Online Resources Reports Robust Fourth Quarter

Earnings Exceed Expectations Capping Strong 2002

MCLEAN, Va., February 18, 2003

Online Resources Corporation (Nasdaq: ORCC), a leading outsourcer of Internet banking and payment services, today reported financial and operating results for the three months and full year ending December 31, 2002.

• Revenue for the fourth quarter of 2002 increased 27 percent to $8.5 million, versus $6.7 million in the fourth quarter of 2001. For the full year 2002, revenue increased 31 percent to $32.4 million, from $24.6 million in the prior year.
• Gross profit margin increased to 59 percent of revenue, compared to 47 percent in the fourth quarter of 2001. For the full year 2002, gross profit margin was 55 percent of revenue, compared to 42 percent in the prior year.
• Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $1.5 million for the quarter compared to an EBITDA loss of $694,000 in the fourth quarter of 2001. For the 2002 year, EBITDA increased to $3.6 million, versus an EBITDA loss of $6.5 million in 2001.
• Income from operations for the fourth quarter of 2002 increased to $723,000, versus a $1.2 million loss in the prior year. For the full year 2002, income from operations increased to $1.0 million, compared to an $8.6 million loss in 2001.
• Net income for fourth quarter 2002 increased to $0.03 per share, versus a net loss of $0.13 per share in the fourth quarter of 2001. The net loss for 2002 of $0.03 per share improved compared to a net loss of $0.82 per share in 2001.

"It was an outstanding quarter, capping a break-through year for Online Resources," stated Matthew P. Lawlor, chairman and chief executive of the Company. "We set high goals for 2002, then exceeded them despite some extenuating circumstances. Credit for the strong results goes to our attractive business model, a great staff and loyal clients."

Lawlor added, "We look forward to building on these results in 2003 and beyond. Our consumer adoption and bill pay cross-sell programs are progressing nicely, and our recent initiative to expand our institutional sales channel is beginning to show positive results. We also renewed 106 client contracts during 2002 and expect to continue our success with renewals this year."

The Company also reported that in the next three months it expects to launch two major new clients, converting their large existing user bases to Online Resources' platform. "This will be a meaningful step forward in replacing our two largest clients who, after being acquired, are at risk or scheduled to migrate off our platform," stated Lawlor. He further commented that the Company's remaining client base is well diversified, with its top 10 clients accounting for less than 20 percent of revenues, and no single client exceeding 3 percent of revenue.

The Company also reported that it expects notification from the NASD on February 21, 2003 that it does not currently meet the requirements for continued inclusion in the Nasdaq National Market. Though the Company currently qualifies for the Nasdaq SmallCap Market, it will appeal for continued inclusion in the National Market and expects to come into compliance through its expected financial performance in the first quarter of 2003 and shareholder-approved conversions of debt to equity or other means. If the Company finds it cannot meet the continued inclusion requirements for the National Market, it will apply for listing on the SmallCap Market.

2002 Highlights

The Company also reviewed highlights of the past year:

• Achieved net income profitability during the year, consistently meeting or exceeding the Company's guidance and consensus analyst expectations;
• Attained its 29th consecutive quarter of year-over-year revenue growth exceeding 25 percent, and was cited by Deloitte & Touche as one of the nation's fastest growing technology firms;
• Sharply expanded consumer contact services, through industry-leading call center and consumer marketing capabilities, resulting in:
  • 39 percent increase in end-users to 623,000
  • Over 50 percent improvement in consumer banking adoption rate
  • Bill payment cross-sell ratio of 26 percent, among the highest in industry;
• Processed over 80 percent more transactions and decreased total expenses while improving the Company's already high level of service quality.

2003 Business Outlook

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.

There is no change in the Company's business outlook as announced on January 8, 2003. In summary, the Company expects the following:

* Note: assumes 14.4 million shares to fully diluted shares outstanding shares outstanding versus 14.2 million shares assumed in prior guidance

The Company's 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 call is open to the public by dialing (877) 590-4770 for domestic participants and (706) 679-7688 for international participants. Alternatively, a live web cast of the conference call is available through the "Investors" section of Online Resources' website at www.orcc.com. For those unable to participate at that time, the call will be recorded and available for playback from 8:00 p.m. ET on February 18 until midnight on Tuesday, February 25 by dialing (800) 642-1687 for domestic participants and (706) 645-9291 for international participants and entering 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 critical banking, payments and marketing infrastructure that enable a superior customer experience and Internet channel success. The company's industry-leading services power approximately 100 million transactions and $5 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.

• Quarterly Operating Data
• Statements of Operations
• Condensed Balance Sheets

Media Contact:
Beth Halloran,
Director, Corporate Communications
703.394.5248
bhalloran@orcc.com

Investor Contact:
Catherine Graham,
EVP & Chief Financial Officer
703.394.5155
cgraham@orcc.com