Heartland Payment Systems' annual report shows that the company experienced solid revenue growth over 10 years, increasing from $48 million in 1998 to $1.314 billion in 2007. Net income for 2007 was $35.9 million, a 26% increase from 2006. The document also lists the company's major office locations and regulatory certifications.

1. 90 NASSAU STREET | PRiNcETON, NJ 08542 | T: ( 8 8 8 ) 7 9 8 - 3 1 3 1 | w w w. H E A R T L A N D P A Y M E N T S Y S T E M S . c O M HEARTL AND PAYMENT SYSTEMS 2 0 0 7 A N N U A L R E P O R T

2. CORpORATE INFORmATION
10 YEARS OF SOLID REVENUE GROWTH IN MILLIONS
2006 $1,097
2007
$1,314 Company Officers
Robert O. carr
Office Locations
The following are the major Heart-
Regulatory Certifications
Heartland Payment Systems, Inc. filed
2005 $835 Section 302 CEO and CFO certifications
Chairman & Chief Executive Officer land operational and administrative
2004 $603 offices throughout the country. with the U.S. Securities and Exchange
2003 $422 Robert H. B. Baldwin, Jr. Commission as exhibits to its Annual
President & Chief Financial Officer corporate Headquarters, Report on the Form 10-K for the year
2002 $341
2001 $283
“Net income was $35.9 million, or Finance, Sales & Marketing ended December 31, 2007.
Sanford c. Brown 90 Nassau Street
2000 $203 $0.90 per diluted share, a 26% and Chief Sales Officer Princeton, NJ 08542
1999 $112 T: (888) 798-3131 Independent Registered
1998 $48
27% increase, respectively, from 2006.” charles Kallenbach Public Accounting Firm
General Counsel Payroll & Human Resources
& Chief Legal Officer 25115 Country Club Boulevard Deloitte & Touche, LLP
North Olmsted, OH 44070 750 College Road East, 3rd Floor
Martin A. Moretti T: (877) 729-2968 Princeton, NJ 08540
Chief Service Officer
information Technology
Thomas M. Sheridan 2595 Dallas Parkway, Suite 310 Annual Shareholders
Chief Portfolio Officer Frisco, TX 75034 Meeting
T: (877) 798-9656
Heartland Payment Systems
Alan J. Sims
Annual Shareholders Meeting
Chief Technology Officer Heartland Service center
will be held on
1 Heartland Way
Friday, May 2, 2008
Joseph E. white Jeffersonville, IN 47103
at 11:00 AM (ET) at:
Chief Accounting Officer T: (888) 963-3600
Nassau Inn
Ten Palmer Square
Board of Directors Princeton, NJ 08542
T: (609) 921-7500
Scott L. Bok
F: (609) 921-9385
Co-Chief Executive Officer
Greenhill & Co., Inc.
under construction
Robert O. carr Transfer Agent
Chairman & Chief Executive Officer & Registrar
Heartland Payment Systems
Registrar and
Transfer company
Mitchell L. Hollin
10 Commerce Drive
Partner
Cranford, NJ 07016
LLR Partners
T: (800) 866-1340
F: (908) 497-2310
Robert H. Niehaus
Chairman
Greenhill Capital Partners
Marc J. Ostro, Ph.D.
