Former Morgan Stanley Unit Begins Trading as Independent Company
RIVERWOODS, Ill.--(BUSINESS WIRE)--July 2, 2007--Discover
Financial Services (NYSE: DFS), a leading credit card issuer and
electronic payment services company, today begins trading on the New
York Stock Exchange as an independent company.
"Today begins an exciting new chapter in Discover's proud
history," said David Nelms, Chief Executive Officer of Discover. "With
one of the strongest brands in financial services and a differentiated
strategy, Discover is well positioned to deliver long-term value to
shareholders, cardholders, financial institutions and our merchant
partners."
Discover is one of the largest credit card issuers in the world
and operates leading credit and debit payments networks. A leader in
cash rewards and customer service, Discover is the only company to
have created a successful new credit card network in more than 40
years. The company, which operates the Discover Card, with more than
50 million cardmembers, and the Discover and Pulse Networks, with
millions of merchants and more than 4,400 financial institutions,
reported more than $5 billion in revenues and more than $50 billion in
managed receivables in fiscal 2006.
Discover is now an independent company as a result of its spin-off
from Morgan Stanley, which was completed on June 30. Morgan Stanley
shareholders received one share of Discover common stock for every two
shares of common stock they held in Morgan Stanley. Those Discover
shares will officially begin trading under the ticker symbol "DFS"
today.
Clear Strategy to Deliver Shareholder Value
"Discover has a clear strategy to leverage its unique strengths
and integrated business model to continue growing its card issuing
business and realize the substantial opportunities in the fast-growing
payments business," Nelms said. "The spin-off puts us in an even
better position to execute on that strategy. We now have a highly
qualified board of directors complementing a strong existing
management team, as well as an enhanced ability to capitalize on
opportunities in the rapidly changing marketplace."
Nelms has been leading Discover's business since 1998 and will sit
on the company's Board of Directors. Roger Hochschild will continue in
his current role as President and Chief Operating Officer, and Roy
Guthrie will continue to serve as Chief Financial Officer.
Dennis D. Dammerman, who retired as Vice Chairman of the Board and
Executive Officer of General Electric Company and Director, Chairman
and CEO of GE Capital Services, will serve as Chairman of the Board of
Directors. Discover's Board also includes the following outside
directors: Jeffrey S. Aronin, President and CEO of Ovation
Pharmaceuticals, Inc.; Mary K. Bush, former U.S. Government
representative on the IMF Board and former head of International
Finance at Fannie Mae; Gregory C. Case, President and CEO of Aon
Corporation; Robert M. Devlin, former Chairman, President and CEO of
American General; Philip A. Laskawy, former Chairman and CEO of Ernst
& Young LLP; Michael Rankowitz, senior advisor to Morgan Stanley; E.
Follin Smith, EVP, CFO and CAO for Constellation Energy Group; and
Lawrence A. Weinbach, former Chairman and CEO of Unisys Corporation
and former Managing Partner and Chief Executive of Andersen Worldwide.
David H. Komansky, Chairman Emeritus of Merrill Lynch & Co., Inc.,
will join the Board later in the year.
About Discover Financial Services
Discover Financial Services (NYSE: DFS) operates the Discover Card
with more than 50 million cardmembers, the Discover Network with
millions of merchant and cash access locations, and the Goldfish
credit card business in the United Kingdom. Discover Financial
Services also operates the PULSE ATM/debit network, which serves more
than 4,400 financial institutions and includes nearly 260,000 ATMs, as
well as POS terminals, nationwide. For more information, visit
www.discoverfinancial.com.
CONTACT: Discover Financial Services
Jon Drummond, 224/405-1888
SOURCE: Discover Financial Services