Exhibit 99.1

NetSpend Holdings, Inc. Reports Third Quarter Financial Results

Signs Exclusive Prepaid Card Distribution Agreement with Intuit

Continues Retail Expansion with New Distribution Partners

Adjusted Earnings Per Share Up 25 Percent

AUSTIN, Texas--(BUSINESS WIRE)--November 1, 2012--NetSpend Holdings, Inc. (Nasdaq:NTSP), a leading provider of general-purpose reloadable prepaid debit cards (GPR) and related financial services, today announced financial results for the quarter ended September 30, 2012.

“We delivered another quarter of strong financial performance, grew our direct deposit base and signed some great new partnerships,” said Dan Henry, chief executive officer of NetSpend.

The Company also announced today that it has signed a multi-year, exclusive agreement with Intuit to provide prepaid card services with its TurboTax® and QuickBooks® products.

“Intuit has chosen us to be their exclusive program and distribution manager and processor for their GPR and payroll card programs,” said Henry. “Our prepaid cards will be available through TurboTax for consumers who want to direct deposit their tax refunds and for small business owners who want to use our payroll card versus paper checks. Through this partnership, we are able to offer our prepaid cards to Intuit’s 24 million customers who use TurboTax software online and more than one million small business owners who use QuickBooks for their payroll services. We expect to launch our program with TurboTax as part of the upcoming 2012 tax season beginning in January 2013.”

During the third quarter, the Company signed an agreement with Walgreens. “The PayPal prepaid card is being sold now in Walgreens locations throughout the U.S.,” added Henry. “Today, we also are announcing the launch of both the NetSpend and Paypal prepaid cards in CVS stores. We could not be more pleased with the momentum we continue to generate in our retail initiative.”

Additionally, the Company brought to conclusion a number of lingering issues in the third quarter. "The Florida AG inquiry is resolved and behind us now and we have reached an agreement in principle to settle the Alexsam litigation," commented Henry. “On the bank side, we extended our agreement with SunTrust and entered into a new bank sponsoring agreement with BofI Federal Bank. So it has been a great quarter all around.”

Q3 2012 Highlights:

• Revenues up 14% to $84.9 million in Q3 2012 as compared to $74.3 million in Q3 2011
• Number of active cards with direct deposit up 25% to 1,018,000 as of September 30, 2012 as compared to 816,000 as of September 30, 2011
• Percentage of active cards¹ with direct deposit was approximately 45% as of September 30, 2012 as compared to approximately 39% as of September 30, 2011
• GAAP net income declined by $3.9 million to $4.4 million in Q3 2012 after giving effect to litigation related losses of $10.3 million as compared to GAAP net income of $8.3 million in Q3 2011
• Diluted Earnings Per Share declined to $0.05 in Q3 2012 after giving effect to litigation related losses of $0.08 per share as compared to Diluted Earnings Per Share of $0.09 in Q3 2011
• Adjusted EBITDA² up 13% in Q3 2012 to $24.1 million as compared to $21.3 million in Q3 2011
• Adjusted Diluted Net Income Per Share² up 25% in Q3 2012 to $0.15 as compared to $0.12 in Q3 2011
• Gross Dollar Volume (GDV) of $3.1 billion during Q3 2012 as compared to $2.6 billion during Q3 2011

Refer to our Annual Report on Form 10-K filed on February 24, 2012 for a description of our key business metrics.

Fiscal Third Quarter 2012 Results

Revenues were $84.9 million for the quarter ended September 30, 2012, an increase of approximately 14% over the $74.3 million of revenues recorded in the same quarter of 2011. This increase was substantially driven by the increase in direct deposit accounts, and to a lesser extent, the expansion of product features across NetSpend’s direct deposit customer base. Interchange revenue represented approximately 22% of total revenue during the three months ended September 30, 2012.

Net income was $4.4 million for the quarter ended September 30, 2012, compared to net income of $8.3 million for the quarter ended September 30, 2011. NetSpend’s net income for the quarter ended September 30, 2012 includes an aggregate of $16.9 million of net interest expense, income tax expense, depreciation and amortization and other losses, which includes pre-tax litigation related losses of $10.3 million. Net income for the quarter ended September 30, 2012 also includes approximately $2.8 million in stock-based compensation expense. For the quarter ended September 30, 2011, the comparable amount of net interest expense, income tax expense and depreciation and amortization and other losses was $10.1 million. Net income for the quarter ended September 30, 2011 also includes approximately $2.9 million in stock-based compensation expense.

2012 Outlook

NetSpend reported that it now expects full year 2012 revenue to be between $348 and $352 million, its adjusted EBITDA to fall between $95 and $97 million and its adjusted net income per diluted share to be between $0.56 and $0.58.

The foregoing expectations reflect the following assumptions:

• An effective tax rate of approximately 40%;
• Non-cash equity compensation of between approximately $10.5 and $11.5 million;
• Cash outlays for capital expenditures for the full year of between approximately $13 and $14 million;
• An effective cost of debt capital of approximately 3.5%; and
• Diluted shares outstanding for the full year of approximately 84 million.

Investor Conference Call and Webcast

NetSpend will host an investor conference call to discuss its second quarter 2012 results today, November 1, 2012, at 5:30 p.m. EDT. The conference call can be accessed live over the phone by dialing (877) 853-5634 or (707) 287-9375 for international callers. A replay will be available until November 8, 2012 at (855) 859-2056 or (404) 537-3406 for international callers; the conference ID is 44013024. The call will be webcast live from NetSpend’s website at http://investor.netspend.com.

