Fidelity National Financial, Inc. Reports Third Quarter 2006 EPS of $0.70

JACKSONVILLE, Fla., Oct. 25 /PRNewswire-FirstCall/ -- Fidelity National Financial, Inc. , a Fortune 500 provider of outsourced products and services to a variety of industries, today reported operating results for the three-month and nine-month periods ended September 30, 2006.

3rd Quarter 2006 3rd Quarter 2005 Total revenue $2.63 billion $2.53 billion Earnings per diluted share * $0.70* $1.21 Net earnings $127.6 million $214.4 million Cash flow from operations $277.0 million $462.3 million Nine Months Ended Nine Months Ended September 30, 2006 September 30, 2005 Total revenue $7.63 billion $7.23 billion Gain on sale of minority interest in FIS -- ($318.2 million) Adjusted Total Revenue $7.63 billion $6.92 billion Earnings per diluted share * $2.02* $4.79 Net earnings $366.6 million $848.9 million Gain on sale of minority interest in FIS -- ($318.2 million) Adjusted net earnings $366.6 million $530.7 million Adjusted earnings per share * $2.02* $2.99 Cash flow from operations $609.8 million $1.01 billion Income tax paid on FNT distribution $108.8 million -- Adjusted cash flow from operations $718.6 million $1.01 billion * For purposes of computing earnings per diluted share, FNF has to analyze the dilutive impact of outstanding options at its public subsidiaries, Fidelity National Title Group, Inc. and Fidelity National Information Services, Inc., and, if necessary, adjust the net earnings available to FNF shareholders before calculating earnings per diluted share. For the three-month and nine-month periods ended September 30, 2006, net earnings were reduced by $1.3 million and $2.9 million, respectively, resulting in a reduction of $0.01 and $0.02, respectively, in earnings per diluted share for three-month and nine-month periods ended September 30, 2006.

"This was another successful quarter for FNF," said Chairman and Chief Executive Officer William P. Foley, II. "The third quarter was one of transition for our title insurance business. The mix of business clearly shifted from a majority of purchase transactions toward more refinance transactions, which generate about half of the revenue of a purchase transaction. In the title business, we were focused on reducing headcount and eliminated approximately 650 positions during the quarter, which helped in reducing title related personnel costs by $75 million versus the prior year quarter. FIS had a very strong quarter, as they generated 10.2% revenue growth and grew EBITDA by more than 10%. Organic revenue growth has accelerated significantly since the FIS/Certegy merger through the improvement of the sales organization, cross selling existing customers, developing new products and services that leverage the core processing capability and putting the best resources behind new large targeted customer opportunities. Specialty insurance continues to provide growing and more recurring revenue and earnings streams that are not necessarily tied to mortgage originations and through both organic growth and two recent acquisitions, Sedgwick has become a more than $600 million revenue base company with greater than 15% EBITDA margins."

The merger of FNF with and into FIS is scheduled to close on November 9, 2006. FNF shareholders will receive approximately 0.537228 shares of FIS common stock for each share of FNF stock. Upon the closing of the merger of FNF with and into FIS, Fidelity National Title Group, Inc. will legally change its name to Fidelity National Financial, Inc. and its common stock will trade on the New York Stock Exchange under the trading symbol 'FNF' beginning on November 10, 2006.

The following are summary financial results for the operating subsidiaries of FNF for the three-month and nine-month periods ending September 30, 2006 and 2005:

Fidelity National Title Group ("FNT") 3rd Quarter 2006 3rd Quarter 2005 Total revenue $1.507 billion $1.774 billion Pre-tax margin 10.7% 15.4% Net earnings $103.4 million $169.7 million Net earnings per share - diluted $0.60 $0.98 Cash flow from operations $112.9 million $206.9 million Return on average equity 15.9% 25.0% Nine Months Ended Nine Months Ended September 30, 2006 September 30, 2005 Total revenue $4.456 billion $4.723 billion Pre-tax margin 10.5% 14.0% Net earnings $299.0 million $412.6 million Net earnings per share - diluted $1.72 $2.38 Cash flow from operations $414.8 million $603.8 million Return on average equity 15.6% 21.7% Fidelity National Information Services ("FIS") 3rd Quarter 2006 3rd Quarter 2005 Total revenue $1,082.3 million $704.0 million Pro forma revenue growth 10.2% N/A Net earnings $78.6 million $57.9 million EBITDA $280.6 million $194.5 million Free cash flow $122.6 million $54.1 million Cash earnings $107.3 million $75.8 million Nine Months Ended Nine Months Ended September 30, 2006 September 30, 2005 Total revenue $3,010.4 million $2,067.8 million Pro forma revenue growth 7.5% N/A Net earnings $184.0 million $151.1 million EBITDA $745.3 million $550.2 million Free cash flow $285.7 million $192.5 million Cash earnings $265.8 million $211.9 million Specialty Insurance 3rd Quarter 2006 3rd Quarter 2005 Total revenue $103.6 million $97.8 million Pre-tax margin 18.4% 15.7% Pre-tax earnings $19.1 million $15.4 million Nine Months Ended Nine Months Ended September 30, 2006 September 30, 2005 Total revenue $315.5 million $253.8 million Pre-tax margin 21.2% 15.9% Pre-tax earnings $67.0 million $40.4 million

