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MCLEAN, Va., Jan. 18, 2000

Online Resources & Communications Corp. (Nasdaq: ORCC), a leading provider of Internet banking services, today announced preliminary fourth quarter 1999 revenue of $2.7 million versus $1.4 million in the fourth quarter of 1998.

"We are pleased that our revenue grew 93% versus the fourth quarter of 1998, and we estimate that we will meet or exceed other equally important metrics of our business," said Online Resources CEO Matthew P. Lawlor. "However, our fourth quarter revenue is approximately $300,000 shy of our expectation.

"We see two reasons. First, the expected Y2K-related slowdown in financial institution signings in the fourth quarter was greater than we anticipated. This reduced implementation fees otherwise earned from signing new clients. The silver lining is that with Y2K behind us, we are now seeing an unusually large pipeline of potential sales for the upcoming year.

"The second reason is several large client institutions moved faster than anticipated to our unbundled pricing plan. When a consumer uses only the Web, we no longer charge private network telecommunications fees for that user. Thus, our revenues are reduced.

"However, the trend towards Web-only end-users clearly serves our long-term strategic interest," Lawlor said. "Our financial institution clients get lower home banking pricing that, in turn, they can pass on to their customers. With a lower cost per user, our clients are motivated to attract more customers to our service. With more users per institution, we earn a higher margin. In fact, we exceeded our fourth quarter end-user forecast, and we're approaching a positive gross margin."

The 1999 fourth quarter and annual results are expected to be announced, as planned, on February 15.

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 more than 400 institutional clients nationwide. It provides consumer bill paying 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.