Stephens Inc.

Spring Investment Conference

June 3, 2009

2

Safe Harbor Statement

This presentation includes certain forward-looking statements that are based on our management's beliefs

and assumptions and on information currently available to our management. Forward-looking statements

include the information concerning our possible or assumed future results of operations, business

strategies, financing plans, competitive position, industry environment, potential growth opportunities, the

effects of future regulation and the effects of competition. Forward-looking statements include all

statements that are not historical facts and can be identified by the use of forward-looking terminology such

as the words ''believe,'' ''expect,'' ''anticipate,'' ''intend,'' ''plan,'' ''estimate'' or similar expressions. Forward-

looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from

those expressed in the forward-looking statements. We do not have any intention or obligation to update

any forward-lookingstatements.

You should understand that many important factors, in addition to those discussed in this presentation,

could cause our results to differ materially from those expressed in the forward looking statements. These

factors include, without limitation, the significantly unfavorable economic conditions facing the United

States, the results and effects of the breach of our payment systems environment including the outcome of

our investigation, the extent of cardholder information compromised and the consequences to our business,

including the effects on sales and costs in connection with the system breach, our competitive environment,

the business cycles and credit risks of our merchants, chargeback liability, merchant attrition, problems with

our bank sponsor, our reliance on other bank card payment processors, our inability to pass increased

interchange fees along to our merchants, the unauthorized disclosure of merchant data, system failures

and government regulation.

3

Investment Highlights

One of the ten largest merchant processors in the U.S. ranked by

purchase volume

Differentiated sales and service organization driving growth

Merchant-centric business model

Deployment of 21st century proprietary technology

Seasoned management team

Strong track record of performance

Objective – to become the leading payment processor

for small and mid-sized merchants

4

Drivers of Card Growth

Same

Store

Sales

Advances in

Technology

Consumer

Card

Use

New Merchant

Acceptance

Proliferation in the number of

cards and use by consumers

Growing user base of cardholders

largely driven by debit cards

Financial incentives and rewards

offered by card issuers

Growth in prepaid cards

Recurring billing

Advances in payment processing

and telecommunication

technology

Contactless and RFID

technologies

Wireless terminals

Expanding new merchant

acceptance of bank cards

Fast food, internet, government

and business to business

Acceptance of bank cards

is necessary to remain

competitive

Growing same store sales

Displacement of cash and

checks at the point of sale

Providing customers with an

alternative to pay using a

bank card

Bank card purchase volume – 12.7% CAGR since 1998

Growing Industry Market Share

$74.7

$68.9

$43.3

$33.70

$25.0

$17.9$14.4$12.1

53

67

89

111

133

222

229

46

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

$55

$60

$65

$70

$75

$80

2001 2002 2003 2004 2005 2006 2007 2008

Pro

ce

ss

ing

Vo

lum

e (

billio

ns

)

0

25

50

75

100

125

150

175

200

225

250

Me

rch

an

ts (

00

0s

)

1.1%

1.4%

0.9%

1.8%

2.0%

2.3%

2.9%

3.0%

6

Focus on the Future: Growth Drivers

Superior

Sales

Model

Modern Platform:

Scale

Economies

New Verticals

Broader Product

7

Unique Sales Model

Direct sales to the Merchant

Ensures flexibility/control to drive growth

Distribution channel leverageable across multiple products

Company and sales force share merchant economics

Compensation measurement: Gross margin

Sales compensation = % of Gross margin

Identical throughout entire sales organization

Results: Merchant Net Revenue growing at 15%

Goals: Double Relationship Manager count in next few years

The incentive structure of a commission-only system,

the control of a W-2 workforce

8

Merchant-centric business model

Educating small and mid-sized merchants to demand:

• Reasonable credit and debit processing costs

• Cutting edge security

• Processing experience of larger merchants

Challenges industry to replicate our “Fair Deal” pricing transparency

• Generating wide publicity in industry and trade media

Proved our merchant-first stance

• Heartland’s decision to pass through 100% of interchange reductions

from the 2003 “Wal-Mart” suit validated our claim of merchant

advocacy

• www.MerchantBillofRights.com

Proven track record of transparency and merchant advocacy driving customer loyalty

9

Product & Vertical Expansion

Petroleum product challenges

Existing product relies on 2 providers, high-cost solution

Overwhelming challenges to building connectivity

With Alliance acquisition, HPS takes leading position in Petroleum vertical

2nd largest acquiring vertical

Substantial barriers to entry

Sales Opportunities

HPS sales team gains access to highly competitive product

10

Fully-Integrated Proprietary Platform

HPS Exchange

Real-time authorization platform

86% of legacy Heartland transactions processed in Q1 09

Passport

Successfully transitioned merchants to proprietary back-end processing

platform during 2006

98% of active bank card merchants processed

Investment in fully integrated platform generates economies of scale

Network Services

Addition of 2.8 billion annual transactions brings HPS to new levels of scale

economies

Immediate telecom and other savings, plus long-term platform consolidation

benefits

AuthorizationUnderwritingDirect Sales Force AuthorizationUnderwritingDirect Sales Force AuthorizationUnderwritingDirect Sales Force

