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Fair Isaac’s Falcon Fraud Manager 5.2 to drive payment card fraud detection at SHAZAM Network

SHAZAM® Implements Single Falcon System to Detect Fraud in Both Signature and Pin-Based Debit Transactions

MINNEAPOLIS, MN, October 16, 2006 -- Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision management technology, today announced that electronic funds transfer (EFT) network SHAZAM will deploy the latest release of industry-leading payment card fraud detection solution Falcon™ Fraud Manager in its payment processing data centers.

Fair Isaac’s Falcon Fraud Manager uses a combination of sophisticated neural network models, patented account profiling technologies, case management and flexible, user-definable intelligent rules to analyze payment card transactions for the most subtle signs of fraud. The solution will enable SHAZAM to quickly and accurately identify and prevent fraud in its signature and PIN-based debit transactions through a single system.

SHAZAM, a leading electronic payments provider, is the first EFT network to implement Fair Isaac’s Falcon solution, which now offers several new technology enhancements that build upon the solution’s proven analytic capabilities and provide card issuers with even greater power in responding to suspect fraud. SHAZAM provides electronic payment solutions to more than 1,600 community financial institutions in 29 states.

“Supporting our community financial institution partners in their fight against fraud is one of SHAZAM’s primary priorities,” said Mike Hollinger, SHAZAM President and CEO. “We chose Fair Isaac’s Falcon Fraud Manager based on its market-proven fraud detection performance and its ability to help preserve card issuers’ trust in the integrity and security of our services. The solution’s powerful capabilities in protecting both debit and ATM cards through one source will be a valuable part of our ongoing efforts to help our partner institutions prevent losses and protect the viability of their payment card programs.”

“With tens of thousands of debit transactions passing through EFT networks each minute, curtailing payment card fraud through effective fraud management ‘best practices’ is more important than ever,” said Sonja Schindeler, vice president, Networks, at Fair Isaac. “We continue to build new innovations into Falcon in response to a constantly changing fraud environment, and to ensure that it will continue to help processors and issuers around the world stay ahead of the curve in the fight against fraud.”

The U.S. market for debit cards has surged in signature and PIN-based transaction volume in the past few years. Leading advisory research and consulting firm TowerGroup estimates that the 20 percent growth in debit transaction volume between 2004 and 2005 will be dwarfed in 2006 and 2007, and that fraud losses to issuers in the U.S. will exceed $1 billion this year.

Version 5.2 of Falcon Fraud Manager is built on a new modular platform that simplifies implementation, maintenance and future upgrades. Written in Java, with a Web-based workstation and a Rules Editor feature based on Fair Isaac’s market-leading Blaze Advisor™ business rules management system, Falcon 5.2 allows SHAZAM to offer its card issuers more flexibility for rules and case management.

The enhanced solution also offers a new configurable Debit Application Program Interface (API), which provides users with more flexibility by enabling them to add their own custom variables and other fraud management tools. Additional data input and reporting functionality give issuers more ways to quickly and easily analyze data, further enrich their decisions and monitor their productivity.

Fair Isaac’s Falcon Fraud Manager is recognized as the leading global payment card fraud detection system, protecting more than 450 million active payment card accounts across six continents from fraud.

About SHAZAM

The SHAZAM network was founded in 1976 and is one of the last member-owned and -controlled EFT networks and processors in the industry. SHAZAM provides EFT services to more than 1,600 community financial institutions in 29 states. SHAZAM offers ATM processing services; Debit MasterCard® and Visa® Check national debit products including business debit and health savings account (HSA) cards; card authorization services; merchant processing; ACH services and information security solutions.

About Fair Isaac

Fair Isaac Corporation (NYSE:FIC) makes decisions smarter. The company’s solutions and technologies for Enterprise Decision Management give businesses the power to automate more processes, and apply more intelligence to every customer interaction. Through increasing the precision, consistency and agility of their decisions, Fair Isaac clients worldwide increase sales, build customer value, cut fraud losses, manage credit risk, reduce operational costs, meet changing compliance demands and enter new markets more profitably. Founded in 1956, Fair Isaac powers hundreds of billions of decisions per year in financial services, insurance, telecommunications, retail, consumer branded goods, healthcare and the public sector. Fair Isaac also helps millions of individuals manage their credit health through the www.myfico.com website. Visit Fair Isaac online at www.fairisaac.com.

Statements Regarding Forward-Looking Information Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac, including statements regarding its Falcon Fraud Manager 5.2 product offering and the benefits to be derived from Falcon 5.2, are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including any unforeseen technical difficulties related to the implementation, use and functionality of the offering, the risks that customers will not perceive material benefits from the offering, failure of the product to deliver the expected results, the possibility of errors or defects in the offering, regulatory changes applicable to the use of consumer credit and other data, and other risks described from time to time in Fair Isaac’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2005, and quarterly report on Form 10-Q for the period ended June 30, 2006. Forward-looking statements should be considered with caution. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Fair Isaac’s results could differ materially from Fair Isaac’s expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements. Fair Isaac, Falcon, Blaze Advisor and FICO are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and/or in other countries. Other product and company names herein may be trademarks of their respective owners.

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