Western Union Shareholder Resolution 2007

Western Union Review on Remittance Fees, Rates, and Policy

WHEREAS, we believe onerous charges in the multi-billion dollar money transfer industry place an undue economic burden on low-income immigrant families in the United States and in their communities of origin while creating an increased reputational risk for our Company.

According to the World Bank, the remittance market will generate more than $15 billion in annual revenues in 2006, with profit margins for companies like Western Union as high as 30%.

Migrant worker remittances, projected to reach $260 billion globally in 2006, constitute the second largest source of external funding for developing countries after Foreign Direct Investments (i.e., foreign aid) and are considered an economic life vest for the families of 200 million international migrants who send money home.

The typical user of remittance services is a low-wage immigrant worker who lives in urban America, makes $15,600 annually and sends home $293 a month, almost 30% of his or her net monthly income. These remitters spend up to $300 a year on costly transaction fees and disadvantageous exchange rates, which equals one week's salary for the remitter or at least sixty days' salary for their kin in San Salvador, Mexico City, and Manila.

The actual cost of sending money incurred by remittance agencies ranges from $2.95 up to $5.54 per transaction. Senders are charged up to $25 in fees and exchange rate commissions per transaction. This represents a major loss of income for poor families worldwide. Studies show that increasing remittances to families and communities in the global South by 10% has the potential to uplift 33 million people out of the global poverty threshold in developing countries. We believe these high fees and disadvantageous exchange rates are a barrier to more money being sent home.

Since starting its own foundation in 2000, Western Union has spent 5 cents ($.05) for every $100 of corporate profit - lagging far behind Wal-Mart ($1.20) and Ben & Jerry's ($7.50).

Western Union has faced numerous lawsuits based on predatory fees and unfair exchange rates. These suits have resulted in millions of shareholder dollars being spent on settlements. These practices, along with the Company's relatively low degree of community reinvestment, increase the risk our Company faces in the competitive consumer market.

RESOLVED, the shareholders request that the Western Union Board of Directors undertake a special review of the effect of the company's remittance practices on the communities served and report to shareholders on its findings including any policy changes instituted as a result of the review. The review shall also compare Western Union's fees, exchange rates, and pricing structures with other companies in the industry and evaluate Western Union's community reinvestment and corporate giving practices relative to its competitors. This report, prepared at a reasonable cost and omitting proprietary information, shall be available to all shareholders no later than September 1, 2007.