December 22, 2003 -- Statement By MasterCard General Counsel Noah J. Hanft On Judge Gleeson's Decision To Give Final Approval to Settlement Agreement, Ending Class Action Lawsuit

"MasterCard International is glad that Judge John Gleeson upheld as fair the agreement settling all claims in the class-action antitrust lawsuit brought against MasterCard and Visa in 1996 by merchants in the United States. We are also pleased that he affirmed the broad release of MasterCard and its members from claims that should or could have been included in the merchants' lawsuit against MasterCard, including pending cases with the potential for significant financial exposure.

Judge Gleeson's action was also a win for the merchants, who will receive more money from the settlement. By sharply reducing the fees claimed by the plaintiffs' attorneys by two-thirds, and calling their request 'absurd,' Judge Gleeson also sent a strong message to trial attorneys that class action lawsuits should benefit constituents, not lawyers.

With this lawsuit behind us, and Judge Gleeson's affirmation of the broad release from copycat and related suits that tried to ride on the coat-tails of the merchant lawsuit, we can return to focusing all of our attention on being the best business partner for our customers and the best choice for consumers.

As announced when MasterCard signed the settlement agreement in June, MasterCard's key consumer protections prohibiting merchants from surcharging cardholders or discriminating against any MasterCard card or cardholder will be maintained for credit and charge cards. Those protections also will be honored by merchants who continue to accept MasterCard debit cards. Merchants will have the right to choose not to accept U.S.-issued MasterCard debit cards, and under the terms of the agreement, MasterCard has established an Honor All Cards rule for debit MasterCard cards, which will help ensure that debit MasterCard cardholders continue to enjoy the benefits of acceptance. We expect that the vast majority of merchants will recognize the benefits of accepting all MasterCard cards, and will choose to continue accepting all MasterCard-branded products."