year History) Location, Location, Location 270,000 agents in more than 200 countries Fee structure 10-20% for immediate agent transfer 4-10% for three day bank account deposits Consumer to Consumer (C2C) 2005 Revenue 3.0 Billion 2005 EBIT 1.0 Billion Consumer to Business (C2B) 2005 Revenue $600 Million 2005 EBIT $220 Million

4. Management Christina Gold, CEO & Director Sr. EVP of Western Union since May 2002 Twenty years at Avon Canada and North America serving as CEO and President for nine years One of Fortune Magazine’s 50 Most Powerful Women

5. Comparable Valuation Western Union MoneyGramGlobal Payments Locations270,000100,0001,000 Operating Margin 30%16%21% ROA22%1.33%12% ROIC35%16%15% P/E18.919.824.7 EPS1.121.451.53

6. DCF Valuation 8%9%10%11%12% 10%39.6631.0225.2621.1518.07 11%41.5132.4626.4422.1418.07 12%43.4233.9627.6723.1718.92 13%45.4035.5128.9324.2419.81 14%47.4437.1230.2425.3421.67 Growth WACC

7. Disclosure This presentation is for educational purposes only, and the opinions expressed do not constitute a recommendation to buy or sell for the individual. The authors may have a position in the companies discussed, subject to change at any time. Information in this presentation was obtained from reliable sources, but there is no guarantee of accuracy. Please consult your financial advisor before making investment decisions. Past performance is not indicative of future success.

8. Q&A Thank You It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. – Warren Buffett