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MCLEAN, Va., October 25, 2000

Online Resources 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 nine months ended September 30, 2000.

Revenues for the third quarter of 2000 increased 89 percent to $4.3 million, from $2.3 million in the third quarter of 1999. For the nine months ended September 30, 2000, revenues increased 93 percent to $11.1 million, from $5.8 million for the same period a year ago.

Gross profit for the third quarter of 2000 was $860,000, compared to a loss of $65,000 in the third quarter of 1999. For the nine months ended September 30, 2000, gross profit was $1.3 million compared to a loss of $587,000 for the same period a year ago.

The company's growth in revenues and gross profit reflected increases in consumer end users to 294,000 from 107,000 for the same period a year ago - an increase of 175 percent, and an increase of 35 percent from 218,000 users reported in the prior quarter ending June 30, 2000. Approximately 51 percent of the company's users are bill payment subscribers.

The company processed 8.0 million end user transactions for the third quarter of 2000, up from 3.0 million for the same period a year ago - an increase of 163 percent, and an increase of 22 percent from 6.6 million transactions reported in the prior quarter ending June 30, 2000.

Matthew P. Lawlor, chairman and chief executive officer of Online Resources, stated, "We ended the quarter with a gross profit of 20%. This is the third consecutive quarter of gross profit expansion. We are particularly pleased with our strong increase in service revenues which are largely recurring. Service revenues increased 105 percent over third quarter of 1999 and 30 percent over the second quarter of 2000. This resulted from very strong user growth and higher average fees per user. Our average monthly revenue per user increased to $4.74, the highest in the industry, due primarily to our relatively high proportion of bill payment users."

Operating losses for the third quarter were $4.6 million, compared to $3.4 million for the third quarter of 1999 and a $347,000 decrease over the second quarter of 2000. Operating losses for the nine months were $ 14.8 million, compared to $9.5 million for the nine months ended September 30, 1999. The increase in operating losses compared to the previous year is a result of an increase in general operating expenses resulting from an acceleration of marketing and other development spending after the company went public in June of 1999.

Net loss for the third quarter of 2000 was $0.38 per share, compared to a loss of $0.29 per share for the third quarter of 1999. Net loss for the nine months was $1.24 per share, compared to a pro forma loss before extraordinary loss of $1.67 per share (diluted for convertible preferred stock) for the same period in 1999.

"Online Resources continued to meet or exceed average expectations for revenue, gross margin and operating losses for the quarter. This was due to higher user growth and control of operating expenses. With consistently improved gross profit, a declining net loss and $20 million financing completed this quarter, we are well positioned to meet our future profitability targets," concluded Mr. Lawlor.

Business Outlook

Fourth Quarter
The following statements are based on current expectations and assume no change in current accounting policies related to recognition of implementation revenue. These statements are forward-looking, and actual results may differ materially.

• The company expects revenue for the fourth quarter to be up 20% to 28% from third quarter revenue of $4.3 million.
• The company expects gross profit percentages for the fourth quarter to increase to 25% to 30% of revenue from third quarter gross profit of 20%.
• The company expects a continuing decline in its loss from operations of 4% to 10% from third quarter loss from operations of $4.6 million.
• The company's net loss for the fourth quarter will be negatively impacted by interest expense related to the $20 million convertible notes, which is offset in part by interest earned on available funds.

Year 2001
The company expects no significant change in its operation or in the current business environment. Accordingly, growth rates and trends should parallel those realized in the year 2000 which are as follows:

• The company expects the current years annual revenue growth rates to be approximately 93% to 98%.
• The company's "gross margin" and "loss from operations" trends for the current year are detailed in the attached exhibit, "Historic Data".

The Outlook will be posted on our Web site and will be available to the public up to the start of our quiet period. Prior to the quiet period, which starts December 10, 2000 through the date of our year-end earnings announcement, the public can continue to rely on the Outlook on the web site as still being the company's current expectations on matters covered, unless the company publishes a notice stating otherwise.

Online Resources Corporation (http://www.orcc.com), a leading Internet application service provider, offers a comprehensive suite of e-financial services. The company provides its Quotien(sm) Internet banking, bill payment, customer care and other Web-based financial services to approximately 500 financial institutions with 300,000 consumer and small business end-users. An integrated database enables seamless user support, targeted marketing and personalization. Clients and users benefit from a simple yet powerful Internet solution, backed by an end-to-end service quality guarantee and bundled pricing advantages. Online Resources was founded in 1989 and has 400 employees.

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.

• Operating Data for Third Quarter 2000
• Historic Data
• Condensed Statements Of Operations (Unaudited)
• Condensed Balance Sheet