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Includes Free Marketing & End-to-End Service Level Guarantees

MCLEAN, Va., Jan. 31, 2000

Online Resources & Communications Corp. (Nasdaq: ORCC), a leading provider of Internet banking and bill paying services, announced today it now offers the Internet banking portion of its services free of monthly user charges to client institutions that also sign up for its bill paying service and use its free consumer marketing programs. The company's offer also includes end-to-end performance guarantees.

"This is the offer to beat in the industry," said Ron Bergamesca, senior vice president of marketing. "We believe this will be a compelling offer that will tear down barriers for many financial institutions that haven't yet adopted an Internet strategy."

The new Internet services plan includes three features:

Free Internet banking — no monthly user fees for the portion of Online Resources' services that allows consumers to view statements and balances and transfer funds among accounts.

End-to-end performance guarantees — at 110% of industry standards on key services as certified by an independent source — or Online Resources pays financial penalties to the client institution.

Consumer marketing — implemented and paid for by Online Resources.

"We believe the industry is ready to adopt a new Internet banking paradigm," Bergamesca said. "The Internet is a delivery channel, just like the telephone and the ATM that came before it. This offer helps institutions move Internet banking from a subscriber-based service to one where every financial services customer or member can access information and conduct transactions as they would through other remote delivery channels."

This offer includes customary implementation and setup fees and a fixed monthly maintenance fee.

Breaking the Mold
This offer changes the competitive dynamics of Internet banking, according to Bergamesca, who says other providers typically charge an institution a monthly fee per customer, or they charge for an expensive in-house solution that the institution must then operate, maintain and upgrade over time. But now, Online Resources' financial institutions that offer the company's bill pay service can get Internet banking free of monthly user charges. Without such charges, Bergamesca said, financial institutions will find it cost effective to add as many customers or members as possible on the service.

"Although the long-run business case for Internet banking is quite compelling, many financial institutions want to avoid the short-run increase in costs," Bergamesca said. "By breaking that mold for Internet banking, we mitigate resistance to signing up more customers."

Consumer Pricing
Participating financial institutions will offer customers or members Internet banking free of charge and bill pay services at attractive market rates.

"Signing up institutions is the first step," Bergamesca said. "This plan provides a great incentive for institutions to add users. And as users get online, we'll cross-sell "view only" Internet banking users into higher retention bill paying and other profitable financial services."

End-to-End Performance Guarantee
Because Online Resources performs in-house all the services an institution needs—including 24/7 customer support and bill paying—the company can offer a comprehensive service guarantee.

"Other outsourcers will find it difficult to match such guarantees because they outsource critical support functions to other companies," Bergamesca said. "We perform every step of the process, and we're willing to be judged on that performance."

Online Resources Assumes Consumer Marketing Costs
Under this new plan, Online Resources will implement one or more of its proven marketing programs and assume the costs of marketing the offer to consumers. These programs include branch incentives, solo direct mail, statement inserts, telemarketing and Web ads—all free of both design and implementation costs. The company also plans to offer consumers incentives to sign up for the bill pay service.

In support of this new program, Online Resources began today an aggressive advertising campaign in the banking trade press.

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.