September 18, 2007

Frost Bank Signs Exclusive Long-Term Agreement With PULSE

PULSE to Provide PIN Debit, Signature Debit Processing and Gateway
Services to Network Co-Founder

HOUSTON--(BUSINESS WIRE)--Sept. 18, 2007--Frost, one of the largest banks headquartered in Texas, has extended its long-standing relationship with PULSE EFT Association by signing a new long-term participation agreement with the ATM/debit network. As part of the agreement, Frost will utilize PULSE exclusively for PIN debit transactions at the point of sale and will establish an in-house processing connection to the network, enabling the bank to obtain signature debit processing services from PULSE and utilize the network as its exclusive gateway to other networks.

Frost is the banking subsidiary of Cullen/Frost Bankers, Inc., a financial holding company located in San Antonio, Texas, with assets of $12.9 billion at June 30, 2007. The company has more than 100 financial centers state-wide, has issued over 300,000 debit cards and operates over 150 ATMs. Cullen/Frost Bankers was one of seven bank holding companies that co-founded the PULSE network in 1981.

"PULSE offers outstanding PIN debit acceptance and a favorable fee structure," said Ray Zapata, senior vice president at Frost. "This, combined with our transaction mix and operating infrastructure, made the prospect of establishing a direct connection to the network and using PULSE as our exclusive PIN debit provider very compelling. In addition, as a long-time PULSE participant, we were very familiar with the network's exceptional customer service."

"As one of the original founding members of PULSE, Frost Bank has been part of our network from the beginning," said David Schneider, PULSE president. "We couldn't be more pleased about this new agreement, which allows us to provide additional value to the bank's debit card program, as well as support the future growth of this respected Texas financial institution."

Paul Olivier, group executive vice president of consumer banking at Frost, serves as Chairman of the PULSE Financial Institution Oversight Committee. He was elected to this position by the committee members in July of 2006.

About Cullen/Frost Bankers, Inc.

Cullen/Frost Bankers, Inc. is a financial holding company, headquartered in San Antonio, with assets of $12.9 billion at June 30, 2007. The corporation provides a full range of commercial and consumer banking products, investment and brokerage services, insurance products and investment banking services. Its subsidiary, Frost Bank, operates more than 100 financial centers across Texas in the Austin, Corpus Christi, Dallas, Fort Worth, Houston, Rio Grande Valley and San Antonio regions. Founded in 1868, Frost is one of the largest banks headquartered in Texas, with a legacy of helping Texans with their financial needs during three centuries.

About PULSE EFT Association LP

PULSE is one of the nation's leading ATM/debit networks, currently serving more than 4,400 banks, credit unions and savings institutions across the country. PULSE is owned by Discover Financial Services (NYSE:DFS). The network links cardholders with nearly 260,000 ATMs, as well as POS terminals at retail locations nationwide. The company is also a valued resource for consumer research related to electronic payments and is committed to providing its participants with education on evolving products, services and trends in the payments industry. For more information, visit

Anne Rhodes, 832-214-0234
Renee Sabel, 210-220-5416