Press Release

The First American Corporation (NYSE: FAF), the nation’s leading diversified provider of business information and related products and services, today announced all-time record results for the fourth quarter and year ended Dec. 31, 2002:
   

Summary of Operations

“2002 was a banner year,” stated Parker S. Kennedy, president of The First American Corporation. “Record levels of home purchases and refinancings, spurred by historically low interest rates, produced record-high transaction volume in 2002 and contributed to impressive financial results in the real estate-related segments of our Financial Services and Information Technology groups.”

Quarterly Financial Highlights

Financial Services Group:

• Record operating revenues for the fourth quarter 2002 were $1.05 billion, an increase of 28 percent when compared with $817.3 million for the fourth quarter of 2001.             
• Pretax income was a record $110.8 million, an increase of 83 percent when compared with $60.4 million in the prior year quarter.              
• Pretax margins improved to 10.4 percent compared with 7.3 percent for the fourth quarter 2001 and 9.6 percent for the third quarter 2002.

Information Technology Group:

• Record operating revenues for the fourth quarter 2002 were $300.4 million, an increase of 28 percent compared with $234.7 million for the prior year quarter.             
• Pretax income was a record $77.0 million, an increase of 31 percent when compared with $58.9 million in the prior year quarter.             
• Pretax margins improved to 24.7 percent compared with 24.2 percent for the fourth quarter 2001.

2003 Outlook

Kennedy continued: “Order counts in our real estate-related businesses remain at elevated levels, which should bode well for the company’s results during the first half of 2003. Our focus continues to be on steady margin improvement through technology initiatives, back-office consolidation and solid expense controls. In addition, we are excited about our merger with US Search, which is expected to close in the second quarter 2003. This new public entity, which will be named First Advantage Corporation, will provide significant growth opportunities in the rapidly expanding screening services industry.”

Teleconference/Webcast

First American’s fourth-quarter and year-end results will be discussed in more detail on Wednesday, Feb.12, 2003, at 11:30 a.m. EST via teleconference. The dial-in number is (888) 396-9928 and the pass code is FIRST AMERICAN. The live audio webcast of the call will be available on First American’s Web Site at www.firstam.com/investor.  An audio replay of the conference call will be available through Feb. 16, 2003, by dialing (402) 998-1118. An audio archive of the call will also be available for replay on First American’s Web site.

About First American

The First American Corporation is a Fortune 500 company that traces its history to 1889. As the nation’s leading diversified provider of business information, the company supplies businesses and consumers with the information resources that affect the major economic events of people’s lives, such as getting a job; renting an apartment; buying a car, house, boat or airplane; securing a mortgage; opening or buying a business; and planning for retirement. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within seven primary business segments including: Title Insurance and Services, Specialty Insurance, Trust and Other Services, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $4.70 billion in 2002, First American has approximately 25,000 employees in more than 1,300 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com. 

Forward Looking Statements

Certain statements made in this press release, including those relating to 2003 first-half results, margin improvements and growth opportunities in the screening services industry are forward-looking. Risks and uncertainties exist which may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include: interest rate fluctuations; changes in the performance of the real estate markets; access to public records and other data; general volatility in the capital markets; changes in applicable government regulations; consolidation among the company’s significant customers and competitors; the company’s continued ability to identify businesses to be acquired; changes in the company’s ability to integrate businesses which it acquires; and other factors described in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2001, filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Summary of Earnings

Cash Provided by Operating Activities

Summary Balance Sheet Information

Summary Title Insurance Order Counts
From Direct Operations

Selected Financial Data