Western Union Announces Organizational Changes to Improve Efficiency and Drive Long-Term Growth

The Western Union Company (NYSE: WU) today announced a global initiative to simplify its business processes, move decision-making closer to the marketplace, and leverage its cost structure. The multi-phased initiative includes a smaller, more streamlined management and changes to its global operations.

The new management structure will result in fewer reporting layers across the organization. As part of the new structure, the number of Executive Vice Presidents, Senior Vice Presidents, and Vice Presidents will be reduced, and the Company’s consumer bill payment business will report to Stewart Stockdale, President – The Americas and Executive Vice President, Global Cards and Global Key Accounts. A new Executive Vice President position will be created, focusing on electronic channels and new customer segments, both consumer and business. The proposed changes to business operations include the closing, consolidation, and downsizing of facilities and the creation of a new regional operations center in Europe.

Most of the management changes will be effective in the next 30 days, while the changes to business operations are expected to occur over the next 18 months. If implemented as proposed, the company anticipates that the initiatives will result in the elimination of approximately 175 positions and the migration of the work performed by approximately 550 positions, subject to the necessary individual and collective employee information and consultation obligations required by local law for potentially affected employees. The Company expects annualized pre-tax savings of approximately $50 million from these initiatives when they are fully implemented by 2012. The Company anticipates recording a total of approximately $80 million of restructuring charges through 2011, which includes $75 million for severance, facility closure and other costs related to this restructuring, in addition to charges associated with actions previously announced during the quarter.

"We are committed to aligning our organization to support our key strategies and opportunities,” said Hikmet Ersek, Chief Operating Officer and CEO-Elect. "The changes we are announcing today are difficult, because they impact people who have contributed to Western Union’s success. However, simplifying our structure will allow us to improve our productivity and customer focus, capitalize on growth opportunities, and enhance long-term financial returns for our shareholders.”

The Company’s key strategies focus on profitable growth in the core cash money transfer business, rapid development of electronic channels to supplement and complement cash money transfer, and the expansion of business payments.

If implemented as proposed, a significant majority of the restructuring charges is expected to be recorded in 2010, with the remainder to be recorded in 2011. If implemented as proposed, approximately $10 million of savings from these initiatives is anticipated in 2010, $30 million to $40 million in 2011, and $50 million annualized beginning in 2012. The estimated expenses and savings were not contemplated in the 2010 financial guidance provided by the Company on April 27, 2010.

Safe Harbor Compliance Statement for Forward-Looking Statements

This press release contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as "expects,” "intends,” "anticipates,” "believes,” "estimates,” "guides,” "provides guidance,” "provides outlook” and other similar expressions or future or conditional verbs such as "will,” "should,” "would” and "could” are intended to identify such forward-looking statements. Readers of this press release by The Western Union Company (the "Company,” "Western Union,” "we,” "our” or "us”) should not rely solely on the forward-looking statements and should consider all uncertainties and risks discussed in the Risk Factors section and throughout the Annual Report on Form 10-K for the year ended December 31, 2009. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement.

Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: changes in immigration laws, patterns and other factors related to migrants; our ability to adapt technology in response to changing industry and consumer needs or trends; our failure to develop and introduce new products, services and enhancements, and gain market acceptance of such products; the failure by us, our agents or subagents to comply with our business and technology standards and contract requirements or applicable laws and regulations, especially laws designed to prevent money laundering and terrorist financing, and/or changing regulatory or enforcement interpretations of those laws; failure to comply with the settlement agreement with the State of Arizona; changes in United States or foreign laws, rules and regulations including the Internal Revenue Code, and governmental or judicial interpretations thereof; changes in general economic conditions and economic conditions in the regions and industries in which we operate; adverse movements and volatility in capital markets and other events which affect our liquidity, the liquidity of our agents or clients, or the value of, or our ability to recover our investments or amounts payable to us; political conditions and related actions in the United States and abroad which may adversely affect our businesses and economic conditions as a whole; interruptions of United States government relations with countries in which we have or are implementing material agent contracts; our ability to resolve tax matters with the Internal Revenue Service and other tax authorities consistent with our reserves; mergers, acquisitions and integration of acquired businesses and technologies into our company, and the realization of anticipated financial benefits from these acquisitions; changes in, and failure to manage effectively exposure to, foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers and payment transactions; failure to maintain sufficient amounts or types of regulatory capital to meet the changing requirements of our regulators worldwide; our ability to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; failure to implement agent contracts according to schedule; deterioration in consumers’ and clients’ confidence in our business, or in money transfer providers generally; failure to manage credit and fraud risks presented by our agents, clients and consumers or non-performance by our banks, lenders, other financial services providers or insurers; any material breach of security of or interruptions in any of our systems; adverse rating actions by credit rating agencies; liabilities and unanticipated developments resulting from litigation and regulatory investigations and similar matters, including costs, expenses, settlements and judgments; failure to compete effectively in the money transfer industry with respect to global and niche or corridor money transfer providers, banks and other money transfer services providers, including telecommunications providers, card associations, card-based payment providers and electronic and Internet providers; our ability to protect our brands and our other intellectual property rights; our failure to manage the potential both for patent protection and patent liability in the context of a rapidly developing legal framework for intellectual property protection; cessation of various services provided to us by third-party vendors; changes in industry standards affecting our business; changes in accounting standards, rules and interpretations; our ability to attract and retain qualified key employees and to manage our workforce successfully; significantly slower growth or declines in the money transfer market and other markets in which we operate; adverse consequences from our spin-off from First Data Corporation; decisions to downsize, sell or close units, or to transition operating activities from one location to another or to third parties, particularly transitions from the United States to other countries; decisions to change our business mix; catastrophic events; and management’s ability to identify and manage these and other risks.

About Western Union

The Western Union Company (NYSE: WU) is a leader in global payment services. Together with its Vigo, Orlandi Valuta, Pago Facil and Custom House branded payment services, Western Union provides consumers and businesses with fast, reliable and convenient ways to send and receive money around the world, as well as send payments and purchase money orders. The Western Union, Vigo and Orlandi Valuta branded services are offered through a combined network of more than 420,000 agent locations in 200 countries and territories. In 2009, The Western Union Company completed 196 million consumer-to-consumer transactions worldwide, moving $71 billion of principal between consumers, and 415 million business payments. For more information, visit www.westernunion.com.

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