Jack Henry & Associates, Inc Presented By: Matthew Thompson & Daniel DeRose Jr. Presented April 17, 2007

Presentation Outline Company overview Industry Background Firm strategy and development Acquisition Strategy RCMP position Stock Performance Portfolio fit Firm Performance Dupont analysis Valuation DCF Recommendation

Company Overview Founded in 1976 Based in Monett, Mo. Provides software and services for more than 8,700 financial institutions throughout the U.S.

Company Overview 3 Primary Brands: 3 Primary Sources of Revenue Jack Henry & Associates Sells core processing solutions and integrated complimentary products to US commercial banks with assets up to $30B Symitar Markets and sells same solutions to US credit unions ProfitStars Markets and sells specialized solutions to US banks and credit unions of all sizes, as well as international financial institutions and other diverse businesses 3 Primary Sources of Revenue Software licenses Support and service fees which include implementation services Hardware sales, which include all non-software remarketed products 4

Company Overview Continued Offer integrated suite of data processing system solutions to improve customers' management of internal/office applications and customer/member interaction processes, as well as specialized data processing solutions to meet specific business needs Believe solutions enable customers to provide better service to their customers and compete more effectively against other banks, credit unions, and alternative financial institutions

Customer Options Install Jack Henry comprehensive system in house Perform outsourcing services with the entire suite of products and services 5-10 year contracts

Industry Background Financial Institutions (commercial banks, thrifts, and credit unions) have increased spending on hardware, software, services and telecommunications by an annual compound growth rate 6% from 2001 to 2005 Industry spending increased 9.5% from 2004 to 2005

Industry Effect Approx. 9,000 commercial and savings banks in the US, saw a 2% decline due to industry consolidation1 80% of JKHY total revenues Number of credit unions has declined at a 3% compound annual rate from 2001 to 2005, however these institutions aggregate assets have increased at a 9% compound annual growth rate2 20% of JKHY total revenues 1) 2006 Form 10-K, p.8 2) 2006 Form 10-K, p.8

Firm Strategy and Development Offer the highest quality products and services Developed reputation as premium brand name in the industry Keep up with most cutting edge technology to continually serve clients with new products and services Increase current customer relationships Minimal marketing and sales costs Increased product capability Ability to integrate with other 3rd party services and products

Firm S&D Continued Increased customer base through sales and marketing campaigns Increased 211% from ’02-’06 Attract and retain high quality employees Built into corporate culture Make Strategic Acquisitions

Acquisitions Strategy Reasons for: More products and services that compliment existing offerings New customers Enter new markets w/in financial services and other vertical markets Additional outsourcing capabilities Acquisition Focus: Products in high demand Strong management team Excellent customer relationships

Recent Key Acquisitions *Since 2002 JKHY has made 17 successful acquisitions

RCMP Position Entered Position November 11, 1999: Stock splits: BOT: 200 shares @ $36.00/share Stock splits: March 3, 2000 (2:1); March 5, 2001 (2:1) Sold 400 shares last semester, fall 2006 Current Position: Owned shares: 400 Stock Price as of April 16: $24.91

Stock Performance Mkt. Cap. - $2.24B 52 week range: $17.40 - $24.67

Portfolio fit

Correlation Matrix

Firm Performance Dupont Analysis

Discounted Cash Flow Analysis Basic assumptions Revenues continue to grow at steady pace due to continued acquisitions Revenues from Hardware to return to modest 1% growth per year. Cost of Hardware as a % of Revenues remains almost flat in the future as the price of technology continues to fall JKHY continues to pay a dividend of 20% of net income Capital Expenditures stay in the $50 million range

Discounted Cash Flow Analysis Step 1 Free Cash Flow

Discounted Cash Flow Analysis Step 2 Calculate WACC CAPM = 11.95% Beta = 1.2 Rm = 10.75% Rf = 4.75% WACC = 11.75 Tax Rate = 36% W(d) = 2.98% W(e) = 97.02% K(d) = 8.25% BUT equity holders (such as ourselves) have experienced a 15.65% CAGR from 1999 – 2007 We believe the CAPM is not an appropriate way to capture the entire expected return of stockholders A WACC of 13% is more appropriate

Discounted Cash Flow Analysis Step 3 PV of FC Step 4 & 5 Terminal Value

Discounted Cash Flow Analysis Step 6 Find Intrinsic Value Step 7 Price per Share

Sensitivity Analysis The stock price increases over 22% when using a WACC of 11.75% instead of a more conservative 13%

Recommendation HOLD all 400 shares JKHY is a good diversifier in the portfolio and leads to exposure in both technology and financial sectors We believe a strong management team and a pointed acquisition strategy will overcome the recent trend of consolidation in the industry

Questions ???