FNF presents its financial results in accordance with Generally Accepted Accounting Principles ("GAAP"). However, in order to provide the investment community with a more thorough means of evaluating the operating performance of its operations, FNF also reports several non-GAAP measures, including earnings before interest, taxes, depreciation and amortization ("EBITDA"), net earnings plus depreciation and amortization less capital expenditures ("Free Cash Flow") and net earnings plus other intangible amortization, net of income tax ("Cash Earnings"). Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings.

Fidelity National Financial, Inc. , is a provider of outsourced products and services to a variety of industries. Through its majority-owned, publicly traded subsidiary, Fidelity National Information Services, Inc. , FNF provides an industry leading suite of data processing, payment and risk management services to financial institutions and retailers. http://www.fnf.com/.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions, including changes in the financial markets; our dependence on operating subsidiaries as a source of cash flow; significant competition that our operating subsidiaries face; the possibility that the announced merger of FNF with and into FIS will not be completed, will be completed in a different form or with different effects on stockholders than described or will not be successful in achieving the goals targeted; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K and other filings with the Securities and Exchange Commission.

FIDELITY NATIONAL FINANCIAL, INC. SUMMARY OF EARNINGS (In thousands, except per share amounts and order information) Three months ended Nine months ended September 30, September 30, 2006 2005 2006 2005 (Unaudited) (Unaudited) Direct title premiums $485,043 $641,542 $1,479,415 $1,702,397 Agency title premiums 701,533 763,242 1,998,117 2,024,188 Total title premiums 1,186,576 1,404,784 3,477,532 3,726,585 Escrow and other title-related fees 267,744 323,506 808,468 864,472 Total title and escrow 1,454,320 1,728,290 4,286,000 4,591,057 Transaction processing services 1,013,372 646,447 2,832,638 1,912,168 Specialty insurance 99,619 95,448 304,070 248,276 Interest and investment income 48,129 36,064 139,883 90,503 Realized gains and losses 4,805 8,699 30,121 34,281 Gain on FIS transaction -- -- -- 318,209 Other 14,577 12,937 41,378 36,645 Total revenue 2,634,822 2,527,885 7,634,090 7,231,139 Personnel costs 863,163 841,051 2,632,935 2,396,243 Other operating expenses 610,732 442,001 1,706,137 1,282,250 Agent commissions 538,700 590,876 1,537,489 1,558,547 Depreciation and amortization 142,170 95,619 404,770 298,178 Claim loss expense 118,643 135,354 357,210 333,320 Interest expense 65,931 48,466 183,536 120,001 Total expenses 2,339,339 2,153,367 6,822,077 5,988,539 Earnings before income taxes 295,483 374,518 812,013 1,242,600 Income tax expense 109,920 144,189 302,069 354,577 Minority interest 57,992 15,926 143,381 39,081 Net earnings $127,571 $214,403 $366,563 $848,942 Net earnings per share - basic $0.72 $1.24 $2.09 $4.92 Net earnings per share - diluted $0.70 $1.21 $2.02 $4.79 Weighted average shares - basic 176,048 172,515 175,119 172,686 Weighted average shares - diluted 180,783 177,540 180,123 177,254 Direct operations orders opened 811,400 976,600 2,490,700 2,843,600 Direct operations orders closed 521,900 694,000 1,602,700 1,891,100 FIDELITY NATIONAL FINANCIAL, INC. SEGMENT INFORMATION (In thousands) (Unaudited) Three Months Ended September 30, 2006 Corporate Elimina- Specialty and Consolidated