General Partner
Design: Creative Strategy Group | csg-design.com
Devon Park Bioventures
REVENUES REVENUES REVENUES OPERATING OPERATING OPERATING
REVENUES REVENUES REVENUES OPERATING
OPERATING REVENUES STOCKHOLDERS
REVENUESSTOCKHOLDERS OPERATING
OPERATING STOCKHOLDERS PROCESSING PROCESSINGHPS HPS EXCHANGE EXCHANGE HPSHPS EXCHANGE CARD TOTALCARDSALES CARDCARD SALES SALES
REVENUES OPERATING REVENUES OPERATINGSTOCKHOLDERS STOCKHOLDERS STOCKHOLDERS EXCHANGE EXCHANGE EXCHANGE EXCHANGE
STOCKHOLDERS STOCKHOLDERS PROCESSING PROCESSING HPS
OPERATING PROCESSING PROCESSING HPS
STOCKHOLDERS STOCKHOLDERS PROCESSING TOTAL
PROCESSING EXCHANGETOTAL TOTAL TOTAL
PROCESSING TOTAL
EXCHANGE HPS
PROCESSING
HPS HPS TOTAL
HPS EXCHANGE TOTAL
TOTALCARD CARD
CARD CARD CARD
TOTAL SALES
SALES CARD SALES
SALES SALESSALES
SALES
millions in millions INCOME millions
in millions in millions in millions in millions in INCOME EQUITY EQUITY
in in millions in millions INCOME inINCOME EQUITY INCOME INCOMEVOLUME VOLUME VOLUMETRANSACTIONS
INCOME INCOME millions INCOME EQUITY
EQUITY
INCOME EQUITY EQUITY VOLUME
EQUITY EQUITY VOLUME MERCHANT MERCHANTTRANSACTIONS MERCHANT MERCHANT MERCHANT PROFESSIONALS PROFESSIONALS
TRANSACTIONS
EQUITY VOLUME TRANSACTIONS TRANSACTIONS TRANSACTIONS MERCHANTMERCHANT
VOLUME VOLUME VOLUME VOLUME TRANSACTIONS MERCHANT MERCHANT MERCHANT
TRANSACTIONS MERCHANT
TRANSACTIONS MERCHANT
TRANSACTIONS PROFESSIONALS
MERCHANT MERCHANT MERCHANT PROFESSIONALS PROFESSIONALS PROFESSIONALS
MERCHANT MERCHANT
MERCHANT PROFESSIONALS MERCHANT
MERCHANT
PROFESSIONALS
PROFESSIONALS PROFESSIONALS
Jonathan J. Palmer
in in millions in millions
millions in in millions in millions
millions COUNT
in millions in millions in millionsin millions in millions inin millions billions inin millions in billions% of total processingin billions of total processingofprocessing
in millions in millions millions millions
in millions in
in in in billions millions
billions millions billions
in % total processing total
ofof % processing
total
of % COUNT COUNT COUNT
billionsin in in billions % of %intotal processing COUNT total % of total processing COUNT
in billionstotalof COUNT processing% total processingCOUNT COUNT COUNT
billions % % processing of COUNT COUNT COUNT
COUNT COUNT COUNT COUNT COUNT COUNT
COUNT
transactions transactions transactions transactions
transactions
transactions transactions
transactions transactions
transactions President & CEO
FSV Payment Systems
53% 160,950
160,950
160,950
160,950
160,950
160,950
160,950
160,950
160,950
154,750
154,750
154,750
154,750
154,750
154,750
1,010 154,750
154,750
1,010 154,750
160,950
1,010 154,750
$1,314
$1,314
$1,314
$835 $1,314
$835 $1,314
$1,314
$1,314
$1,314
$44.8$1,314
$32.544.8$165.7
$165.7
$165.7
$165.7
$33.7 $165.7
$165.7
$165.7
$ $165.7
$33.7 $165.7
$1,314
$165.7
$835 $59.8
$59.8
$44.8$59.8
$59.8
$44.8$59.8
$59.8
59.8
$44.8$59.8
$59.8
$51.9
$51.9
$51.9
$33.7 $51.9
$51.9
$51.9
$51.9
$51.9
$51.9
1,602
1,602
1,602
1,010 1,602
1,010 1,602
1,602
1,602
1,602
1,602
$59.8
$51.9
1,602
George F. Raymond
133,200
133,200
133,200
133,200
133,200
133,200
133,200
133,200
133,200
133,200
137,400
137,400
137,400
137,400
137,400
137,400
137,400
137,400
