« More 2000 Releases

MCLEAN, Va., July 25, 2000

Online Resources & Communications Corporation (Nasdaq: ORCC), a leading application services provider of Internet banking, bill payment and e-financial services, today reported financial and operating results for the three months and six months ended June 30, 2000.

Revenues for the second quarter of 2000 increased 86 percent to $3.7 million, compared to $2.0 million in the second quarter of 1999. For the six months ended June 30, revenues increased 96 percent to $6.8 million, compared to $3.5 million for the same period a year ago.

Gross profit for the second quarter of 2000 was $442,000, compared to a loss of $120,000 in the second quarter of 1999. For the six months ended June 30, gross profit was $490,000, compared to a loss of $522,000 for the six months of 1999.

The company's growth in revenues and gross profit reflected increases in consumer end users to 218,000 from 81,000 and total transactions to 6.6 million from 2.1 million for the same three month period a year ago — an increase of 169 percent in end users and an increase of 217 percent in transactions.

Matthew P. Lawlor, chairman and chief executive officer of Online Resources, stated, "The improvement in our gross profit continues to validate our financial model and demonstrates that we are on a path to sustainable profitability. This was achieved by an industry high average for service revenue of $4.60 per end-user, coupled with a substantial increase in user volume spread over our relatively fixed operating cost base.

"We are especially encouraged by our progress in increasing user adoption and look forward to significant additional users as we tap into more than 15 million account holders that are served by our financial institution clients," continued Mr. Lawlor.

Operating losses for the second quarter of 2000 were $4.9 million, compared to $3.1 million for the second quarter of 1999. Operating losses for the six months were $10.2 million, compared to $6.1 million for the six months ended June 30, 1999. The increase in operating losses was attributed to expenses incurred from the acceleration of marketing efforts and to fund other developments after the company went public in June 1999. "We exceeded expectations for revenue, gross margin and operating losses for the quarter and have further stabilized our marketing and developmental spending to a level that better positions us to meet future targets," concluded Mr. Lawlor.

Net loss from operations for the second quarter of 2000 was $0.43 per share, compared to a pro forma loss of $0.35 per share (diluted for convertible preferred stock) for the second quarter of 1999. For the six-month period, net loss from operations was $0.90 per share, compared to a pro forma loss of $0.77 per share (diluted for convertible preferred stock) for the same period in 1999.

Online Resources & Communications Corporation (http://www.orcc.com) is a leading outsourcer of privately branded Internet financial services for regional and community banking institutions. Headquartered in McLean, Virginia, the company has over 450 institutional clients nationwide. Online Resources 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 them 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 Form 10-K as filed with the Securities and Exchange Commission.

• Key Operating Statistics for 2nd Quarter 2000
• Condensed Statements of Operations (Unaudited)
• Condensed Balance Sheet