MoneyGram Reports Isolated Server Security Incident; Company Notifying Customers, Working With Law Enforcement

Minneapolis, Minn., Jan. 12, 2007 - MoneyGram today announced that a company server with consumer information for about 79,000 bill payment customers was unlawfully accessed via the Internet last month. Forensic experts have not been able to verify that any information was actually compromised, however the company is notifying customers that some personal information may have been viewed or obtained by unauthorized parties. Notification is required by some state and federal regulations.

"It was an isolated incident involving only those consumers who made payments to a single biller, and we are working with law enforcement in the investigation. We also have taken additional security measures to help ensure this type of incident does not occur again. We regret the inconvenience that this may cause," said Vicki Keller, vice president, MoneyGram Global Payment Services.

To guard against any unauthorized use of the information, the bill payment customers are being offered a free one-year subscription to a credit monitoring service. The information that might have been accessed included customer names, addresses, phone numbers, biller account numbers, and in some cases, bank account numbers. It did not contain Social Security, driver's license or state identification numbers.

MoneyGram further advised that due to the limited nature of the unauthorized server access, it does not anticipate that the incident will have a material financial impact on the company.

MoneyGram is a global payment services company based in Minneapolis, Minn.

Cautionary Information Regarding Forward-Looking Statements

The statements contained in this press release regarding the business of MoneyGram International, Inc. that are not historical facts are forward-looking statements and are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances due to a number of factors, including, but not limited to: (a) loss of key retail agents or inability to maintain our network in our Global Funds Transfer segment; (b) loss of large financial institution customers in our Payment Systems segment; (c) ability to successfully develop and timely introduce new and enhanced products and services; (d) ability to protect the intellectual property rights related to our existing and any new or enhanced products and services; (e) litigation or investigations of us or our agents that could result in material settlements, fines or penalties; (f) failure to continue to compete effectively; (g) ability to manage risks relating to U.S. federal and state regulatory requirements that could result in material settlements, fines or penalties, or changes in our business operations; (h) ability for us or our agents to maintain adequate banking relationships; (i) imposition of additional regulatory requirements in any of the foreign countries in which we operate; (j) ability to manage risks related to opening of new retail locations and acquisition of businesses; (k) ability to maintain effective internal controls; (l) ability to manage credit and fraud risks from our retail agents; (m) ability to manage credit risk related to our investment portfolio and our use of derivatives; (n) fluctuations in interest rates; (o) material changes in the market value of securities we hold; (p) material slow down or complete disruption in international migration patterns; (q) unexpected liquidity needs; (r) ability to maintain efficient, secure and uninterrupted operation of our computer network systems and data centers; (s) ability to process and settle transactions accurately and efficiently; (t) ability to manage risks associated with our international sales and operations; (u) possible delay or prevention of an acquisition of our company which could inhibit a stockholder's ability to receive a premium on their investment from a possible sale of our company due to provisions contained in our charter documents, our rights plan and Delaware law; and (v) other factors more fully discussed in MoneyGram's filings with the Securities and Exchange Commission. Actual results may differ materially from historical and anticipated results. These forward-looking statements speak only as of the date on which such statements are made, and MoneyGram undertakes no obligation to update such statements to reflect events or circumstances arising after such date.