Industry News

SANTA ANA, Calif., /PRNewswire-FirstCall/ -- The First American Corporation (NYSE: FAF), the nation's largest data provider, today announced results for the second quarter ended June 30, 2005:

	Three Months Ended June 30		Six Months Ended June 30
	2005	2004	2005	2004
Total revenues	$1.98 billion	$1.72 billion	$3.69 billion	$3.20 billion
Income before income taxes and minority interests	$265.6 million	$219.2 million	$419.3 million	$330.3 million
Net income	$139.5 million	$116.5 million	$218.7 million	$171.5 million
Net income per diluted share	$1.43	$1.27	$2.27	$1.90

The company posted record revenues and profits for the second quarter," stated Parker S. Kennedy, chairman and chief executive officer of The First American Corporation. "Second quarter earnings benefited from a 16 percent increase in closed title orders, compared with first quarter closings. While interest rate hikes during the first half of 2005 slowed refinancings, residential and commercial property purchase transactions remained solid, which resulted in steady real estate activity for the company's real estate-related businesses. These strong results reflect the benefits of our FAST Transaction System and the ongoing implementation of strategies such as centralized processing, bundling, strong acquisitions and market share growth."

Quarterly Financial Highlights

Financial Services Group:

• Revenues for the second quarter 2005 were $1.53 billion, an increase of
  17 percent when compared with $1.31 billion for the second quarter
  of 2004.
• Pretax income was $193.7 million, an increase of 27 percent when
  compared with $152.1 million in the prior year quarter.
• Pretax margins for the second quarter 2005 were 12.7 percent compared
  with 11.6 percent for the second quarter 2004.

Information Technology Group:

• Revenues for the second quarter 2005 were $453.0 million, an increase
  of 10 percent when compared with $411.4 million for the second quarter
  of 2004.
• Pretax income was $107.4 million, a 9 percent increase when compared
  with $98.5 million in the prior year quarter.
• Pretax margins for the second quarter 2005 were 23.7 percent compared
  with 23.9 percent for the second quarter 2004.

Source: First American