Online Resources Provides First Quarter 2003 Guidance

Company Also Announces Date for Fourth Quarter and Full Year 2002 Earnings Release

MCLEAN, Va., January 8, 2003

Online Resources Corp. (Nasdaq: ORCC), a leading outsourcer of Internet banking and payment services, today announced guidance for first quarter 2003 and revised guidance for the full year. The Company also reconfirmed its guidance for the fourth quarter of 2002.

The following statements are forward-looking, and actual results may differ materially. This guidance assumes no change in the method of accounting for equity compensation.

First Quarter of 2003

• The Company expects revenue to be between $10.3 million and $10.8 million for the first quarter of 2003.
• Gross profit margin is expected to be between 63 and 65 percent.
• The Company expects earnings before interest, taxes, depreciation and amortization (EBITDA) to expand to between $2.6 million and $3.0 million and operating profit to be between $1.9 million and $2.3 million.
• Net income is expected to be between $0.11 and $0.13 per share based on a projected 14.2 million weighted average shares outstanding.

This guidance assumes that the previously announced migration of California Federal Bank (Cal Fed) to Citigroup's platform occurs in the first quarter. Approximately 20 percent of expected first quarter revenue is derived from a one-time fee related to the conversion and early termination of the Company's contract with Cal Fed. As this fee has no corresponding costs, profit margin guidance is higher than would otherwise be expected.

Full Year 2003

Following the completion of its annual planning process, the Company has revised its preliminary full year guidance, raising revenue expectations and narrowing its profitability ranges.

• Revenue is expected to be between $37 million and $39 million. This represents a midpoint growth rate of approximately 18 percent over expected 2002 revenue and incorporates approximately 25 percent annual growth in revenue from non-Cal Fed clients.
• Gross profit margin is expected to be between 57 and 58 percent.
• EBITDA is anticipated to be between $6.1 million and $6.9 million for the year, with operating profit expected to be between $2.6 and $3.4 million. This assumes a return to full cash compensation for salaries and bonuses, a portion of which had previously paid in equity.
• Net income for 2003 is expected to be between $0.11 and $0.16 per share based on a projected 14.2 million weighted average shares outstanding.

With the departure of Cal Fed late in the first quarter, the Company expects to report a loss in the second quarter of 2003. It expects to return to profitability in the second half of 2003, as previously contracted new business is implemented and replaces a substantial portion of Cal Fed's bill payment volume. The Company further expects to be EBITDA positive throughout 2003.

Fourth Quarter and Full Year 2002 Earnings Release Date

Management will host a conference call to discuss its fourth quarter and full year 2002 results and 2003 guidance on Tuesday, February 18, 2003 at 4:30 p.m. ET. The conference call dial-in number is (877) 590-4770 for domestic participants and (706) 679-7688 for international participants. Alternatively, a live web cast of the call will be available through the "Investors" section of Online Resources' web site at www.orcc.com.

The call and web cast will be recorded and available for playback from 8:00 p.m. ET on February 18 until midnight on Tuesday, February 25. For the conference call playback, dial (800) 642-1687 for domestic participants and (706) 645-9291 for international participants and enter code 7498524. For web cast replay, go to the "Investors" section of www.orcc.com.

About Online Resources

Online Resources (Nasdaq: ORCC - www.orcc.com) is an outsourcer of Internet banking and payment services to over 500 financial institutions nationwide. In contrast to other providers, Online Resources owns, operates and drives a complete set of integrated e-financial services that are both necessary for Internet channel success and enable a superior customer experience. The company's industry-leading bill payment, call center, CRM and other services power more than 95 million transactions and $4 billion in consumer bill payments annually. Founded in 1989, Online Resources has been named one of the nation's fastest growing technology companies by Deloitte & Touche.

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. Specifically 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, latest 10-Q, and S-3 as filed with the Securities and Exchange Commission. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.

Media Contact: Beth Halloran
703.394.5248
bhalloran@orcc.com