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Annual Run-Rate Hits 27 Million Transactions, $1.4 Billion Bill Payments, 200% Growth Online Resources Reports Consumer Usage Up Sharply Annual Run-Rate Hits 27 Million Transactions, $1.4 Billion Bill Payments, 200% Growth

MCLEAN, Va., June 7 /PRNewswire/

Online Resources & Communications Corp. ORCC, a leading provider of Internet banking and bill payment services to financial institutions, today announced that in May it crossed the milestone of 200,000 consumer end-users, and tripled the number of consumer transactions that it processed versus the prior year.

In May 2000, the company processed 2.3 million transactions, a 208 percent increase over May 1999. These included:

• 1,000,000 banking transactions, a 217 percent increase over last year
• 500,000 bill payment transactions, a 195 percent increase
• 200,000 customer contacts (66 percent for additional services), a 160 percent increase
• 600,000 other transactions, including EFT authentications, a 218 percent increase

Annualized, the figures project more than 27 million transactions, compared to 8.8 million a year ago.

Matthew P. Lawlor, the chairman and chief executive officer of Online Resources, said the increase in transactions reflects that the company's business model of providing end-to-end service is on target and on its projected growth track.

"Online Resources' competitive advantage is providing a complete solution of fully integrated capabilities," Mr. Lawlor said. "We offer a seamless suite of services: bill payment, online banking and cash management, a patented real-time EFT authorization and settlements system and a customer support call center."

He also noted that online banking is moving beyond the early adopter phase and is now growing faster than ATMs, telephone banking or other new technologies. About 22 million households in the United States are expected to be banking online in 2001, according to Gartner Group.

"The key for this kind of growth to continue will be to provide high quality, scaleable processes, and the ability to integrate, mine, and enhance consumer data to cross-sell many different services," he said.

In the first quarter of 2000, Online Resources reported its first gross profit and had $17 million in cash and no debt. Quarterly revenue of $3.1 million was more than double that of the prior year, meeting or exceeding most investment analyst expectations. Gross profit also met or exceeded most investment analyst expectations. Operating losses were higher than expected due to special promotional advertising and other one-time general operating costs.

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 and their retail customers, giving their clients a seamless "hub" solution with a single point of accountability and control.

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.

Notes:

Banking includes balance inquiries, account statement reviews, funds transfers.
Bill Payments include online consumer-initiated bill payments only, acting as consumer service provider (CSP) for financial institution clients.

Customer Care includes consumer end-user support, such as email, general and technical call center support, bill payment additions and requests for additional services.

Other Service includes secured EFT consumer access authentication and e-finance aggregation including online loan applications, securities trading, insurance quotes and other services (excluding non-transactional consumer web-site visits for client hosting and BankOnline.com).