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Revenues Nearly Double, End-Users Almost Triple Versus Prior Year

MCLEAN, Va., Feb. 15, 2000

Online Resources & Communications Corporation (Nasdaq: ORCC), a leading provider of Internet banking and bill payment services, today reported financial and operating results for the fourth quarter and year ending December 31, 1999.

FINANCIAL HIGHLIGHTS

Revenues for the fourth quarter of 1999 increased 93% to $2.7 million, compared to $1.4 million in the fourth quarter of 1998; revenues for the year ending December 31, 1999 increased 95% to $8.4 million, compared to $4.3 million in 1998.

Gross loss for the fourth quarter of 1999 improved to $49,000, compared to a loss of $470,000 in the fourth quarter of 1998; gross loss for the year ending December 31, 1999, improved to $636,000, compared to $2.0 million loss in 1998.

Operating losses for the fourth quarter of 1999 increased to $4.3 million, compared to $3.3 million for the fourth quarter of 1998; operating losses for the year ending December 31, 1999, increased to $13.8 million, compared to $10.5 million in 1998.

Pro forma loss from operations per share for the fourth quarter of 1999 was $(.39) per share (fully diluted for convertible preferred stock) compared to $(.52) per share for the fourth quarter in 1998; for the year ending 1999, the loss was $(1.46) per share, compared to $(1.65) per share for the year ended 1998.

Revenues for the quarter and the year increased due primarily to the increase in consumer end-users, where the company earns recurring fees. Gross loss improved due primarily to increased end-users and transactional bill payment volume. Operating losses increased primarily due to increased marketing spending, systems scale-up and product development. Pro forma operating losses per share in 1999 were impacted by the issuance of 3.1 million shares in connection with the company's June 1999 public offering.

OPERATING HIGHLIGHTS

Financial institutions under contract increased to 433 as of December 31, 1999, a 40% increase compared to 308 clients as of December 31, 1998; potential end-users at year-end (as measured by aggregate checking accounts) increased to 8.4 million compared to 6.0 million the prior year.

Financial institution clients launched into production increased to 242 as of December 31, 1999, a 95% increase compared to 124 clients as of December 31, 1998; potential end-users at year-end for clients launched increased to 5.8 million compared to 3.7 million the prior year.

Actual consumer end-users of the company's recurring bill payment and banking services increased to 135,000 as of December 31, 1999, a 175% increase compared to 49,000 end-users as of December 31, 1998; the end-user adoption rate (measured as a percentage of total checking accounts for clients launched) increased to 2.26% versus 1.36% the prior year.

OTHER HIGHLIGHTS

The company achieved several major strategic goals in 1999 in bolstering its financial resources with its $43 million public offering and scaling-up its operating systems with the conversion to its new Opus(sm) 3.0 platform.

In the fourth quarter of 1999, the company signed a major credit card issuer (with over 15 million accounts) for its bill payment services; other major signings and renewals during 1999 include Dime Savings, GreenPoint Bank, and CalFed; the company's reseller network also expanded during the year to 41.

In the fourth quarter of 1999, the company expanded its consumer marketing program to 115 client financial institutions and achieved favorable initial results; this initiative achieved a major 1999 objective of better management and support of client financial institution consumer marketing programs.

In the fourth quarter of 1999, the company's "financial hub" expanded with personalized start pages (MyWay.com), lending (Infilink), securities trading (EEI), small business (Politzer & Haney), and data mining (E.piphany); support of Intuit's Quicken ™ and Quickbooks ™ was announced earlier in 1999.

In the fourth quarter of 1999, the company bolstered its management team with two senior appointments and the Board election of Erwin Shames (former President of General Foods USA); during 1999 the company also strengthened its senior management appointing Ray Crosier (COO) and Alex Seltzer (CIO).

"In addition to excellent growth experienced in 1999, the past year also saw Online Resources solidifying our financial standing, scaling-up our systems, and building our organization," said Matthew P. Lawlor, chairman and CEO. "We are well-positioned for the year 2000, and we believe our extensive e-banking capabilities are unique in the industry. Our recent announcement of free Internet banking to clients represents a significant strategic milestone, through which we expect to penetrate further the over eight million consumer checking accounts and other consumer relationships that stand behind our financial institution clients."

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 over 400 institutional clients nationwide. The company provides consumer bill payment 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.

• Condensed Statements of Operations (Unaudited)
• Condensed Balance Sheets