U.S. consumers with slim or no credit histories can access more and previously unavailable financial opportunities

MINNEAPOLIS--(BUSINESS WIRE)--July 27, 2004-- Fair Isaac Corporation (NYSE:FIC), pioneer of the FICO(R) credit score used by most lenders to evaluate consumer credit risk, today announced it has extended its standard-setting FICO score to cover an expanded population base. The score will help lenders and other businesses better serve the financial goals of millions of historically credit-underserved U.S. consumers.

This FICO score can tap non-traditional sources of consumer data to assess the credit risk of adults who have minimal or no credit history on file. Use of FICO risk scores for these consumers - such as recent immigrants, people with low incomes, recent widows and divorcees, and young adults - will help businesses expand their markets, reduce losses, and make more financial services available to more people.

"For over 30 years, our credit scores have played a major role in facilitating faster, more convenient access to financial opportunities for U.S. consumers," said Tom Grudnowski, CEO of Fair Isaac. "This extension of the FICO score gives lenders and other businesses another powerful tool for building and growing their presence in high-demand and emerging markets, while expanding service options for consumers who have missed out on opportunities simply because they lack a traditional credit history."

This score is immediately available and businesses can obtain registration information to purchase these scores directly from Fair Isaac's business and consumer portal web site at www.myFICO.com/Business. The company has established a fully regulatory-compliant subsidiary, Fair Isaac Credit Services, Inc., to operationally deliver this capability.

While an estimated 160 million Americans have documented credit histories adequate for calculating classic FICO credit scores, an estimated fifty million consumers do not. Lenders in the mortgage, payment card, retail, telecommunications and related industries can now use FICO scores to better control their risk when extending credit opportunities to these consumers. Lenders also can easily integrate this score into existing decision systems.

"Businesses that in the past have lacked adequate credit information for people in key underserved groups now gain another vital resource for making smart, responsible and confident credit decisions," said Craig Dillon, vice president of Scoring Solutions at Fair Isaac. "Extending the FICO score family and tapping into a unique mix of non-traditional data sources enables us to deliver the same kind of highly predictive, objective risk evaluation that businesses have come to expect from FICO scores."

Fair Isaac has developed a diverse network of information sources for non-traditional credit data to enable it to design and calculate highly predictive credit risk scores for overlooked consumers. Predictive information considered in the formulation of this score include payment performance data on financial activities such as deposit accounts, pay day loans, and product purchase payment plans. Until recently, such information has not been consistently maintained or accessible for commercial risk scoring.

"Certain segments of the U.S. population are experiencing rapid growth, largely through immigration," said Josh Kessler, manager of research at Purchase Street Research. "These segments' growth creates a totally new market for financial services institutions. Lenders are very interested in reaching out to this market, both to grow their customer base and to satisfy growing pressure in the form of programs like the Community Reinvestment Act. By accessing non-credit information sources and tools such as Fair Isaac's FICO score to evaluate credit risk, financial service institutions can increase both their total portfolio size and overall profitability."

All Fair Isaac consumer decisioning solutions can use this new capability effective immediately, including LiquidCredit(R) service, Capstone(R) Decision Manager, TRIAD(TM) adaptive control system and Enterprise Decision Manager(TM).

About Fair Isaac

Fair Isaac Corporation (NYSE:FIC) is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company's predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power billions of mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations, and government agencies. Through the www.myfico.com Web site, consumers use the company's FICO(R) scores, the standard measure of credit risk, to manage their financial health. For more information, contact ScoringSolutions@fairisaac.com.

Statement Concerning 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 new FICO Expansion score, and the benefits to be derived from this offering, 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 products 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, 2003, and quarterly report on Form 10-Q for the period ended March 31, 2004. 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, LiquidCredit, Capstone Decision Manager, TRIAD, Enterprise Decision Manager, 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 the trademarks of their respective owners.

CONTACT:
Fair Isaac
Megan Forrester, 800-213-5542 (Investors/Analysts)
investor@fairisaac.com
Craig Watts, 415-492-5399 (Media)
craigwatts@fairisaac.com

SOURCE: Fair Isaac Corporation