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Online Resources & Communications Corporation (Nasdaq: ORCC), a leading provider of Internet banking services, today reported financial results for the third quarter and the nine months ended September 30, 1999.

MCLEAN, Va., Oct. 27 /PRNewswire/

THIRD QUARTER HIGHLIGHTS
Revenues for the third quarter of 1999 increased 97% to $2.3 million, as expected, compared to $1.2 million in third quarter of 1998;

Operating losses for the third quarter of 1999 increased 41% to $3.4 million, as expected, compared to $2.4 million for the third quarter of 1998;

Total financial institutions under contract increased to 408 as of September 30, 1999, a 53% increase compared to 267 clients as of September 30, 1998;

The aggregate consumer checking accounts underlying client financial institutions, a measure of potential end-users, increased to 8.1 million as of September 30, 1999, versus 5.9 million the prior year;

The number of clients launched, into production, increased to 222 as of September 30, 1999, and their aggregate consumer checking accounts increased to 5.4 million as of September 30, 1999 from 2.9 million the prior year;

Total end-users increased to 107,000 as of September 30, 1999, a 189% increase compared to 37,000 as of September 30, 1998;

The initiative to assume co-marketing for participating clients was expanded to 61 pilots, and preliminary results were favorable;

The company renewed its service agreement with its largest client, California Federal Bank, a $55 billion thrift institution based in San Francisco, Ca.;

The reseller channel expanded to 36 partners, adding Symitar, a leading credit union processor with 240 clients with combined 2.5 million member checking (share draft) accounts;

Internet consumer access functionality was enhanced through partnership with MyWay.com, where banking end-users may customize their own web start-page and access with significant local, community-based content.

The year-to-year increase in quarterly revenues was primarily due to continued growth in core and support services. These services are recurring and include consumer access, billpaying and banking, call center support and other support services. The year-to-year increase in loss from operations was primarily due to an increase in operating expenses supporting the company's expansion.

The pro forma loss from operations for the third quarter of 1999 was ($0.31) per share, compared to a pro forma loss of ($0.38) per share from operations for the third quarter in 1998. The pro forma loss per share for all periods presented, is based on the weighted average number of common shares outstanding plus the weighted average of all outstanding convertible preferred stock, as if such convertible preferred stock were converted into common stock at issuance.

For the first nine months of 1999, revenues increased 97% to $5.8 million compared with revenues of $2.9 million for the same period last year. The revenue increase is primarily due to continued growth in recurring core and support services. The loss from operations for the first nine months of 1999 was $9.5 million, or ($1.06) pro forma loss per share, compared to a loss from operations of $7.2 million, or ($1.13) pro forma loss per share for the same period in the prior year.

"We really hit the mark this past quarter," said Chairman and CEO, Matthew P. Lawlor. "Internet banking is a critical option for banks — our strong results demonstrate that financial institutions and their customers are in agreement. We are pleased with our performance in all key operating and financial metrics that drive our business and recognize that we are just beginning to penetrate the 8 million checking account customers that underlie our financial institution client base."

Online Resources & Communications Corporation (http://www.orcc.com) is a leading outsourcer of privately-branded Internet financial services for regional and community banking institutions. The McLean, Virginia-based company has 408 institutional clients nationwide. The company provides consumer billpaying and banking services, and aggregates lending, insurance, securities trading and investment services. Online Resources performs real-time processing through its patented EFT gateway and full customer service for client institutions, giving them a comprehensive "hub" solution from a single vendor. Client consumer marketing programs are conducted under the bankonline.com co-brand.

This news release contains statements about future events and expectations, which are "forward-looking statements." Any statement in this release that is not a statement of historical fact may be deemed to be a forward-looking statement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Specific factors that might cause such a difference include, but are not limited to: the company's history of losses and anticipation of future losses; the company's dependence on the marketing efforts of third parties; the potential fluctuations in the company's operating results; the company's potential need for additional capital; the company's potential inability to expand the company's services and related products in the event of substantial increases in demand for these services and related products; the company's competition; the company's ability to attract and retain skilled personnel; the company's reliance on the company's patents and other intellectual property; the early stage of market adoption of the services it offers; consolidation of the banking and financial services industry; and those risks and uncertainties discussed in filings made by the company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the company's Registration Statement on Form S-1 as filed with the Securities and Exchange Commission.

• Key Operating Data
• Condensed Statements of Operations (Unaudited)
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