137,400
137,400
$33.7 75%
75%
75%
53% 75%
53% 75%
75%
75%
75%
75%
75%
$32.5 $139.3
$139.3
$80.1 $139.3
$139.3
$139.3
$139.3
$33.7139.3
$80.1 $139.3
$33.7139.3
$139.3
$1,097
$1,097
$835 1,097
$1,097
$835$1,097
$1,097
$1,097
$835 1,097
$32.5 $1,097
$1,097
President
1,379
1,379
1,379
1,379
1,379
1,379
1,379
1,379
1,379
1,379
$43.3
$43.3
$43.3
$80.1 $43.3
$43.3
$43.3
$43.3
$43.3
$43.3
$43.3
110,500
110,500
110,500
110,500
110,500
110,500
110,500
110,500
110,500
113,160
113,160
113,160
113,160
113,160
113,160
113,160
113,160
113,160
110,500
113,160
64%
64%
64%
64%
64%
64%
64%
64%
64%
64%
$44.8
$44.8
$32.544.8
$44.8
$80.1 $44.8
Buckland Corporation
53%
53%
53%
53%
53%
53%
$33.7
$33.7
$33.7
$33.7
53%
$
$
$
1,010
1,010
1,010
1,010
1,010
$835
$835
$835
$835
$32.5
$32.5
$32.5
$32.5
$32.5
$32.5
$
$
Richard w. Vague
$80.1
$80.1
$80.1
$80.1
$80.1
$80.1
Chairman & Chief Executive Officer
Energy Plus Holdings LLC
05 06 07 05 0505 07 0707 06 0506 07 07 0505 07 05070505 05 05 07 07 07 05 0505 07060506 05 05 06 07 05 0505 07 0707 07 0505 07 0707 05 0505 07060506 05 05 06 07 05 06 07 060506 0507 07 0705 05050706 05 06 05 06 07 07 0506050606 07 06 05 06 07
06 0606 05 05 07 0607 05 06 0606 0706 07 06 06 06
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05 0605 05 05 06
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07 07 05 06050705 07 05 07 05 06 05 0505 07 0707 07 07 07
06 0606 07 07 06 07
07 06 060706 05 05 06
05 06 05 0605 06 07 07
07 05 06

3. 2007 Financial Results
(in thousands, except per share data)
2007 2006 2005
Total revenues $ 1,313,846 $ 1,097,041 $ 834,824
Costs of services $ 1,196,673 $ 1,004,436 $ 764,605
General and administrative expenses $ 57,404 $ 47,787 $ 37,761
Total expenses $ 1,254,077 $ 1,052,223 $ 802,366
Income from operations $ 59,769 $ 44,818 $ 32,458
Net income $ 35,870 $ 28,544 $ 19,093
Earnings per common share:
Basic $ 0.95 $ 0.78 $ 0.62
Diluted $ 0.90 $ 0.71 $ 0.50
Weighted average number of
common shares outstanding:
Basic 37,686 36,394 23,069
Diluted 39,980 39,943 37,879
2007 Financial HigHligHts
n Processing volume rose 20% to $51.9 billion. n Operating margins expanded nearly
200 basis points to 19.7%.
n Total revenues increased 20% to $1.3 billion.
n Active card and payroll merchants
n Operating income was $59.8 million for the
increased 17% to 161,000.
year, a 33% increase from 2006.
n Payroll customers now total 6,200,
n Net income was $35.9 million, or $0.90 per
an increase of 47% from last year.
diluted share, a 26% and 27% increase,
respectively, from 2006.
1

4. to ouR sHaReHoldeRs,
2007 was a solid year for Heartland Payment Systems. The TM
company celebrated its 10th anniversary by setting new records
for net income, earnings per share and operating cash flow. We
introduced exciting new products that we expect will energize our
future growth, identified promising new markets and continued
to invest in the cutting-edge technology that strengthens our
differentiated business model. And we opened our brand-new
96,000-square-foot operations and customer service center, the first
phase of a planned 221,000-square-foot campus and home to what
is expected to be 650 Heartland professionals by the end of 2008.