tions FNTG FIS Insurance Other Gross operating revenue $2,581,888 ($67,489) $1,464,293 $1,080,651 $99,619 $4,814 Interest and investment income 48,129 -- 41,261 361 4,011 2,496 Realized gains and losses 4,805 -- 1,478 1,292 6 2,029 Total revenue 2,634,822 (67,489) 1,507,032 1,082,304 103,636 9,339 Personnel costs 863,163 (5,863) 436,064 416,733 11,409 4,820 Other operating expenses 610,732 (40,053) 223,359 383,120 41,358 2,948 Agent commissions 538,700 (21,573) 555,010 -- -- 5,263 Depreciation 41,758 -- 18,259 23,201 190 108 Amortization 100,412 -- 11,622 87,934 1,516 (660) Claim loss expense 118,643 -- 88,706 240 29,695 2 Interest expense 65,931 -- 12,762 49,629 398 3,142 Total expenses 2,339,339 (67,489) 1,345,782 960,857 84,566 15,623 Pretax earnings 295,483 -- 161,250 121,447 19,070 (6,284) Pretax margin 11.2% -- 10.7% 11.2% 18.4% -- Open orders 811,400 -- 663,500 147,900 -- -- Closed orders 521,900 -- 440,200 81,700 -- -- Three Months Ended September 30, 2005 Corporate Elimina- Specialty and Consolidated tions FNTG FIS Insurance Other Gross operating revenue $2,483,122 ($40,956) $1,741,666 $698,110 $95,448 ($11,146) Interest and investment income 36,064 -- 28,994 1,733 2,393 2,944 Realized gains and losses 8,699 -- 3,583 4,145 (6) 977 Total revenue 2,527,885 (40,956) 1,774,243 703,988 97,835 (7,225) Personnel costs 841,051 -- 511,325 317,821 10,492 1,413 Other operating expenses 442,001 (17,717) 246,109 185,185 39,096 (10,672) Agent commissions 590,876 (23,239) 612,139 526 -- 1,450 Depreciation 35,508 -- 16,699 18,570 187 52 Amortization 60,111 -- 7,119 52,212 776 4 Claim loss expense 135,354 -- 103,612 72 31,730 (60) Interest expense 48,466 -- 4,669 37,548 145 6,104 Total expenses 2,153,367 (40,956) 1,501,672 611,934 82,426 (1,709) Pretax earnings 374,518 -- 272,571 92,054 15,409 (5,516) Pretax margin 14.8% -- 15.4% 13.1% 15.7% -- Open orders 976,600 -- 821,700 154,900 -- -- Closed orders 694,000 -- 602,900 91,100 -- -- FIDELITY NATIONAL FINANCIAL, INC. SEGMENT INFORMATION (In thousands) (Unaudited) Nine Months Ended September 30, 2006 Corporate Elimina- Specialty and Consolidated tions FNTG FIS Insurance Other Gross operating revenue $7,464,086 ($170,653) $4,317,814 $3,003,533 $304,070 $9,322 Interest and investment income 139,883 -- 115,680 3,500 11,460 9,243 Realized gains and losses 30,121 -- 22,091 3,331 (50) 4,749 Total revenue 7,634,090 (170,653) 4,455,585 3,010,364 315,480 23,314 Personnel costs 2,632,935 (17,795) 1,354,720 1,245,945 33,791 16,274 Other operating expenses 1,706,137 (94,417) 666,587 1,011,725 112,385 9,857 Agent commis- sions 1,537,489 (58,441) 1,587,547 -- -- 8,383 Depreciation 125,103 -- 53,596 70,716 483 308 Amortization 279,667 -- 29,716 247,588 4,195 (1,832) Claim loss expense 357,210 -- 260,444 425 96,646 (305) Interest expense 183,536 -- 36,462 141,930 979 4,165 Total expenses 6,822,077 (170,653) 3,989,072 2,718,329 248,479 36,850 Pretax earnings 812,013 -- 466,513 292,035 67,001 (13,536) Pretax margin 10.6% -- 10.5% 9.7% 21.2% -- Open orders 2,490,700 -- 2,044,500 446,200 -- -- Closed orders 1,602,700 -- 1,350,300 252,400 -- -- Nine Months Ended September 30, 2005 Corporate Elimina- Specialty and Consolidated tions FNTG FIS Insurance Other Gross operating revenue $6,788,146 ($136,287) $4,626,747 $2,058,403 $248,276 ($8,993) Interest and investment income 90,503 -- 71,149 4,826 5,470 9,058 Realized gains and losses 352,490 -- 25,505 4,580 62 322,343 Total revenue 7,231,139 (136,287) 4,723,401 2,067,809 253,808 322,408 Personnel costs 2,396,243 -- 1,415,928 946,442 28,044 5,829 Other operating expenses 1,282,250 (74,997) 