Cass Information Systems, Inc. Reports 9% Increase in 2nd Quarter Net Income

ST. LOUIS–(EMWNews)–Cass Information Systems, Inc.

(NASDAQ: CASS), the nation’s leading provider of

transportation, utility and telecom invoice payment and information

services reported second quarter 2008 net income of $4.6 million, a 9%

increase over the $4.2 million in net income reported in the second

quarter of 2007. The company posted earnings of $.48 per fully-diluted

share over the period, a 7% increase over the $.45 per fully-diluted

share earned a year earlier.

Payment and processing fees increased 12%, or $1.3 million, compared to

the year-earlier period. Utility transaction volume was up 15% and

utility dollar volume rose 23% due to new business and heightened

activity from existing customers.

Net investment income decreased $606,000, or 6%, primarily due to the

overall decline in interest rates.

Operating expenses were up 4%, or $576,000, as a result of higher

employee costs related to transaction growth. Income tax expense

decreased 16%, or $303,000, due to the change in the mix of the company’s

investment portfolio.

“The excellent growth in transaction volume

experienced by our utility and freight invoice processing operations

helped overcome the negative effects of the current low interest rate

environment and enabled the company to turn in a solid quarter,”

said Lawrence A. Collett,

Cass chief executive officer and chairman of the board. “The

results make us optimistic about the company’s

ability to meet our goals in the second half of 2008.”

Over the first six months of 2008, payment and processing fees increased

9%, or $2.1 million, compared to the year-earlier period. Utility

transaction volume was up a strong 14% and utility dollar volume rose

25%.

Net investment income decreased $1,053,000, or 5%, primarily due to the

overall decline in interest rates.

Operating expenses were up 5%, or $1,603,000, as a result of higher

employee costs related to transaction growth. Income tax expense

decreased 21%, or $862,000, due to the change in the mix of the company’s

investment portfolio.

Due to its lack of exposure to sub-prime mortgage loans, mortgage-backed

securities, or residential development loans of any kind, the issues

that are having a significant detrimental effect on the financial

community should not affect Cass in such a manner.

About Cass Information Systems

Cass Information Systems is the leading provider of transportation,

utility and telecom invoice payment and information services. The

company, which has been involved in the payables services and

information support business since 1956, disburses over $24 billion

annually on behalf of customers from processing centers in St. Louis,

Mo., Columbus, Ohio, Boston, Mass., Greenville, S.C. and Wellington,

Kansas. The support of Cass Commercial

Bank, founded in 1906, makes Cass Information Systems

unique in the industry. Cass is part of the Russell

2000®

Index and earlier this year was one of only 27 companies to

be honored with a 2008 Supplier

Excellence Award by AT&T

Inc. (NYSE:T)

for its service in utility management.

Note to Investors

Certain matters set forth in this news release may contain

understanding of anticipated future financial performance. However,

results to differ materially from those in such statements. For a

10-K for the year ended December 31, 2007.