Non-GAAP Financial Information

To supplement NetSpend’s consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), this press release includes EBITDA, Adjusted EBITDA and Adjusted Net Income. EBITDA, Adjusted EBITDA and Adjusted Net Income are not measures of financial performance under GAAP. Accordingly, they should not be considered a substitute for net income, operating income or other income or cash flow data prepared in accordance with GAAP. These non-GAAP financial measures may be different from similarly-titled non-GAAP financial measures used by other companies. We believe that the presentation of these non-GAAP financial measures provides useful information to management and investors regarding underlying trends in NetSpend’s business and provides improved comparability between periods in different years. Reconciliations between GAAP measures and non-GAAP measures and between actual results and adjusted results are provided at the end of this press release.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended, and Rule 3(b)-6 under the Securities Exchange Act of 1934, as amended. These statements include, among other things, statements regarding future events that involve risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements contained in this release, and reported results should not be considered as an indication of future performance. Reliance on any forward-looking statement involves risks and uncertainties and although NetSpend believes that the assumptions on which the forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and, as a result, the forward-looking statements based on those assumptions could be materially incorrect. These factors include but are not limited to:

• NetSpend’s dependence on a limited number of retail distributors of its products;
• increasing competition in the prepaid card industry;
• exposure to cardholder fraud and other losses;
• NetSpend’s reliance on its relationships with its issuing banks;
• regulatory, legislative and judicial developments;
• changes in card association or network organization rules;
• NetSpend’s ability to protect against unauthorized disclosure of cardholder data;
• NetSpend’s ability to promote its brand;
• NetSpend’s reliance on outsourced customer service providers;
• NetSpend’s ability to protect its intellectual property rights and defend itself against claims of patent infringement.

The potential risks and uncertainties that could cause actual results to differ from those projected are discussed in greater detail in NetSpend’s filings with the Securities and Exchange Commission (“SEC”), which are available on NetSpend’s website at www.netspend.com and on the SEC website at www.sec.gov. All information provided in this release and in the attachments is as of November 1, 2012, and, except as required by law, NetSpend does not intend to update this information as a result of future events or developments.

About NetSpend

NetSpend is a leading provider of general-purpose reloadable (GPR) prepaid debit cards and related financial services to the estimated 68 million underbanked consumers in the United States who do not have a traditional bank account or who rely on alternative financial services. The Company's mission is to develop products and services that empower underbanked consumers with the convenience, security and freedom to be self-banked. Headquartered in Austin, TX, NetSpend is traded on the NASDAQ stock exchange under the symbol NTSP. Please visit http://www.netspend.com for more information.

Follow NetSpend on Twitter: http://twitter.com/netspend or Facebook: http://www.facebook.com/netspend

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¹ The number of active cards as of September 30, 2012 was approximately 2,287,000 as compared to approximately 2,061,000 as of September 30, 2011.

² Reconciliations of Adjusted EBITDA and Adjusted Net Income to net income are provided in the tables immediately following the condensed consolidated statements of cash flows. Additional information about the Company’s non-GAAP financial measures can be found under the caption “Non-GAAP Financial Information.”

• It provides a meaningful comparison of our operating results over several periods because it removes the impact of income and expense items that are not a direct result of our core operations, such as goodwill and intangible impairments, legal settlements and one-time settlement gains, losses on the early extinguishment of long-term debt and other infrequent losses;
• We use it as a tool to assist in our planning for the effect of strategic operating decisions and for the prediction of future operating results; and
• We use it to evaluate our capacity to incur and service debt, fund capital expenditures and expand our business.

Other losses of $10.3 million during the three months ended September 30, 2012 and $37.1 million during the nine months ended September 30, 2012 primarily relate to accruals for legal contingencies and settlements. Other losses of $0.3 million during the three and nine months ended September 30, 2011 primarily relate to severance costs incurred in connection with the consolidation of some of our processing platforms and call center activities.

• Assets being depreciated will often have to be replaced in the future and Adjusted EBITDA does not reflect any expenditure for these items;
• Adjusted EBITDA does not reflect the significant interest expense or the payments necessary to service interest payments on our debt;
• Adjusted Net Income provides a meaningful comparison of our operating results over several periods because it removes the impact of income and expense items that are not a direct result of our core operations, such as goodwill and intangible impairments, legal settlements and one-time settlement gains, losses on the early extinguishment of long-term debt and other infrequent losses;
• Adjusted Net Income per share on a diluted basis functions as a threshold target for our company-wide employee bonus compensation; and
• We believe Adjusted Net Income measurements are used by investors as a supplemental measure to evaluate the overall operating performance of companies in our industry.

Other losses of $10.3 million during the three months ended September 30, 2012 and $37.1 million during the nine months ended September 30, 2012 primarily relate to accruals for legal contingencies and settlements. Other losses of $0.3 million during the three and nine months ended September 30, 2011 primarily relate to severance costs incurred in connection with the consolidation of some of our processing platforms and call center activities.

CONTACT:
NetSpend Holdings
Investor Contact:
George Gresham, 866-979-1996
Chief Financial Officer
investor@netspend.com
or
Media Contact:
Krista Shepard, 512-531-8732
kshepard@netspend.com