ROBERT O. CaRR From a simple idea formulated I could not be prouder of the team
cHaiRman & just over 10 years ago, Heartland that has made this happen. The entire
cHieF executive oFFiceR has grown into one of the largest Heartland organization is committed
merchant processors in the world, to advancing our mission every day,
processing over $55 billion of making Heartland and its employees
transactions a year. Our initial idea the leading force for industry change.
was to build a new business model
that would equip merchants with the Our financial and operating results in
tools and knowledge to take control 2007 highlight our success:
of their merchant processing costs.
n Net income rose 26% to a record
Today, through our $35.9 million, while diluted earnings
Merchant Bill of Rights per share were up 27% to a record
(www.MerchantBillofRights.com), $0.90 from 2006.
we are widely recognized as an
unrelenting advocate for small
n Operating income for the year rose
and mid-sized merchants and 33% to $59.8 million, while operating
the industry’s leading proponent margins expanded to nearly
of transparency, equality and 20%—both new milestones.
clarity in pricing and strong
n Our strong operating cash flow of
merchant relationships.
$72.6 million indicates the business
has matured, and working capital
requirements have moderated.
Heartland has the potential to be a
powerful cash-generating machine.
Campus Solutions
Heartland launched its Campus Solutions division in 2007 by kicking off a major initiative with Pennsylvania’s Slippery
Rock University. At Slippery Rock, students can now use their cell phones and campus ID cards to make contactless card
payments on campus as well as at merchants in the surrounding community. At the same time, the Slippery Rock program
taps into Heartland’s Give Something Back Network to encourage charitable giving.
Through this innovative program, 0.5% of every purchase is automatically donated to the school. The cardholder has the
option to automatically donate an additional 1% to the charity of his or her choice or receive 1% cash back on purchases.
By tapping into students’ willingness to serve as early technology adopters, Heartland is ushering in a new era of campus
payment solutions, once again expediting adoption of contactless payments for a range of purchases.
2 Heartland Payment Systems 2007 Annual Report

5. n We raised our quarterly dividend transactions attempted on with our groundbreaking
50% to $0.075 per share, another Exchange, and Passport is installation at Slippery Rock
sign of our strong cash flow now delivering the cost University. By outfitting campus
and commitment to using it to savings and processing vending machines, laundry
reward shareholders. efficiencies we anticipated. facilities, photocopiers and similar
equipment with dual-technology
n Processing volume increased We have achieved significant readers that accept contactless
20% to $51.9 billion. progress in virtually every facet of payments, students can pay for
our business. And, we still have the a variety of services on campus
n Our direct sales force of 1,362 ability to grow our market share using their campus ID cards and
sales professionals and 240 among merchants we serve, and cell phones. And, these ID cards
service managers (at year end) our industry continues to expand can also be used for all kinds of
is the envy of the industry. In faster than the GDP overall. This purchases at local off-campus
2007, this team grew our active indicates we still have a great merchants. For Heartland, this
merchant count 17% to 161,000. deal of runway to expand and means we are able to not only
grow our business. generate income from on-campus
n We continue to augment
transactions, but we can also
our core merchant processing In 2007, we set the stage for
leverage the fact that we offer
offerings with value-added future growth with a number
unique access to students’
services such as Heartland of new products, services and
funds to sell our full range
Payroll Services, Heartland TM
offerings to capitalize on our
of card processing services to
Express Funds, Heartland
SM
growth opportunities. Let me
merchants in the community.
Campus Solutions and Heartland touch on a few of them.
MicroPayments Solutions. Our This initiative has energized the
payroll business continued With debit, credit, and prepaid
entire Slippery Rock community
to grow substantially as we cards increasingly displacing cash
and moved payments from cash
launched the industry’s first and and checks, transaction processing
to cashless, serving as a vital
only three-year guaranteed cost is exploding. Due to advances
proof case for the power of our
contract. Express Funds, Campus in technology, applications once
micropayments model. There are
Solutions and MicroPayments are considered inconceivable for card
countless opportunities to port
being developed to build on our payments—such as buying a soda
this model to other communities
core processing capability. at the vending machine or doing
and create a captive market for
Each has the same attractive laundry—are starting to emerge as
our technology.
recurring revenue and opportunities for card payments.
margin characteristics as
Heartland has already established
our processing business.
a beachhead in the micropayments
n Our internal processing market (transactions under $5)
platforms are performing well.
