Bangkok--13 Dec--124 Communications Latest MasterCard Survey Reveals Strong Consumer Confidence Across Most Asia/Pacific Markets Despite Volatility in Financial Markets Vietnam, Hong Kong, China, Singapore Hold at Highly Optimistic Levels; Korea Shows Greatest Improvement Consumers in Asia/Pacific are optimistic that 2008 will be another rosy year, with consumer confidence outlook for the first half of the year up on the level reported six months and a year ago. These sentiments prevailed in spite of volatility in financial markets across the world, according to the latest MasterCard Worldwide Index of Consumer Confidence findings, which tracks consumer confidence half-yearly for the six-month period ahead. Overall outlook across Asia/Pacific with regards to the economy (68.3), regular income (81.0), stock market (66.5) and quality of life (66.7) have improved from the previous survey which was done in May 2007. The view on employment (63.8) remains constant. The volatility in financial markets across the world, announcement of heavy sub prime losses by global financial heavyweights, rising oil prices and inflation costs, seem not to have dampened confidence for the first half of 2008. The MasterCard Index is the region’s most comprehensive and longest running consumer confidence survey. The scores, ranging between 0 and 100, are based on responses on five variables: employment, economy, regular income, stock market and quality of life. Scores above 50 indicating extent of optimism, scores below 50 indicating the extent of pessimism, and 50 being neutral. Ten out of the 13 Asia/Pacific markets have registered an increase in consumer confidence levels. Vietnam (94.3) continues to top the region’s markets as the most buoyant in consumer sentiment for the six month period ahead, followed by Hong Kong (85.9), China (85.5) and Singapore (83.6). Korea shows the largest increases in optimism, with its index score increasing 15.6 points to 64.1.“This latest consumer confidence reading of the region is broadly consistent with the short term outlook of economic conditions of the key regional markets. It is not surprising to see the China and Vietnam continue to be strongly optimistic, whereas at the opposite end of the spectrum is Taiwan.” Said Dr. Yuwa Hedrick-Wong, economic advisor, Asia/Pacific, MasterCard Worldwide. He continues “Weak domestic consumption in Japan is also reflected in its confidence index slipping back into pessimistic territory. For 2008, the critical uncertainty is therefore China, which has become an increasingly important market for exports from the rest of Asia. Can its economic expansion stay robust in spite of weakening global demand? Depending on the performance of the China market, outlook for the second half of 2008 might be very different,” The latest MasterCard Index survey was conducted from 8 to 29 October 2007 for all markets except Indonesia (which was conducted from 18 October to 5 November 2007 because of Ramadan). It involved 5,411 consumers across 13 key Asia/Pacific markets. In its fourteenth year, the six-monthly survey analyzes prevailing consumer perceptions of economic conditions for the six-month period ahead. Other highlights of the latest MasterCard Worldwide Index of Consumer Confidence survey are:THAILAND (44.2) Thai consumers have regained some of the confidence they lost six months ago. However, the current Index score of 44.2 is still below the market's Historical Average of 55.7. While consumers have regained some confidence with regards to outlook on employment, the economy, stock market and quality of life, sentiments towards regular income have dropped 17.1 points. Economic Variables Current Index Score 2Q 2007 4Q 2006 Employment 36.7 28.1 62.4 Economy 42.1 32.1 64.8 Regular Income 56.1 73.2 77.0 Stock Market 44.6 25.3 58.7 Quality of Life 41.7 24.6 62.5 MasterCard Worldwide Index of Consumer Confidence Score 44.2 36.7 65.1 - China (85.5), Hong Kong (85.9) and Singapore (83.6) all registered high levels of consumer confidence. Consumers in China are showing record-high levels of optimism about employment. Consumers in China also continue to be bullish about the the stock market, while consumers in Hong Kong and Singapore, while still positive, are reflecting a slight dip in sentiment. - Japan (48.6), which saw a massive recovery in consumer confidence levels in 2006 to its historical high and the first half of this year, has slipped back somewhat and is now just holding at around neutral levels. Its Index score dropped 18.2 points, from a clearly optimistic 66.8 in the previous survey to 48.6 for the six months ahead. Whether consumers have turned pessimistic or are adopting a wait-and-see