Fidelity National Financial, Inc. Reports Fourth Quarter 2006 EPS of $0.34; Pro Forma EPS of $0.42

Jacksonville, Fla. -- (February 5, 2007) -- Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance, specialty insurance and claims management services, today reported operating results for the three-month and twelve-month periods ended December 31, 2006. FNF's reported earnings include the financial results of Fidelity National Information Services, Inc. ("FIS"), the former majority-owned subsidiary of FNF, through October 23, 2006, and also include all transaction costs related to the reorganization completed in the fourth quarter of 2006.

Complete quarterly and annual pro forma financial results for the years 2006 and 2005, which FNF believes are beneficial in analyzing its operations as they are currently organized, are included later in this earnings press release. These pro forma results exclude the financial results of FIS and all transaction costs related to the reorganization completed in the fourth quarter of 2006. The following are summary pro forma results for FNF for the three-month and twelve- month periods ending December 31, 2006 and 2005:

The following are summary financial results for the on-going operating segments of FNF for the three-month and twelve-month periods ending December 31, 2006 and 2005:

"2006 was a year in which we continued to actively seek the maximization of the value of FNF for our shareholders," said Chairman and Chief Executive Officer William P. Foley, II. "We announced and completed the reorganization of the company whereby we eliminated the holding company structure and created a set of transactions that allowed our shareholders to receive two distinct securities, FNF and FIS, in a tax efficient manner. Each entity is now a stand-alone public company that is free to pursue its own unique strategy in the interest of maximizing the value of its assets and continuing to create value for its shareholders." "FNF is now primarily composed of the title insurance business, the specialty insurance operations and the 40% ownership stake in the Sedgwick claims management business. In title, we continue to closely monitor order count, headcount and productivity metrics, which allowed us to generate nearly an 11% margin in the fourth quarter, despite an 8.5% decline in revenue compared to the prior year. Specialty insurance revenue and profitability declined from the prior year because the fourth quarter of 2005 included more than $100 million of revenue from the processing of Hurricane Katrina related flood claims. Additionally, fourth quarter profitability in the homeowners business was impacted by a sequential increase in fire and weather related claims, as the provision for homeowners claims was $36 million in the fourth quarter versus $21 million in the third quarter of 2006. Finally, Sedgwick is now more than a $600 million business with attractive EBITDA margins and it is well on its way to achieving the critical mass that will allow us to maximize the value of that asset on behalf of our shareholders."

Fidelity National Financial, Inc. (NYSE:FNF), is a leading provider of title insurance, specialty insurance and claims management services. FNF is one of the nation's largest title insurance companies through its title insurance underwriters - Fidelity National Title, Chicago Title, Ticor Title, Security Union Title and Alamo Title - that issue approximately 29 percent of all title insurance policies in the United States. FNF also provides flood insurance, personal lines insurance and home warranty insurance through its specialty insurance business. FNF also is a leading provider of outsourced claims management services to large corporate and public sector entities through its minority-owned subsidiary, Sedgwick CMS. More information about FNF can be found at www.fnf.com.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions, including changes in the financial markets; adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U. S. economy; our potential inability to find suitable acquisition candidates, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; our dependence on operating subsidiaries as a source of cash flow; significant competition that our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K and other filings with the Securities and Exchange Commission.

SOURCE: Fidelity National Financial, Inc.
CONTACT: Daniel Kennedy Murphy, Senior Vice President, Finance and Investor Relations, 904-854-8120, dkmurphy@fnf.com

Notes to Unaudited Pro Forma Summary of Earnings for the Years Ended December 31, 2006, and 2005 and for the Three-Month Periods Ended December 31, September 30, June 30, and March 31, 2006, and 2005

These pro forma summary of earnings include the historical statements of continuing operations of FNF and remove the results of operations of FIS and FNF minority interest expense relating to FIS and FNT as though the transaction had occurred on January 1, 2005.

1. This column represents the historical results of operations of FIS as included in FNF's consolidated results of operations for the periods presented.
2. This column represents the historical results of operations of FNF Capital as included in FNF's consolidated results of operations for the periods presented.
3. This represents the intercompany revenues relating to various agreements recorded on FIS' income statement that had already been eliminated from the consolidated results of operations of FNF. These revenues amounted to $185.8 million for the year ended December 31, 2006, $15.1 million, $67.3 million, $45.6 million, and $57.7 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $195.7 million for the year ended December 31, 2005, and $49.5 million, $50.9 million, $50.3 million, and $45.0 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively.
4. This represents a $318.2 million gain on sale relating to the sale of a minority equity interest in FIS.
5. This represents the intercompany expenses related to various agreements that were eliminated in the consolidated results of operations of FNF, but are third-party expenses subsequent to the transaction. These expenses amounted to $121.0 million for the year ended December 31, 2006, $8.8 million, $45.7 million, $27.4 million, and $39.1 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $114.9 million for the year ended December 31, 2005, and $29.9 million, $27.7 million, $31.2 million, and $26.1 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively.
6. These amounts represent transaction costs related to the reorganization, all of which have been excluded from the pro forma results of operations. These costs amounted to $47.3 million for the year ended December 31, 2006, and $38.7 million, $1.9 million and $6.7 million for three-month periods ended December 31, September 30 and June 30, 2006, respectively.
7. This represents the additional agent commissions paid by FNF to FIS that were previously eliminated in the consolidated results of FNF, but are a third-party expense subsequent to the transaction. These commissions amounted to $64.7 million for the year ended December 31, 2006, $6.3 million, $21.6 million, $18.3 million, and $18.6 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $80.8 million for the year ended December 31, 2005, and $19.5 million, $23.2 million, $19.1 million, and $18.9 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively.
8. This represents intercompany interest expense that is a third-party expense subsequent to the transaction. These expenses amounted to $0.7 million for the year ended December 31, 2006, $0.1 million, $0.2 million, $0.2 million, and $0.2 million in the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $0.4 million for the year ended December 31, 2005, and $0.1 million, $0.1 million, $0.1 million, and $0.1 million in the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively.
9. This represents the elimination of the minority interest expense recorded by FNF relating to its earnings in FIS and FNT. Minority interest expense relating to FIS was $96.2 million for the year ended December 31, 2006, $8.3 million, $39.7 million, $31.9 million, and $16.4 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $44.9 million for the year ended December 31, 2005, and $14.3 million, $13.3 million, $13.8 million, and $3.5 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively. Minority interest relating to FNT was $56.9 million for the year ended December 31, 2006, $3.7 million, $19.0 million, $20.4 million, and $13.8 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, and $18.7 million for the year and three-month period ended December 31, 2005. There were no minority interest expenses relating to earnings in FNT during the first three quarters of 2005 because FNT was a wholly-owned subsidiary of FNF during those periods.
10. Amounts presented approximate the actual number of basic and diluted weighted average shares outstanding subsequent to the transaction. These amounts have been used for all periods in order to enhance comparability.