We authorized 99.998% of all
Micropayments
Historically, consumer payments under $5 for services like parking, laundry, vending,
printing and gaming were only completed with cash and coin. No more. With new
technological advances and changes in card association fee structures, this large
new market is fast moving to cashless payments.
Heartland is leading the charge. In 2007, we launched the Heartland MicroPayments
division to penetrate and expand our business in this arena. At the same time, our
leadership role in the card processing industry enables us to advocate widespread
adoption of cashless micropayments and accelerate the drive to a cashless society.
PAY M E N T S Y S T E M S TM
The Highest Standards | The Most Trusted Transactions
3

6. The development of this Heartland continues to garner From modest beginnings to a
exciting technology has its roots its share of awards and recognition billion-dollar market capitalization
in companies we’ve acquired. from the business community company traded on the New
We will continue to evaluate and industry authorities. In 2007, York Stock Exchange, it’s hard to
other opportunities in this space Heartland was named among believe we’ve come this far this
that can accelerate our growth or InfoWorld’s 50 most innovative fast. Looking ahead, our goal is
provide access to other rapidly technology companies alongside to continue to maintain our strong
expanding markets. the likes of Microsoft, IBM growth over the long term by
and Eli Lilly. increasing market share, adding
We also began to broaden beyond new clients, improving client
the traditional merchant processing Early on, we recognized the retention, broadening our product
business to look for additional importance of technology introductions and leveraging
products and services that in driving a differentiated, technology to improve efficiencies.
leverage our customer relationships low-cost business model, and
and technology. Our payroll our commitment to cutting-edge 2007 was a very good year for
initiative has been a success. technology has been one of the Heartland, and we are positioned
Today we process payroll for over pillars on which we have built our to continue our growth trajectory
6,200 clients, some of whom are business. Our multi-year initiatives and reward our loyal shareholders
existing Heartland card processing to build Passport (our internally through dividends and even better
customers, but many who are not. developed, back-end processing future performance. We thank
system) and Exchange (our front- all of our shareholders for their
This year, we also unveiled end system) have paid significant continued support and look forward
Heartland Express Funds, a unique dividends, driving down our costs to delivering on the promise of our
remote deposit capture product and enhancing our operating business model.
that enables business owners to margins while enabling us to
electronically deposit their checks introduce a host of new products Sincerely,
into their checking accounts and services.
without ever leaving the office.
Express Funds moved Heartland The Merchant Bill of Rights,
further up the continuum from a introduced last year, continues to
pure merchant processor into a gain traction and support. Today,
more comprehensive integrated 145 state trade organizations, RobeRt o. CaRR
payments solutions provider. merchants, and business partners CHAirMAn &
formally endorse the initiative. The CHief exeCuTive OffiCer
Importantly, Express Funds is not Merchant Bill of Rights codifies
a card-dependent relationship, what Heartland has advocated
so it opens the door to the huge since its inception: transparency
and rapidly growing markets of and honesty in card processing,
lawyers, accountants and similar cutting-edge security to prevent
businesses that typically do not identity theft and fraud—and a
have a card processing need. level playing field for all merchants.
Awards of Excellence
Heartland’s differentiated business model, cutting-edge technology and strong
management team were recognized with a wide array of industry awards in 2007.
For the second time, Bob Carr was named Ernst & Young’s “New Jersey Entrepreneur
of the Year.” He was also presented with the “Technology CEO of the Year” award by
the Eastern Technology Council.
Heartland was named “Best Run Sales Organization,” and Irina Haydon, an
executive director of sales and service, was named “Sales Director of the Year”
by Selling Power’s Sales Excellence Awards .
TM
Heartland was also recognized as one of the world’s top 50 most innovative
technology companies by InfoWorld magazine.
4 Heartland Payment Systems 2007 Annual Report