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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;(1)&amp;#160;Basis of Presentation&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The unaudited financial information included in this report includes the accounts of Lender
   Processing Services, Inc. and its subsidiaries prepared in accordance with U.S. generally accepted
   accounting principles (&amp;#8220;GAAP&amp;#8221;) and the instructions to Form 10-Q and Article&amp;#160;10 of Regulation&amp;#160;S-X.
   All adjustments considered necessary for a fair presentation have been included. All significant
   intercompany accounts and transactions have been eliminated. The preparation of these consolidated
   financial statements in conformity with U.S. GAAP requires management to make estimates and
   assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
   assets and liabilities at the date of the consolidated financial statements and the reported
   amounts of revenues and expenses during the reporting periods. Actual results could differ from
   those estimates. This report should be read in conjunction with the Company&amp;#8217;s Annual Report on Form
   10-K that was filed on February&amp;#160;23, 2010 and our other filings with the Securities and Exchange
   Commission.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;&lt;i&gt;Lender Processing Services, Inc. Spin-off Transaction&lt;/i&gt;&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;On July&amp;#160;2, 2008, FIS distributed to its shareholders a dividend of one-half share of our
   common stock, par value $0.0001 per share, for each issued and outstanding share of FIS common
   stock held on June&amp;#160;24, 2008, which we refer to as the &amp;#8220;spin-off.&amp;#8221; Also on July&amp;#160;2, 2008, FIS
   exchanged 100% of our debt obligations for a like amount of FIS&amp;#8217;s existing Tranche B Term Loans
   issued under its Credit Agreement dated as of January&amp;#160;18, 2007. The spin-off was tax-free to FIS
   and its shareholders, and the debt-for-debt exchange undertaken in connection with the spin-off was
   tax-free to FIS. On July&amp;#160;3, 2008, we commenced regular way trading on the New York Stock Exchange
   under the trading symbol &amp;#8220;LPS.&amp;#8221; Prior to the spin-off, we were a wholly-owned subsidiary of FIS.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;&lt;i&gt;Principles of Consolidation&lt;/i&gt;&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The historical financial statements of the Company have been presented on a consolidated basis
   for financial reporting purposes.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;&lt;i&gt;Reporting Segments&lt;/i&gt;&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;We are a provider of integrated technology and outsourced services to the mortgage lending
   industry, with mortgage processing and default management services in the U.S. We conduct our
   operations through two reporting segments, Technology, Data and Analytics and Loan Transaction
   Services.
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