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Tuesday, November 28, 2000, 3:03 p.m. BusinessWire

MCLEAN, Va. — (BUSINESS WIRE) — Nov. 28, 2000 — Online Resources Corp. (Nasdaq: ORCC), a leading provider of Internet banking and bill payment services to financial institutions, announced today the results of research it conducted.

The findings conclude that community banking and credit union online users have a higher adoption rate of bill payment services — 36 percent compared to the 22 percent adoption rate reported for the nation's largest banks in a research report by CS First Boston.

Studying the results of approximately 400 financial institution clients that have operational Internet banking, Online Resources found that financial institutions with assets of less than $10 billion and have tightly integrated banking and bill payment functions, scored the highest bill payment adoption rate.

Matthew P. Lawlor, Chairman and CEO of Online Resources, stated, "Our findings confirm that consumer adoption and retention are highly correlated to fully integrated bill payment services. Other factors that contribute to success of this segment of financial institutions are a high percent of electronic remittances, successful direct marketing efforts and a single point of accountability when customer care is needed."

The findings of the company's research track with its strategy of targeting smaller financial institutions in addition to larger, national banking institutions. In keeping with the research, Online Resources expects the adoption rate to continue to increase as new services such as bill presentment become available, so long as they are tightly integrated.

The company found that its larger financial institution clients, that had fully integrated banking and bill payment functions, also scored higher as a whole than the 22 percent adoption rate reported for large banks in CS First Boston's report dated June 26, 2000.

The company also reported its clients' customer retention rate increased substantially through the adoption of online bill payment services. The typical customer retention rate for large US banking institutions ranges from 75 to 80 percent annually, while Online Resources' bill payment users retain the service 91 percent annually.

"We believe consumers understand the difference and have more confidence in a bill payment service that reflects their current account balances, not one that may be a day or more old," said Lawlor.

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 Registration Statement on Form S-1 and the Company's Form 10-K as filed with the Securities and Exchange Commission.