693,927 561,467 103,470 (1,617) Agent commissions 1,558,547 (61,290) 1,617,260 -- -- 2,577 Depreciation 101,528 -- 51,521 49,599 261 147 Amortization 196,650 -- 21,686 172,286 2,669 9 Claim loss expense 333,320 -- 254,289 284 78,778 (31) Interest expense 120,001 -- 5,393 87,357 168 27,083 Total expenses 5,988,539 (136,287) 4,060,004 1,817,435 213,390 33,997 Pretax earnings 1,242,600 -- 663,397 250,374 40,418 288,411 Pretax margin 17.2% -- 14.0% 12.1% 15.9% -- Open orders 2,843,600 -- 2,398,900 444,700 -- -- Closed orders 1,891,100 -- 1,651,800 239,300 -- -- FIDELITY NATIONAL FINANCIAL, INC. SUMMARY BALANCE SHEET INFORMATION (In thousands, except per share amounts) September 30, December 31, 2006 2005 Unaudited Cash and investment portfolio $5,134,291 $5,077,583 Goodwill 4,861,734 2,873,861 Capitalized software 704,567 530,341 Other intangible assets 1,179,126 641,420 Total assets 14,574,872 11,104,617 Notes payable 3,524,126 3,217,019 Reserve for claim losses 1,203,792 1,113,506 Secured trust deposits 875,317 882,602 Total stockholders' equity 4,490,672 3,279,775 Book value per share 25.39 18.84 FIDELITY NATIONAL FINANCIAL, INC. FIS SEGMENT NET EARNINGS TO EBITDA RECONCILIATIONS (In thousands) (Unaudited) For the Three Months Ended For the Three Months Ended September 30, 2006 September 30, 2005 Net Earnings $78,580 Net Earnings $57,892 + Interest Expense 49,717 + Interest Expense 37,548 + Income Taxes 42,799 + Income Taxes 31,112 + Depreciation 23,201 + Depreciation 18,570 + Amortization 87,934 + Amortization 52,212 + Minority Interest (34) + Minority Interest 1,917 - Other Income (1,570) - Other Income (4,746) EBITDA $280,627 EBITDA $194,505 For the Nine Months Ended For the Nine Months Ended September 30, 2006 September 30, 2005 Net Earnings $183,967 Net Earnings $151,064 + Interest Expense 142,018 + Interest Expense 87,357 + Income Taxes 108,006 + Income Taxes 92,006 + Depreciation 70,716 + Depreciation 49,599 + Amortization 247,588 + Amortization 172,286 + Minority Interest (40) + Minority Interest 6,171 - Other Income (6,933) - Other Income (8,274) EBITDA $745,322 EBITDA $550,209 FIDELITY NATIONAL FINANCIAL, INC. FIS SEGMENT NET EARNINGS TO FREE CASH FLOWS RECONCILIATIONS (In thousands) (Unaudited) For the Three Months Ended For the Three Months Ended September 30, 2006 September 30, 2005 Net Earnings $78,580 Net Earnings $57,892 + Depreciation 23,201 + Depreciation 18,570 + Amortization 87,934 + Amortization 52,212 - Capital - Capital Expenditures (67,114) Expenditures (74,602) Free Cash Flow $122,601 Free Cash Flow $54,072 For the Nine Months Ended For the Nine Months Ended September 30, 2006 September 30, 2005 Net Earnings $183,967 Net Earnings $151,064 + Depreciation 70,716 + Depreciation 49,599 + Amortization 247,588 + Amortization 172,286 - Capital - Capital Expenditures (216,534) Expenditures (180,497) Free Cash Flow $285,737 Free Cash Flow $192,452 FIDELITY NATIONAL FINANCIAL, INC. FIS SEGMENT NET EARNINGS TO CASH EARNINGS RECONCILIATIONS (In thousands) (Unaudited) For the Three Months Ended For the Three Months Ended September 30, 2006 September 30, 2005 Net Earnings $78,580 Net Earnings $57,892 + Amortization of + Amortization of Intangibles, Intangibles, Net of Income Tax 28,749 Net of Income Tax 17,941 Cash Earnings $107,329 Cash Earnings $75,833 For the Nine Months Ended For the Nine Months Ended September 30, 2006 September 30, 2005 Net Earnings $183,967 Net Earnings $151,064 + Amortization of + Amortization of Intangibles, Intangibles, Net of Income Tax 81,866 Net of Income Tax 60,857 Cash Earnings $265,833 Cash Earnings $211,921