attitude, the more than 20-point loss of confidence, manifested particularly in the regular income, economy and quality of life indicators, is worth monitoring. - Taiwan (29.7) has the weakest consumer sentiment of all 13 markets. Outlook is pessimistic on most of the five economic factors, with views on employment and quality of life being the most pessimistic among consumers in the Asia/Pacific region. NOTE TO EDITORS: This news release is distributed with an accompanying chart (see page 4) that shows current MasterCard Worldwide Index of Consumer Confidence scores by market compared with several significant points in the history of the survey. More information on MasterIndex can be found at the website www.masterintelligence.comAbout the MasterCard Worldwide Index of Consumer Confidence The MasterCard Worldwide Index of Consumer Confidence survey has a 14-year track record of consumer confidence indices collected from more than 135,000 interviews, unequalled both in scope and history across Asia/Pacific. The MasterCard Worldwide Index of Consumer Confidence is the most comprehensive and longest running survey of its kind in the region. It has demonstrated its precision at several important junctures as a barometer of consumer sentiment. In June 1997, MasterIndex revealed a decline in consumer confidence — one month prior to the devaluation of the Thai baht that triggered the regional financial crisis. More recently in June 2003, MasterIndex for employment in Hong Kong dropped to a low of 20.0. This was subsequently reflected in Hong Kong’s unemployment rate, which peaked just before Sept 2003 at 8%. The survey began in Quarter 2 of 1993 and has been conducted twice yearly since. Thirteen markets participate in the survey: Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam. Vietnam made its debut in the December 2003 report, replacing India, which is now covered by the SAMEA (South Asia/Middle East/Africa) MasterIndex survey. The last Asia/Pacific MasterIndex survey was conducted from 8 to 29 October 2007 for all markets except Indonesia (which was conducted from 18 October to 5 November 2007 because of Ramadan). The survey was conducted among a sample of approximately 400 (total sample of 5,411) across the middle and upper income groups in each market, except in China where approximately 600 respondents were surveyed. The MasterIndex is calculated based upon percentage response figures, with zero as the most pessimistic, 100 as most optimistic and 50 as neutral. Five economic factors are measured: employment, the economy, regular income, stock market and quality of life. The responses are consumers' thoughts on the six months ahead (i.e. January to June 2006). Data collection was via personal and telephone interviews with the questionnaire translated to the local language wherever appropriate and necessary. The survey has a margin of sampling error of plus or minus four percentage points at the 90% confidence level, except China, where because of the larger sample, the margin of sampling error is plus or minus three percentage points. This chart shows the performance of each market at different key intervals and important turning points in the history of the MasterCard Worldwide Index of Consumer Confidence.About MasterCard Worldwide MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 16 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard?, Maestro? and Cirrus?, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to http://www.mastercard.com.Forward-Looking Statements Statements in this press release which are not historical facts, including any statements about MasterCard's plans, strategies, beliefs and expectations, are forward-looking and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date they are made. Accordingly, except for the company's ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this press release or to reflect the occurrence of any unanticipated events. Actual results may differ materially from such forward-looking statements for a number of reasons, including those set forth in the company's filings with the Securities and Exchange Commission (SEC), including the company's Annual Report on Form 10-K for the year ended December 31, 2006 and Current Reports on Form 8-K that it has filed with the SEC during 2007, as well as reasons including difficulties, delays or the inability of the company to achieve its strategic initiatives. Factors other than those listed above could also cause the company's results to differ materially from expected results. Contact: Eileen Wee, MasterCard Worldwide, 0 2670 4088, [email protected] Elizabeth Wongwasin, 124 Communications, 0 2662 2266, [email protected]