Heartland Payment Systems

11

Broadly Diversified Portfolio

R eta il

(18%) C onvenienc e &

L iquor S tores

(8%)

L odg ing (7%)

Automotive (7%)

Other

(13%)

P etroleum (3%)

P rofessiona l S ervic es (4%)R esta ura nts (39%)

Before Acquisition After Acquisition

R eta il

(14%)

C onvenienc e &

L iquor S tores

(6%)

L odg ing

(6%)

Automotive (6%)

Other

(10%)

P etroleum

(25%)P rofessiona l S ervic es (3%)

R esta ura nts

(30%)

Financials

13

Strong Financial Performance

$137.8

$186.5

$246.7

$294.8

$383.7

$0

$50

$100

$150

$200

$250

$300

$350

$400

2004 2005 2006 2007 2008

11.8%

17.4%18.2% 18.4%

20.2%

5%

10%

15%

20%

2004 2005 2006 2007 2008

Net Revenue Operating Margin

Note: Net revenue calculated as gross revenue less interchange, dues & assessments, and other pass-through costs

Ne

t R

ev

en

ue

(m

illio

ns

)

Op

era

tin

g m

arg

in %

14

Pro Forma Net Income

Heartland’s Growth in Profitability

1 2002 and 2003 Income Tax provisions are calculated using the 41.9% 2004 tax rate to remove the impact of valuation allowance

adjustments and application of NOLs.

2 Net income excludes impact of one-time lawsuit settlement gain.

3 Excludes extraordinary items - gain on sale, warrant expense, other.

4 2005, 2006, 2007 and 2008 Income Tax provisions are calculated using 37.3% tax rate

$5.2

$8.4

$19.7

$28.4

0

$10

$15

$25

$40

2003¹ 2004² 20053,4 20063,4

Ne

t In

co

me

(m

illio

ns

)

$5

$20

$30

$35

20073,4

$38.2$41.8

$45

20084

First Quarter 2009 Highlights

Transaction Processing Volume + 17.4%

Net Revenue + 23.4%

Card Revenue + 26.6%

Free Cash Flow* $11.7 million

Adjusted Net Income ** $ 5.4 million

Adjusted Earnings per FD shares** $ 0.14

15

* Non-GAAP Number – See Reconciliation on Website** Excludes Processing System Intrusion Costs of $12.6 million or $0.20 per FD share

16

Portfolio Accounting & Cash Flow Dynamics

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Year

HPS Cash Inflow

HPS Acctg Income

Annual Margin Attrition - 12%

Annual Margin Attrition - 15%

17

Free Cash Flow

Heartland continues to generate strong free cash flow while investing for growth

2006 2007 2008($millions)

Net Income $ 28.50 $ 35.90 $ 41.80

Depreciation & Amortization 43.40 53.80 68.20

Other¹ 2.70 6.20 7.40

Total Inflows 74.40 95.90 117.40

Signing Bonuses $ 33.70 $ 44.70 $ 45.50

Discretionary Buyouts 10.70 8.80 7.00

Capex² 8.10 9.70 18.40

Total Outflows 52.50 63.20 70.90

Free Cash Flow $ 22.10 $ 32.70 $ 46.50

¹ Excludes tax benefit from certain stock option exercises in 2006 and 2007

² Excludes Service Center Costs in 2006 , 2007 and 2008

18

Breach

January 12, 2009 - Malicious Software discovered in Processing System

Remediation immediately initiated and completed

Currently pursuing Industry’s only true end-to-end encryption

FAS 5 Accounting determines process for estimating costs

Expensing ongoing legal, accounting, consulting as incurred

First Quarter 2009: $12.6 million Pre-Tax, or $0.20 per share

Guidance considers potential impact on growth initiatives

More at: www.2008breach.com

19

Net Revenue $430 - $438 Million

Growth v. 2008

Total 12 - 14%

Organic 7 - 9%

EPS* $0.95 - $1.00

* Excludes impact of breach

2009

Guidance

Guidance

20

Investment Highlights

One of the ten largest merchant

processor in the U.S. ranked by purchase volume

Differentiated sales and service

organization

Merchant-centric business model

Deployment of 21st century

proprietary technology

Seasoned management team

Strong track record of

performance

Continued market share gains

Strong revenue growth

Earnings growth sustained